Financial Update – August 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.

august 18 net worth.png

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).

aug 2018 spend.png

Monthly Summary

I have been overwhelmed with stress lately. Between work, the wedding, a close friend in the hospital, I am barely getting by. Hopefully by mid-October things will have settled down.

I shelled out a lot on food this month, but that’s nothing new. Otherwise, I think I did decently. On investments, it looks like the stock market has been gangbusters. Honestly, that worries me a lot. Not really sure what to do though except keep plowing in.

Notable things that happened this month include:

  • Showing up when it mattered for a friend in need

How were your finances in August?

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4 thoughts on “Financial Update – August 2018

  1. Just wondering what password manager you use, and if you find it user-friendly? I’ve been considering switching to a professional option, instead of the hokey text file I’m currently using 😛

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    1. I use LastPass just because that’s what I’ve always had. If I were less lazy and were willing to transfer everything over to something new I might consider using 1Password instead, which has a somewhat better UX.

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  2. Best of luck with the busy and stressful times! Sorry to hear about your friend, and I hope they feel better soon :[. But it’s good to be able to be there for someone you care about when they need you.

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