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.
Thanksgiving is behind us and the holiday season is ahead. COVID cases continue to rise unsettlingly rapidly in our area, but no indication yet that we’re going to scale back elective procedures again. We’ll see what things look like in a month once the full damage from Thanksgiving travel is more apparent. Our office has already had a bunch of people out for either a positive test (just one person) or positive contacts (half a dozen or so), and I’m hoping that I can make it through the home stretch until we get the vaccine in a few weeks/months.
Budget/Cash Flow
Another good month for income as I got a ‘surprise’ bonus from work since the hospital has been doing much better in the past few months. Still nothing approaching what it would have been without COVID and just barely making up for the temporary salary reduction we went through, but not peanuts either.
Biggest expense this month was an Airbnb for the spring (hope springs eternal….) at $580. Otherwise we are continuing to shovel money toward our downpayment savings and our new taxable brokerage.
PayItBack Progress
Continued minimum payments. Balance will dip below $150,000 in a matter of days.
Net Worth
Surely the recent market returns have had something to do with it (the S&P is up 11% this month alone), but it is starting to feel like our finances are approaching escape velocity. Between checking account, emergency fund, and house savings, we have over $100,000 in liquid cash. Investments are well over $200,000, and total assets are more than double debts. I’m finding myself having to think about money less and less in daily life because everything is automated and we have so much more than enough.
Security is an incredible feeling.
Financial Independence
Financial Goals for 2020
1) Devote 2/3 (66.7%) of net income to wealth-building: 71.0% running average
2) Max out 403b: $19,500 of $19,500 (100% 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: $21,768 remaining
It was very nice to see you write this, I am happy that you have been able to get to this place:
I’m finding myself having to think about money less and less in daily life because everything is automated and we have so much more than enough.
Thank you. Yes, money may not be able to buy all happiness, but the contentment that comes with security is irreplaceable.