The Big Scratch – August 2017 Net Worth Report

I am on a mission to get rid as much crap as I can, so this month we will be having a garage sale! I have spent considerable time this summer, cleaning out the kitchen, the closets, and opening drawers that I have not opened in years. There’s no telling how much we will actually sell, but anything leftover is going straight to charity.

Unfortunately, we still have too much stuff. Mr. TJL insists on keeping every Jonathan Kellerman book he has ever owned. I am not sure why since we can get these at the library, but, you know, pick your battles.

Little Miss insists on keeping every single item she has acquired since birth. Her bedroom is literally overflowing. This causes more arguments than I prefer.

I find the accumulation of stuff to be suffocating, but apparently, not everyone feels this way and it will take a bit more coercing to bring my family to the dark side.

I truly feel deep down to my core that less stuff just makes you more, well, lighter. I can feel the weight and burden all of our stuff has on me and it has more than worn me down. It makes me anxious. It make me unhappy.

Even our furniture wears on me. All the pieces that I meticulously picked out to “hide” our stuff. I want it all gone. I need some space, people. The walls are getting to close.

With our proceeds, we will repaint the exterior of the house. We have neglected our poor home over the last five years and it is in desperate need of some maintenance. I am not particularly interested in spending money from our budget so raising the funds seems like a good solution.


August 2017 Net Worth

The table shows the balance sheet for the beginning of the month July 2017 and August 2017.

Year-to-date results

Net worth in January 2017 was $663,042.

January 2017 to August 2017 difference = $100,243! This total includes:

Increase/decrease in home equity = $4,571

Investment contributions = $55,214

Earnings/losses = $40,458


Investment Contributions

Our financial savings goal for 2017 is $83,042. It includes investing the maximum to the 401k, Traditional IRA, Health Savings account and the brokerage account.

This has become a stretch goal for us due to a lower than expected raise and bonus. Regardless, I am going to continue to aim for it and possibly find some ways to generate additional income this year.

*Nearly 100% invested in low-fee index funds (VTSAX – Vanguard)


In July, we contributed to:

*My employer contributes a match of 10% of my base salary to the 401k. My contributions to these accounts are automatically deducted from my paycheck. I never even noticed it’s gone.

Savings Rate

Our net income savings rate goal for 2017 is 70%. A high savings rate can be reached through decreased spending and/or by increasing income.

In July, we realized a net income savings rate of 74%! Cumulatively for the year, we have a SR of 67%.

Despite taking two, week long vacations this year, we continue to keep our expenditures low. Soon, our savings rate will achieve the 70% range.

Savings rate on net income is calculated by Total Saved + Mortgage Principal paid divided by Total Income minus taxes and charitable giving.

NISR = Total Saved + Mortgage Principal / Total Income – (Taxes + Charitable Giving)


Investment Income

Our net worth minus our home equity is $497,462. These funds are held in equities and a minor amount in cash. These monies will provide passive income during our FIRE (Financial Independence/ Retire Early) years along with income from our rental property.

ER accounts include Roth and traditional IRA, brokerage and cash


We will consider FIRE when our investments and cash reserves equal $937,424, each bucket is full, and the rental property is paid off. This conservative goal allows us a safe withdrawal rate of 3.5% assuming we need $32,800 investment income per year. We will also have an annual profit of $7,200 from the rental property bringing our allowable annual retirement spending to $40,000.

We aim to live off of $35,ooo or less in retirement so this FI goal should allow flexibility.


Seriously folks, we just increased our net worth by $100,000 in the first seven months of the year. How sick is that?

How you doing?

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