This post will be full of detailed numbers (money porn) and cool graphics (eye candy) — because it’s summer, and summer is fun and bright and cheery. July was a sunny month for you and for us as well. Clear skies, no turbulence. As you can see, my net worth jumped by a happy $10,559.
BUT … BUDGETARY WINTER IS COMING.
(SHUDDER. OMINOUS MUSIC. CLOSE UP OF NIGHT KING’S EYE.)
We’re moving back to the US in August, and our expenses will be going up faster than you can say “Littlefinger is a creepy douchebag.”
I’m not sure if you get these references to Game of Thrones, Penny. If you don’t watch it, you might consider it after your tech hiatus. You could binge during a free trial of HBO on Amazon Prime!
Readers, start your free trial of HBO by clicking above — no cost to you, a few pennies for the blog. Full disclaimer on affiliate links here.
Anyway, before I dump the cold reality on you, here’s a recap of July.
Cash: We’re building cash to buy a car in August. We’ve been living on one car overseas but we’ll need two in the US. My philosophy on cars is to pay cash. I look for cars that are 3 years old (or so) with under 50,000 miles. The “new” car will be for Mrs. R, and I’ll keep driving my 2006 Rav4 with 120,000 miles on it and deep stains from kid snacks.
Debt: This is 0% debt. I’d like to pay it, but I want to wait until we get settled back in the US. We always pay our debts.
Investments: I didn’t add new money to taxable investments, but I adjusted the value of my LLC holdings upward by $1,730 after doing a detailed breakdown on the blog.
Retirement: Maxing out 401k and IRA accounts is really the key to our low risk ride to $1MM. This alone will probably ensure a decent sized nest egg in 15 years or so. We won’t need to rely on BINGO.
What I like about July’s report: A 5 figure net worth gain is nothing to sneeze at, even if you have allergies.
What I don’t like: If I were paying $4k in rent, my gain would only be $6,500, which is not quite enough to stay on pace for my goal.
THE COLD REALITY
When we move back to the US, we will start paying out the nose for rent and parking. As in $4,000 per month. I’m not complaining, we’re happy to spend more so we can live in a walkable city neighborhood rather than commuting from the burbs.
Additionally, we’re going to need some odds and ends like beds for our boys, a couple other pieces of furniture, work clothes, and that car.
Here’s my list of upcoming expenses; I might be estimating low.
By the end of August, I’ll have enough cash to cover most of this. Besides, we won’t buy everything at once. That said, I expect the budget to be tighter the rest of the year. I don’t follow a strict budget, but with such drastic changes coming up, I wanted a rough idea of what our spending should look like. This is what I came up with.
Get ready for a bunch of graphical eye candy:
Some of the items, like the HSA, won’t kick in until the new year. What do you think of this budget? I rather like it. So colorful and symmetrical. No idea yet if it’s realistic.
Here’s what it will look like for a complete year.
So what does this mean for my savings and my net worth goal?
I have fairly predictable gains in net worth based on contributions to my accounts. I’m not relying on returns, per se.
When I started this Net Worth goal ($1MM at age 45), I needed to gain around $7600 per month to make it. I’m ahead of the pace right now, so I think by contributions alone I should be able to stay on track. Darn close. That said, my pace is going to slow considerably. In 2017, I’ve averaged a monthly gain of $11,900. I won’t make those numbers again for a while. But then, I don’t need to.
So, even though budgetary winter is coming, I hope it’ll be a mild one.
NET WORTH CHECK
Ooohhhhh, I like that.
Finally, here’s the net worth breakdown by category.
That’s it for this month! Next month, my money check will be coming to you from Westeros … er, the States. Should be an interesting autumn.