March Net Worth (+7.9%) and 2008 Financial Goals Update

Net Worth

Cash and Cash Equivalent

Between a few more days of expenditures and a delightful winery tour, I spent a little more than in February.

Investments

Eh. I'm buying on sale. I have many years left. I refuse to worry about minor downticks.

I am trying to decide if I'm going to take my mutual fund out earlier than planned (I haven't contributed anything to it for years, and was going to send it to the condo fund when ready to buy; I'm trying to decide if I'd be worse off risking further downturns in the market or paying capital gains without the mortgage interest deduction to offset it).

Loan Balances

I didn't make the same progress as in February, but I'm spending much less on interest payments. So yay.

Other Debt

Still paying every two weeks. Still keeping my balances low. That said, Chase finally increased my credit limit, so I'll have room to put a few more recurring bills on my card and still stay under my personal "10 percent of limit" threshold. Hopefully this will mean faster rewards.

The Month Ahead

My cousin's wedding is near the end of the month, but I should be able to cover everything out of my trip fund. (I already paid for my dress and plane ticket.) Since I exclude my trip fund from my net worth (if I tell myself those funds aren't fungible, then I have to use them for fun), this should pass by with nothing but good memories.

2008 Goals Update

My goals were as follows:

1. Reach a positive net worth. Since I'm 48% of the way there already, I think I can safely say that I'm on track. Windfalls are helpful.

2. Continue to pursue homeownership. I've talked to a realtor and we agree that early winter 2009 seems like a reasonable time to start looking. With that in mind, I set up a 10-month lease (for the same monthly rate as a 12!) to end next April 1. If I feel confident next February, then I can give notice or go month-to-month. If I feel less confident, I can renew at a longer term.

I do still need to call my friend's fiance back, as he's a mortgage broker and can give me a sense of my options. I will do that next week. So I'll rate this a pass.

3. Push my emergency fund up to 3 months' worth of expenses. I've recalculated my base expenses given my rent increase and my lower insurance premiums. At my current contribution levels, I should definitely manage this by December, and possibly by November.

On track for three out of three. Not too shabby.

February Net Worth (+38.2%)

(Before I get to the explanation, I should explain that I have been Websensed at work. I can't visit any Blogger or Typepad blogs, including my own, and even some independently hosted sites are blocked as "personal sites." And I've been so busy that coming home after work and blogging has just not been my priority. I had to get caught up on The Wire before Sunday's finale, after all. Hee. At any rate, I can read RSS feeds, but by and large I cannot comment on their related entries. So I'm not ignoring anyone.)

It's fairly easy to get a double digit kick to one's net worth if one can throw five grand at one's debt. I still managed to make improvements outside of that, however.

Personal Property

KBB dropped the value of my car again. And it was also time for my "forced adjustment" to my computer's valuation. Still, my personal property becomes an ever smaller piece of my net worth picture.

Cash and Cash Equivalent

After having three pay periods in January, I expected my checking balance to be smaller. I shifted a lot of money from my overdraft account to my efund, as well as making regular contributions. And I sent a small piece of my tax refund to my condo fund.

Investments

I guess I contributed more than I lost in my retirement plan. So yay. The mutual fund could (and did, under prior management) perform much worse.

Loan Balances

As I said, $5K at my credit union loan made for a big hit, but my regular payments took a bite as well.

Other Debt

Thanks to my new "pay every two weeks" plan, I'm keeping my balances fairly low while still charging enough to earn some nice rewards. All of the charges here were accrued AFTER the statement date closed; I already paid off my balances-due-in-March in full.

The Month Ahead

Lots of family birthdays this month, but for most of them, a card will suffice. I've already bought a small gift for one of the others.

And since I'm going to be crazy busy at work, I'll have fewer opportunities to go out and spend. So things should be fairly smooth. We'll see.

January Net Worth (+8.6%)

So basically the story is: Less liquid assets, BOO! More liquid assets, YAY!

