January is a very exciting time for our finances. Why? Because it’s BONUS MONTH! Yes, I work in an industry where bonuses make up a decent percentage of our salaries. Not Investment Banker levels, but certainly more than the average worker. It’s a good shot of adrenalin for the savings goals that we have set for ourselves at the start of the year, and my promotion this year combined with the company doing well meant that my bonus this year was significantly larger than last year. And with all of our savings going towards saving for our house, this month gave us one last big push we need to accomplish our goal next month.
With a total growth in net worth of over $50,000, January was our best month ever! Monthly savings and the bonus contributed about 75% of the increase, but investment gains added the other 25%. The incredible growth in the market has done wonders for our Net Worth number, and the increasing number of people calling for 10%-15% corrections has me excited about potential buying opportunities coming up. I just hope the correction comes sooner rather than later.
Emergency Fund: The increase in savings rate from CIT Bank has meant a couple of extra dollars per month. No complaints here!
Working Capital: Our working capital account rose significantly this month. This is a combination of Christmas gifts we received from family and a portion of my bonus we keep for “fun money”.
Related Article: Managing Our Finances as a Couple
Down Payment: This is the category I am most excited about. The combination of bonus and monthly savings meant a contribution of over $27,000 to our savings account. Our savings goal is $150,000, so with only ~$1,400 left to go, we should hit our goal next month!
Education: A significant rise in the stock market this month helped this account to growth by ~$1,900. Once we accomplish our Down Payment goal, I can start making monthly contributions, though I’m not in a huge rush given the insane run in the stock market in January.
Retirement: The other thing that has me excited about accomplishing our Down Payment goal is that we can get back to pushing hard towards our FIRE goals. We have a long way to go to get to our $2.5M goal, but time is our best asset and the more we can put towards this now, the better.
I hope your 2018 is off to a good start as well!