Net Worth Update – July 2013

by AB@AspiringBlogger.com

July 2013 Net Worth Aspiring BloggerI am pretty much in shock right now – but I’m here to tell you that this is the 100th post at AspiringBlogger.com! It’s been almost a year since I started this site, and I’m overwhelmed by all the support and encouragement I’ve found out here in the last 99 posts. Thank you all – because without readers and commenters, I couldn’t have made it this far! Now, onto the good stuff!

You may notice that I haven’t posted my July income and expense report yet, and I have a reason for that – it’s a tough one! With the move and the changes in expenses, Mrs AB and I decided to work out a new budget, so I want to take a little extra time with this month’s report to walk you through our new budget and how it has changed. Until then – you get things in reverse this month – so enjoy the net worth update!

ASSETS:

Cash – –$50 – We’ve been paying the neighbor kid to come over during the day to let out the dogs and get them some exercise. We also bought a boat and paid for it with cash – so we’ve had some big fluctuations in cash this month! Overall though, it works out to about $50 less than last month.

Cash Savings+$237 – We bought a boat… so we spent almost $2k on that, plus we had to pay the credit cards from last month (which were higher than they’ve been in almost two years…yikes!), so that didn’t leave us with much extra going into savings.

Emergency Fund – –$145– We made some banking changes – nothing major, but we combined some accounts so the emergency fund will now just be $20k of a larger account. We’re trying to simplify, and this is one step in that direction. The only real change is we won’t see this account accrue interest by itself, but will just be a fixed number.

Taxable Investments+$0 – Same old, same old.

Roth IRA+$3,630 – Holla! After a crappy June, things turned around in July. As Mrs AB and I approach financial independence and potential early retirement I hope to see numbers like this each and every month – it will mean we are ready to go!

401(k)+$1,976 – Well, I said last month things would bounce back – and they have. We still have over 30 years before we can access these accounts, but it’s nice to see them growing!

Auto Value-$241 – Our cars are now back to depreciating (losing value) at a much more normal rate. Hopefully I’ll stop driving as much and this will slow down soon.

Home Value+$0 – This is set at the purchase price, so there shouldn’t be much change here for a while.

LIABILITIES:

Credit Card – –$668 – Well, at least this number is down – it’s still crazy-high, but it’s down…so we’re heading in the right direction. I’m still hopeful that this is the last huge month and it will go down to a more normal level next month.

Mortgage-$1,120 – So we paid the same $1,500 towards the mortgage this month as we did last month, but the balance decreased by an extra $3 – yay for having less interest and more of our money going towards principal! This will only accelerate as we continue to pay down this debt.

Other+$3,383 – For the more astute readers out there, you will have already noticed that this is a new category. As Mrs AB and I are responsible for our own property taxes at the end of the year (approx. $5,800) I decided we needed to accrue for them so they didn’t just sneak up on us and take a bite out of our net worth in December. So every month this category will grow until December, and then we’ll pay the taxes and this category will drop – but so will our cash as we’ll be paying the taxes. I’m not doing this for any other categories (insurance for example) but this is such a large expense that I think it’s justified.

OVERALL:

Yes, our net worth did increase this month – but it was mostly due to market forces and not anything that Mrs AB and I did. We continued to spend on the new house and even bought a boat. Yet, any month where our net worth increases by almost $4k can’t be all bad…right? Over the next few months, a lot will be changing (our income, expenses, investments, etc) but hopefully our net worth will start to increase faster than it has been recently.

Thanks for reading – let me know in the comments if you have any thoughts on this month’s net worth report. What do you think about my idea for keeping track of property taxes? Thanks again for helping me make it to 100!!!

AB

{ 9 comments… read them below or add one }

canadianbudgetbinder August 13, 2013 at 9:14 pm

Congratulations on 100 blog posts!!!! Good job on your net worth.

Reply

AB@AspiringBlogger.com August 17, 2013 at 8:29 pm

Thanks Mr.CBB!!!! I appreciate your help as I’ve reached this milestone!
AB

Reply

Bryce @ Save and Conquer August 14, 2013 at 12:41 am

Hi AB, I would be hesitant to put my finances out there for everyone to see. You could be setting yourself up as a target. I think you are in your late 20s, since you mention “future children” on your About page. It looks like you are doing very well for that age.

Saving monthly for property taxes is normal. Keeping the money in your savings account on the “Assets” side of the ledger and then spending it on tax is also normal. Or at least that’s the way I budget. You do have to play a bit of a mind game that even while you are saving funds to pay future taxes, and they appear as assets, they should not be touched for anything else. I do that for property taxes and am doing a similar thing to have cash on hand for making a large purchase of i-bonds early next year. Of course, i-bonds remain an asset after purchase.

Reply

AB@AspiringBlogger.com August 17, 2013 at 8:33 pm

Hi Bryce, I agree that I could be a target, but as I try to stay mostly anonymous, hopefully that doesn’t happen. Thanks for your kind words! I think having an entry on the liabilities side of my balance sheet for the taxes also helps smooth out the hit each year.

I’m curious – what is the main purpose for your i-bonds? Income?
Thanks for stopping by!
AB

Reply

Bryce @ Save and Conquer August 17, 2013 at 9:56 pm

Hi AB, Prompted by your questions about i-bonds, I just wrote a post on my blog titled, “What Are I-Bonds and What Are They Good For?” Please have a look.

Reply

AB@AspiringBlogger.com August 22, 2013 at 9:57 pm

Hey Bryce,
Thanks so much for writing a whole post in response to my question! I just read through it and now I have a much better understanding. I guess now I need to figure out when/how/if I should include them in our strategy. I really appreciate you taking the time to explain!
AB

Reply

Bryce @ Save and Conquer August 22, 2013 at 11:59 pm

Glad I could help.

Michael | The Student Loan Sherpa September 14, 2013 at 10:20 pm

100 Posts! Yeah! That is really amazing. Congrats on your huge accomplishment.

Reply

AB@AspiringBlogger.com September 15, 2013 at 4:00 pm

Thanks Michael! I’m as shocked as anyone 🙂

Reply

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