Personal Property

KBB dropped the value of my car a tiny bit.

Cash and Cash Equivalent

I benefited from three pay periods and getting my locality pay adjustment in the last pay period of the month.

My online savings accounts benefited from shifting over the excess in my overdraft fund and from the extra $200 contribution I made to my condo fund (apportioned from the "extra" pay period).

I decided to wait to boost my savings allotment (I shoot to have my overall short-term savings be 10% of my gross or higher) until the first pay period in February to give me some breathing room, but I still think this was a healthy increase.

Investments

Eh. I guess it could have been worse?

Loan Balances

Beyond the usual payments, I also made an extra $200 principal payment to my Perkins. This is at a slightly lower rate of interest than my credit union loan, but it hastens the payoff date by a significant amount.

Other Debt

This doesn't really tell the story at all. I charged a lot, paid some of it off with holiday funds, charged some more for clothes and a trip to Philly, paid almost all of it off with my extra paycheck, then charged some more for my prescription sunglasses (which will be their own entry very soon), and was left awaiting reimbursement. If not for that, my new charges would have been paid almost to zero, well before the new statement date.

I think I've decided that I'll start making a payment twice a month, once mid-statement and once after the statement closes (excluding reimbursement payments, which I'll just send over when I get them). This should help keep me on track and keep my balance below 10% of my credit limit. I'm already earning some decent cash rewards.

The Month Ahead

I've already gotten through a big birthday bash weekend (and stayed largely under my spending target). I'll be attending a play, but since I already paid for both tickets (half-price!), my dinner will largely come out of being reimbursed by my friend.

My tax refund should hit the appropriate accounts within a week or two, which will boost my savings.

With my pay raise, I finally feel like I have breathing room to deal with all my flexible expenses. I still have to plan for certain purchases (I think I should get one more pair of shoes sometime in the near future), but I'm not stressed. And that's a good thing.

Goal Checkup for 2007 and New Goals for 2008

So, I set up some goals for myself at the beginning of 2007. How'd I do?

1. Improve my condo fund to at least $8K. Done, if later than anticipated. I had originally planned to use some funds from my extra July paycheck to boost this, but my car needed some suspension work done. So I used part of my December bonus to push me over the top.
2. Take a homeownership class. Done. I have to call and get it renewed for next year, which is when I will at least start TALKING to lenders and realtors, even if I decide (as is increasingly more likely) that I'd like to keep saving into 2009.
3. Limit snack/cash withdrawal trips to CVS to once a week. Heh heh heh. This was a dismal failure, but I DID make fewer trips, I think.

And for 2008, my goals are:

1. Reach a positive net worth. Based on my December NW statement, I am N dollars in the red. If I continue to make regular bi-weekly contributions to my short-term savings at the levels I do now, that should give me A dollars (35.6% of the total). If I continue to make principal payments on my student loans at current levels, that will lead to B dollars by the end of the year (32.0% of the total). (It is likely that I will inherit some money from my grandfather, which could push B up. But I don't want to plan on that.) That leaves 32.4% to come from contributions and earnings from my retirement savings. Divided by 27 pay periods (there is an extra pay period this year), that is less than my current contribution and match level, so it should be quite feasible.

So, to make this SMART: I will improve my net worth by N dollars, by making bi-weekly contributions to savings at my current level or higher, by making monthly payments towards debt reduction at my current fixed payments or higher, and by taking advantage of my retirement savings plan and making bi-weekly contributions there, which will get me to my goal by the end of the year.

2. Continue to pursue homeownership. This does NOT mean that I will actually buy a place in 2008. It does mean that I will a) meet with lenders to determine what I can afford based on current salary and savings, b) check with local brokers and Redfin to develop a more refined sense of the market, and c) save at least an additional $3500 dollars in my condo fund.

SMART: I will meet with a realtor/lender by mid-April. I will review the housing market on an ongoing basis, with checkups in February, May, and if necessary, August, October, and December. Part c will be covered by the contributions I've planned in goal 1.

