Am I alone in feeling like January 2020 felt like a full year? The tragic death of a beloved athlete, the impeachment process, a few powerful earthquakes, a fast-moving coronavirus that has brought China to a standstill and caused stock markets around the world to tumble. I’m drained just writing about it.
That said, I’m thankful for the joy and distraction that the Super Bowl will provide this weekend. I found myself reading up on all the players and everything football when I came across an article discussing how much NFL players suffer financially when their playing days are over and how when they hit retirement most have nothing.
This is especially egregious because, as it turns out, the NFL offers its players an amazing 401K. It seems like the best 401K I have ever seen. For every dollar an NFL player puts in, the league offers a $2 match. I know, it’s unreal but it doesn’t seem to mean much to the players because so many never enroll in it and for some reason the NFL hasn’t implemented automatic enrollment.
I won’t go into how these players could set themselves up for life in a very short period of time, but I will say it’s another example of “it’s not about how much you make, it’s about how much you keep.”
The salary of an NFL practice player is around $140,000 and most will stay in the league about four years. That is four years of making three times the national average and an opportunity to triple their money with the elite 401K offered by the league. And somehow these players find themselves broke and without a funded retirement?
It is humbling to realize the average worker making $45,000 a year that contributes to their 401K and/or IRA will come out ahead of NFL athletes when both are done with their respective careers. Just something to think about.
Okay, time for the first net worth update of the year.
January 2020 Net Worth Update
Cash Accounts
Checking $ 500.00 (no change)
Savings $ 4,356.00 (+ $26)
Business $ 9,247.00 (+$315)
MM/E Fund $ 16,191.00 (+$585)
Taxable Investment Accounts
Ally Brokerage $16,403.00 (+$42)
Investing MM $ 209.00 (+$181)
Vanguard $1,158.00 (+$90)
Acorns $ 904 (+60)
Tax Advantage/Retirement
Bonds $ 17,257.00 (+$223)
SEP IRA $ 13,837.00 (+$250)
Traditional IRA $ 23,786.00 (+$697)
$103,848.00
Liabilities: Credit Card: $285.00
- Checking: All savings/bills are automatically deducted from this account. Any money left over after deductions is sent to the emergency fund.
- Savings (P to P): This account has been going strong. The only money going in is a $25 automatic deposit that allows my checking account to be free. I’ll have to consider investing this money soon.
- SEP IRA: Not growing as quickly as I’d like, but changing that will require an additional stream of income.
- Traditional IRA: This account is doing great and I will add a few more individual stocks
- Business Account: This account took a hit for the first time in a year. I spent about $700 more than I usually spend in a month on business and splurges.
- The E/Fund: Haven’t had any reason to hit up the emergency fund. It continues to grow at a modest pace.
- Ally (taxable): Purchased a few shares of stock (ENB, PG and MAIN). I’m always working to grow dividend income.
- Bonds: The current I-bond rate is 2.22% This is still way above the interest banks are offering now.
- Ally Investment money: This money is always being used to buy dividend-paying stocks.
- CC debt: I had a couple of splurges this month. I will work on keeping the splurge monster in check for next month.
I have moved $3,000 closer to the next $100,000 and if I’m honest it feels daunting. I don’t have any muscle memory from doing it the first time, which doesn’t make doing it a second time any easier. At least not yet. I’m finding it a little harder to convince myself that I shouldn’t spend money. I seem to have developed an “I deserve it!” mentality.
Well, here’s to only needing $96,152 to reach my next milestone.
It is a fight to build wealth no matter where you are in the process. Everything around us conspires to take money out of our hands. But you must fight the good fight. Continue to save, invest, and grow your net worth even when it seems impossible. Save your pennies (copper) until they become dollars (cotton).
