Net Worth Update: March 2010 (+$8,784)

First off, I want to say that I can’t *believe* that no one commented on the pink snowman…

I’m going to go on record (again) and proclaim that I think that it was super awesome.

Anyway…

February turned out to be a pretty profitable month for me but looks can be deceiving…

I mean, anytime that you suddenly find $3847 extra in your checking account, well, it’s probably going to be a good month.

Outside of that, I was “up” in every category except for the value of my home and that was only like a 0.4% drop. I can handle that.

So here’s the breakdown:

Cash:
This is all because of my tax refund. I don’t have $6k available anymore either. I spent most of it on hookers and blow.

No, actually, the details are in the previously mentioned Pink Snowman post.

Yeah, that’s right. I just plugged it again.

Savings:
Not bad. My savings rate isn’t what it used to be but I’m perfectly happy with a $1400 increase. If only ING would stop lowering their interest rates…

They’ve lowered the rate 3 times in the past month — currently 1.095%. That blows.

Gov’t Bonds:
I still don’t understand government bonds but at least, unlike last month, I earned some interest. And a lot more than 1.095% too…

401k:
Making my way towards the 6-figure mark. It’s very possible that this is the year.

Home:
I have a feeling that I’ll be hovering around that $210,000 mark for a long time. That’s okay — it’s worth more to me anyway — even in this condition.

Auto 1 & Auto 2:
I’ll never fully understand how websites come up with these numbers. My Scion xA is apparently worth $25 more these days. Must’ve been that full tank of gas that I put in right at the end of the month that boosted it’s value…

Credit Cards, Auto Loans, and Other Loans:
Zilch. Zero. Nada.

Mortgage:
Still cranking along. I’ve been debating a refinance lately. Not a cash-out version but the boring regular variety to lower my payment which, in turn, should boost my savings. Seems like a much safer route though I haven’t really looked into it very deeply.

Posted on March 6th, 2010 at 6:26 am by Brainy Smurf
Finance, Net Worth Updates | 2 Comments »

Net Worth Update: February 2010 (+$1,845)

Sorry it’s nearly a week late.

I’ve been a combination of tired, sick, busy, unmotivated, overworked, and underpaid.

Par for the course in the middle of the winter, I suppose, but now that I’ve run the numbers I’m feeling alright.

January didn’t really “feel” like a positive but somehow it turned out to be.

My 401k didn’t bail me out this time or even an upswing in the value of my home — the big movers were the contributions to my savings account and the extra payments I made on my mortgage — two things that are 100% dependent on me.

That’s pretty reassuring, you know, knowing that it’s still me in the drivers seat and that I’m making sound decisions.

Anyway, here’s the breakdown:

Cash:
I feel like I’m living paycheck-to-paycheck but somehow I managed to keep this about $2000. I think the main reason is that I got paid right at the end of the month — I’m not a fan of when biweekly paychecks land on the calendar this way. I always feel like I’m short on money when the bills come in…

Savings:
And because I felt short on money (and those nasty utility bills caught me by surprise), I had to ease off of my pace here — and even take a bit from savings to cover some of my expenses. In the end, I still ended on a very positive note.

Gov’t Bonds:
Okay, it’s official. I don’t understand government bonds at all. I didn’t earn ANY interest in January. Not one dime. Now I realize that the current rate on some of the bonds is 0% right now but I’ve got a handful that I’ve had for years that have a fixed portion that is, well, it’s not zero. So, yeah, I haven’t got a clue and for all the research I’ve done, well, it still doesn’t make sense.

401k:
Well, it couldn’t last forever, right? I think that this downturn is just the tip of the iceberg — especially after the performance this first week of February.

I’d talked about lowering my contributions — and even stopping them — for 2010 but never made the move. Now, with things falling, it’s even more unlikely for me to change anything.

Home:
Hooray! I just felt like saying that.

Auto 1 & Auto 2:
My daily driver, Auto 1, really needs an oil change. And a belt or something to be tightened. If I don’t warm it up, it squeals like a pig.

The BMW has been sitting in the garage pretty much since Duncan was born. Each year I tell myself that I’ll drive it more but I never seem to.

