This year marks the beginning of my personal finance journey, which began one month after completing my PhD. Thanks to a financially savvy friend, who was well on their way to financial independence, I quickly became motivated to do better. I also realized it would be a good idea to prepare for the unfortunate but likely scenario of disability retirement.
Liquid Assets | Jan-16 | Dec-16 | $ Change |
---|---|---|---|
Cash & Savings | $3,946 | $2,357 | ($1,589) |
FSA | $1,625 | $0 | ($1,625) |
Other | $0 | $290 | +$290 |
Retirement | Jan-16 | Dec-16 | $ Change |
Roth IRA | $3,620 | $11,749 | +$8,129 |
401K | $4,069 | $11,339 | +$7,270 |
Liabilities | Oct-16 | Dec-16 | $ Change |
Credit Cards | $773 | $0 | +$773 |
Medical | $0 | $175 | ($175) |
Piano | $2,893 | $0 | +$2,893 |
Net Worth | $9,594 | $25,749 | +$16,165 |
% Change | +286.5% |
In the aspect of personal finances, 2016 went by smoothly. My net worth almost tripled, and I surpassed a $25,000 net worth!
Typically a bad health year is seen as a catastrophic event, but for me every year tends to not be so hot for my health. While I didn’t mention or record all of my medical expenses, they were high. I ended up reaching my out of pocket maximum. This happened last year as well. Thankfully, my FSA cushioned a lot of the blow and I am do well at cost minimization when shopping for a health insurance plan.
Overall I’m pleased with where I ended up. The only thing that disappoints me is the lack of liquid assets. When I skim through my entries I can see that $2,000 in catch up IRA contributions and a $2,900 loan repayment were big contributing factors to this. With that in mind, my Cash & Savings did increase otherwise. Still this is one thing I really need to work on.
Half way through 2016 I changed the software I use to track my spending. I started off using both mint and personal capital, but after further consideration, I no longer feel comfortable having a third-party know my login/banking information. I now manually enter my transactions into Quicken, That being said, below is my spending for the year.
According to Quicken, I spent $35,233.48 in 2016. There is a “Bill & Utility” payment for $2,375 to my company for over-reimbursment for my relocation. Therefore, I really only spent $32.858.48. For reference, in 2015 I spent $37,389. A lot of this had to do with a $4,000 piano purchase, moving expenses (such as paying double rent) etc. When I lived exclusively in the midwest, I spent $22,569 in 2014, $19,409 in 2013, and $22,623 in 2012.
[…] year since I’ve started to budget and diligently track my finances. As mentioned previously, 2016 went by fairly smoothly, with no real surprises. While I didn’t quite meet all my financial goals, it was an […]
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