Checkup – 1st Quarter 2024

Welcome to another Dr. PayItBack financial 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.

Budget/Cash Flow

Off to our usual strong start in 2024, with IRAs and 529s funded, work retirement accounts over a quarter full, and a healthy amount to taxable. We’ve made $7,000 more in income and spent $3,000 less than this time last year, so cash flow remains very healthy. Our only “major” purchases have been a new refrigerator ($2,100) and a two-night wedding anniversary trip ($1,500).

Mortgage

Between principal payments and appreciation, we are just shy of 20% equity in the house, having started with a 10% downpayment on a physician loan.

Net Worth

I have started to do some higher level financial modeling, as the positive consequences of our 5 years of dedicated saving become more apparent. There’s a real case to be made for me going part time in the near future, and so I am trying to be more precise with where exactly our money is and how much of it is actually accessible.

To that end, I’ve added our estimated car values to the net worth calculation (since they play a part in offsetting true replacement cost), but I have also broken out the money that is truly ours for spending (ignoring real estate/property, and money earmarked for our children). This “liquid” figure is a more realistic representation of our retirement nest-egg, for example for things like the 4% rule.

Financial Independence

Graph courtesy of Mad Fientist

Financial Goals for 2024

1) Max out 403b: $6,590 of $23,000 (28.7% done)
2) Max out 457b: $6,300 of $23,000 (27.4% done)
3) Max out backdoor Roth IRAs: $14,000 of $14,000 (100% done)
4) Use taxable brokerage and Mrs. PIB’s solo 401k in addition to goals 1, 2, and 3 to save $180,000 total for retirement: $30,000 of $120,000 (25% done)
5) Max out 529s for state tax benefit: $16,000 of $16,000 (100% done) ✅
6) Increase umbrella insurance to $2,000,000


How Far I’ve Come

1 thought on “Checkup – 1st Quarter 2024”

  1. Congrats on another great quarter! Every update means a lot for 3rd year medical student like myself who is just trying to keep his head above water. It helps me remember there is a brighter financial future!

    Reply

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