3) Push my emergency fund up to 3 months' worth of expenses. Given my expected rate of contributions to savings, this should be easy to do by the end of the year, even though I will be retooling my "must-haves" to accommodate fuel inflation and some other things.

SMART: So, by mid-February, I will update my estimate of monthly expenses to reflect current spending needs. With regular contributions to my emergency fund, I will add savings throughout the year. By the end of December, I will have three months' worth of expenses.

December Net Worth, +8.8% monthly, +55.9% annually

Cash and Cash Equivalent

My checking account benefited from the later timing of some bills, although I did buy fewer groceries because of all the holiday family meals.

My overdraft fund is now fully funded plus a buffer, so I'll start moving the excess to my e-fund. (It is down from this time last year because I was holding some funds to be allocated elsewhere then.) I'm pleased with the growth in my e-fund and my condo fund over the year.

Investments

Another down month for the markets, but decent allocation and management (for my mutual fund) kept this moving forward. The annual growth has been respectable.

Loan Balances

Sometimes it feels like I'm just chipping away at these for eternity, but then I see how much my balances have dropped over the year and I know that I'm doing the right thing. I could pay down my debt faster, but since my interest rates are quite low, and because I really want a solid savings base, I think my progress is reasonable.

Other Debt

Hey, big spender. Now that I've finally joined the ranks of the reward cardholders, I did make more purchases with my rewards card. I also spent more on gas than I have in any month since I left grad school (driving back and forth to visit family every day will do that). And I also bought some family gifts that would be partially reimbursed. I have now paid down that card to zero, and once I get some medical expenses reimbursed, the other card will join it.

Overall

All told, I'm very fortunate. I didn't practice extreme frugality (I spent funds on LOTS of lunches out, cable, and some fairly expensive theater tickets), I didn't have much alternative income beyond some online surveys, and I didn't do much budgeting beyond my automatic, forced version. But simply setting up automatic savings and making sure I could cover all my fixed expenses helped me improve my position pretty handily in 2007. Here's hoping I do the same in 2008.

The Month Ahead

My grandfather recently passed away, so I'll have some expenses related to that. Of course, they are all well worth it.

This is my three-paycheck month, and that gives me some freedom to make an extra loan payment and savings contribution. But I also intend to put some money aside for my cousin's wedding in April. (My travel/holiday fund doesn't show up in my net worth, because I consider that pre-spent.) And I'll probably do some after-holiday shopping for some things I didn't get for Christmas.

I'm also hoping to get a jump start on my tax return, but beyond that, I hope it's a fairly quiet month.

Belated November Net Worth

Despite the tremors in the market, I managed to be up overall for the month.

Cash and Cash Equivalent

I ended up running an apartment sale for my family (being the only Craigslister of the bunch) and was told to "keep the cash." So I ended up using cash for what would have been a moderately expensive dinner, and a couple of other odds and ends. That boosted my checking balance.

My savings are continuing to inch up. I have met one goal for 2007; my e-fund now equals a full two month's worth of expenses, and my overdraft fund is back up to $500.

Investments

I was quite relieved that my losses were so low. In the case of my retirement plan, that was largely due to contributions, but my mutual fund managed to keep itself more-or-less afloat.

Loan Balances

Continued steady payments do their steady work.

Other Debt

I managed to pay off the full statement balance on one card, and followed with the other at the beginning of December. So I'm out of cycling mode!

The Month Ahead

I've already applied my bonus towards additional tax payments and savings boosts. It didn't leave much, but I DID get to use some towards a nice brunch with mapgirl, Debt Hater, and BK. Single Ma could not make it, but she was sorely missed. Next time, surely.

And as for the holidays: I am staying in town, which will reduce expenses. I do have some work obligations that will involve spending money, but not to a ridiculous degree. And a large part of my gift-giving has been completed (I mostly give to family members and a couple of VERY close friends) and that was covered by survey rewards and my gift fund. I'll probably still make some additional charges on the credit card to be paid off in January, but nothing too exceptional.