Hey, at least it’s not losing value and, really, now that it’s over a dozen years old, it can’t be much longer until its value starts to increase. Right? Please?

Credit Cards, Auto Loans, and Other Loans:
Zilch. Zero. Nada.

Mortgage:
I just want this thing paid off. It’s the white elephant in my pile of bills. And, yes, the mortgage is supposed to be the white elephant but that doesn’t mean I have to like it.

Posted on February 6th, 2010 at 7:01 am by Brainy Smurf
Finance, Net Worth Updates | 2 Comments »

Net Worth Update: January 2010 (+$7,014)

Now that’s the way to close out a year and start a new one!

This past month made it 10 consecutive months of increasing my net worth — and for many of the months by a substantial amount. It’s all good…

My last negative month was February of 2009 when my total net worth was $162288. Today, I’m $68934 wealthier.

Economy woes aside, yeah, 2009 was a very good year for me. I’m sad to see it go.

So here are this past month’s details:

Cash:
The big secret is here is that December happened to be a three-paycheck month for me. Those are always nice padding for a new worth report.

Savings:
No more Mickey-Mousing around. I was transfering every last penny that I could into savings in an attempt to get a jump of my financial goals for 2010.

I still have a looooooong way to go but I’m off and running now.

Gov’t Bonds:
Another $300 bond purchase on the last day of the year brought me right up to the $5k maximum. I’m still not seeing the fruits of the last few months worth of purchases but I’m confident that they were “good” buys in the long run.

401k:
Though I’m not earning a match anymore, I’m still contributing the maximum allowed. Not entirely sure why or how long I’ll continue to do so but for as long as I can afford it, I’m going to stay the course.

Home:
It only took a year and now my home’s value is right back to (and above) where it was when the whole mess (reportedly) began.

Auto 1 & Auto 2:
Apparently a new year isn’t favorable to used car values. Who’da thunk?

Credit Cards, Auto Loans, and Other Loans:
Zilch. Zero. Nada.

Mortgage:
Back at it — knocking an extra $175 off of the principle each week. I back off of this strategy for 3 months or so but I really only see an upside to knocking off over 1% of the balance each and every month.

The sooner the mortgage is paid off, in my opinion and for my own peace of mind, the better.

Posted on January 6th, 2010 at 1:54 pm by Brainy Smurf
Finance, Net Worth Updates | 1 Comment »

Net Worth Update: December 2009 (+$7,430)

Well, it wasn’t great news across the board but the bottom line was certainly nice.

A gain of $7430 works out to nearly three and a half percent and, at this stage, any time the gain exceeds even one percent, it’s pretty substantial.

Anyway, here are the details:

Cash:
Not much movement here but when I report my spending for the month in the coming days, well, I should be quite happy with a drop of just $465.

Savings:
I took it on the chin here this month but, nope, it wasn’t the result of a spending spree. ( I wish!)

Gov’t Bonds
This is where the money went! I hinted at it and then I did it. While I won’t reap the benefits of this move for a few months, it’ll earn me a lot more than I’d have earned keeping it in a savings account.

401k:
You know, the higher the balance gets, the more I realize how little my monthly contributions do. As I’m no longer earning an employer match, I’m beginning to think about pulling back in 2010 to further fund a few other areas instead.

Home:
While it’s not the mansion that I really want, it *is* worth over double what I owe on it.

Auto 1 & Auto 2:
Eh, whatever…

Credit Cards, Auto Loans, and Other Loans:
Zilch. Zero. Nada.

Mortgage:
Staying the course here. I should pay it down faster. I want to pay it down faster. But I think I’m just going to wait until January to start up a new and more rigid payment plan.

Posted on December 1st, 2009 at 8:14 pm by Brainy Smurf
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Net Worth Update: November 2009 (+$1,812)

It’s weird how things swing back and forth… Do numbers lie?

I mean, last month my net worth went up over $10k and I didn’t really feel like I’d made much progress.

I flat out said that I didn’t have a great month.

So you’d think that with a much smaller gain of $1812 this month (my worst showing by far since March) that I’d, you know, be all down in the dumps. Woe is me.

But this is where it gets weird — I think that I had a GREAT October.

