Time for a quarterly check in!
This makes 13 quarters in a row I have tracked our net worth. Last quarter was the first drop, and in Q1 it came back with a fury. Seeing that happen really makes the long term investing strategy feel right. Hard to market time with a bear market false start that roars back over the next 3 months. Constantly second guessing my decisions seems like unnecessary stress.
There may be shinier investments out there, but I have enjoyed the automation and simplicity that come with index investing. Set your allocation, pick your fund and focus your attention on earning more or spending less. A rebalance here and there should be all the “trading” you need to deal with.
Before the number fun, here are some random updates from the AE household
- Mrs. AE and I spent 3 days in Vegas to wrap up Q1. It was the first time both of us left the two kids together and the first vacation we have had without a kid and/or pregnant Mrs. AE in FOREVER. It was a great time. A weird combination of frugal Vegas hacks and stupid expensive meals/drinks.
- We now have a 2-year-old! The younger one is also crawling. Funny how it just clicks for them one day and they are off.
- Mrs. AE started a new job! So far so good, it came with a healthy pay bump that I will cover later.
- Winter is over. Winter is over. Winter is over. Winter is OVER. We have had our fair share of sick kids over the last 3 months. Ready to get out of cold/flu season and get outside.
On to the numbers!
For anyone that has not seen this done before, I hold myself accountable by posting my net worth progress for everyone to see. I firmly believe there is more value in setting and tracking goals, but like to check in on our progress quarterly.
Q1 $262,268.57 – 2019 Net Worth – UP $34,872.99
Breaking down the numbers:
- 15.35% jump in Q1, easily the biggest quarterly gain we have ever had. The bonus is the majority of our gain is in our investment accounts now that we don’t have much for debt outside of our mortgage.
- I keep our house at the initial valuation after we built. It has definitely gone up since then but I want to keep the valuation conservative since it is not easy to get at the equity.
- I know I have been talking about bumping up our brokerage account for a few quarters, but I raided some of the cash sitting in there to fully fund our Roth IRAs for 2018. Going to pay it back before Mrs. AE can contribute to her 401k, just didn’t want to miss out on any Roth dollars.
- We have shifted to caring more about our investment/cash balance as that is the wealth building fuel that gives us options. The equity in our home is great but we need somewhere to live.
Net Worth Quarter by Quarter
Came back with a vengeance!
Net Worth Update – The Good
Our income jump in Q1 was insane
I talked about this in my Two Paths to Doubling Your Income post but Mrs. AE got a new job and a massive raise! It was $15,000 or 21.4% over her previous employer with a 2% increase in 401k matching.
Her win makes my 6% yearly raise look terrible, even though I know a lot of people would kill to get anywhere near that. Tacking my $5,500 to her $15,000 and we are making significantly more money than 2018.
I had a lot of fun updating our savings spreadsheet after these raises went into effect. We will be saving/investing the bulk of the extra cash flow.
Employee Stock Purchase Plan
This continues to be a win. The last 18 months have worked out really well with huge jumps in stock price on top of my 15% discount. I usually sell to fund out Roth IRAs but I can hold and see if this trend continues. If/when I do sell it will go into either our brokerage account or emergency fund (that will double as a real estate fund as the balance grows)
Travel/Credit Card Hacking
Got approved for the Capital One Savor card that comes with a $500 cash back bonus. It is 4% cash back on entertainment and dining (worked out well in Vegas) and 2% cash back at the grocery store. Will start looking for a new card once we hit the minimum spend.
Maxed out both Roth IRAs for 2018
Better late than never!
We maxed out both our Roth IRAs for 2018 in March before the April 15th Deadline for 2018. With that last income jump, we are getting closer to not being able to use the Roth IRA (even though we have some buffers by reducing our MAGI through tax-deferred accounts).
With the pay increases maxing them out should be easier to do and we can double down on our brokerage and real estate pile.
We did our share by contributing, but the market roared back from a rough Q4. Our net worth is definitely at the will of the market now, time to buckle in and enjoy the ride!
Net Worth Update – The Bad
Overall this was a great quarter financially, outside of one thing…
Our dog developed something called “Happy Tail” which basically means his tail developed a sore. Then when he wagged it, it would spray blood all over our walls like some sort of Dexter fantasy shit. After 3 vet visits, and 3,540 tail wraps (seriously, wrapping a dogs tail is like putting sunscreen on a toddler) it wouldn’t heal.
Then it started turning black…1 more trip (to a new vet) and we found out we had to take some off his tail off ($800)
All was good for a few days, then he slipped his cone off and chewed out 4/7 stitches… 1 More trip to the vet, $300 to sedate and re-suture.
10 days later, all is good in the world, 1 final (FREE) vet visit to take the stitches out.
This went on for about 5 weeks, and it sucked. In total it was over $1,400 and a ton of time. BUT he is happy and healthy now so it’s all worth it.
The dog also pooped in the car one day when he was all loopy from the drugs.
Do you track your Net Worth? How was your Q4?