Checkup – September 2020

Welcome to another Dr. PayItBack monthly checkup! I use this space to remain accountable to our expenses and goals, track net worth and debt, and muse on what was done well and what can be improved.

September was a long month, as I worked my way through probate. Fortunately things have been picking up in clinic, which has been a nice distraction. I am nearly back in the groove I had reached before corona hit and am enjoying a nice balance of work and family time.

Budget/Cash Flow

September 2020 Budget

I expect that this month will the be last month of odd spending related to my father’s estate. I am still in the process of getting access to his bank account, so I have been paying bills, mortgage, etc. out of pocket. I should get access to the funds in the next few weeks, be able to reimburse myself, and use that to pay outstanding debts going forward. If you subtract out these expenses, our spending for September was only about $7,000.

Our boys are back in preschool so that will be an expense going forward (COVID-willing) and we have finally rounded out our asset protection with a $500,000 20-year term life insurance policy for Ms. PiB as well as a $1,000,000 umbrella policy.

I used a large portion of the inheritance from last month to max out our planned 529 contributions, and I have upped my 403b deferrals to the point where I expect they will be maxed out next month.

PayItBack Progress

September 2020 Debt

Rates have finally taken another (albeit minor) decline, and so we are still not throwing any extra money at our loans.

Net Worth

September 2020 Net Worth

Reached a nice milestone this month: 6-figure net worth. Was not helped by the stock market which was down 4% on the month; it’s pretty crazy to have gotten used to all this volatility. Credit card debts are down to almost nothing, and investment accounts are almost maxed out for the year. I am still trying to get a down-payment in place for a potential future home, so savings/idle cash will remain high.

Financial Independence

September 2020 FI

I guess I don’t normally comment on this figure, but crazy that this could be less than ten years away.

Financial Goals for 2020

1) Devote 2/3 (66.7%) of net income to wealth-building: 68.7% running average
2) Max out 403b: $16,647 of $19,500 (85.4% done)
3) Max out backdoor Roth IRAs: $12,000 of $12,000 (100% done)
4) Max out 529s for state tax benefit: $16,000 of $16,000 (100% done)
5) Pay 2019 tax underpayment: $0 remaining
6) Pay off all carried 0% APR credit card balances: $0 remaining
7) Pay off my car loan: $0 remaining
8) Pay off Mrs. PIB’s car loan: $0 remaining
9) Pay off Mrs. PIB’s student loans: $22,631 remaining

How Far I’ve Come

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