I blinked and August disappeared. I typically look forward to this post every month because it forces me to take an honest assessment of our financial picture and compare it to our goals and targets. This month has mostly been focused on simply surviving with a new job (for me), still unpacking from the move, a two month old, and a three year old who will not start school until next week. Since my wife is trying to run a business, work on her Ph.D., take care of both of the kids until I get home, and then we switch it has left little time to even get much sleep. That is why I am glad we set up our financial plans to run with minimal interference. This is the benefit of automating as much as possible so that we can prevent (or at least moderate) runaway spending because we are exhausted and want to just throw money at the problems (eating, childcare, cleaning, etc.). Starting in September I feel we will start to be able to get our head above water, or at least sleep a little bit more…
Typically I provide a nice table of all my accounts listing our assets and change in balances, but this month I am taking a break from that since so many accounts are moving around. Enough time has finally passed to start consolidating accounts from previous jobs, new retirement accounts are being opened, and our former house should be sold next week (eliminating a huge liability). By next month I should have a much less complicated table of assets, and honestly I am questioning whether that much detail is necessary…
Currently our Net Worth is $714,695 adding $39,211 to our total this month and $111,741 increase since the start of this project. Income was up slightly this month, but most of the gains came from having an actual signed contract on our former house in Florida. I have always valued our real estate properties conservatively based on a fire sale estimate, but the reality is that they have more value when we have the time for a normal sale process.
Here is how we did on our goals for July 2016:
Our goal is to save $60,000 (or more) this year and unless some major catastrophe comes up we will make this goal. We saved $3,292.99 this month bring our yearly total to $38,138.19. The amount saved in the final quarter of this year should increase as we have a few projects with the business that make large payments near the end of the year.
Spending this month was $5,121.72 exceeding our $5,000 target, but I am not going to complain given the insanity of the last month. I am actually surprised that we did not overspend by significantly more given that it took over a week to get our kitchen unpacked from the move. September should give us a more realistic idea of spending in North Carolina compared to Florida, all else being equal. Car insurance dropped by over 80%!
My wife and I have a new passion for this goal after our move. I thought we were doing fairly well in this area but once you pack up and then unbox everything you own, it made us realize how much stuff we still have that is unnecessary. Once things settle a little bit with child care and work we are going to tackle this with a vengeance.
My new job has started and it has been great, but it does take a while to acclimate to a new environment. Once I am a little more settled I should get into a better routine and increase my efficiency and productivity, but now it is consuming a significant amount of time. I admit that I am really happy with this new job and I think I can easily handle doing this for five more years. I will continue updating more about this in separate posts once I get a true handle on expectations and the environment. Right now it is still the honeymoon phase…
I started this blog to keep myself honest through this process and at the same time share something I am very passionate with others. I had set a goal to try and write at least a few times a month, but I have significantly missed that goal with the new child, new job, new location. Luckily I am the only one holding myself accountable on this goal, but I will try to do better. The more I write about what we are doing and sharing what has worked for us, the more I am able to think about this and optimize our project.