It’s a new month, which means it’s time to check in with my finances.
Here’s a YNAB chart illustrating my net worth, which is $97,283.52 as of this morning:
Currently, my investment balances total $85,296.36, divided as follows:
- Vanguard brokerage account: $6,401.14
- Vanguard traditional IRA: $12,078.77
- Vanguard rollover IRA: $45,534.32
- Vanguard SEP IRA: $6,484.87
- Vanguard Roth IRA: $6,685.68
- TIAA annuity: $5,348.99*
- Health savings account: $2,744.59
The big gamechanger this month was the money I put in my brand-new SEP IRA: $500 for 2019, and $6,000 for 2018. The latter investment came from money that was part of The Billfold LLC account, which is much better off invested in a SEP IRA than taxed (though it will be taxed eventually).
In case you’re curious, it has cost The Billfold LLC $1,399 to shut itself down so far. This money includes CPA and legal fees, and there is at least one more payment coming as I file the final paperwork. That money also came out of The Billfold LLC account.
I received $5,135 in freelance checks in February, and earned $12.24 in publishing royalties from Amazon. I spent $1,212.15 on personal expenses (rent, bills, food, fun, donations, etc.) and $187.33 on freelance business expenses, not including money put into investments or set aside for taxes.
According to my financial independence forecaster, I should hit FI in 12 years and one month. However, now that I am no longer giving the majority of my time to The Billfold, I’ve been able to take on several higher-paying long-term assignments, which means I’ll probably be able to save and invest additional earnings (especially in my SEP IRA, which can absorb up to 25% of my freelance earnings as tax-deductible contributions).
So I’m very interested to see whether that forecasting number changes by the end of March.
Why am I telling you all of this? Because I’ve been transparently sharing my finances online since 2012, when I was making $500 a week as a brand-new freelancer.
Because I want to present a realistic picture of what a mid-career freelancer (and author, and teacher) can earn.
Because I know that the type of freelancing work I’m doing won’t last forever — the internet might fundamentally change, robots might start grabbing all of the good copywriting jobs, companies might want to work with younger freelancers who know all the dank memes — and so I’m investing in my future by trying to save as much money and grow my net worth as quickly as possible. Even if I don’t hit financial independence, being able to set money aside while I have the privilege to do so will give me more choices in the future.
So that’s my March financial summary.
We’ll check back again in April.
*When I worked as an executive assistant for a non-profit, I invested in a TIAA 403(b). I was able to roll everything over into a Vanguard rollover IRA except for this one non-rollable TIAA annuity that TIAA told me I’d have to keep until I retire, I guess. If anyone has any suggestions on how to get that money out of TIAA and into Vanguard, let me know.