It’s that time of the month – my first progress update! As you can see, my total net worth jumped by almost $10,000 from last month. Breakdown below:
Increases – $12,775.67
- After tax income – $6,745.14
- 401k contributions – $2266.68
- Federal tax return – $1169
- New York State tax return – $516
- Interest from checking and savings accounts – $38.67
- Gain on investments – $2,040.18
Decreases – $3,421.64
- Rent – $2259
- Other Expenses – $1,162.64
Net increase – $9,354.03
Great month. Nothing to get too excited about just yet. As you’ve probably seen, the stock market is pretty high these days, which is why I still keep a lot of cash lying around. As soon as there’s a dip, you can bet that I’ll buy up more index funds (VTI and VNQ) with my taxable investment accounts.
But what if the stock market keeps going up? Well, that’s why I continue to contribute to my 401k each month so I don’t miss out. With almost $41k in cash, I’m hesitant to sink all of that into a market that will probably dip soon. If you’re not sure what I mean, take a look at the graph below from Google Finance.
The S&P 500 Index is closing in on a record high.
So rather than buy more stocks, I’ve placed a $5,000 order in a real estate investment trust (REIT) at Fundrise to get some exposure to commercial real estate. According to Fundrise, the company’s Income eREIT earned an annualized return of 9.7% during the first quarter of 2016. Hopefully it’ll keep generating returns like that with my five grand.
That leaves about $36k sitting in my checking and savings accounts. For now, I don’t feel too bad that I’m not investing these guys. About $10k is generating a healthy 3.09% APY in my rewards checking account at Consumers Credit Union. Another $20k is generating a moderate 0.75% APY in my Capital One 360* savings account. And thanks to an expired offer from February, I’ll receive a $200 bonus sometime in June for opening and maintaining that account with $20,000.
The remaining $6,000 isn’t doing much and should be invested as soon as I find an opening. Let me know if you have any suggestions!
*Note that if you open an account through that link, I may get a referral commission from Capital One 360.
(Featured image from my Mint: Money Manager account)