The number might not indicate that but, really, things progressed just as I wanted them to.

Here are the details:

Cash:
Nothing much to report here but things should change for the better soon as I’ve stopped paying the mortgage from my checking account which is what this really is…

Savings:
Holy crap! Yep, I’m a sucker for saving.

Gov’t Bonds:
Hey, did you know that I-Bonds are somewhat attractive again? They’ll earn over 3% for the next six months so I might be tossing a bit more towards them in the near future. Nothing major though.

Home:
I have a hunch that this is going to sky rocket soon. The house across the street from us is about to go on the market and I’m pretty sure it’s going to command a pretty decent price — and receive it. That can only be good news for me.

Auto 1 & Auto 2:
Nothing shocking here.

Credit Cards, Auto Loans, and Other Loans:
Zilch. Zero. Nada.

Mortgage:
Another dismal showing. paying the mortgage out of my savings account now, I don’t even feel like I’m paying a mortgage at all.

That’s probably a bad thing if my ultimate goal is to pay the whole thing off…

Posted on November 3rd, 2009 at 3:33 pm by Brainy Smurf
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Net Worth Update: October 2009 (+$10,651)

How can anyone complain about a 5-figure net worth increase?

I dunno but yesterday, before actually running the numbers, I did.

Really, even though every single line is green, I don’t feel that I had that great of a month, you know, financially.

If you look at it closely, besides buying the right house 7 years ago to the day and sticking with my 401k over the past year when most folks bailed — I didn’t actually make much progress this month.

Cash:
As is the norm, I just held steady here. The bad thing is that I usually contribute a ton to savings and my mortgage and staty steady. This month, I didn’t really do that and I, well, stayed in that $1k-$2k window.

Savings:
I made two $350 tranfers late in the month to make this look respectable. ING dropped their rates again, down to 1.292%, so my rising balance isn’t exactly giving me the returns I wish it would.

Gov’t Bonds
No complaints here. I earn $7 for a balance of around $1700. If this money were in my ING savings account, it’d be earning way less than half of that.

401k:
Wow. That past 7 months have been nothing short of amazing. Though I’ve been contributing pretty heavily all along, since March, my balance has done up $29,364.

Home:
Home values are on the rebound big time. I don’t care what anyone says. I’m thankful that mine never really dropped in value so much that I had to worry anyway.

Auto 1 & Auto 2:
How my car’s value can bounce up and down so much from month to month is a mystery to me… In fact, I’m pretty sure I heard reports recently that used auto sales are way down for small cars so I’m not sure this number holds much weight.

Credit Cards, Auto Loans, and Other Loans:

Zilch. Zero. Nada.

Mortgage:
So after knocking over one percent off of the mortgage each month and breaking through the $100k mark, I took a huge step backward in September. I think it was a mistake so expect to see this stepped up again this month.

Posted on October 1st, 2009 at 8:31 pm by Brainy Smurf
Finance, Net Worth Updates | 1 Comment »

Net Worth Update: September 2009 (+$6,991)

It doesn’t feel right to come out and say that I had a down month when my net worth increased by so much but I truly feel that August was a down month for me financially.

I kept pace on the mortgage and broke through the 6-figure threshold — that’s the best it got.

My savings pace is way down partially because my checking account is drained. My checking account is drained entirely because I spent too much.

How’s that for an excuse?

I haven’t yet posted August’s spending report but it was out of control. Again.

Anyway, before I start going off on some unrelated tangent, here’s the latest net worth breakdown:

Cash:
Can you say depleted? For some reason, I just can’t seem to shake the paycheck-to-paycheck type routine — working my checking account down to around $1k on a regular basis.

I keep telling myself that I was $5k to be the ‘new’ $0 but I just can’t seem to get there.

Savings:
The money just wasn’t there this month to keep the aggressive weekly transfers up. In July, I was adding over $400 to this per week. At the end of August, that weekly transer was down to $15.

I’m going to right the ship in September though — details on that farther down…

Gov’t Bonds:
Another seven bucks. Woo-hoo!

401k:
Another great month. That makes it six in a row!!!

Home:
Not that I even came close to being “underwater”, the value of my home is comfortably higher than what I paid for plus all of the expensive renovations I’ve had done.

