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End of Year Report 2016

For whatever reason, Blogger isn't letting me make posts longer than a certain length in their post interface, so I will do my best to summarize the numbers while still keeping the post readable.

Anyway, without further ado, here is my progress for 2016.


On the income side of things, I think I did pretty well this year. Income came entirely from my day job, so not a lot of surprises here. However, this was the first full year in which I could participate in my company's employee stock purchase plan, so that provided a decent boost to my regular salary.

Total Net Income (after taxes): $74,706.01
Monthly Net Income: $6,225.50

Note that this income does not include any returns from my investment portfolio, as I don't count that as income for my spending purposes.

Investment returns

Dividends: $1,142.40 (This does not include dividends in my 401k as they are not disclosed to me. As such, they will show up as capital gains since I can more easily calculate that.)
Capital gains + 401k dividend; $5,732.91
Total: $6,875.31
Quick-and-dirty performance estimate: 9% (I'm too lazy to do a proper XIRR calculation for all my accounts, so this will have to do.)


I managed to keep my expenses pretty low this year, despite taking an international trip, several domestic trips, and embarking on a costly personal project.

Total Expenses: $25,107.81
Monthly Expenses: $2,092.32

Top 5 Monthly Expense Categories

Personal Project

Because the above 5 expenses make up nearly 80% of my monthly spending, these are the things that I should focus on for reducing my spending next year. There's not much I can do (or am willing to do) to reduce cost for my rent or my personal project, but I can look into more tactics for reducing my shopping, travel, and groceries.

I already intend on greatly reducing my travel spending by taking advantage of credit card offers. I spent most of 2016 accumulating points and I am already starting to use them to offset my travel costs. Expect more of this in 2017.

For shopping, I will make an effort to be more careful about what and when I buy. Some of that spending can't be avoided, but some of it definitely can be cut without drastically reducing my quality of life.

Groceries are already pretty darn low, but I can further lower them by eating less meat, eating less overall, and/or making more food from cheap bulk ingredients instead of more expensive fresh foods.


Total Savings: $49.598.20
Monthly Savings: $4,133.18
Savings Rate: 66.4%

So close to saving an even $50k for the year! I was also very close to achieving a 66.7% savings rate. Thanks to the raise that I just got, I expect to increase my savings rate to about 70-75% in the coming year. Let's see if I can make it happen!

Net Worth

Net worth on January 1, 2016:  $47,771.68
Net worth on January 1, 2017:  $106,695.71
Change:  $58,924.03

I'm going to chalk up the discrepancy between my net worth change and my savings + investment returns to work expenses that were reimbursed which I didn't count as income, but were still recorded as expenses on my own balance sheet.

Goals for 2017

1. Save at least $60k
2. Net Worth of $175k by year-end
3. Total spending < $20k

Goals 1 and 2 will depend on how much extra I earn from overtime and bonuses, as well as investment performance. Goal 3 will require cuts in travel spending and shopping, but I think I can achieve it due to credit card rewards and not paying for my personal project's expenses again.

Have a successful 2017!