First off, I must apologize for the late net worth posting, but I promise that I do have a good excuse. A little more than a week ago, our family grew by one as we welcomed NFF Jr. into the world. It has been an amazing, if thoroughly exhausting, couple of weeks for my wife and me. But I find myself now with some extra time to update you on our financial happenings since last month.
August 2017 was another up month for the New Father Finance family, though I have to admit it is our worst month for spending this year. Some extra costs related to the birth of our son played a major part of that. In a later post, I’ll go into a bit more detail about our actual spending this month, and perhaps go into a little detail about some of our larger baby purchases.
Our net worth increased by 2% this month, growing by $8,884.47. Most of the gains were driven by savings and 401k contributions, as our investment returns only accounted for about $2,500 of the increase. Our 401k contributions and savings towards our down payment made up the rest.
Emergency Fund: As I mentioned in last month’s post, our emergency fund sits in a high-yield savings account with Capital One 360, earning 0.75%. We gained $14.47 in interest from this account this month.
Working Capital: Ideally, this goal changes very little from month to month, as everything that is left over goes into saving for our down payment. I don’t really pay much attention to the movements in these accounts, only to make sure that balances stay above minimum thresholds to eliminate account fees.
Down Payment: Our savings towards our down payment increased by $3,000 this month, which unfortunately is our lowest savings amount this year. We did get some help from interest in our Capital One 360 High-Yield Savings Account and CD. As I mentioned above, most of that had to do with the birth of our first child. I hope to see this go up a bit this month, since my wife will still get paid during the first 6 weeks of her maternity leave and our major baby expenses for the year are behind us (hopefully). We are making progress towards our goal though, which is hard to complain about. We are now 69% of the way towards our goal of savings $150,000 before NFF Jr. turns 1 year old.
Education: After the gift we received for NFF Jr.’s education last month, I started doing some research into setting up a 529 college investment plan for him. The first thing I found out, however, is that you need a social security number before you can open an account. The paperwork for that is in progress, so until then the money is just sitting in a low-yield savings account.
Retirement: My wife and I continued on our plan to max out our 401k contributions this year, both contributing about $1,500 each this month. Therefore, $3,000 of the increase was from our contributions, while the rest of the ~$2,800 is from gains.
How did August go for you?