Starting Net Worth: -$7,823
January was a unique month because this is when I discovered a little known section of the CARES act which congress passed during Covid. This section stated employers could deduct up to $5,250 per year from the employee’s earnings and send the money directly to the employee’s student loan processor. This way the employee could pay extra toward their student loans without paying taxes on this amount of income. I spoke with my boss when I found this out and we agreed from then on any bonuses I earn would be subject to this program. As a result, my January 2022 bonus was sent to my student loans. In January, I also changed my monthly Roth IRA deposit to $500/month so I could max it out over the course of the year, and continued contributing 4% to my Roth 401k. I then used some bank money to make another deposit into Coinbase as an opportunity to “buy the dip” we had seen in crypto during the 4th quarter of 2021. Finally, I made my first rent payment and submitted the security deposit to my first apartment. My portion of the security deposit was $500. We also decided while my girlfriend was finishing college I would cover her portion of rent, so my monthly housing payment was $960, or 21% of gross income. My total expenses for the month including the first month’s rent and security deposit came to $3,240.
Ending Net Worth: -$7,482
None of the above information is a recommendation. This blog is purely intended as commentary on things that have happened along my financial journey.