It’s time for me second net worth report! If you’ll remember I started tracking my net worth last month because I pretty much decided I’m going to be a millionaire someday.
I have good news for May – I increased my net worth by almost $3,000! Wooohoo! And I didn’t do it by earning more money (haven’t implemented some strategies yet), I just did it by saving more.
In this net worth report, I’m going to show you how I increased my net worth by $3k without earning more, winning a lottery ticket or someone handing me a check.
May Net Worth: $24,462 (+ $2,899)
Personal Capital changed their look and I’m digging it. It makes things a little easier to grasp for us visual learners. Note how there’s a little graph behind the numbers that shows the ups and downs of the last few months. That credit card was looking high earlier this year!
Okay, I won’t keep you waiting any longer. Here’s what worked for me in May as I increased my net worth.
I dumped over $2,000 of cash back into ETFs.
My credit card debt isn’t actually debt. As in, I don’t carry the balance over from one month to the next. I pay all my bills – both personal and business – with credit cards to get points and cash back. I then pay off the card in full when it’s due.
In fact, it was cash back that allowed me to boost my investment portfolio this month. I had about $2200 in cash back that I dumped into index funds through my Betterment account.
I’ve also been able to get about 15 free flights using credit card points, but that’s a story for another time. And for the record, no, this hasn’t wrecked my credit. If anything, it’s improved it because I manage multiple cards and pay them all off in full each month.
(P.S. If you need a service to help you track your credit, click here to check out Credit Sesame.)
I brought down my spending.
While I use credit cards to pay for everything, I did decide to switch up my strategy for my personal credit card.
I took a page out of Erin Lowry’s Broke Millennial book (Get it? It’s an actual book. As in, I “took a page out of her book.” I digress.) and decided to get a month ahead of my personal credit card by pulling money out of savings. This has allowed me to pay for my personal card as I go instead of waiting until the due date. Because I’m paying as I go it also made me more conscious of the money I’m spending on a weekly basis.
This has allowed me to pay for my personal card as I go instead of waiting until the due date. Because I’m paying as I go it also made me more conscious of the money I’m spending on a weekly basis.
I caught myself almost buying something I didn’t actually need a few times. Because I’m more conscious, I didn’t purchase.
I looked for better deals for business services and invested the difference.
I saved some money this month by finding better deals on web hosting and media liability insurance for my business.
Although, in all fairness, I used the money I saved to invest in new webinar software and go through a group coaching program with one of my mentors. The program is going to focus on sales, systems and scalability.
So while I didn’t technically save the money, I’m at least investing it so I can earn more. In the next few weeks, I’ll be implementing some strategies to scale my business and increase my net profit. This has been an area of struggle for me and I’m ready to finally address it.
I’m going back to using percentages to budget.
Last month I said I’d be using percentages to help me budget variable income. Since I already have to set aside 30 percent for taxes, I figured it would just be easier to save based on percentages as well.
This month, I was able to save about 15 percent of my gross revenue in either a savings account or investments. It wasn’t easy and, to be honest, I’m not sure if I’ll be able to do it again this next month. But I’m hoping it will become easier once I increase my income.
I talk more about using percentages as a budgeting strategy in my Amazon bestselling book. Click here to find it on Amazon.
What’s ahead in the coming month…
Not to be a pessimist, but I’m not expecting next month to be so hot. Between quarterly taxes, a cat going to the vet and some of the investments I made in my business, I’m expecting my liquid savings to take a hit.
The good news is I usually end up over saving for taxes so I’ll put the difference into my emergency fund. Or invest it.
Additionally, I’m already on track to earn more in June than I did in May. Hopefully, I’ll also start seeing the return on my investments coming in sooner rather than later.
We shall see!
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