Investment & Retirement Contribution
+$40K - Vanguard VWENX Taxable
+$15.1K - 457 & 401K
+$5500 - ROTH VTSAX
+$17.5K - 457
+$3.1K – 529 Plan
+$14.1K Mandatory Contribution
+$105.5K Total Contribution
Mortgage Balance: $459,900
Home Value: $442,562
Underwater: -$17,338 Yikes!
We sold home and bought a new home causing our Net Worth to creep up very slowly in 2016 around $20K. The biggest gains are retirements and taxable account $105K contributions. This puts us $483K Net Worth. I expect to hit $600K NW by the end of 2017.
We also bought a new car that we paid cash for (2016 Sentra) for my daily commute.
We also plan to pay extra payment towards the mortgage next year bring that balance down to $420K.
Investment & Retirement Contribution
June has been little busy with kids final weeks in school. Now they are off for summer, lots of activity plan (basketball and bowling). Our oldest will be attending summer school starting next week.
Last week was also our 13th year anniversary. We took 3 days off and spent 3 days in Sonoma County coastal beach. Beautiful beach all around. The good news we were able to stick to our $300 budget for entire trip.
Now that Father's is coming wife advanced me to do some shopping on the way back from our trip; new dress shirts/shoes/socks for work. I totally forgot about Father's day. I missed this expense to include under discretionary spending.
Next week, I have 2 interview set up (one is definitely a promising prospect for 2nd round). I got a call from the Manager last week from our budget office to meet with Director of Financial Services. I kind of nervous at the same time, I want to impress the shit out of these people. I'm ready!
Financially, our budget for June is on track. We already saved YTD $11,051 in taxable savings. Tax Deferred contributions $17,098.75
Update for May:
Year-To-Date, our retirement balances are still down 1.62%, although our Net Worth is way UP compared to last year this time, mainly our debt obligation went down to “zero” with the exceptions of our existing mortgage. I will say, the market has gained momentum that help recover losses from Jan & Feb.
This month we are paying off our daughter’s private tuition for next year, due including registration $5K. Wrote a check for the entire year yesterday.
We had multiple goals in the beginning of the year & completed goals
1) Prepay San Diego trip and Lake Tahoe vacation. DONE.
2) ROTH 2016 Fully Funded by April. DONE
3) Christmas Fund $2500. DONE
4) Car Fund
5) Home renovation
For the rest of this year, we can now focus on goal 4 & 5. We’re pretty excited to get this started.
Overall, our Expenses including savings + car fund minus tuition going estimated $13,600 for May. June is our breathing room. But we can still manage if we stick to our budget which we are. Failure is not an OPTION!!!
Almost done the budget for May. Some expenses we are looking to do in the house, replace the garbage disposal and fixing our bathroom faucet with new water lines. I found a handy man who live nearby (labor charge $225)...No DIY! I'm looking around $400 that include new garbage disposal & 4 waterlines replacement.
In June, our dog Yogi needs major teeth cleaning, (I mean he needs it bad) about $1100.00 Seems expensive so we are shopping around.
Yup...pretty exciting happened today. (Normally don't celebrate much) BUT
After updating all our accounts [total asset - liabilities]....we reached [$504,927.79 in Net Worth]. Its also the first time, our investment/retirements is more than our home value.
Its like being HIGH in the SKY TODAY! Woohoo!!
We leave for San Diego trip Friday 3AM...(8-9 hour drive) So i'm just trying to squeezed as much pounds to lose before we hit the road. Run 5 miles this morning.
Its a short weekend trip but enough exposure we limit our expenses. Everything has been paid for except for gas. We rented a beach house with other friends, to help cut the cost & food. Our budget for this trip is $500. It was 8 years ago last time we were in San Diego..can't wait!!!
April is starting well. We fully funded my ROTH (Vanguard $5500) for 2016 & Xmas fund ($2500). The next phase of focus are retirements, car fund, savings/home renovation for the remainding year.
While we continue to add extra principal payment, we have severals big items coming up 1) our two dogs need teeth cleanings, 2) looking for a decent treadmill, 3) kitchen renovation. Not exactly sure how much this will cost, but we are hoping to cash flow most of the cost (once we have bidders), except the kitchen which we have set up fund on monthly basis. We need treadmill because of our allergy. I love running but on 'hot days' its tough to get outdoor. So we're hoping to find one soon. Our kitchen needs new garbage disposal and new dishwasher. But DW wants to redo the kitchen & the bathroom. Im guessing we need to tackle the kitchen first. Once we the know the cost and how much to spend, we can start funding it more aggressively, if necessary we can redirect the car fund to renovation fund.
