Moving Parts

I have a lot of unique transactions that will be coming in and out this month. This has left me with -$208 in my bank account. Well technically I am not in the red, but $2,000 of what is in my bank account is not mine, and it will be gone come June/July (long story, which I will not explain). So the -$208 represents what I have in liquid assets. What should come in this month to rectify the current situation includes the following:

  1. $470. FSA Reimbursement.  Last months medical expenses have yet to be processed completely, I will try and see what is going on over the next couple of days so my FSA can reimburse this money.
  2. $700. State Tax Return.
  3. $1535. Paycheck. This would come on the 25th of this month
  4. $975. Money owed to me
  5. $300. Insurance Reimbursement

It should be noted that I still have ~$300 left of my variable income to spend on food and other necessities.  Once all of that is taken care of, I should have ~$3475 of liquid assets. Once I pay my rent that will drop down to $1825 on May 1.

I have another business trip coming up next month, and I will not be contributing to my Roth IRA until after my vacation. This is the timeline and holdings I expect for April-June.

  • May 21 – I leave for vacation.
    •  $4,055 in liquid assets
      • $4,055= $1825 (carry over) + $2455 (May paychecks) + $175 (Additional income) – 400 (May spending)
    • +$500 in 401K
    • +$570 in Roth IRA
  • June 1 – Rental payment
    • $2,405 in liquid assets
      • $2,805= $4,055 (carry over) – $1,650 (rent).
  • June 4 – Return from trip
    • $1,905 in liquid assets
      • $1,905 = $2,405 (carry over) – $500 (vacation spending).
  • June 6 – Pay day
    • $3,155 in liquid assets
      • $3,155 = $1,905 (carry over) + $1250 (income)
    • +$285 in Roth IRA
    • +$245 in Roth 401K
  • June 20 – Pay day
    • $4,400 in liquid assets
      • $4,400 = $3,155 (carry over) + $1,245 (income)
    •  +$285 in Roth IRA
    • +$245 to Roth 401K

So by the end of June I hope to have contributed at least $1,000 to my 401K and $1,000 to my Roth IRA.

Net Worth Update – March 2016

I went over budget for the month of March, but it wasn’t a complete fail. Firstly, about 5 days before the end of the month I realized I had given myself an extra $20 to spend in the “Everything Else” category on mint.com. Oops!  Also, 5 days before the end of the month, I went on a bit of a shopping spree with my mom.  The good thing is, a lot of the shopping was her “gift” to me for graduation, and so my spending wasn’t terrible. Because she took me shopping  though, I paid for all of our meals over the weekend, and I also paid for a new pair of shoes (~$27). She did not like said pair of shoes, so she would not buy them. According to mint.com my spending was as follows:

Category Budgeted Actual Remaining
Rent $1,650 $1,650 $0 left
Fixed Expenses $70 $64 $6 left
Food $200 $193 $7 left
Everything Else $300 $315 $15 over
Total  $2,220  $2,222  $2 over

My net worth managed to increase by ~10%.  A notable event for the month of March included receiving the remainder of my reimbursement, which was a little over $400. I put my hotel stays on my personal credit card to earn reward points. I also think a 401K contribution from the three-paycheck-month of February didn’t post until March 1, so that increased by a bit more than expected as well.  Maybe the market performed well too? I haven’t really been paying too much attention.

Assets Feb-16 Mar-16 $ Change
Cash & Savings $2,575 $491 ($2,084)
Roth IRA $3,613 $5,245 +$1,632
401K $4,595 $5,645 +$1,050
FSA $1,228 $1,228 +$0
Liabilities Feb-16 Mar-16 $ Change
Credit Cards $460 $42 +$418
Medical Exp.  $100 $0 +$100
Net Worth $11,451 $12,567 +$1,116
% Change +10%

Pending Payments

My Cash/Savings are expected to increase by $562 once my FSA reimburses me for medical expenses.  This has no influence on my networth since it’s a transfer, but  my cash balance would be $562 more.

Goals

I would like to put the following short-term goals in writing:

  • Max out my 2015 IRA contributions ($1385) before April 15
    • No contributions for April 25 or May 9 paydays
    • Reinstitute contributions in June (~$210) and then $315 there after.
  • Have $4,000 in liquid assets (i.e. cash) by the end of the year.

Net Worth Update – February 2016

I’m a horrible blogger, I forgot about you after only one entry, haha. Well things are going well with the finances.  I managed to stick to a ~$2,200/month spending budget while living in D.C. for the months of January and February. For the upcoming months I would like to continue this spending trend, it doesn’t seem terribly impossible:

Category Amount
Rent $1,650
Fixed Expenses $100
Food $200
Everything Else $250
Savings $250
Roth 401K $490
Roth IRA $615

It works better for me to lump “Everything Else” and periodically track my spending on Mint. The other expenses are highly variable, and it doesn’t really make sense to predict the new pair of shoes I need. I do dine out frequently, but I also don’t drink so $200 is a reasonable food budget for me even in a big city.

After January and February, my current net worth is $11,451. I received three paychecks in February, which definitely helped with the net worth jump (I only budget for 2). My holdings as of March 1 were as follows:

Assets Jan-16 Feb-16 $ Change
Cash & Savings $3,946 $2,575 ($1,371)
Roth IRA $3,620 $3,613 ($7)
Roth 401K $4,069 $4,595 +$526
FSA $1,625 $1,228 ($397)
Liabilities Jan-16 Feb-16 $ Change
Piano Loan $2,893 +$2,893
Credit Cards $773 $460 +$313
Medical Exp. $100 ($100)
Net Worth $9,594 $11,451 +$1,857
% Change +19%

Income & Spending

January and February were months of smooth sailing. For the month of February, my income was a bit higher for the aforementioned reasons. I technically did overspend in the Food category, but that was mostly due to a business trip. Those expenses were reimbursed.

Medical Costs

I do not bother budgeting my FSA account. After all, it must be used by years end. I am beginning to think that $1,625 might not have been enough. I know that I’ll likely be spending $500+ during the month of March. I did receive a $400 reward card from my health insurance company which could potentially last the rest of the year barring a hospitalization and/or surgery.

Retirement Accounts

For January and February I decided not to contribute much to my retirement accounts. Instead, with the market in flux, I paid off my sizable piano loan. I would like to max out my 2015 Roth IRA contribution before mid-April, so I will be dipping into my savings for that.

Taxes

I filed and I’m in the green. I decided to put my returns towards an Amazon credit.  I haven’t included my ~$500 Amazon balance in my net-worth, but it will be interesting to see how much harder it is to stick to my budget when it dwindles.Now that I’m finally settled in DC, I don’t do much online shopping.

Upcoming Vacation

I’m going to Colombia in May. I paid for my flight using reward points, and I’ll be staying with friends. I’m almost certain that I will have to make a few financial exceptions for the month of May to accommodate the trip. It will be worth it! I don’t plan on seriously limiting my spending on this trip, but I tend not to spend much on vacations. A year ago I went to Korea for a week and I brought $200 or so and I had the hardest time getting rid of it. I ended up coming back with a bunch of cute things like penguin socks. Other than food, I don’t really see a lot of extra expenses, but of course I’ll get a souvenir.

Condo?

I pay far too much for my apartment and don’t get anything from it. I am seriously contemplating purchasing a condo.