Net Worth Update – June 2013

by AB@AspiringBlogger.com

Net Worth Report June 2013 Aspiring Blogger

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!

ASSETS:

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.

LIABILITIES:

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.

OVERALL:

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.

AB

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{ 4 comments… read them below or add one }

Martin July 16, 2013 at 11:30 am

It is a good approach when you borrow money from your emergency return it right back. I do the same thing. As soon as I can return the whole sum I do it. If I cannot I increase my regular contributions to speed up the account recovery.
Great job on increasing the net worth.

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AB@AspiringBlogger.com July 18, 2013 at 8:48 pm

Thanks Martin! I hated borrowing from the emergency fund, but I knew it was short term and that we had the money to cover it. It definitely feels MUCH better now that all the money is back where it belongs though!
AB

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DW @ Great Passive Income Ideas July 27, 2013 at 6:44 am

That’s really cool of you to post your financial breakdown like this on your site. It reminds me of what my net worth list used to look like. You have a terrific amount of cash and emergency fund saved up. Have you thought about adding another element of income to your scheme like having dividend stocks?

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AB@AspiringBlogger.com July 30, 2013 at 11:57 am

Hey DW – thanks for the feedback! I’m definitely looking to add some more “passive” income and dividend stocks are on my radar. I’m still doing my initial research, but any tips you can provide would be appreciated! Thanks for stopping by!
AB
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