Net Worth Report: January 2017 Edition

The first month of 2017 is over! That means we are done with 8% of the year already! And what a better way to bring it in by doing your taxes, hah!

It’s also time to check in on my New Year’s Resolution! Was I able to track every single transaction in January? Did I eat out at all?

Find out on the latest chapter of the Net Worth Report! This one!

Related: 2017 New Years Resolutions

Brief Disclaimer: Some of the products and services on this post may offer compensation for referrals. For the products and services that do not receive compensation, there are referred simply because I think these products and services and useful and will be convenient to have.

Income: $2,608.84

In January, my income came in at $2,608.84. This is because I switched my 401(k) contributions from after-tax to traditional pre-tax. Additionally, there is some extra income added due to per-diem as I am “reimbursed” for work travel.

The best thing about my company currently is that they allow me to perform after-tax contributions to my 401(k) after maxing out the traditional pre-tax portion of my account, which is set at $18,000.00. The maximum contribution I can put towards my after-tax portion is $35,000.00, which I can then perform an in-service withdrawal and roll it over to my ROTH IRA. This method is also known as the Mega Backdoor ROTH.

Unfortunately, I don’t think I will be able to continue contributing to the after-tax portion of my account for 2017 as I currently have plans to purchase a house before the year ends. This means I will have to reduce my 401(k) contribution percentage in order to save up for a down payment.

Wait, what? SP, you’re going to purchase a house?!

Unfortunately, yes. Due to unforeseen circumstances, I will be purchasing a house to provide shelter for my relatives as they immigrate to America. Furthermore, I will most likely be compensated via rent, so that should help me pay for a part of the mortgage. The only bad part is that I’m from Los Angeles, where houses are ridiculously expensive and can range upwards to $750,000.00 to $1,000,000.00+ depending on the area.

Expenses: $773.17

The majority of my expenses this month was spent on the Automotive section, which is a total of $668.99.

Out of the $668.99, $459.99 is paid towards my car loan per month. The rest was because I had to renew my DMV registration fee for the year and it came out to be $209.00. Currently, my car loan has 0% interest, so I’m not in a hurry to pay it off.

The bad part to this is that my car was stolen in the first week of January, so now I am currently paying for something that I am not using. I’m hoping my insurance will kick in and cover the rest of my loan and effectively remove the Automotive section from my budget in the future, as I no longer have a need for cars.

After the Automotive section is the Groceries section, where I spent a total of $77.24. I can break it down further as I had recorded it line-by-line in a special Google Docs sheet I use.

Groceries: $77.24

  • Bottling Fees: $1.68
  • Ingredients: $55.86
  • Junk Food: $16.44
  • Plastic Bag: $0.10
  • Taxes: $3.16

This is interesting, because out of the $77.24 I spent on groceries, 27.67% ($21.38) of it could have been avoided if I didn’t have such a craving for junk food or simply of drank out of the tap instead of buying water bottles. It’s definitely something to improve on for next month.

After Groceries is the Service Charges section, where I incurred a total of $26.93. $10.47 of those charges were for getting some paperwork notarized to file a claim to my car insurance holder, Geico. The rest of the charges, $16.46, were due to maintenance fees on my old employer’s 401(k), which I have been holding out on rolling over because the fund options in there were so much better.

Finally, there is the General Merchandise section, where I incurred exactly $0.01. The reason I did this was because I had signed up for the Barclay AAdvantage Aviator Red World Elite Mastercard, where I would earn 40,000 bonus miles after making my first purchase in the first 90 days and pay the annual fee of $95.00.

$95.01 is a good deal for 40,000 American Airline Miles as 40,000 miles can get you a round-trip flight from anywhere in the US to Hawaii if you book off-peak!

Net Worth: $125,986.32

With that, I end January 2017 with a Net Worth of $125,986.32, which is a total increase of $6,830.36 or 5.73%!

2017 Financial Goals Status Check

If you remember back in my December Net Worth Report, I had written about a few goals I wanted to achieve. If you don’t remember, that’s alright as I’ll be writing them below so you can follow along as well!

  1. Spend less than $20,000 and downsize as much as possible.
    • Current Spending YTD: $773.17
    • Status: On Track!
    • Thoughts: No comment on this for now, but it seems like I’m doing really well!
  2. Make my budget line-items more clear and not vague.
    • Current Line-Items: Pretty clear.
    • Status: On Track!
    • Thoughts: I think I am doing well on this, as I have been breaking down what I buy line-by-line.
  3. Try to reach $200,000 Net Worth by the end of the year.
    • Current Net Worth YTD: $125,986.32
    • Status: On Track!
    • Thoughts: I might not be able to reach $200,000.00 net worth by the end of this year if I purchase a house, but we shall see how it goes.

Recap

Overall, I would say that I did pretty well for January. My net worth increased by 5.73% from $119,115.96 to $125,986.32.

I was able to track every single transaction and record them line-by-line. I even got the bottling fees, taxes, and plastic bag fees in too! The best part about January was that I did not eat out at all and instead made food at home! This reduced my expenses a lot!

How did you guys do on January? Have you been keeping up with your goals and resolutions? Let me know in the comments below!

If you aren’t already tracking your accounts or net worth, check out Personal Capital! It’s an amazing online tool that provides great visualizations and is easy to use!

