Future Millionaire Progress Report #1 – May 2020

 

I am starting my own little series of net worth reports all the way to seven digits. I hope to start being more active on the site again not just to hold myself accountable, but to help you obtain the knowledge necessary to take action. Going forward, I do have a list of ideas for posts and other series I’ll start.

I don’t have some insanely high salary by any means, so hopefully you don’t think that is what it takes to reach the millionaire milestone. It sure helps to have one, but I’ve heard of people who’ve reached it and have never made more than $50,000 annually in their life. While you don’t need to have a high annual income, that doesn’t mean you should settle for the lowest amount necessary to get there. Take a time like now during this crisis to learn a new skill.

This is my first progress report, so there’s not a prior report to compare. Looking back at my Personal Capital account, which is a great site for consolidating all your accounts in one place, my net worth at the end of April was approximately $54,000. This represents about a $7,000 increase, which mainly came from price appreciation of my stock portfolio.

May 2020 Activity

I get paid biweekly and May was one of two months of the year where I get paid three times. There really wasn’t a whole lot of activity in May for obvious reasons. It’s been that way for a couple months. While being stuck at home, there’s not really a whole lot of places to spend money. All my purchases were made on my credit card, which were largely made up of food and gas. The rest was just fun money. Only other expenses for the month was rent and my car payment, which combine for about $900.

Looking ahead 

For the next few months, I plan on taking a break from stocks (unless I see an insanely attractive price) and building up some cash. Part of the reason is that I don’t really see any attractive prices in the stock market at the moment. We’re at historic unemployment numbers and yet the market has continued to rise. The other reason is that I have some big expenses coming up for the next few months. One of them is replacing all my tires, which is one of those hidden expenses that you always need to consider when thinking about your true monthly payment for the car. So that’ll put a decent dent in my wallet.

Another upcoming expense is a CPA exam review package. I’ve recently passed 150 credit hours, which I believe is the last thing I need to be eligible to take the exams. This review package will help me prepare for all four exams I’ll need to pass to obtain my CPA license. This can be in the range of 2,000-$3,500. This might seem like a lot, but CPAs can make between 10-15% more than non-CPAs. If you ask me, that’s a good bang for your buck.

Finally, I’m going to pay off a decent size chunk of my student loans. As mentioned, there’s not really any stocks I’m interested in at the current price levels, so I’m going to pay off the loans that are accruing interest. You could look at this as a guaranteed return since I won’t have to pay interest that I would have otherwise had to pay. Plus, decreasing student loans from five digits to four digits is going to help anyone sleep better at night.

Stock Portfolio 

Since the huge dip in late March, my portfolio has been red hot. I’ve been pretty aggressive during that time span, and it’s about time I take a little break and worry about some upcoming expenses. This doesn’t mean I won’t be paying any attention to it. Even at work, I have my portfolio spreadsheet open at all times (yeah, I’m a little obsessed). However, individual stocks make up about 75% of my portfolio, so I need to keep up with what’s happening. Like I mentioned in my previous post, it’s basically a second job.

I plan on going into more detail of my portfolio in another post in the not-so-distant future. I’ll go over what I’ve been buying and selling lately and what I have on my watchlist. I have Excel spreadsheets for my portfolio and net worth, so I’ll share a template for you in the future that you can have for personal use. I might start a “Stock of the Month” series where I’ll choose a stock and analyze the financials (I’ll try not to bore you too much) and go over what I like and don’t like about the company overall. I got some other ideas in the works, so stay tuned for those.

 

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