March 2013 Progress Report 2

I track both my income and expenses monthly. I started this process over two years ago to provide a better picture of my financial standing, and do this in tandem with a monthly net worth update. This process paints a fairly clear picture of my financial status and helps me identify the savings I’m adding to my net worth snowball as well as the growing interest my net worth snowball is accumulating.

March 2013 Income:

$4,794…Net Income

$4,742…401k Contribution

$9,536- Total Income

March 2013 Spending

$ 315… Housing

$  181… Utilities

$ 293… Groceries

$ 101… Restaurants & Bars

$  13 … Entertainment

$ 267… Transportation

$   0… Travel

$ 70… Cell Phone

$   0… Clothes & Shopping

$    0… Gifts

$  33… Gym/Fitness

$  20… Drugstore & Dr.

$1,293- Total Spending

86% Savings Rate!

$296,389 ….February Net Worth

March was a month of milestones, financially.  I managed to save 86% of my income thanks in large part to a sizable bonus I received, but also by curtailing my spending to less than $1,300 which is right where I’d like it to be. The 86% savings rate is the best I’ve managed in my 2.5 years of in-depth tracking. Furthermore, my net worth is teetering around the $300k milestone at the month’s end.

My net income was a robust $9,536 in March. This is $4,000 more than my monthly average for 2012. Unfortunately, it isn’t due to a giant raise, but rather a bonus I received and directed to my 401k. I also worked a seven day week which padded my income further. While it is nice to earn those extra few greenbacks, working 12 straight days is quite mundane. Looking forward, my net income (including 401k contributions) should normalize back down towards the $5,500-$6,000 levels.

My monthly expenditures for March tucked back in line below $1,300 per month after last month’s exorbitant spending associated with my weeklong California vacation adventures. My utilities bill took a much larger bite out of pocket than normal as W/S/G and electric bills synchronized on the same month and the electric bill was bloated since it contained the cold weather months of January-February. Additional larger category expenses were transportation which included my annual licensing fees and ~400 miles of travel for a work training session. The other out of the ordinary expense was the VitaMix blender I partnered with my girlfriend to purchase at Costco which took another $200 hit on my spending. But, I have been using the blender daily to incorporate more veggies into my diet, so I’ll just chalk it up to an investment in my health. One area I’m pleased with is my restaurant/bar spending as I managed to cut this area to $100 from the $250 or so I averaged in 2012. I have been focusing on my health and improving my nutrition lately, and subsequently have reduced my restaurant trips.

On a net worth basis, March was stellar as net worth jumped nearly 6% equaling $16,414 for a month end total of $296,389. Savings accounted for 1/2 of this jump, but the other $8k was due to investment gains as the stock market continued its torrid run.

My net worth will soon have a 3 for the leading digit! Hopefully I’ll cross this $300k milestone during April. My net worth now stands at nearly 17 times my 2012 spending levels and would require me to maintain a 5.9% withdrawal rate of my net worth to fund my current lifestyle with annual spending around $17k. 4% is considered the standard safe withdrawal rate across many personal finance circles, so I have some more ground to cover before financial independence. Based on a 4% withdrawal rate and $17,500 2012 spending, I would need to have a net worth of about $440k to be financially independent. I remain very excited and confident about my prospects of achieving this milestone before age 30.


2 thoughts on “March 2013 Progress Report

  1. Reply Chad Apr 13, 2013 8:44 am

    Outstanding savings rate. Keep that rate up and you’ll be retired in no time.

  2. Reply Net Worth Snowballa Apr 20, 2013 11:52 am

    Thanks for your support,Chad!

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