As expected, the second quarter drove expense through the roof. Our total reported spending is $9,982. This is just $2700 more than we spent in the first quarter of 2017. This number doesn't include charitable giving, income taxes, or work related expense (which were a hefty $480 for software subscriptions, a new software package, and annual accounting services).
We knew that childcare and medical/dental expenses would rival for the spot as top expense category, but who came out on top? Keep reading to find out ;)
Medical and Dental Inches out Childcare
Overall, we spent $9,982. $2,186 of spending, or 21.9% of our expenses came from Medical and Dental Expenses. That narrowly inched out childcare for the top spot ($2,157).
The high spending in the Medical and Dental side of the world came mostly from having my wisdom teeth extracted. I put off this operation for the better part of a decade, but two of the teeth erupted (which is an overly dramatic term for poked through) and caused some minor pains. Left unchecked for another decade, they would have caused some gum decay, so we went ahead and scheduled a removal.
We're now $2000 lighter, and I no longer suffer with minor mouth pain from time to time. I suppose this is a win. However, I think I did the right thing by going with the "wait and see" method for a decade. $2000 is a lot to spend on wisdom teeth extraction, but it's the cheapest price I could find.
This quarter's high childcare spending is expected to persist for the remainder of 2017 provided that my favorite babysitter doesn't move to Poland (which is more likely than it sounds at first blush).
Other categories of note include travel $1100 (flights for a trip to MN which we took in July), home remodel $1350 ($2000 under budget for our bathroom remodel), and groceries $1,164.
Our generally low grocery spending comes not from savvy shopping, but from seasonally low prices on our favorite foods including berries and veggies.
Right now, I'm working on increasing our consumption of legumes and grains (rice and beans and similar alternatives). Unfortunately, I'm the only member of my family who enjoys vegetarian main dishes, but I think increased skill in this area should yield greater adoption (so far falafel is my only winning dish, which is of course deep fried).
Curious as to why I'm into vegetarian dishes? I've been trying hard to understand nutrition facts and fiction. The diet industry and USDA seem elaborately designed to make good information hard to find. For a while, I adhered to certain Whole 30 principles, since it's obvious that eating more veg is healthy and eating less sugar is also healthy.
Since that time, I've started to study more "macro" food related questions. As in, what foods will feed the world? The answer, at least for now, is rice and beans (or calorically dense, nutrient high, low labor crops). I figure if it's healthy enough to feed the world, it's probably healthy enough for me. We shall see though.
Our Net Worth
Our current net worth is $599,000. We're up $26K from our report the previous quarter.
Of that, $399,000 is in tax advantaged investment accounts, $130,000 in our real property (kept at book value), and the remaining $70K is in cash.
Over the past quarter, we've seen a modest decrease in our cash reserves (a surprise based on the fact that we overbudgeted the bathroom remodel and we didn't have many lumpy payments due), and some growth in our tax advantaged accounts. We contributed $11K to our Roth IRAs in March after it became clear that we will not close on an additional rental property in Raleigh's burning hot market.
We'll continue to remain cash heavy until early spring of next year. I'll have the opportunity to contribute to a Solo 401(k). It would obviously behoove us from a tax perspective to make such a contribution.
However, next spring means graduation for Rob, and that means another move for the Rounds family. Kenny has lived in three houses in his four years, and I expect he'll add a fourth house (or apartment) by the time he turns five.
Personally, I would love to stick around in Raleigh. We've developed sweet friendships, and I love our lifestyle, but Rob is eager to stake out a new career. That means we'll probably move about one year from now (or a bit less). Some likely candidates for moves include Minneapolis (our top choice), Durham, Portland, and Boise (our second choice).
Rob could also get a job in or near Silicon Valley, but he's not planning to apply to such companies.
Anyways, when we move, we're likely to sell both properties here in Raleigh and buy a 3-5plex in our new city (unless said city is Portland). This would represent a cash flow investment opportunity for us. It also gives us the freedom to consider ways that we can serve people with lower incomes.
I'm a wife, a mom, an employee, and a personal finance nerd who is devoted to spreadsheeting my way through life.