Wednesday, December 31, 2014

Self analysis 2014

In January I posted my financial goals for 2014.  It is time to review these goals and see how I did. For each goal I have given myself a grade from A to F.

  1. I earn more than $50,000 (net income) in 2014
    My net income ended up at $58,833. This is actually a little less than in 2013, but still more than expected. Grade A-.
  2. I save more than 65 percent of my net income in 2014. I saved 56 percent of my net income. Higher travel expenses and a large personal expense/investment drew down my savings rate.  Grade C.
  3. I have a net worth of more than $180,000 by December 2014. My net worth at the end of 2014 is $180,691. Grade A. 
  4. I have an emergency fund with $10,000 in a separate bank account before July 2014.  I didn't reach this goal this year either. I guess it is not that important for me to have an emergency fund. Grade F.

Conclusion
I accomplished 2 out of 4 goals, and ended up with the grades A-, C, A, F. 

Friday, December 12, 2014

December 2014: $180,691 (+$6,112)

Bank accounts$74,943
Investment account$141,041
Pension savings$12,363
Student loan$–47,657
Net worth$180,691
Burn rate6,9 years
Savings rate56,0 %
Millionaire month    April 2024

Tuesday, November 11, 2014

November 2014: $174,579 (+$6,185)

Bank accounts$74,150
Investment account$137,753
Pension savings$10,332
Student loan$–47,657
Net worth$174,579
Burn rate7,0 years
Savings rate59,8 %
Millionaire month    April 2024

Friday, October 10, 2014

October 2014: $167,144 (+$975)

Bank accounts$74,718
Investment account$129,866
Pension savings$10,216
Student loan$–47,657
Net worth$167,144
Burn rate6,7 years
Savings rate56,6 %
Millionaire month    November 2023

Friday, September 12, 2014

September 2014: $166,169 (+$10,088)

Bank accounts$73,543
Investment account$129,761
Pension savings$10,521
Student loan$–47,657
Net worth$166,169
Burn rate6,6 years
Savings rate57,3 %
Millionaire month    July 2023

Tuesday, August 12, 2014

August 2014: $156,081 (–$3,788)

Bank accounts$74,025
Investment account$119,627
Pension savings$10,086
Student loan$–47,657
Net worth$156,081
Burn rate5,9 years
Savings rate56,0 %
Millionaire month    November 2023

Thursday, July 31, 2014

Yearly goals update

In January I wrote a list of my financial goals for 2014. Here is an update of my progress 7 months into the year.
  1. The income goal of $50,000 (net income) seems very achievable. I secured a new job earlier this year that pays about $65,000 per year after tax, and more if I work overtime. 
  2. The savings goal of 65 percent of my net income looks more difficult. This is because I have had some extraordinary expenses so far this year, some of which were really investments (to reduce future expenses). Maybe I'll be able to save 60 percent instead. 
  3. The net worth goal of $180,000 is still possible to reach. According to my Google Docs spreadsheet I am now on track to reach ~ $195,000. It will depend on the stock market, since I now have about $120,000 invested in index funds. 
  4. The goal of having an emergency fund of $10,000 is the least motivating one. I am not sure if I really want this at the moment. I now have about $4,000 in the bank, but not in a separate account. Maybe I will abandon this goal (like I did in 2013).

Friday, July 11, 2014

July 2014: $159,689 (+$4,152)

Bank accounts$78,293
Investment account$118,862
Pension savings$10,370
Student loan$–47,657
Net worth$159,689
Burn rate6,2 years
Savings rate56,1 %
Millionaire month    May 2023

Thursday, June 12, 2014

June 2014: $155,717 (+$15,366)

Bank accounts$75,605
Investment account$117,547
Pension savings$10,221
Student loan$–47,657
Net worth$155,717
Burn rate7,7 years
Savings rate63,9 %
Millionaire month    July 2023

Monday, May 12, 2014

May 2014: $140,351 (+$3,606)

Bank accounts$75,582
Investment account$102,721
Pension savings$9,704
Student loan$–47,657
Net worth$140,351
Burn rate7,4 years
Savings rate60,7 %
Millionaire month  October 2024

Saturday, April 12, 2014

April 2014: $136,774 (+$765)

Bank accounts$73,591
Investment account$101,202
Pension savings$9,608
Student loan$–47,657
Net worth$136,774
Burn rate6,9 years
Savings rate58,5 %
Millionaire month    February 2025

My income has been very low the last 2 months because I have been between two jobs. The yearly goal of $180,000 in net worth before the end of 2014 therefore seems hard to reach. However, my income will increase again from the next month. 

Tuesday, March 11, 2014

March 2014: $135,979 (+$1,397)

Bank accounts$74,040
Investment account$100,053
Pension savings$9,543
Student loan$–47,657
Net worth$135,979
Burn rate7,0 years
Savings rate61,6 %
Millionaire month    April 2025

Tuesday, February 11, 2014

February 2014: $134,582 (–$1,191)

Bank accounts$74,834
Investment account$97,996
Pension savings$9,409
Student loan$–47,657
Net worth$134,582
Burn rate7,0 years
Savings rate65,5 %
Millionaire month    July 2025

Index funds down about 2 percent last month. My income was also a little lower than normal. 

Friday, January 10, 2014

January 2014: $135,774 (+$5,795)

Bank accounts$74,773
Investment account$99,550
Pension savings$9,615
Student loan$–48,164
Net worth$135,774
Burn rate6,75 years
Savings rate66,5 %
Millionaire month    February 2025

Wednesday, January 1, 2014

Financial goals for 2014

Happy new year! Here are my financial goals for 2014:
  1. I earn more than $50,000 (net income) in 2014.
  2. I save more than 65 percent of my net income in 2014.
  3. I have a net worth of more than $180,000 by December 2014.
  4. I have an emergency fund with $10,000 in a separate bank account before July 2014.