September was a big month for Mrs. NFF and I. We brought our new baby home from the hospital, we celebrate our 2-year marriage anniversary, I celebrated my 2-year anniversary at my company, and I turned one year older. Fall (my favorite season) is here, and we celebrated by traveling to Maine this past week to see the first leaves begin to change.
It was also a good month for us financially. We saw our net worth grow for the 24th consecutive month, raising ~$26,000 or almost 6%. Most of the gains were driven by me partially vesting into my company’s 401k (~$11,000), as well as low spending which allowed us to save a larger portion of our paycheck (~$7,000).
Emergency Fund: I made a change this month to our emergency fund. Searching for a higher yield, I moved this account from Capital One to CIT Bank, which currently offers 1.35% APY on their savings accounts. Funds were in this account for less than a month, hence the less-then-1.35% APY interest this month. However, this change will increase starting next month.
Working Capital: Low spending in our personal accounts this month contributed to the large increase in this account. Most of this gain will make it’s way into our down payment savings next month, so I fully expect this amount to go down in October.
Related Article: Managing Our Finances as a Couple
Down Payment: The growth in this account is directly affected by how well we stuck to our budget this month. We had one of our best months in terms of spending and were therefore able to contribute a larger-than-normal amount to this goal. The other contributing factor is that my company screwed up my 401k contribution this month, and as a result I contributed only $11. Luckily I am able to make up for that in the next few months to maximize my contribution, but it also means that my paycheck was larger than normal.
Education: NFF Jr. got his social security number, which meant I could open up a 529 account for him! Expect a future post on 529 accounts and what I learned during the process, as well as more market-correlated growth and returns going forward.
Retirement: As I wrote in my post What Does It Mean To Be Vested, I became partially vested in my 401k this month, allowing me to keep a portion of all of the company matching and profit sharing I earned over the last 2 years. This was a big factor in the growth of our savings, contributing ~$11,000 of the $17,668. The rest came from market improvements.
How did September go for you?