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.
In July we’ve continued to settle into our new house. This means a lot of up-front spending to fill the rooms and make repairs, but I’m optimistic that we will be cresting that hill shortly. There continue to be rumbles about the ‘financial challenges’ of my hospital system, and while I don’t believe it (or my job) are in any sort of existential peril, I am counting less and less on any sort of meaningful bonus this year. Fortunately my plans and projections largely consider my bonus exactly that — a bonus — not vital source of funds.
Budget/Cash Flow
So many things to spend money on. New furniture ($2,170). My car’s scheduled 60k mile maintenance ($980). Annual dues for professional societies ($810). The last fee for my dad’s probate case ($300, capping off a two year process). We make excellent money but it still seems to flow through us like a sieve sometimes.
No mortgage payments this month; they will start on the 1st of August. So only the same old loan payments, contribution to our taxable brokerage, and small crypto allocation (buy the dip 🙃).
PayItBack Progress
I am officially 3 years into the 5-year term of my refinanced medical school loans. The variable rate has continued to rise, and today it sits at (a still quite low) 2.32%. The itch to just pay it off continues to grow, and the theoretical opportunity cost continues to shrink. At its current rate it is costing me about $130/month to keep it around.
Mortgage
As we made no payments on our mortgage this month, no movement here.
Net Worth
Despite our outflows, this month saw our biggest gains yet in 2022, thanks to a respite from the ongoing bear market. The S&P was up over 9% in July, though still down over 13% on the year. We consequently increased our net worth by $50,000, and we again crested over the $600,000 mark last achieved in December 2021.
Financial Independence
Our projected FI date remains just shy of 10 years. The number this applet was giving was much more aggressive/optimistic as recently as last winter, telling me that I could retire in Summer 2027. But the current projections are very much in line with my own math, so I consider it pretty reasonable.
Financial Goals for 2022
1) Max out 403b: $20,500 of $20,500 (100% done) ✅
2) Max out backdoor Roth IRAs: $12,000 of $12,000 (100% done) ✅
3) Use taxable brokerage in addition to 1) and 2) to save $120,000 total for retirement: $80,000 of $87,500 (91.4% done)
4) Max out 529s for state tax benefit: $16,000 of $16,000 (100% done) ✅
5) Continue to pay minimum on student loan as long as rate remains <4%
6) Finalize estate documents ✅
7) Purchase a house ✅
Even though it is literally a “bonus,” it’s hard not to expect it when it’s been given before. Bummer if you don’t but good on you for planning otherwise! Nice to see the numbers bounce back for the month–it was my biggest net worth increase on record! Seeing some of the fruits of investing in a downturn, even if those fruits have an early expiration date (I expect more to come from this bear market).