Financial Update – April 2018

Each month I will post an update on my finances to both give you, the reader, some insight into my situation and to give me markers of my progress on my financial journey. My updates consist of two parts:

  • Financial Progress Table – Tracks net worth progress.
  • Spending Table – Compares monthly spending to an average (for me) “bare bones” budget, keeping me accountable for additional expenses.

For now, monthly updates include only my personal net worth and spending. As my fiancé and I combine our finances, updates will shift to cover going values instead.

Financial Progress

Each net worth goal in the Financial Progress table is broken down into undisclosed units of money. My current goal is to reach “Financial Freedom.” By the time I reach this goal I will have:

  • A retirement account that can support us when my fiancé hits 65
  • Two college savings funds funded for four years of in-state public university tuition, room, and board
  • An emergency fund for six or more months of living expenses
  • Sufficient liquidity for my fiancé and/or I to make a career change with one to two years’ runway
  • A mortgage less than two times my gross salary without bonuses

Once “Financial Freedom” is achieved, the focus will then working be towards “Financial Equilibrium”, where the income from investments covers all our ongoing expenses.

april 2018

Spending

I’ve created a “bare bones” budget which represents the average minimum amount I can expect to spend each month. This is the minimum amount I need to comfortably live in case of a job loss, emergency, etc. I expect to frequently go over my “bare bones” budget in a number of categories (here’s looking at you, “Groceries & Dining”), but I want to remain accountable to myself when I do so.

For privacy reasons, there are two things I do not include in my spending updates: my monthly mortgage and charitable donations (pegged at 10% of my net income).

april 2018 spend.png

Monthly Summary

Second to last month of upward net worth trajectory, woohoo! I managed to squeak in some extra money into my Mega Backdoor Roth IRA this month and will be adding more aggressively during the next. Right now my income has been helping me keep up with the slow-rolling bear market, but soon that will no longer be true.

The crunch continues at work and should be going until middle of May. I’ll be so glad when this slew of deadlines is finished and I can finally start transitioning my ongoing responsibilities to my coworkers. I’m so ready to be done.

In terms of spending, I feel like I did okay this month. I don’t know, for some reason I was under the illusion when I started blogging my monthly spending I’d be closer to my “Bare Bones” numbers? Austere I am not, obviously.

Notable things that happened this month include:

  • The sun finally came out for spring. Unfortunately, so did my allergies.
  • Revamped my resume in earnest and started applying for new positions.
  • Work, work, work toward the finish line.
  • Took Little Sis for some pool/air hockey/bowling for her birthday.
  • Attended a joke science conference with fiancé.
  • Made significant progress on wedding planning, including caterer booking and selecting outfits (or at least patterns, fabric) for the big day.

How were your finances in April?

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