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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.

Income

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.)

Expenses

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

Rent
$762.50
Personal Project
$263.77
Shopping
$240.61
Travel/Parking
$216.93
Groceries
$165.49

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.

Savings

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!

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