Welcome back for another juicy net worth summary! In June, while the S&P 500 was relatively flat, we experienced yet another solid month (+33%) of growth in cryptocurrency, and I did some active trading which helped to increase my shares overall. Our net worth increased by a substantial $15,400! Have a look:
Over the last three months, our net worth has increased by $40,702 (+9.94%), growing from $409,521 to $450,223.
Currently averaging $10,400 of monthly growth for 2017.
We’re still on track to reach HALF-MILLIONAIRE! status in 2017.
Let’s cover the changes by category.
Change in Assets
Checking Accounts– Probably the most important category. Because much of your success hinges on how you spend the money you are earning. What did we do with our after-tax cash?
- Expenses: $4,375.19 (monthly op-ex + a few one-time expenses like car taxes, booking some upcoming travel, etc.)
- Savings/Investments: $3,146 on Cryptocurrency; $2,883 on mutual fund investments (detailed below).
Health Savings Account
This is a tax-shielded account designed specifically for health care expenses. We contribute the maximum allowable $6,750. Thanks to my employer for contributing $900, we only have to send in $5,850, or $487.50 per month.
Our goal is to have this account grow to the same size as our out-of-pocket maximum for our health insurance plan, which currently happens to be $13,000. This means that, under our current insurance plan, the max we would ever be responsible to pay would be $13,000. Our insurance plan should cover the rest (as long as it’s covered under our plan). So the HSA serves as the stop-gap.
Coverdell ESA – We’re putting away the standard ESA max amount of $2,000 spread over 12 months.
- Contributions: $166.66
- Gain/Loss: $163.62 (+2.11%) – Included a $36 dividend
- Shares Bought: $1,650
- Gain/Loss: $148 (+0.23%) – Mostly due to dividends
Notes: In March of 2017, I split $4,000 into eight chunks of $500, and bought eight different tech stocks. Today, they’re valued at $4,900. Those were:
- ATVI – Activision Blizzard Inc
- EA – Electronic Arts
- MSFT – Microsoft Corp
- NFLX – Netflix Com Inc
- NVDA – Nvidia Corp
- SNE – Sony Corp
- TTWO – Take-Two Interactive Software
- TCEHY – Tencent Holdings Limited
I’m not convinced that this has been a wise investment, and I think that maybe I’ve just been lucky. I’ll talk about that at the end of the post in more detail.
- Coins Bought: $3,146 (mostly Ethereum)
- Gain/Loss: $6,277 (+33.50%)
While I do want to have something invested here, I am starting to re-think my strategy a bit. I’m considering pulling my initial investment out and just leaving the rest to see what it does. From the $15K I’ve invested, if it climbs back to $30K+, I might sell $15K and leave $15K to grow. This would leave me with some holdings in crypto, but it’d keep risk much lower.
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- Contributions: $2,366 (includes employer match)
- Gain/Loss: $2,716 (+1.57%)
Home – The real estate market in my area still isn’t doing much. Overall, sales prices in my market decreased by 5% last quarter.
Cars – The only asset I own that is guaranteed to go down in value. No surprise there! I truly believe that NOT overspending on cars has been key to my success. If you’d like to see exactly what I do to keep cars from ruining my finances, check out these posts:
Personal Property – We haven’t added anything significant to our valuables. This is basically an estimate of the cash we’d net if we opened our home and sold everything in it, and with fairly conservative estimates.
I’d actually like to see this number go down over time, as we learn to spend even LESS money on STUFF. You can read more on my thoughts here:
Change in Liabilities
Credit Cards – Everything is paid off for the month.
I’m working on a system that will allow us to draw a clear line between each month’s activity. The first thing I’ve done is to call Chase and have them close our statement on the 1st of each month. This will ensure that our statement balance is based on the calendar month.
We also got the Chase Ink Business card in June which I will be using solely for work expenses (my 9-5 job). This will allow us to get points for those expenses, but keep those transactions completely separate from our personal activity.
So when I get the statement at month-end, I’ll just file an expense report for that statement. I’ll let you know how that goes next month.
If you’re wondering why a Debt Free Geek has credit cards, you can read a bit about my philosophy on credit cards here:
If you’d like to read more, click here to check out The Points Guy. He’s got some solid information on earning rewards using credit cards.
Lessons I’m Learning
Crypto and Individual Stocks
I think I got lucky on stocks and crypto. It’s not all luck. You have to notice a trend and take the risk to get on the train and ride it up. So credit there, but I’m not sure that I should have so much cash invested there (currently about $20,000 for me).
Historically, we have a market correction/recession every 10 years, and the last one was in 2008. So conventional wisdom says that we’re due for another “correction” in a year or so. I think I need to seek some more stable investments this year.
I invested my emergency fund into a mutual fund (VFIAX) a few months ago, and it grew from $12,000 to $12,361. I hate the idea of cash just sitting around, but at the same time, I realize that it’s something I should probably just suck up and keep it in a stable account. I think all the extra cash is going to my head.
Just being real here. Like you, I don’t have this all figured out, but I’m trying different things and learning as I go.
I’ll be researching some alternatives which can provide SOME return, but aren’t as risky as the general stock market.
- We are currently saving or investing $5,912.82 a month
- We saw stock and crypto market growth of $9,304.62 in June
- We live on about $2,820 a month (including healthcare premiums)
- That’s $33,840 annually
Income, Savings Rate, Spending Break-Down
I am going to share my complete income summary and break-down to my awesome subscribers this week. So if you’re interested in seeing those details, please subscribe in the form below!
Until next time!