Even without a blockbuster income month like February, we still managed to increase our net worth by $9k. As more of our net worth is concentrated in our retirement accounts, these increases become less under our control and we end up gaining or losing depending on the strength or weakness of the market. The good news is that as long as we continue to earn a good income and save a lot our net worth should continue to increase the good old-fashioned way. We’re making great strides toward our goal of having a $250k net worth goal this year and this month has pushed us further in that direction. While our March income was less than February, we still had a great month, which you can read all about in the details below!
Cash – -$50 – As promised, I took a look in the safe and added in all the other cash and this is what I came up with. It’s close to previous estimates – so that’s good!
Cash Savings – +$5,959 – I’m a little surprised that we did as well here as this report shows, but I think between the extra income from the third paycheck for Mrs AB, her teaching salary, and the tax refund, we managed to increase this more than expected!
Emergency Fund – +$12 – As this account has stayed consistent, the only thing changing on a monthly basis is the interest that keeps rolling in. If interest rates were back up at 5% or 6% this number would be significantly higher, but at least it’s not going down.
Taxable Investments – +$0 – Another month without movement here – no comment.
Roth IRA – +$2,289 – The stock market has been on a big run recently, and the more money we put in here the more our investments will increase along with it. While this is all retirement money that we can’t touch for 30+ years, it’s still nice to see the value increasing faster than we can put it in!
401(k) – +$1,420 – Most of this increase is due to the stock market, but as we have less money in our 401(k)s the increase isn’t as much.
Auto Value – -$131 – While our cars continue to lose value, as they depreciate the amount should start to slow. Cars lose their value fastest in the first few years and then tend to slow down, so over the next few years hopefully our 2008 and 2009 cars will start to lose value at a slower rate than they have been. As it’s our intention to drive them until they cost more to fix than they’re worth, I don’t really worry too much about this category.
Credit Card – +$461 – Most of this increase is due to our vacation and house spending – so definitely nothing that we weren’t expecting.
As I said at the beginning, our March was definitely not as lucrative as our February in terms of income or net worth increase. Having said that, I think we still did a great job of working with what we had – as you can see by the $9k increase this month. I think that any month our net worth can increase more than our net income is a good month!
How was your March? How did your net worth do? Does the stock market have a significant influence on your net worth? Let me know in the comments!