I will, however, possibly have to buy a new suit, and that would add some wrinkles to my plan.

Here's hoping things stay calm in the New Year.

Oh, and lest I forget, DonorsChoose sent me (and some other people) an extra $100 to contribute as I pleased. Single Ma and I pooled our fortunes and paid off one "extra" project in our challenge! I am again so thrilled with how everything came together for this project.

October Net Worth

I'm dealing with some family health issues right now, so I won't be blogging much (not that I'm that prolific in the first place), but here's my hurrah for the month. Despite some challenges, I'm still making solid improvements in my net worth.

Personal Items

This is the month in which I arbitrarily reduce the value of my computer. Since I've had it so long, I'm now dropping the value in $25 increments, rather than $50. Based on Craigslist prices for various electronic items, I think my valuation is reasonable.

Cash and Cash Equivalent

I had some extra expenses associated with the family health care situation (onsite parking, extra equipment) that I didn't expect. So I spent more than I wanted to out of my checking.

My savings, however, continued to increase.

Investments

At least in October, nobody took away the punch bowl. I'm not sure that I will be able to say the same next month.

Loan Balances

It's nice watching the portion of my payments going to interest decline.

Other Debt

If it had not been for an unfortunate car tow, this would actually have been a decrease from last month. I'm getting that expense reimbursed, but the check hasn't been deposited yet.

Even so, I did have to spend some money on gifts and other things. I'm unfortunately in that cycling mode where I pay my monthly bill in full, but then have to charge semi-extensively again to keep my cash flow steady. I'm expecting a raise at the beginning of December to help draw my balances down to zero, but it's going to be a lingering issue until then.

The Month Ahead

I may have some continued expenses due to the family situation, but that will largely be for things like gas to drive for visits, rather than parking and supplies. I am staying in town for Thanksgiving, which will help keep those costs down. And since the weather finally broke, my utility bills will be much smaller.

I'm hoping this will help me charge less and avoid dipping into my overdraft account, since it's finally on its way back up to my target.

September Net Worth

This was a GREAT month for me.

Personal Items

KBB said the value of my car went up again, but I was suspicious, and left it alone.

Cash and Cash Equivalent

I miscounted my obligations at the end of the month, and had to use my overdraft account to cover one bill. From now on, I'll hopefully be pushing that back up to the $500 mark. I also chose to hold some more money in my checking account because my credit card payment is later than usual, so the improvement looks better than it "should".

On the objectively bright side, I am very close to another nice round number target on my online savings, and am still on track to get my e-fund to a full two months of expenses by the end of the year.

Investments

For me, as for many people, this was a great September for investments. My brokerage account (which I basically just let sit) has moved into a new digit category, which is nice.

Loan Balances

Slow and steady wins the race. Or so I tell myself.

Other Debt

I paid a laziness tax to get my hair done for the wedding. (I needed the haircut, and would have had to buy a curling iron, but that still leaves about $35 because I am a style-lacking nincompoop who can't properly curl her hair without aid.) Still, I wanted to look nice for the pictures, and I think it was worth it.

I also discovered that submitting flex spending claims for less than $15 (or possibly $20) leaves my reimbursement as "pending" until I submit further claims. Huh.

Still, by and large the increase is due to getting Avenue Q tickets. I'm going to be able to pay everything off by the statement due date (as I invariably do), but I'm trying to have a quieter October.

The Month Ahead

Apple-picking is on the agenda, and possibly the really spooky "haunted forest" across the river. But other than that, I only plan on paying for a pair of desperately needed jeans (I love my old pairs, but they fall apart in the wash too easily, so I'm trying a new brand), and some birthday flower deliveries (I have coupons for all of that). I did spend $4 at the library book sale this weekend, so I have two new-to-me books to read on my own time. (I check out MANY library books, but it's nice not to have to worry about a forcible recall because a title is on hold.)

