45.3 F
New York
Sunday, March 29, 2020

Net Worth Update (January 2020)

Must read

This Day in History: March 28th

"Panther with a Pen," Lutrelle Palmer Was Born Lutrelle Fleming Palmer Jr., known as the Godfather of Chicago's...

It’s Time for the NFL to be Honest with Antonio Brown

On Thursday, Bruce Arians, the coach for NFL team, Tampa Bay Buccaneers, shut down the possibility of Wide Receiver, Antonio Brown, following Tom Brady...

Mali Opposition Leader Soumaila Cisse Kidnapped

Mali opposition leader Soumaila Cisse has been kidnapped and is being been held hostage days before an election. Cisse, along with six members of his...

Does Cuba Have a Cure for Coronavirus?

Cuba may have found a cure for COVID-19. On March 2, the island instituted the Novel Coronavirus Plan for Prevention and Control, which regulates...
Copper Cotton
Copper Cotton
Copper2Cotton is a money blog following one person's journey to reach $1 million net worth. This blog will not only show the author's progress, but also give financial tips and insight for anyone who wants to be wealthy.

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).

- Advertisement -

More articles

- Advertisement -

Latest article

Michelle Obama and DJ D-Nice Host a Voter Registration Party

Michelle Obama and DJ D-Nice teamed up for their online Voter Registration party on Instagram live. Last week, DJ D-Nice had all of Instagram rocking...

Jamaica Promises Harsh Penalties for Those Who Ignore Quarantine

Jamaican Minister Andrew Holness is warning travelers that stiff penalties could follow if they do not adhere to the country's quarantine order. The Caribbean island...

White House, Senate Reach Historic $2 Trillion Stimulus Package Deal

The White House and Senate leaders have finally reached an agreement in the form of a $2-trillion stimulus package for the U.S. economy to...

This Day in History: March 24th

The "Godmother of the Civil Rights Moment," Dorothy Height Was Born Women and civil...

Nigeria Reports Chloroquine Poisoning after Trump Lauds it as COVID-19 Treatment

Nigeria has reported that three people have overdosed on the anti-malaria drug chloroquine after President Donald Trump tweeted that it was a "cure" for...