The Big Scratch – December 2017 Net Worth Report

One month left in the year! We surpassed our year-end net worth goals in September, but the market is still producing significant gains so our net worth continues to surpass expectations.

The end of December is always a busy travel time for us. As usual, we will be visiting great friends and family, and ending the trip with a few days at Pagosa Springs to soak in the sulfur hot springs and eat really amazing food.

I have one day left at work this year and will not return until January 10th! Hopefully I will return refreshed and motivated for the tasks I have assigned myself in 2018.

December 2017 Net Worth

We saw substantial growth to our net worth in December. I also transferred $1,000 into my savings. I have a few maintenance expenses that I would like to pay for in 2018, so I am going to hoard cash for the next couple of months.

Let’s check out the numbers!

The table shows the balance sheet for the beginning of the month November 2017 and December 2017.

Year-to-date results

Net worth in January 2017 was $663,042.

January 2017 to December 2017 difference = $164,798! This total includes:

Increase/decrease in home equity = $7,231

Investment contributions = $80,353

Earnings/losses = $77,214


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 find some ways to generate additional income this year.

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

 In November, 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 November, we realized a net income savings rate of 74%! Cumulatively for the year, we have a SR of nearly 69%.

Despite taking four vacations this year, we continue to keep our expenditures low. By year end, we are going to get damn close to 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 $559,357. 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 fulland 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.


The New Year is approaching! Have you achieved your financial goals?


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2 Responses to The Big Scratch – December 2017 Net Worth Report

  1. Raman K says:

    Great job this year! Keep up the good work! Do you plan on working a few more years to hit the million dollar mark?

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