August Net Worth

So, I've been elsewhere, trying to soak up the last of my summer.

Personal Items

I knew I'd eventually have to revalue my car and computer. Did both.

Cash and Cash Equivalent

I bought a plane ticket. I took most of it out of my checking, but a portion had to come out of the overdraft fund as well.

Investments

After the month we've had, moving my retirement forward and mainly holding steady on my brokerage account is A-OK with me.

Loan Balances

Since my PLUS-style loan is paid off, my progress will be slower on these loans, but it's nice to see continued drops.

Other Debt

I paid off my statement in August (including the plane ticket), but then immediately turned around and bought a dress for the wedding (although it was markedly reduced, yay!). I also visited a specialist, with the attending higher copays, and was waiting on reimbursement.

The Month Ahead

It's going to be a squeeze. I decided to throw in and go for the Avenue Q tickets, which I HAVE to buy this weekend (or they'll sell out), and that puts more charges onto my statement before the closing date. Normally, I don't have two major purchases in the same statement, which makes it easier to cashflow (I ALWAYS pay off my balances in full).

But other than the wedding and whatever I end up doing for Christmas, that play is the ONE big outgoing event for the next four months. So I'm just going to grit my teeth and draw back elsewhere. Somehow.

End of July-Net Worth

I've decided to standardize my reporting to the last day of the month, since I only have one loan reporting on the first now. (And since I made an extra payment this month, I'm showing progress.)

Cash and Cash Equivalent

Having three paychecks come through buoyed my long term savings accounts nicely (even though I made a smaller "extra" contribution to my condo downpayment fund). My overdraft account took a slight dip because I used some of it to cover my car repairs, but it's still above my $500 target for now.

Investments

The correction I'd been expecting finally hit, so my contributions were pretty much the only source of forward momentum for my retirement account. I'm not sure why my brokerage account is doing better than last month, but I'm not complaining.

Loan Balances

This was a GREAT month for paying off student loan debt. As I mentioned, my PLUS-style loan has been PAID OFF. I also sent an extra contribution to my Perkins loan, although it was smaller than I would have liked. My progress will obviously not be as fast in future months, but it's really nice to see my balances come down.

Other Debt

I managed to pay off ALL my outstanding balances for July (including that $800 for car repairs). The current balance partly reflects medical expenses that will be reimbursed.

The Month Ahead

I was (mostly pleasantly) surprised to receive a wedding invitation. For complicated personal reasons, not attending isn't an option. Fortunately I'll only have to cover the plane ticket and a new outfit, as gift and housing are both covered by my dad. I do have other going out expenses, but I will try to keep them restrained in anticipation. This may require backing still more money out of the overdraft fund, but it won't be a disaster.

June/July Net Worth.

Happy Independence Day to all those who celebrate!

Personal Items

KBB said that my car's value actually went UP. I keep my car's valuation at $100 below the KBB fair private party value.

Cash and Cash Equivalent

I swept some money from my overdraft account to my emergency fund again this past month. Otherwise, it was pretty much business as usual.

Investments

As I said last month, I think the period of big market gains is pretty much at an end. But my contributions are keeping me moving ahead overall.

Loan Balances

Because of the calendar, my two loans that normally get paid on the first didn't go through. Otherwise, contributions went through normally.

Other Debt

I was very lazy this past month, and didn't submit my receipts for my medical spending on time. My reimbursement will be applied to my next statement. I've since paid off my statement balances, which will hopefully be reflected next month.

The Month Ahead

I'm having a decluttering sale tomorrow and Friday, so hopefully that will bring some cash into my pocket. I've spent enough time with my friend Craig to pique someone's interest, I think.

I need to take my car in to inspect the suspension. I technically have an extra paycheck this month, but it could easily be sucked up by paying for that. I should, however, be able to pay for my trip to Philly entirely out of my vacation fund (and the money I already spent to buy my E-Z Pass), so there should be SOME room for fun.

