During my first summer off, and for the first time since I started tracking my net worth consistently, my net worth actually decreased from last month. All things considered, this was an expected part of my financial plan. I knew taking the summer off would lead to short-term losses. Still, I’m slightly surprised to report that I haven’t had any negative emotional reaction to these losses. Taking off work has been so valuable to me, and I feel so blessed that I have another month to focus on other important things in my life.
Let’s take a look at the numbers to get a full view of exactly how my accounts are looking.
To explain the big jump in my Roth IRA: I invested $1640 (the total amount for both July and August) into my Roth IRA this month. I figured I should add August’s contribution upfront rather than have it sit in my summer savings account, as to maximize the potential compound interest. Aside from my contributions, it grew $400 in interest this month– an encouraging sign. My 457 grew $98 in interest, and I didn’t contribute anything to my pension this month. As you guys know, I have only tracked my contributions up until this month. But good news! I now have year-long access to my pension, so I can give a much more accurate number in future posts 🙂
My savings are where I saw the biggest hit, as I’m living off of my summer savings account. In addition to that, I took a few trips to the beach which decreased my travel fund, and I had a few car expenses (renewing my registration and replacing my radiator) that decreased my car fund. All in all, my savings took a $2,942 hit. The fact that I was even able to somewhat balance this out with my investments is such a blessing to me, because now that I have my savings in a safe place, I care more about growth in my investments than I do my savings.
I think staying above the $30k mark (somewhere I was pleasantly surprised to be) is a part of what’s keeping me satisfied with my money, even though it’s arbitrary. The other piece of the puzzle is that my investments earned me about $500 in interest alone this month, making me passive income while I’m not working for a paycheck.
Things will go down a lot more for August– already, I put some travel money into an AirBNB for a future trip (more details on this to come), and I won’t see the same drastic increase in my investments as I won’t be contributing more (I’ll only see gains from interest). Make sure to come back next month to check the damage and see if I’m still in a positive mental space about my money & if I’m still staying above 30k.
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