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
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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.
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.
- 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!
- 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!
- 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.
- 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.
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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