We've been going back in forth for several weeks whether to increase my wife's 403(b) & 457 contributions. Right now it set up at 8%, but we finally decided to increase to 10%. Our goal this year is to sock away a total of $28,937.77, or 15% gross income, excluding our State & UC mandatory public pension contributions.
1) Car Fund - $3,600
2) X-Mas Fund $2,500
3) 529 Plan - $400
4) Savings/Renovation $1,300
5) ROTH - $5,500
6) 457 Deferred - $4,000
7) 403b - $1,836.80
8) 457 UC - $282.40
9) CALPERS - $1,368.00
10) UC RET - $1,836.80
YTD Total Combined: $22,624.00
I want to start blogging our saving progress each month for 2016. March savings is where we are now.
April's budget is almost done once I get all the bills and my wife takes a look our budget. Some background about our budget, we started Dave Ramsey in January 2015 and immediately began following his teaching principle via podcast. Within months we started to do a zero-based budget. We had about 40K in taxable account in our brokerage account and began paying off our credit card bills, equity loan, car loan, and service time. In August I sold my WRX to some 19 year old who worked at Apple computer--drove all the way to my house from the bay area paid cash for it. So in 5 months of following Dave Ramsey we completely turned our financial glimmer of fogginess--sometimes darkness into a glimmer of hope and sunshine. It was a complete financial transformation. We no longer use credit cards, cut them all out and use cash envelopes. We paid off around 43K in total debt by June. By the time we began FPU class late August, we were debt free except our primary mortgage of $225K. We ended refinancing into 15 year mortgage few months later. I thought it was worth it since we have no other debt. We can save more while paying down our mortgage a lot faster. Our LT goal is to pay it off our in 5 to 7 years. While at the same time continue to save on other priorities.
SAVING SUMMARY YTD
ROTH $500.00 $3,000.00
Car Fund $300.00 $3,600.00
XMAS Fund $500.00 $1,500.00
College 529 $100.00 $300.00
Renovation $300.00 $1,300.00
Total $1,700.00 $9,700.00
Fully Funded Vacation
We filed our taxes and received close to 4K of refund. I adjusted our withholding last month. Our goal in May is fully fund my ROTH. Once this happen we can accelerate more savings towards renovation, and car fund. Xmas fund goal is 2500 for this year, I expect this to be done in April. Be nice to cross this list out.
I know its been few years since I blog here.
We have about $46K in cash, of that 30K is our 6-months EF. But we really need 24K at bare-bone budget. We have no other debt except our mortgage.
The remaining $15-16K are designated to the following (growing every month). I'm tweaking this number regularly so this numbers are changing.
1) home renovation $6K - Goal 20-25K by Fall 2017. But we need to start some renovation by this summer, at least start with our kitchen.
2) Tacoma fund $3600 balance - Plan to grow this balance to 20K by the end of this year. Not sure we are set in stone with Tacoma, or it could be 4runner.
3) Christmas fund $1500 (Goal $2500). Our goal is to have this funded early next month since my wife always tells set this aside first.
4) Daughter's private school tuition due in June for next fall $4200. We have enough to pay the current tuition already but we are continue to add more to this account until we decide to re-direct some of this funds somewhere else in the future.
5) ROTH Contributions $5500 will be fully funded in May.
6) Summer vacation fully funded in January.
7) I plan to sell VTHR 100 shares and buy more shares of Netflix. Yes, I'm going aggressive worth about 6% of our net worth in 1 stock.
My spouse will be receiving 2% pay increase this July. As for me, I'm not sure how much. Our bargaining team have yet to bargain with the state. I suspect about we should receive roughly 2% to 3% pay increase. Maybe we can add more towards 403(b) and 457 contributions.
Mortgage 15-year mortgage: Our target goal to pay off in 5-7 years. We are off target t(I mean way off this year). We just putting in extra $200 on average a month.
We are up 8% YTD in our retirement investments. Hope this continue. If I count losses from last year, we are still down about 4-5%. So we aren't fully recovered yet.
