Live For Today, Plan For Tomorrow: Can This Mom Have It All?
August 2016, Progress Report
August 2016 was pretty solid! Here goes the summary (numbers are aggregated).
Income: The income side of the equation helped a lot ($14.9 – post tax and post other deductions, including 401k, etc.), as one of us received an extra paycheck and a significantly larger amount of over time than usual. We don’t expect any more of that through the rest of the year, rather the opposite as November and December usually bring in some unpaid time.
Assets: Our assets grew by $12.5k ($9.4 were adds, $3.1 market gains) and hit $346k, which is ahead of where we expected to be by now. That said, I am also bracing for some drop in the market, so hopefully that leaves enough buffer.
529s: Our 529 accounts grew by $5.1k, where $100 of that amount was gains vs $5k of additions. We are actually rethinking our goals in this regard and may now only put the $25k on each by end of this year and don’t add anymore and forget about our $100k for EACH goal by the time they reach college. Instead we will leave it at $25k each in 529s and try to accumulate around $100k extra (total) in next decade or so in post-tax accounts for college expenses for both kids to keep a little more flexibility.
Expenses: I think we did pretty well this month ($5.4k) considering we had to pay car taxes and inspection and extra activities for kids before starting school. We kept groceries under $500, and restaurants about our usual $240, not bad for us. This expense level should keep us on track for the under $80k goal by end of year (so far $52.2) even though September will come in high due to travel plans. Most importantly, this is helping us slowly adapt to spending levels that are more aligned with our lower, future goals without feeling like we are making any drastic life changes.
Debt: Slow and steady wins the race here. Our interest for our two outstanding loans are zero on our car and low 3s% on our mortgage so we are not currently trying to aggressively pay this down. It may change in the future.