Goals

Dec 2018 Net Worth / Year-End Update

Budget Guy Goals, Net Worth

Net Worth

At the conclusion of 2018, net worth went down the month of December to end at $343,287.54, a 2.32% decline from November. This is primarily due to stock market volatility.

Goals

All primary goals were met as planned, which represent over $42,000 getting invested outside of my 401(k) – which includes taxable brokerages and Roth IRA. I was also able to do this while maintaining a minimum 8 month emergency fund.

Summary

Overall I’m very satisfied with how 2018 went. I’m not happy with the extreme amount of market volatility to end the year, but it’s something I can’t control. I am, however, satisfied to have achieved the following psychological milestones:

  • Total value of over $100,000 in personal brokerages
  • Maintained close to $30,000 in bank account
  • Net worth increased over $36,000 from the end of 2017, which shows constant investing will pay dividends over the long-term
  • Taxable brokerage dividend income was over $2,200, an increase of $885 from 2017

2017 Goals Update

Budget Guy Goals

As we get closer to the end of the year, it’s important to take a look at how the goals have been doing.  The only thing concerning right now is that the planned Investments of 40% of income is in the “yellow” stage, which means we’re between 2% and 5% of target.  We always want things to be in “green”.  This means that I’ll need to allocate another $1,000 from bank accounts to brokerage before the end of the year in order to make this goal.  All other primary goals are in the green, so no concerns there.

While it’s not shown in this picture, my cash flow for the year is currently sitting in the red about $2,000, meaning I’ll end the year with less cash on hand than when I started.  While I still have plenty of money for emergencies, I always like to end the year with more cash than I started with.  Eventually (next 1 to 2 years) I’ll be buying another vehicle, and I don’t take out loans anymore.  So this means I’ll need the cash up-front to afford it.

 

Overall: I’m not concerned with where I’m at, and while I always want things to be better than they are, ultimately I’m confident all my goals will be met in 2017.

2017 Goals are Here

Budget Guy Goals

The current status of the goals are on the menu, or by clicking here.  The goals are:

Invest at least 40% of net income (excl. 401k).

This goal help ensure that as income increases, a proportionate amount of money is put into my investment accounts.  This is better than a fixed amount because it helps me stay diligent about investing income as it’s earned, as opposed to concentrating on a fixed amount.  In addition, it provides flexibility to still meet a goal if income drops for any reason.

Contribute Federal Maximum into Roth IRA.

This is a carry-over goal from 2016, but makes sure I invest the maximum allowed to a Roth IRA ($5,500).

End the year with average 8 months expenses.

Since having an emergency fund remains important, and to help prevent me from “cheating” to meet the other goals at the cost of draining the bank accounts, this goal makes sure that I always maintain an emergency fund based upon actual expenses.  Note that I have a number of exclusions because should income stop, there’s no way I’ll be spending in those categories, and thus should not count as a “normal” expense.

Stretch Goal – Invest at least 45% of net income (excl. 401k).

This is a stretch goal because the 45% of net income is difficult to attain.  I want to eventually try to invest a minimum of 50% net income, so having stretch goals helps me get that target.

Stretch Goal – End the year with average 12 months expenses in bank accounts.

While some would argue that having 12 months in an emergency fund is crazy, I don’t think that’s true.  While I would not care to have more than that amount in cash since it’s not making me any money, it sure comes in handy in case of a sudden job loss and cushion against unexpected expenses.