I 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!
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.
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.
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!!!