Best of all, my loan-to-value percentage is nearly 52%. That means I “own” more of my house than I “owe”. Sadly, though, I’m still stuck paying PMI. Boo.

Auto 1 & Auto 2:
Seems that 2005 Scion xA’s are worth as much as they used to be…

Mortgage:
Nearly identical to last month, I’m still on pace to have the house paid for in less than 4 years.

That said, I’m seriously considering easing off the accelerator a bit in favor of padding my savings account. See, I can’t stand the first floor of my house. I want it gutted. Badly.

I know, that’s a total flip-flop from what I said just a few months ago but I’m thinking that if I put off the HUGE mortgage payments for one year, I can pay for a first floor renovation without having to finance much of anything.

Then, next Fall, I’ll pick up where I left off on the mortgage *and* have a house that I’m not ashamed of — and one that a toddler can safely crawl around in.

Wishful thinking, perhaps, but it never hurts to have a huge pile of money tucked away in savings…

Posted on September 1st, 2009 at 8:22 pm by Brainy Smurf
Finance, Net Worth Updates | 1 Comment »

Net Worth Update: August 2009 (+$9,071)

My net worth is now officially the highest that it has ever been — I can feel the $200k mark coming this month.

I used to think that a high net worth was all about the assets but, for me, that isn’t how it’s panned out.

See, my total assets have been higher in the past. Quite a bit higher, actually, but I always had HUGE liabilities canceling them out.

This coming month, my liabilities will no longer total a 6-figure dollar amount.

Sure, the surging stock market and seemingly re-energized housing market are driving my assets up right now but the constant and continually decreasing debt is what’s really been steering me in the right direction for months.

Okay, here’s the breakdown:

Cash:
While I haven’t reported my spending for the month of July yet, I have hinted at the fact that I spent a lot of money over the past few weeks. A lot more than I usually do.

So how’d this segment of my net worth increase?

It’s called a three-paycheck month.

Savings:
I took a hit here.

The decrease stems from that tree project we had done at the start of the month. Total bill for the project came out to be a little over $3000 ($2750 for the work, $165 in tax, and $80 for grass seed).

I don’t regret it — it was money well spent.

Gov’t Bonds:
Finally that big deposit that I dropped in back in April makes a difference. I haven’t earned $9 in a month in this category ever.

As usual, I’m wishing that I had even more in there earning over 5%…

401k:
I’m on the cusp of my all time high here as well.

On May 19, 2008, my balance was $68284 ($163 more than my current balance) before the bottom fell out. I bottomed out on November 20, 2008 when my balance dipped to $43498.

So, I basically feel like I’m back where I was 14 months ago and on track.

Home:
This was unexpected. Each week when I’d check Zillow, the “zestimate” on my house would be $500 higher. While I don’t use the Zillow “zestimate” on it’s own to report the value of my home, it is a piece of the equation.

Auto 1 & Auto 2:
Yeah, yeah… The BMW is worth $300 less… Hopefully next July the taxes on it will be more reasonable.

Credit Cards:
Holding steady here. I used to think that it would be impossible to maintain a zero balance here but honestly, once you get down to zero, it’s not that hard.

Auto Loan:
Nothing to report.

Other Loans:
Thankfully, I don’t have any “other” loans.

Mortgage:
My goal here has been to pay off over 1% of the mortgage each month and I did it again this month with some more automatic payments on a weekly schedule.

I sort feel like I’m going to ease of the pace a bit when I get the balance under $100k (later this week) but I still want to keep things rolling to have the mortgage paid off by 2014 at the latest.

I’ve got plans…and monthly mortgage payments are getting in the way. ;0)

Posted on August 1st, 2009 at 6:43 am by Brainy Smurf
Finance, Net Worth Updates | 3 Comments »

Net Worth Update: July 2009 (+$5,587)

This marks the fourth consecutive month where I’ve increased my net worth!

I can’t really take too much credit for it though as almost all of the gains have come in my 401k and the value of my home… Must be that lagging economy or something…

There isn’t really much else to blab about so I’ll go right into the breakdown:

Cash:
Somewhat depleted. I’m throwing a ton at the mortgage of late and this is the category that’s taking the beating.

