SUMMARY: January is a red-headed month given my 2017 year-end bonus payment. With it, I maxed out my 401(k) and because the company matches dollar-for-dollar up to the IRS limit, it’s an easy $37k saved in the first month of 2018. My bonus is completely discretionary and, therefore, only assumed the 401(k) would be maxed in my 2018 forecast. I never bank a bonus before it’s paid. The remaining cash left after maxing out will be temporarily held in my savings and allocated via my waterfall method in February.
Incentive compensation is a great benefit, but this particular one took a few years off my life earning it all. Was it all worth it? Yes and no. Would I do it again? No. Should I search for a job with less compensation, but a better quality of life? TBD. Regardless of where I land, everything will turn out fine because, at the very core, I am a saver. And savers always win this game.
Next month preview: life insurance loan pay down (i.e. money I borrowed from myself at a simple interest rate).
Checking – cash purposed for managing day-to-day and monthly expenses
- -$1,239.93 cash decreased due a large chuck of credit card debt being paid down from the Christmas holiday
Savings – cash purposed for the next 3-5 years (house down payment, emergency etc)
- +$50,150 year-end bonus + $150/month automatic transfer from my savings. Will reduce next month to recapitalize my bank (life insurance)
Life Insurance – cash value of policies purposed for strategic investment opportunities and financing other large purchases
- +$5,509.45 monthly premium + policy growth (i.e. monthly straight-line accretion to current year’s guaranteed cash value)
- -$3,566.86 positive market movement that was completely offset by my loss in alt-coins.
Real Estate Earnings – PeerStreet monthly interest earnings
- -$2,656.09 re-invested principle & interest in the PeerStreet cash account
Retirement – 401(k), IRAs, Pension
- +$50,207.86 Maxed out my 401(k) with 100% match from the company (+$37k) and my financial advisor managing my IRAs had a nice run of approx. +$13k. I am a front-loader in case anyone is wondering.
Other – represents my cost basis in illiquid assets (PeerStreet principal investment, Mrs. Church’s wedding rings, apartment security deposit, and an outstanding loan receivable)
- -$613.00 late interest payments from PeerStreet investments and $500 repayment of personal loan I hold
Credit Cards – two cards (Amex & Visa) with great rewards
- -$2,924.36 year-end bonus paying off a significant chuck of Christmas credit card debt
Lease Obligations – Apartment lease, storage unit, gym memberships etc
- -$4,150.00 contractual monthly costs
Life Ins Loans – life insurance policy loans used to fund strategic investment opportunities or large purchases
- -$4.67.17 monthly loan reduction