In 2023, the most significant shift in my financial landscape was the acquisition of a new vehicle, a decision that significantly impacted my savings. Ongoing supply chain disruptions from the pandemic had tightened vehicle inventory and inflated prices. The price gap between the used model and the new model I desired was minimal, leading me to opt for the new vehicle.
Despite this, my net worth in 2023 saw a substantial rise of 23%. This growth was propelled by a robust 33.6% surge in the value of my 401(k), an 18.4% enhancement in my Roth IRA value, and a modest increase of 1/3% in my home equity value.
Net Earnings Overview
I consider Giving, Taxes, HSA Contributions, and 15% gross salary Retirement Contributions non-negotiable. Given this, I excluded these categories when reviewing my 2023 net earnings, outlined by the pie chart below:
Net Earnings Key Takeaways
Paycheck. Unlike some previous years, the proportion of earnings from my primary W-2 job accounts for a very large percentage of the total. Moving forward, a primary goal is to diversify my income streams so as to not be as reliant on once income source.
Side Gigs. In an ideal world, I would have at least 50% of my earnings coming from non-W-2 work. As I’ve acquired more skills, such as website design, I plan to continue to monetize these skills.
Net Income Allocation Overview
As stated above, since I consider Giving, Taxes, HSA Contributions, and 15% gross salary Retirement Contributions non-negotiable, I excluded these categories when reviewing my 2023 net income allocation, outlined by the pie chart below:
Net Income Allocation Key Takeaways
Savings. Given the purchase of a vehicle, I was unable to save outside of my maximizing my 401(k) contributions.
Housing & Utilities. Housing expenses, including utilities consumed 24% of my earnings for the year. Paying-off my mortgage early remains a high priority, but that won’t happen until 2028.
Food. 8% of net income went toward groceries with another 2% on restaurant take-out.