My Financial Mirror: What My Money Really Did This Year

As the leaves start to turn here in Palo Alto and the year begins its final sprint, it's the perfect time for a quiet moment of reflection. It's easy to set financial goals in January and then lose sight of them.

This isn't an audit or a judgment. It’s an "Annual Check-In," a chance to get curious and ask a simple question: What did my money really do this year?. To show you what I mean, let's look at what has happened for me this year so far.

Pillar 1: Checking the Foundation. Stability and Security

First, I look at the base of the pyramid: the numbers that create stability.

• Re-evaluating the Emergency Fund. After the recent waves of tech layoffs, taking on a rental property, and considering the current craziness around AI, I decided this was the year to re-evaluate my emergency fund. The number that once felt comfortable now seemed too low. I set a new goal: increase my emergency fund, which I keep as cash in a High-Yield Savings Account (HYSA), almost twice compared to what felt good before.

• A Major Debt Milestone. Next, I check in on my progress toward being debt-free. Paying off my student loan for my Master's from MIT was a major milestone for me earlier this year. While it wasn't a huge amount of money in the end, it was still a bank account to manage, a password to remember, and a transaction that would show up every month. Closing that chapter brings an emotional relief that is equal to, if not bigger than, the financial relief.

• Intentional Debt Strategy. Not all debt is a top priority, however. I still have a car loan with a low-interest rate, so it doesn't make financial sense to pay that off early.

• Simplifying for Sanity. Another goal this year was to simplify things, so I consolidated some checking, saving, and brokerage accounts. I've also cancelled several credit cards (warning: be careful and never cancel your very first credit card because it starts your credit history! Closing credit cards may also have other negative impact on your credit score, so consider your situation carefully).

Pillar 2: Building the Future. Growth and Direction

With the foundation secure, I can look at the long-term journey.

• Tracking the Finish Line. I am now about halfway to my "Relaxed Employment" number. It's crucial to know what "enough" is for you; otherwise, it becomes a never-ending chase after a moving target. Having a defined number allows me to see the finish line and not just keep accumulating for the sake of it.

• The Composition of Growth. What’s been most interesting, however, is the composition of my growth. My overall net worth projection is right on track, but the split is different. My rental property didn't appreciate as expected, while my stock investments performed better than anticipated. It's a powerful, real-time lesson in the importance of diversification.

• Exploring New Territory. Speaking of diversification, this year I also started making my first VC and Angel investments. It’s a very small amount I'm comfortable losing, but it’s a deliberate step to further diversify my portfolio and learn about a new asset class.

• Conscious Prioritization. I didn't mention investing in my kids' education accounts. That was a conscious choice. I am prioritizing my own retirement savings first.

Pillar 3: Living Your Values. Alignment and Fulfillment

Finally, the most important question: Did my spending align with my values?. When I analyzed my spending, the answer was a clear yes.

• The Spending Story. After housing, my single biggest expense category is Travel and Entertainment, accounting for roughly 25% of all my non-housing expenses.

• The Life Behind the Numbers. That 25% isn't just a number. It’s our family's trip to Italy and being able to bring my mom from the other side of the world to share our life in California with her for a few weeks. It’s a skiing weekend with the kids, a three-day music festival, and so many other memories we've built together this year. It’s making sure we don’t miss our friends' weddings and flying across the country for Friendsgiving to meet a friend's new baby.

• Investing in Myself. My values-based spending isn't only about travel. It's also about investing in myself. This year, that meant dedicating resources to my self-development in terms of spiritual growth, and to my hobbies with classes for piano, violin, and ice skating. And last, but not least, it meant investing in my future by working to become an Accredited Financial Counselor, and creating a beautiful home for my blog that you are reading right now.

• Childhood Exploration: I view funding my children's activities as a direct investment in their development. Whether they are learning chess, singing, piano, swimming, or ice skating, I want them to have the freedom to discover new skills and interests. We keep this commitment financially and logistically sound by limiting participation to two activities per child at any time.

The Real Goal

So, that's the story of my year so far, told through the lens of my finances. It's not about hitting every target perfectly or having a flawless report card. It’s about looking at the numbers and seeing the life behind them. It’s the confirmation that my money, my time, and my energy are working in concert for the things I care about most. And that alignment, more than any specific number on a spreadsheet, is the real goal.

I know the year is not over yet, but I have a pretty good idea what the next 1.5 months will bring. It’s time to plan 2026: update a net worth projection, create a full year plan for taxes, expenses, and investments, and a preliminary monthly spending plan.

Disclaimer: The information provided in this blog post is for educational and informational purposes only. I am an AFC® (Accredited Financial Counselor) Candidate, not a licensed financial advisor, tax professional, or attorney. The content herein is not intended to be a substitute for professional financial, investment, legal, or tax advice. Always seek the advice of a qualified professional with any questions you may have regarding your individual financial situation. The opinions expressed are my own and do not represent the views of my employer.