The Money Muse

As 2024 draws to a close, it’s a great time to reflect on the progress I’ve made throughout the year and evaluate where I’m standing in terms of my financial goals. The fourth quarter was particularly noteworthy for me, with some significant achievements in income, investments, and net worth growth. It’s always important to acknowledge the wins, no matter how big or small, while also preparing for the road ahead. Here’s a breakdown of how Q4 went and what I’m focusing on as we head into 2025:

• Income. My after-tax income for Q4 2024 was $15.5K, with $6.8K earned in December. This is the most I’ve ever earned in a single month! About 73% of this was from my salaried job, and the remaining 27% was from my Etsy shop. Q4 is typically a great month for my Etsy shop, and it’s nice to see this boost to my income!
• Investment contributions. Before taxes, I contributed $1.7K to my 401(K), including an employer match. From my after-tax income, I put $1.7K into my Roth IRA and $4.2K into my brokerage account. In total, I invested 45% of my after-tax income in Q4 of 2024. This is a high percentage of my income – I normally aim for around 50% (the Money Guys recommend 25%). For the most part, I invest my money in VTI, Vanguard’s total stock market ETF. This move was inspired by JL Collins’ Simple Path to Wealth (a great personal finance book that I highly recommend!). 
• Investment performance. Even though the quarter ended in a bit of a slump, this was another great quarter for investment performance. My net worth increased $15K (5.7%) in Q4 of 2024, with my 401(k) account experiencing the highest percentage increase (6.2%), followed by my taxable brokerage (6%), and my Roth IRA (5.4%).
• Spending breakdown. My highest spending category in Q3 of 2024 after paying for my bills ($2.2K) was pets/pet care ($1.1K), consumables (eating and drinking out) ($1.1K), and transportation ($900).
• Future plans and goals. My net worth grew $77K in 2024, surpassing all of my projections for the year. In 2025, I would love to see my net worth reach $350K, but I know the market will have up and down years and the timing of down years is out of my control. I will stick to my current strategies and – with some luck – it should be possible to reach that number.

As I reflect on 2024, I’m incredibly proud of the financial progress I’ve made. While challenges are sure to come in 2025, I’m confident that with a clear plan, consistent effort, and a little patience, I’ll continue to move closer to my financial goals. I’m excited for what lies ahead, both in terms of my investments and my personal growth. Here’s to another year of progress!