May/June net worth

This was one of my strongest improvements in months, albeit largely due to market gains.

Personal Items

I lowered my valuation on both my computer and my car. I keep my car's valuation at $100 below the KBB fair private party value.

Cash and Cash Equivalent

I've had to hold a few more dollars in my overdraft fund because my rent went up for June, and I'd rather allocate from savings than simply boost my net checking deposits.

Otherwise, I continue to contribute normally to my online accounts. I'm closing on some nice round number targets for each of those.

Investments

I do not believe this party will keep going, but I'll enjoy it while it lasts.

Loan Balances

I can taste the PLUS-style loan being paid off. Taste it.

Other Debt

I had a month in which some big annual payments came due, as well as some medical expenses on which I await reimbursement. Despite that, I still managed to pay my outstanding balances and rein in the entertainment spending a bit.

The Month Ahead

I have a number of gifts to send out (graduating cousins, father, friend's wedding) and will deal with my higher rent and car insurance premium. I'm looking forward to July, when the squeeze will ease.

April/May Net Worth

Personal Items

Unchanged. As these are a steadily decreasing portion of my assets, I'm spending less and less time tinkering with them. When I get to a net worth of zero, I'll probably be more careful with their valuation.

Cash and Cash Equivalent

Pretty much all my checking is allocated already, but it's nice to have the funds in hand before being paid next week.

I swept some of my overdraft savings to my "true" emergency fund this week, since I'm over my $500 threshold. I really like the same-day credit at E*Trade.

Investments

Whoosh, DJIA. Whoosh, funds.

Loan Balances

As always, I keep making my scheduled payments on these loans. My PLUS-style loan will be paid off in a few months, which is very exciting.

Other Debt

I know that looks REALLY bad, but I have the funds in checking to pay my outstanding balances for the month, and am being reimbursed for a purchase I made on my dad's behalf. The "new balance" isn't out of line either. Still, I didn't really need that $40 dinner the other week. (But mmm, crab fritters and pomegranate martinis.)

The Month Ahead

I will be holing up for work projects, which means less time for fun and therefore less spending. I think. We shall see.

On a side note, I know this makes me terribly lazy, but Trader Joe's frozen jasmine rice makes me so much more likely to do rice dishes than the 40-minute version.

March/April Net Worth

Personal Items

I left all valuations unchanged this month. My car mileage is inching up, so I suspect I'll be retooling my car's value soon (I already keep it below the KBB market value for fair condition vehicles).

Cash and Cash Equivalent

I was reimbursed for some of my vacation expenses by my grandparents, because they are very generous. So I was able to keep from pulling out too many funds.

Investments

My accounts rebounded from February nicely. I finally hit one of my "round number" targets for my retirement fund, as well.

Loan Balances

As always, I keep making my scheduled payments on these loans.

Other Debt

My travel reimbursement meant I was able to pay off my statement balance in full (which I was already prepared to do), as well as a good portion of my next statement's charges (which I normally don't do). My charges should be more "normal" this month.

The Month Ahead

I have one concert to attend, but the ticket was purchased long ago, and I have a gift card that should help cover some of the related food expenses. I have one other play in mind, and may try to volunteer usher rather than pay for it. My auto insurance premium is going up slightly; my accident from last October was priced into the premiums for this cycle. So I expect I'll be weighing purchases carefully for the month.

In other news, today is the last day to submit to the Festival of Under 30 Finances! I've gotten a few good submissions, and six that I've had to toss out for various reasons. So if you want to send a submission in, please don't duplicate other carnivals, or go completely off-topic, and CERTAINLY don't recommend illegal activity as a personal finance strategy. Sheesh.

February/March Net Worth

I've been busy this past week. Between a major work publication approaching, and my grandfather's 90th birthday celebration, I haven't had much time for blogging. But better late than never.

As always, I update on the second of the month for the balances of the previous month, due to my loan payoff schedule.

