Hey Money Wizards,
Welcome to the newest update!
As you probably know by now, every month I track my updated Net Worth, so that I can hopefully leave my office job in the next few years. I’m currently 32 with a goal of a million bucks within the next three years, so let’s see the progress!
Life Update: May 2022
The biggest news of May was that we traveled to Vancouver Island, Canada for a round-2 attempt at some wedding travel that previously got canned thanks to COVID.
Why Vancouver Island?
Can you even believe that picture!?
I was lucky enough to snap that while on our Orca Tour, which was definitely one of the most majestic experiences I’ve ever had.
Outside of the wildlife watching, it was nearly a week exploring the beautiful Canadian island. We went with another couple of long-time friends, who we had a blast with. Plus, our travel quirks didn’t end any lifelong friendships, so that’s a bonus!
Otherwise, May was mostly uneventful, which I’ll chalk up as a win these days.
I can’t remember if I updated you all, but Lady Money Wizard started a new job a few months back, and she’s loving it so far. Financially, it came with a modest 5-10% pay raise, which honestly took a back seat compared to the quality of life improvements. (The much more important factor!)
Net Worth Update: May 2022
Hey, a pleasant surprise!
After last month’s blood bath, I was expecting the downward trend to continue. But strangely, the market recovered in May, to the tune of a couple percentage points.
This helped my portfolio increase by about $8K:
The biggest market news was that the Fed raised interest rates by 0.50% in May. For those of you who weren’t required to sit through multiple economics classes to earn a degree, the Fed raising interest rates has the impact of driving down asset prices, most notably risky stock market investments.
(This makes more logical sense than your economics professor tried to make it out. Put simply, if you can earn a higher rate for doing nothing… meaning investing the safest asset on earth, aka government bonds… those risky tech stocks become a little less attractive.)
So why didn’t prices fall in May? In a classic case of the stock market being the goofy thing that it is, everyone already expected the interest rate hike and its corresponding crushing of the stock market. So long story short, the May interest rate impact was seen, just a month earlier, in April.
Checking: $5,208 (+$2,308)
I got some big Venmo payments from our traveling buddies for the reservations I fronted.
As is standard these days, I also automatically invested $1,000 from my checking account to my Vanguard account.
Brokerage: $251,988 (+$2,796)
The first month in a while that this one is green. The slight market relief helped the brokerage account, which remains invested almost entirely in total stock market index funds.
401(k): $250,708 (+$5,613)
No changes here. Still maxing out the 401k to enjoy those sweet, sweet tax savings.
Roth IRA: $64,434 ($1,910)
Real estate was the worst performing asset in May, so it’s no surprise that my Roth, which includes mostly Vanguard Real Estate REITs, was down on the month.
Rent Payable: $770 ($99)
The weather here in Minneapolis is absolutely beautiful this time of year. So, May was filled with far less heating/cooling and far more open windows.
For newer readers, I split our house’s mortgage with my wife in Minneapolis, Minneosta. This number represents my half of the mortgage plus utilities and other random maintenance expenses.
Credit Cards Payable: $4,907 ($738)
My I-O-The Bank stayed high, since we put a lot of travel costs on the credit card.
As a reminder, I always pay this off in full, because credit card interest is the devil.
Total Spending May 2022: $4,623
The big one this month. This was entirely the trip to Vancouver Island.
As an expense, travel has definitely crept up, but that’s mostly because Lady Money Wizard and I are no longer splitting the bill, so I report all these costs myself. Nothing to get worried about.
The biggest line item here was registering for a 50-mile bike rally, then realizing my only bike, a mountain bike, probably wouldn’t cut it for a 50-mile bike rally. So, I rented a nice road bike for the day, then finished off with some celebratory beers.
We also hit up a Minnesota Twins game, a Minnesota United game, and even a concert. Thank goodness for summer!
I actually have no idea how this is so low. I went to the grocery store the other day and only bought a stick of butter, hamburger buns, and strawberries, and somehow to bill was $17.
That said, here’s a protip: spending $3,000 on travel helps cut back the grocery bill. Although maybe that’s not the desired effect…
It feels good to be writing for this website again. I may not be as punctual as the past, but I still very much appreciate all of you who have stuck with this journey for so long.
I hope you all have been fantastic, and I hope you’re riding out this wild 2022 economy that we’re all experiencing!
PS – Want to track your net worth like this? Personal Capital’s free net worth tracker is my favorite tool to do so. The free software is truly awesome, so just check it out already!