April was definitely a transitional month in the Aspiring Blogger household. We got rid of the monkey on our back by paying our massive (to us) tax bill, went on vacation, and had some extra expenses related to our impending home purchase. While our net worth increase was down substantially compared to previous months, we still managed to squeeze out a small increase. Mainly due to the new house purchase I expect our net worth increases to be smaller than normal (or even negative) for the next few months. Hopefully it will be a short-lived trend, but if you know me – I’ll be keeping an eye on it! Read on for all the details behind April’s net worth changes.
Cash – +$0 – After my reconciliation last month, we have a pretty good grasp on how much cash we have on hand. I brought back some foreign currency from our overseas trip, but I’ve decided not to include that here, as it’s only about $50 worth, and it’ll be annoying to keep remembering! I know it’s not as exact as I like to be, but I’m ok with that in this case.
Cash Savings – -$4,290 – I hate to admit it, but unfortunately this number is accurate! If you read April’s Income and Expense Report, then you already know that the main culprit here is the $3,988 we sent to the IRS at the beginning of the month. The rest is mainly due to house expenses (the appliances we bought from the seller and other expenses we’ll cover later) which were pretty much expected.
Emergency Fund – +$13 – Nothing special again here – the interest just keeps rolling (slowly) in, and assuming we don’t have an emergency, it will continue.
Taxable Investments – +$0 – Once we are settled into the new house and our new budget is established, then I’ll start looking around for something to do here.
Roth IRA – +$1,065 – The stock market gains weren’t awesome during April, but we continue to pour money in at a rate of $916.67 a month. These accounts are a big part of our early retirement / financial independence plan, so we will continue to fund them no matter what’s going on with the economy.
401(k) – +$1,314 – Like our Roth IRA’s, some of this is investment gain, but most is new money we are putting in.
Auto Value – +$0 – Calculating the value of our two cars this month was a strange exercise for April. When I did my typical calculation it showed that the cars had actually INCREASED in value by $576! Looking back at March/April 2012, we had a similar increase – which leads me to believe that there’s a spike in used car values around the March/April timeframe. Even though the cars showed an increase in value, I decided to be conservative (and assume that cars don’t actually appreciate in value) and use March’s value. It’s funny that it was only last month that I wrote about the depreciation curve slowing down for our cars – even I couldn’t predict that their values would start going back up!
Home Value – +$2,500 – Astute readers will notice that I’ve added a new category this month. As we continue the process of buying a house, I will be including this category to capture the value of our home, along with a category under liabilities to capture the mortgage. The $2,500 listed here is our “earnest money” that we currently have deposited with the title company. It will be applied toward our down payment, so it will be included in our equity once we close on the house.
Credit Card – -$1,041 – As we were on vacation a good chunk of the month, we didn’t have a good opportunity to spend like we normally do. I’m sure this number will increase during April as we continue to purchase “necessities” for the new house! 🙂
Whew – that was a rough one! I’ve been keeping track of our net worth for almost four years now, and this was the “worst” month in over a year – and that month included the loss we took on selling our previous home! Having said that, it wasn’t unexpected and I still consider it a decent (if not great) month. As we move further into 2013 I expect these reports to fluctuate a lot more due to the change in housing, income, etc. Thanks for reading, stay tuned for the next update!
How did your net worth do in April? What do you think of how we dealt with the increase in auto value? How would you have handled it? Let me know in the comments!