Savings:
I’m on auto pilot here trying to increase the balance by $1000 each month. I was right on target for June.

Gov’t Bonds:
Still waiting for that investment I made back in April to make some sort of difference but, so far, nothing.

401k:
I almost can’t believe that I’m pondering lowering or even eliminating my contributions… More often than not, this seems like a cash cow.

Home:
Still no where near its high (February 2008) but right back up to where it was before the bottom fell out back in October and November of 2008.

Auto 1 & Auto 2:
Eh, I thought the drop on my primary vehicle was a little extreme but whatever… They’re paid for so I’ll take whatever value they still have.

Credit Cards:
Holding steady here.

Auto Loan:
Nothing to report.

Other Loans:
Thankfully, I don’t have any “other” loans.

Mortgage:
I did an awesome job this month. It might not be the wisest move to pay down a mortgage like this but it’s a safe bet and it will feel really good to get it under $100k.

Posted on July 1st, 2009 at 6:42 pm by Brainy Smurf
Finance, Net Worth Updates | 2 Comments »

Net Worth Update: June 2009 (+$8,726)

Wow — it was all good news this past month.

Gains all the way. No losses. None!

And to think, I thought last month was great!

The big turnaround came in the value of my home — and combined with my additional effort at paying down the mortgage, well, it almost feels like I’m doubling my money…

Sorta.

Here’s the breakdown:

Cash:
Kept my checking account balance above the $3k mark for pretty much the entire month.

I’m working my way towards a minimum balance of $5k and I think I did a pretty good job at moving towards that goal.

Savings:
I’m on auto pilot here. Basically, with weekly deposits totalling $165, I’m just keeping this on the up and up.

Gov’t Bonds:
That cool $1k I tossed into the mix back in April hasn’t paid off yet, but I’m still confident that I made a wise move.

401k:
I know the news of doom and gloom is still all around, but it certainly doesn’t seem like it should be.

Home:
Sweet! This is the first sizable gain in a loooooonnnnggg time.

Auto 1 & Auto 2:
Nothing to report here, though, I have a feeling that I’ll be adding an “Auto 3″ in the not too distant future.

Credit Cards:
Paid in full — nothing to report.

Auto Loan:
Nothing to report.

Other Loans:
Still… nothing.

Mortgage:
Moving right along. My goal was to knock over 1% of the total balance off each month and I’m right on target. I’d really like to be under $100k before the end of the summer.

Posted on June 1st, 2009 at 7:54 pm by Brainy Smurf
Finance, Net Worth Updates | 1 Comment »

Net Worth Update: May 2009 (+$7,924)

Another month of gains!

That’s two in a row and that hasn’t happened since August and September of 2008.

Maybe the recession is over?

Okay, maybe not.

But even if it’s not, I’m glad that my finances seem to be continuing in the right direction, even if it’s not quite at the pace I’d like.

I’ve fallen into an auto-pilot pattern of sorts and hopefully the baby coming in a few weeks won’t trip that up too badly.

I don’t expect it too but, hey, it’s not like I’ve got any experience in this sort of thing either…

Here’s the breakdown:

Cash:
Didn’t make as much progress here as I would have liked but that’s because I threw a cool grand towards the U.S. Treasury. That’s right — I had an extra $1k hanging around last month.

Savings:
No longer hitting this like I was a few months ago but still an improvement over last month. I’m basically adding to it at a comfortable level — around $165 per week broken down into $150 every Friday and $15 every Wednesday.

For those with interest-earning checking accounts with Bank of America, you might want to look into transferring money into an ING account on Fridays because it doesn’t come out of your account until the following Monday. Basically, you’re earning interest on the same money in two places for two days.

Unfortunately, I’m not enrolled in one of those interest-earning accounts so this tactic does nothing for me… but it does make me feel extra rich each weekend!

Gov’t Bonds:
Looking to lock in a rate nearly triple that of my ING savings account, I purchased $1000 worth of I-bonds. I have a feeling that I’ll be patting myself on the back in the future for this financial move.

At the same time, I’m also thinking that I probably should have pulled some out of savings and gone this route… Too late now, though — the current rate (0.0%) is terrible…

401k:
Is it just me or is the market on a tear?

