Welcome to another edition of my house-related net worth updates. I’m hoping that over the next couple of months the one-off expenses will subside and we’ll get back into a new rhythm. One that has us increasing our net worth at a much higher rate than right now! For now, I’m just happy that our net worth increased again this month. I was scared that we might have our first decrease since March 2012 – when we sold our old house. The crazy thing is that our net worth has increased over $100k since that last decrease…WOW!! Let me know what you think of our current update – I’m always around if you have questions or comments!
Cash – +$0 – We used some cash, we got reimbursed with some cash – no big movement though
Cash Savings – -$12,039 – At least this drop is smaller than last month’s when our cash savings dropped almost $75k due to our house purchase. The reason for the dip in this account was to fill our emergency savings back up to its normal level. We had to “borrow” $15k for the down payment, so this was just us reimbursing that account for that.
Emergency Fund – +$15,005 – As I promised last month – we put the money that we borrowed for our down payment right back. I know that borrowing from your emergency fund isn’t something that should be done – but we are disciplined and got it right back – so I’m ok with it! With the new house and going down to a single income I think we may increase the amount in this account in the near future – I’ll keep you updated.
Taxable Investments – +$0 – No change here, but I may end up just putting this into a mutual fund or two sometime soon.
Roth IRA – -$218 – We’ve had a good couple of months…but June was a pretty crappy month – so our retirement accounts took a nice hit due to that. Oh well, as we’re still aggressively contributing to these accounts it just gives us an opportunity to buy shares at a lower cost. The only time it sucks is when looking at our net worth J. I still think that contributing the max to our Roth IRAs is a good idea- especially as we’ll have the ability to pull from these accounts during early retirement if we need to.
401(k) – +$160 – Crappy stock market month here as well. Mrs AB and I put a lot of money in here each month, so for it to only be up $160 means that our investments are down. Oh well – they’ll come back up soon enough. If you want to achieve financial independence (as Mrs AB and I do) you have to take a long view, and not focus on the month to month changes too much!
Auto Value – -$52 – It took a few months, but the value of our cars is back down below March – so I’ve started reporting the actual value again. It was definitely a strange few months there, but I think if you want to sell a used car – March-June is the time to do it, as the values seem to be the highest! Well, at least for the 2 cars we own.
Home Value – +$0 – This is going to be one of those boring categories that I put here and doesn’t change very often. If something crazy happens like a sinkhole opens up in the middle of my neighborhood and the values drop or something like that – then maybe I’ll reevaluate. Otherwise, I’m quite content to just leave this as the purchase price and move on.
Credit Card – +$2,473 – I’m breaking out in a sweat just looking at this number…. If you looked at our June Income and Expense Report then you already know the details behind a lot of this increase. The biggest items leading to this increase are Costco/Sam’s Club/Lowe’s/Home Depot. There are some needs here and a LOT of wants – but they’ll make our lives more enjoyable, so I’m ok with it. I expect this number to go down hopefully to a normal level by August’s report. If not – we’re going to be in trouble!
Mortgage – -$1,117 – Well, now that we’ve got a mortgage – it’s time to kick the crap out of it and get it paid off. Our monthly mortgage payment (only principal and interest) is $630. Mrs AB and I sat down and decided that we would pay $1,500/month, which will have it paid off in a little less than 10 years. Now there’s no way I can see us having a mortgage for 10 years – but if we consistently make the $1,500/month payment and in a year find an extra $15k or $25k in our bank account – then we can just throw it at the mortgage and keep going. We decided that $1,500 a month was a good balance for us at least until all the other expenses in our life settle down.
While our net worth increase was abysmal compared to last month’s $11k change, it’s still pretty decent considering our increased spending and the crappy market during June. I’m also weirdly impressed by the exactly $1,500 increase (I swear, I didn’t adjust a thing to make that happen) in our net worth – I like it when things work out mathematically! J Another cool thing – the value of our 401(k)s / IRAs is $79,999 – which is close enough to $80k for me to be pretty happy. I’m thinking about adjusting some categories and possibly adding a reserve / liability account next month for property taxes (they’re about $6k so they’ll have a big impact when they hit).
How did your net worth do during June? What do you think of my idea to add a liability for accrued property taxes? Any thoughts on the market and investing? Let me know in the comments! Thanks for reading.