This whole post is centered around the Net Worth chart shown above. In June 2016, I started using Personal Capital, about a month after I bought my first house. Mint didn’t support my mortgage company, so I stopped using Mint. I put 35k down on the house, majority was in a personal loan from my father. I already owned a paid-for 2008 Corvette, worth over 25k. After I bought the house, I bought another car (a 1999 Porsche Boxster for $5,500), and then sold the Corvette for $26,500. That’s where you see the huge spike in Net Worth, when the money from the Corvette was just sitting in my bank. Then I took all that money from the Corvette and started paying off the down payment loan to my father. It took about 6 months after closing to finally pay it off.
New Job, More Money
Then, in February 2017, I left my job making $59,000 to take a job making $80,000. The new job also had 7% 401k matching from day 1, but my old employer only matched 6% (and only after a year!) After I left that first employer, I only got to keep a total of 1.5% matching for 9 months. They didn’t have a great 401k program.
My net worth started growing even quicker once I started maxing my 401k at $18,000/yr (22.5% of each paycheck), maxing my HSA at $3,400/yr (about $130/paycheck), and putting the same $5,500/yr into my Vanguard Roth IRA. I even put about $50-100/week into various individual stocks using Robinhood. I have recently stopped doing this, and am simply contributing extra cash to a Vanguard Index Fund now.
Anyways, notice in February 2017 how the Net Worth graph really starts trending upwards. Lots of this is from investing so much more, since I make more, but also because my property has risen so much in value. From May 2016 – December 2017, my house has gone from a $175k value (bought at $170k), to almost a $250k value. Some of that is due to the market, some due to the improvements I’ve made. I’ve put over $20k into the house so far. Unfortunately, my property taxes are doubling next year, from $1,300/yr to $2,500/yr, since the previous owner lived in the house since 1989. The property taxes never went up more than 3% per year, but the market did! The house was re-appraised for property taxes when I purchased it, and I’m just now going to have start paying those. That increased my mortgage by $100/mo, some of which I passed onto my roommates/renters.
That’s the story of my net worth so far. Age 25, a little over $190,000, mostly in property. About $60,000 in investments. Of that, $55k is tax-advantaged (Roth IRA, 401k, HSA) and another 5k is more liquid (Vanguard Index Funds, Robinhood stocks).
My girlfriend and I are currently trying to finish renovating our current house within 2018, maybe early 2019, in order to rent the entire thing out. It’d rent for $1,800-2,000 once complete, and our mortgage is $1,300 on a 15 year. We’re going to move to a different city, about 20 miles North, to be closer to her new job (which has benefits!). So my net worth should continue to grow even quicker next year.