Wealth Building Goals:
- Be eligible to be an Advanced customer with my primary bank by July 2017 – 76% of the way there
- Have a fully funded (Six months worth of expenses) emergency fund by March 2018 – 82% of the way there
- Have a net worth of $150,000 by March 2019 – 58% of the way there
- Be eligible to be a Premier customer with my bank by March 2020 – 8% of the way there
The saying ” April showers bring May flowers” rang true for the month of May. April was emergency after emergency but May ran smoothly. I am so glad that I have money stashed away for a rainy day. You never really know when you need it but it is important to have it just in case. When I started my first job back in 2011, I never cared about an emergency fund but now I can not stress how important it is to have one.
My strategy for the month was simple, save and track. With this in mind, I was able to save 56% of my salary and I tracked all of my spending. I am still working on spending $125 or less on Groceries per week. During the month of May, I averaged $175 for food per week. Half way through the month, I started to meal plan for the week and noticed that the amount I spent on groceries was a lot less. I didn’t get bored of the meals I made and I think I could get used to meal planning going forward.
Lastly, my net worth has increased by $7,021 or 11.70% of my $60,000 goal for 2017.
Net worth changes for May 2017:
Flex Account (-14,647.00): At the beginning of the month I decided to transfer this balance into my company’s pension. Getting all these funds into my company pension was stressful and a redundant process.
Job Pension (+16,565.21): I am glad that all on my pension funds are in one place. This will make tracking my net worth a tiny bit easier. The difference is due to transferring the funds from my flex account into my company pension, my contributions and my employers contribution for the month of May.
Gov Account (+344.70): This month had five Mondays, therefore, the contribution is higher than last month’s contribution. I was able to speak with someone at the Social Insurance Office and was told that the balance is based solely on contributions and no interest. So my calculation for this balance is correct. She also explained how the pay outs work when I hit 65. I will update the Net Worth Tracker page with the explanation.
Emergency Fund (+0.00): There were no contributions this month but I did transfer my emergency fund balance into a 1 month CD and kept a $1,000 buffer in my savings account. I chose the 1 month CD because if I need to break it due to an emergency there is no penalty.
Cash (+1800): In addition to the normal transactions that are in transit to their appropriate accounts, I like to keep the grocery budget in cash and have a coin jar for all the loose change. Going forward, the cash balance will always be above $3k because the LifePlan deposits take 15 business days to go through. Because the deposits are scheduled for the 27th of every month, the money will still be in transit at month end and not reflected in the LifePlan balance.
June 2017 Strategy:
This is more of my strategy for the rest of the year. I plan on keeping my spending to a minimum because I want to make sure I hit all of my benchmarks for 2017. In order to hit all of them I will not be purchasing any new shoes, clothes and will try to do my hair myself. I will look for other ways to cut expenses as well as ways to increase my income. The other half of my June strategy is my normal monthly goals:
- Save 50% of my salary
- Spend $500 or less on Groceries
- Stick to grocery list
- Track all expenses
Was May a great month for you? How did your Net Worth make out? Did you reach all your financial goals?