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19 thoughts on “Net Worth Report: January 2017 Edition

  • February 6, 2017 at 6:29 pm
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    January flew by! Congrats on the net worth increase in January. Nicely done, SP.

    I am all too familiar with Southern California home prices. I’m not sure how accurate it is, but I have always heard you cannot go wrong buying CA real estate. Here’s an article you might find interesting https://www.biggerpockets.com/renewsblog/2016/07/02/first-time-home-buying/. It does a good job of presenting different buying strategies. Good luck to you as you prepare, save and eventually pull the trigger on buying a house.

    Cody

    Reply
    • February 7, 2017 at 1:53 pm
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      Thanks for the comment, Cody!

      I took a read of the article in Bigger Pockets and I’ll definitely be more of a mix between #1 (Buying the biggest, nicest luxury property one can possibly afford in the nicest possible school district or coolest part of town, stretching one’s financial limits in the process) and #2 (Buying a reasonable home in a reasonable area at a reasonable price that one can comfortably afford).

      I’m sure it would all work out if everything goes well within the next few years and nothing major happens in my household’s income. Otherwise, there may be some problems.

      Oh well, the first thing to probably get started is to get pre-approved for a loan and go from there.

      Reply
        • February 7, 2017 at 7:51 pm
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          Thanks! It’s still up for discussion, but I’ll start performing the beginning steps of purchasing a house. We’ll see how it progresses as the year goes on.

          Reply
  • February 7, 2017 at 8:25 am
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    The good thing is that you are on top of all your spending and have a plan at a young age. You should be in great shape in your 30’s and 40’s.

    Reply
    • February 7, 2017 at 1:55 pm
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      Yep! That’s an optimistic way to look at it! At least my finances will and should be stable by the time I’m in my 30’s and 40’s.

      There’s always the possibility of delaying my retirement date because I have the flexibility to.

      Reply
  • February 7, 2017 at 2:54 pm
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    Wow, great job with keeping your spending for the month so low! That definitely helps in terms of increasing your net worth, but it will also help with saving for a down payment. Thanks for sharing your progress!

    Reply
    • February 7, 2017 at 3:09 pm
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      Thanks, SRGO.

      I’m pretty proud of myself on January’s spending. I think I can reduce it some more once some personal problems get removed.

      I have yet to reduce my contributions to my 401(k) to start on my down payment, but I plan to once I figure out what the best course of action to take is after speaking with a loan officer.

      Reply
  • February 7, 2017 at 6:56 pm
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    January sure did fly by! I can’t believe we’re 7 days into February and that Valentine’s Day is next week! Yikes! I better get planning a special homemade gift for the mister 🙂 Congrats on your net worth increase! I used to obsessively check ours; one of my resolutions this year is to only check in once/month. So far, so good!

    Reply
    • February 7, 2017 at 7:58 pm
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      Yeah, it did! Can’t believe it’s already February!

      I hope you finish the gift on time and that he loves it!

      That’s a great resolution actually! I’m guilty of checking my net worth almost everyday. Maybe I should do the same and check it less frequently!

      Reply
  • February 7, 2017 at 7:24 pm
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    Those are some fantastic numbers! You’re definitely on the right track, and that net worth trajectory is pointed the right way for sure. L.A. is definitely a rough housing market to get into, I lived there as a teenager, and wish that my parents had bought a house at the time. It was still in the $400-500k range back then, which they couldn’t afford. They would be able to retire millionaires today if they had. If you keep up those habits, you’ll definitely have the option to retire early!

    Reply
    • February 7, 2017 at 7:56 pm
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      Thanks, Max!

      We’ll see if the housing situation does go through. If it does, my plan to retire early would be shifted back a few years, but if not, I would be on track for my 30s.

      There’s also the possibility of purchasing the house and then selling it afterwards too.

      Reply
  • February 7, 2017 at 9:03 pm
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    Nice job with the increase in net worth!!! Plus that’s awesome that you were able to buy $77 worth of groceries for a month. I am going to have my wife get some tips from you 🙂

    Reply
    • February 7, 2017 at 9:13 pm
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      Haha, thanks, MSM!

      Most of my groceries were mainly cause I’m on a diet and I stocked up on Chicken Breast and Broccoli. Eating lean and clean to get bigger!

      Reply
  • February 9, 2017 at 12:31 pm
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    Congratulations on the strong start to 2017! I apologize as I’m not a regular reader of the blog, but how are you able to have no housing expenses? Do you live with family or have no mortgage?

    Reply
    • February 9, 2017 at 1:12 pm
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      Hey and welcome, WSP!

      So I’m in a bit of a lucky situation as I don’t have to pay for housing because of work. My work is paying for my hotels when I have to travel to a client, and I’m usually at client site instead of at my parent’s apartment.

      I may start incurring housing expenses later on as my parents want to move out towards a house to accommodate my relatives who are immigrating over, but that’s still in discussion.

      Reply
  • February 10, 2017 at 7:19 pm
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    Wow, nice work on keeping those expenses down! Looks like you are making amazing progress with your savings rate. Are you thinking about relocating at all out of the main area for the home to try to save some money?

    Reply
    • February 11, 2017 at 4:03 am
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      Thanks, Steven!

      I’m also thinking about purchasing a home near my work location as it would be half the price ($400,000). It’s still pretty expensive, but I don’t foresee my family wanting to move out of California soon. When my parents retire, then there will be a possibility.

      Reply

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