Get ready for a CRAZY net worth update. If you’ve already taken a look at my income and expense report for May, then you have a good idea of what to expect. If you haven’t – then I’d recommend reading it first before coming back to see how we finished the wildest May I can remember (well, since Mrs AB and I were married 4 May’s ago)! If you want to look at a more normal month, you can go back to April’s net worth update, or take a look at my constantly updated finances pages for the most current financial information!
Cash – +$0 – Nothing to report here, we didn’t use much cash during May so this number hasn’t really changed.
Cash Savings – -$74,681 – YIKES!!! Yes, you’re reading that correctly – a $75k decrease in our cash savings! If you’re a regular reader, you’ll realize that this is part of the down payment for our new house that we bought at the end of May. We didn’t just go out on a crazy shopping spree and spend $75k (that would have been ridiculous), the money is just tied up in equity in our home now.
Emergency Fund – –$14,988 – Another huge decrease to report. We put down $97k, and we didn’t want to completely wipe out our everyday accounts, so we “borrowed” from our emergency fund. I know this is technically a “no no”, but it was really just to make the home purchase process easier for us. We have the money laying around in other accounts, so we’ll put it back ASAP – I promise!
Taxable Investments – +$0 – No movement
Roth IRA – +$2,790 – May was a great month for the stock market, and we were along for the ride! Almost 2/3 of this gain was from market activity, which is pretty sweet if you ask me!
401(k) – +$3,418 – This one has a little less to do with the stock market, and a lot more to do with my employer. Every year I receive additional units of “vesting” in company 401(k) match and other benefits. May was apparently my month (even though it doesn’t line up with a work anniversary…weird) so I think somewhere around $2.5k of this gain is due to the vesting. The rest is additional money put in and market gains.
Auto Value – +$0 – We’re still in that weird time period where our cars are worth more than they were a couple of months ago. As May’s combined auto value is approximately $450 more than March, I’m still sticking with March’s numbers for this report. Last year it took until July for the values to really settle down, so we’ll see if it follows the same seasonal pattern.
Home Value – +$242,500 – Last month we added this category and included our earnest money. This month we get the rest – the whole house! We closed at the end of May and our house cost $245k even, which is how I came up with a number for this category. I’ll probably leave this value alone for a while unless something crazy happens to the market. Even then, I’ll probably only adjust it down and not up just to be conservative. I’m not going to use 90% of the actual value like I do with my cars or anything like that, because if something changed in our lives, we would just rent the property. It would suck, but we wouldn’t be forced to sell and take a loss.
Credit Card – +$717 – With the new goodies for the new house, comes the expected increase in the credit card expenses! I think this number will rise even more, but that’s just how it goes I guess. I’m not worried as long as it’s a short-term blip and not a long term sustained rise in spending.
Mortgage – +$147,000 – It’s been a while since we’ve had this much debt. The cool part about the mortgage is that it’s only $20k more than the mortgage on Mrs AB and I’s first house – and that house cost 1/3 less than this one! A lot has changed in the (almost) 4 years since we bought our first house together – and I expect a lot to change in the next 4 years!
I’m not going to lie – I can’t freakin believe that our net worth is up over $11k!!! I can explain away part of it, as we received some credits when we bought the house – like one for taxes through the first 5 months of the year, and homeowners insurance, etc. But still – that’s less than $4k! The rest is a combination of market earnings, vesting, and good old-fashioned savings! Even when we splash out and spend almost $100k in a month, we manage to increase our net worth. It’s crazy how things happen, but you’re not going to see me complain – I’m quite content right now! As soon as we can finish our moving and get everything out of boxes – I’ll be even happier!
Did you have a crazy May? How is the first half of your year shaping up? Let me know in the comments!