Obviously this is the anchor of my finances. I was up over 10% this month!? Still no where near my all-time high (of $68k which was almost exactly a year ago) but at this rate, I’ll be reaching new heights before the end of the summer…

Home:
I’m convinced that this has stabilized.

Oh, and remember that neighbor from hell? They sold their house last month and moved out yesterday.

Sure, it took 10 months but, according to Zillow, they received their asking price in the end. From my standpoint, that’s a great sign.

It’s also wonderful to have them out of the neighborhood.

Auto 1 & Auto 2:
Blah, blah, blah… Nothing to report here.

Credit Cards:
No annoying finance charges this month. Screw you Citi.

Yeah, that’s right. I’m still upset about that $1.87.

Auto Loan:
Nothing to report.

Other Loans:
Another goose egg.

Mortgage:
A bit better than last month. If there’s one place that I’m likely to change things up before the end of this month, it’s here. I want to start knocking 1% of my mortgage out per month at a minimum. We’ll see how that goes…

Posted on May 1st, 2009 at 9:46 pm by Brainy Smurf
Finance, Net Worth Updates | 3 Comments »

Net Worth Update: April 2009 (+$3,728)

Baby steps, right?

I admittedly spent a lot of money in March but, at the same time, I also managed to keep things moving in the right direction in all of the areas that I’m concerned about — cash, savings, and mortgage.

The first two are on the up-and-up and that last one is falling — just what I like to see. Once I have my spending in check, all three should show some improvement. Still, it was a good month.

I’m also starting to notice how very dependent my net worth is on the markets. (BFO Alert!)

That’s something that I didn’t realize over all of those months that I spent on debt-payment auto-pilot in 2007 and 2008.

I truly thought my dropping credit card and auto loan balances were driving my growing net worth but, in reality, they were just a tiny slice.

My 401k and the equity in my home are the big movers-and-shakers each and every month. They’re what determines whether I have an up month or a down month.

I’m not sure I like that as I have little control over either of them.

Anyway, here’s my analysis broken down for the month:

Cash:
I’ve been trying to boost this to the point where $5000 is the lowest my balance will ever get and I suppose I can say that I made a little progress in that goal but not nearly enough. I need to cut my spending drastically to make that happen.

Savings:
If you follow my finances, I obviously took it easy this month. After month after month of 4-figure gains and *finally* reaching the $10k mark, I only mustered a $348 increase last month. Combined with the dropping interest rates, savings just isn’t as exciting as it used to be.

Gov’t Bonds:
At the time, I was told that these were a bad investment. Right now they’re earning 6.45%. It’s a shame that I have so little in there earning that rate.

401k:
Thank you Mr. Geithner. He gets all of the credit for the increase here. I’m not saying that I agree with the moves he’s made but, so far, they’ve definitely lined my pockets — in the pants that I apparently can’t touch for another 28 years.

Home:
Yeah, the value fell some more this month but I still think things have stabilized. Either way, I’m not worried about it. I’m no where near being underwater, I’m not looking to sell anytime soon either, and I only get the itch to refinance once in a great while (and I’ve never actually done it).

Auto 1 & Auto 2:
Blah, blah, blah… Nothing to report here.

Credit Cards:
Still at a zero balance though I did have a little drama this past month with my Citi card. Yes, I’m still upset that $1.87.

Auto Loan:
Nothing to report.

Other Loans:
Another goose egg.

Mortgage:
So in January I knocked $470 off the balance. In February, it was $472 off the balance. This past month, I chipped away $700. Yep, I’ve resorted back to tackling the mortgage again.

Seeing as I’ve all but given up the idea of doing a major renovation this year — partly because of the baby due next month but also because my gut tells me that I should hold on to that $10k in savings — I was instead thinking that attacking the mortgage would be the wisest financial move at this point.

My rate (6.375%) isn’t as great as I once thought it was, I’m still paying PMI, and I hate my lender.

I can’t think of 3 better reasons to just pay the darn thing off as fast as I can.

Posted on April 1st, 2009 at 7:58 am by Brainy Smurf
Finance, Net Worth Updates | 1 Comment »