If I had to pick one month to start my Monthly FI Report it would be this month!
A lot happened this month that directly impacts my Fi journey including…
- Graduating from college
- Starting my first full-time Job
- Opening up a slew of investment vehicles
- Passed 3 stages of fi (Link to stages)
Before jumping into the details I wanted to quickly share why I write these monthly reports. My goal is to not only document for my own future reference but also keep you updated with the logistics of my financial independence journey. I’m hoping by writing these reports you can learn from my successes and failures.
All right let’s get into the nitty-gritty
Networth: $14,527
As of May 31, 2020 my Net-worth is $14,527 and is broken down into…
Stocks: $32,923
Cash: $7,279
Student Loans: $25,000
Credit Cards: $675
Stocks: $32,923
My stock portfolio comprises of twoTaxable accounts, a Roth IRA, and a 401(k).
Taxable Accounts: The first of my taxable accounts is through M1 finances which I use specifically for dividend investing. I like to call my dividend account my play account. It’s where I individually pick stocks that I believe will continue to pay dividends and grow in the future.
My second taxable account is through fidelity which holds indexes. This is mainly where I deposit the income I make which doesn’t get contributed to tax-deferred accounts.
Roth & 401(k): Both of my retirement accounts are set up similarly to my individual account. I only hold indexes in them. This greatly simplifies my investing strategy while still diversifying my stock portfolio.
If you’re wondering what indexes I invest in they’re…
- Fidelity ZERO Total Market Index Fund (FZROX)
- Fidelity ZERO International Index Fund (FZILX)
- Fidelity® Real Estate Index Fund(FSRNX)
- Fidelity® Total Bond Fund (FTBFX)
- VANG 500 INDEX ADM (VFIAX)
- VANG TOT INTL STK AD (VTIAX)
I’m currently looking into adding the HSA to the mix as well…
Cash: $7,279
Money…Money…Money!
My cash is held within a High Yield Savings Accounts (HYSA) and a Checking account.
HYSA: This is where I keep my emergency fund. I have roughly 3 months of money I can live off within my emergency fund. I plan to up my emergency fund to 6 months of expenses once the market starts to slow down and become less volatile.
Checking Account: This is the hub of my wealth. Everything goes there first and then I decide where to distribute it.
I always keep 1 month of expenses within my checking account. I do this because it keeps me comfortable knowing that I can easily access this money whenever needed.
Student Loans: $25,000
Did I tell you I just graduated from college?
Yeah, I owe the government a quarter of $100,000 and I’m not the happiest about it. I do have to say it was well worth the investment as I left school making six figures and with some amazing connections.
Aye, Next Generation if you’re reading this take college classes in high school and write many scholarship essays. You’ll thank yourself a lot in the future when you leave college with little no doubt.
I don’t plan to pay this off till 5+ years from now as the average interest is around 4.5%. I feel pretty positive that I’ll at the very least see a return of 5% from the market moving forward. Especially with how after the Coronavirus shinanigans.
Credit Cards: $675
Once I realized that you can hack the system with credit cards while building your credit I jumped on the bandwagon real quick.
The $675 is split between 5 different credit cards I acquired within the last 9 months. I always make sure to pay my credit cards in full and before the closing date.
Budget
This month’s budget has is fairly interesting between moving back to my parents due to the virus and starting my full-time job.
Rent: I’m paying rent at my parents than while at school which to me is a good thing. I not only have more space but most importantly I get to help out my parents.
Investments: My wealth almost doubled in the matter of one month! A lot of this comes from my starting my job.
Groceries: Moving to my parent’s house this month minimized my grocery bills. I plan on helping out more with groceries moving forward.
Gas & Fuel: I really haven’t driven anywhere this month…Corona
Bills/Subscription: I took a big hit this month on bills, but it’s better for the future. I paid off my sprint phone bill and switched over to Mint. No more crazy $100+ phone bills!
Restaurant: …Corona
Misc: Most of my misc expenses this month come from getting gifts for people. I should increase amount I allocate to the misc category as I rarely hit $60. I spend roughly $30-40 in self-help books alone. Though it does keep me on my toes so I plan to leave it.
Month one is done and I’m ready for the next one!
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