#500in5 Update

So, it’s been a LONG time since I’ve updated you on our #500in5 challenge, our attempt to save half a million dollars in five years. That’s because I lost my job in March, and most of my income was earmarked for this challenge. Both hubby and I were saving $24k/year in our 401(k) plans, and then a good chunk of my take-home pay helped to make up the other $50k-ish per year needed to meet the challenge.

After losing my job, my $24k/year stopped. And hubby decreased his 401(k) contributions to $18k/year. That’s all that we’ve been saving for the last six months. While the first six months of our challenge netted more than $58k, there has been little extra money to save. And while the bills are covered, I still have lots of severance pay left, and we haven’t dipped into our emergency funds at all, there’s a little part of me that is sad. Our current balance of the #500in5 challenge is $79k. It should be closer to $130k. Ah well, life happens.

On the upside, however, is our net worth. When I started this little self-challenge on July 1, 2016, our net worth was just over $1.5 million. How do I know that? YNAB tracks it for me! Now, 15 months later, it is just under $1.8 million. No, we certainly haven’t saved $300k in the last 15 months, but when you have about a $1 million invested, your money really does the work for you! I was hoping to have a net worth near $2 million by year-end, but without me adding my income and withdrawing money for our trip and college tuition, well, that is not going to happen.

And I don’t think I can, in good conscience, count the increased value of my investments in my challenge. It’s not the money I promised to put in. Perhaps I should do a net worth challenge instead? But so much of that is connected to the market, which I admit I don’t know enough about.

I do have a few job prospects that look promising. They pay less than my old job, but I can get back to contributing $24k/year to retirement, as well as find a little more to add to the stockpile. Stay tuned!

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