Month 41 – Navient $14,895, NMAC – $13,130.40, 401k – $9,361, Roth IRA $3,002.37

Sallie Mae - Month 41 Update

650.41 – TDAmeritrade
2351.96 – Betterment
Total Roth IRA – $3,002.37

$9,361 -401k Snapshot  9/6/15
Total Retirement- $12,363.37

It’s the end of the world, the market just fell 1000 points, no wait it’s back up again, no it’s down again. Bear market, correction, blah blah blah. I read CNBC headlines that make it sound like the sky is falling and we’re on the brink of economic collapse. I’m not buying any of the end of the world philosophies into this and belief that investing in gold will save us all. As of now the market is still down vs where it was before. My Betterment account is down 7.4%. I pumped a little money into it when the market was down.

I invested $2,539 and it’s worth $2,352. No biggie though, I adopt a long term perspective of the market. I’m 32 now, not planning to take the money out tomorrow, 5 years or even 10 years from now. If the market is down over the long term that’s one thing, but with businesses growing as well as global populations that seems unlikely. During the mid 2000s I would wait for pundits in the financial markets to speak about trends in certain industry sectors. I idolized that lifestyle. Then I realized many of them are either overworked, borderline or straight up unethical or selling people things they don’t really need. Lifestyle creep is rampant with these types. I completed my MBA in June of 2008. Horrible time for a guy to graduate with a degree. Fast forward 5 years… Think I’m doing alright.

So August was kind of a crazy month… Where do I start…

  • Someone on my team resigned. She started about 2 years before I did and I liked her. Very detail oriented and knowledgable.
  • Day after she resigned, my boss was let go unexpectedly. I won’t go into reasons on here, but I don’t agree with the company’s decision.
  • I got a raise. More money in my pocket. Basically net an extra $134 a month. Before brushing that off as nothing, my car payment is 280/mo. That’s 47%! Or another way of looking at basically my entire fuel budget for the month. Gas prices are around $2.00 again. I am really glad I didn’t buy the Lexus CT200H or Nissan Leaf I considered. Former has crappy 10.6 sec 0-60 acceleration and the latter batteries that don’t do well in the heat and awful resale value.
  • I had two small cysts removed. One on my chest, one on my back. Doing great. they were about the size of a pencil eraser. The stitches weren’t fun. My skin hasn’t fully recovered but improves more and more each day. The procedure was $300 and the consultation was about $125. Also got a prescription I got for razor bumps which I’ve struggled with for about 20 years for $79.
  • Net worth went positive – Thanks to the progress I’ve been making paying down the student loans, this is the first time my net worth has been positive maybe since buying my car a year ago. I’m now thinking of purchases more in terms of net worth and reaching financial goals and less can I afford it this moment. In 10 years I want to have at least $150k saved toward retirement. Ideally 200k. Can’t do that buying crap I don’ t need to impress people I don’t like.
  • Credit card hit a bout $2100 balance. Basically every time I get paid now, half of my check is going toward it. I have been trying to cut back but certain expenses just don’t go away. Really a raise or better paying job feels like the only way to really stop the leaks.
  • Busy at work – Basically I’ve never been this busy in my entire life at my company. Some weeks more stressful than others. I am trying to get promoted, but there’s only so long you can dangle a carrot in front of a person before they up and leave. If it’s still like this in December I’ll owe it to myself to seek employment elsewhere.

This month:

  • Car maintenance. Tired rotated and balanced. $59.99, got Pennzoil Platinum Full Synthetic Oil $62.98, an inspection $25.50.  Bought an engine air filter for $18.80, installed it myself. The same with my in-cabin microfilter for $15. Both were quite dirty and I saved money over having the stealer do it. Also had an air bag sensor recall done. Car drives extremely smooth now, not that it didn’t before.

I’m thankful to have a job that has allowed me to make such huge progress on getting out of debt. I get the final installment of the home refinance money next month. Happy to have some semblance of closure on that part of my life. It’s bittersweet. Without the money from the house I might be behind track on getting the student loan paid off. It was a big financial investment on the other hand and stressful at times when $3-10k repairs were lurking at every corner.

Mr Money Mustache

One of the philosophies of Mr. Money Mustache is to live off half of your income and put the rest toward retirement. Then you will have enough saved for retirement after 17 years or something to that effect.
Today, paying off Navient will free up about $500 a month from my budget. That’s 15% of my take home pay. My car payment is 8%  of take-home. Housing is 23%. There is a small condo down the road from me and asking price is $89k. If I were to buy that and do a 30 year mortgage that’s a ridiculously cheap ($350) payment and $2k/yr 166/mo in taxes plus HoA. Granted the place is only like 872ft it’s the principle of it.