Yipee! DW who is RN (BSN) recently received her long over due Supervising position. NO more clocking in or out - straight salary with differential pay and permanent workschedule. Of course we are very happy. It means she will not be subject to "call backs" when hospital are slow, but will lose her ability to earn OT (working over 12 hours per shift). It a significant pay increase nonetheless, 10% increase increase hourly base from $52 to $57 an hour. This increase also came in the right time since the hospital staff may not see general pay increase due to market decline. But we just don't know.
It's been a while since I post a blog. Things have been really hectic lately. I won't get into that now.
In the last few years, we have been talking about remodeling our kids room; new furnishing, paints, drawer, etc. (We did the painting ourselves) Now that they are bit older 5 & 7 yeah i know we needed to going with the remodeling, at least, before x-mas comes around which we also needed to prefund also. So we had two dilemma, 1) whether to use part of our EF (24K) to pay the cost - $3K credit balance, or 2) deferred savings for several months to pay off the balance. I was pushing for the latter, so that we don't touch EF and helps build our points up to.
I'll make the first payment this week $1500 and second payment on Aug 1st. I just hope we don't add any more balance to it.
We received a letter from our lender reducing our Adjustable mortgage rate from 5 percent to 3 percent starting in February. Giving us a saving of $290.00 a month for the next 12 months.
Last month, we got a new Union Contract (3 year deal) (signed by the Governor), eliminating our 3-days furlough, in exchanged 3 percent higher contributions towards our Defined Benefit, one-time 12-month 4.62 percent pay reduction with 1-day per month credit (vacation). Our 3 percent pay increase won't be until 2013. The new contract gives me an immediate $206.00 NET PAY increase.
Wife (Registered Nurse) just learned this week, her Employer will be will be giving out pay raises starting in January anywhere from 3 - 8 percent. We are not sure what she will be receiving. Her last raise was 2 years ago.
This month is the last time, we will be paying our son's Music Therapy & Private TUTOR, and Gardening services. This give us a saving of roughly $300 a month. Of course, we may revisit this expenses again in the future.
We estimate our out-going expenses will be reduce by almost $590 a month BUT increasing our household INCOME by roughly $506.00 (low end) as high $679.80 once pay increase is determine.
It's beginning to look like CHRISTMAS!!!
We just came back from our family trip vacation (3 days and two night trip) Universal Studio over the weekends. Kids and wife enjoyed the whole trip. My back is killing me of course, driving a total 860 miles (Sacramento to LA and back). We spent a total of $900.00 (tickets, hotels, fuel, and food, oil changed).
We have another vacation coming up late July. Though this one won't cost us as much.
It's been since I blog. Anyway, did our taxes yesterday. We owe CA state tax $833 but we are getting $5,137 from Federal. Net about $4304.
Anyway, we are using this money to pay our property tax $1156 due April. We'll use about $1500 for our summer vacation. The rest will go towards our emergency fund.
This month has been austracious in spending but I'm not complaining. We had birthday dinner for my wife last month. I also got a traffic ticket which i already paid. Paid off the annual payment for both the homeowner insurance & term insurance. Our 95 Altima needed a new radiator replacement include labor. Lastly, our old TV finally gives up on us. Replaced by a new plasma TV. We used our AMEX Costo card to purchase it for additional two year warranty and the rebate.
I'd pretty much paid off many items mentioned above except, the plasma TV. Sure we could have bought the lower cost model, but we really love this one.
Traffic ticket $507
include traffic school
Homeowner's Ins $406
Term Insurance $657
New Radiator included
Plasma TV (tax incl) $2417
$4,227 Total Cost
Current balance now is $2814.00.
Option 1: Use the money in one of our account which has a balance around $1700. This balance is to pay our property tax due in December. We'll borrow from this fund to reduce the balance amount. By Oct 1st, this card is fully paid. This still gives us plenty of time to pay back before Dec.
Option 2: Make a $700 payment every two weeks until its fully paid. This will take us to mid November. The interest cost will probably around $20 to $30.
Which option you like?
We have a third option which is use our EF to pay it all off. But these aren't consider Emergency, so we shouldn't even consider it. Right?
Kinda nervous today at noon....with all the job losses and furlough i'm pretty excited and nervous at the same time. I haven't interview for a long time, feely rusty. I'm just hoping not to get tongue-tied and don't rumble on and on. I want this promotion so bad which is about 30% bump an lead analyst/associate position.