Personal Items

February is one of the months in which I arbitrarily drop the value of my computer to account for improvements in market products. With Vista now widely available, it makes even more sense. I (and KBB) left other valuations alone.

Cash and Cash Equivalent

Overall, my cash balances rose by a decent amount in February. My bank savings improved due to reimbursements from friends (I'd already paid off the credit card bill for our outing, so I'm leaving these amounts there). My online accounts improved from normal contributions; my tax refund (which went to my emergency fund) and my ING account liquidation (which went to paying off my plane ticket) basically offset each other.

Investments

Hi, China! My retirement account weathered the stock fallout well enough, but my mutual fund took a bit of a hit. I'm not particularly concerned about the blip.

Loan Balances

I continue to make my scheduled payments on my loans. My Perkins loan actually shows the impact of my scheduled payments for February and March, because I updated my last statement after January's large extra payment rather than my normal closing date.

Other Debt

Because my credit card balances are generally low, even a slight bump in expenditures looks like a big percentage change. In this case, my statement bill for my main card is lower than usual, and my second card is at a balance of zero.

The Month Ahead

March is a heavy birthday month for my family, including my aforementioned grandfather. Between that and my trip, I'll be spending a bit more than usual. During the trip, I'll be staying with my mom's parents. So lodging and meals will be covered, but I will still have incidental purchases. Despite there being a number of intriguing plays and films coming to town, I'll be ramping down my entertainment expenditures in expectation of these expenses.

January/February Net Worth

I report on the second of every month for the transactions of the prior month (plus loan payments on the first).

Personal Items

The KBB value of my car actually rose slightly(?), but I chose to leave it at the same valuation because I'm pretty sure I need to replace my struts.

Cash and Cash Equivalent

Overall, my cash balances were almost identical between the two months, but the allocations to each category were quite different. Paying off credit cards and sending funds to long-term savings drove down both my checking and bank savings, while improving my online savings account balances. (I also received a boost from using up all my ING referrals; I'll be closing that account when the balance is fully available.)

Investments

The raise I already received in December was augmented by a cost-of-living adjustment increase for my most recent pay period. The salary increase passed through to both my contribution and my employer match. My mutual fund was recently rolled from one fund to another, ostensibly better-performing one, which explains some of the bump-up.

Loan Balances

I continue to make my scheduled payments on my loans. I sent an additional $200 to my Perkins loan (which is much larger than the usual payment) via the lender's "e-check" feature. I incurred a $1 service charge, but I figured it was worth it to avoid disrupting my normal ACH transfers to that loan.

Other Debt

I managed to get both cards to a zero balance for a short time. My secondary card is currently holding the balance for some theater tickets for which I'll be partially reimbursed by my friends. I continue to pay off my statement balances in full.


I started tracking my net worth in March of last year. I don't display it because I had to refine some of my reporting, but even after "corrections" I believe that I've improved my net worth by around $20K in one year. I know that's peanuts to some people, but I'm quite pleased.

The Month Ahead

I filed my taxes yesterday, so I expect my refunds (which are smaller than last year; W-4 adjustments DO work) to hit their respective accounts before my next monthly statement. I trust that will offset the plane ticket I plan on purchasing.

Head of Janus and all that. (2006 Net Worth and 2007 Financial Resolutions.)

I've been away having a much-needed vacation with my family, but I didn't COMPLETELY forget about the pf world.

For starters, my net worth improved pretty mightily over the course of the month. I also offer the improvement since May (I technically started tracking it in March, but didn't have a consistent methodology until May [although there is one significant exception that I'll detail below].) I report on the second of every month for the transactions of the prior month (plus one loan payment on the first).

Personal Items

The KBB value of my car stayed the same this month, and I had no reason to adjust anything else. I have made adjustments since May to my vehicle and computer valuation.

Cash and Cash Equivalent

My rent check has yet to clear in my checking balance, but even so, I managed to keep more than I expected in my account. Part of this has to do with my family feeding me for much of my vacation. The increase in my savings account is mainly, but not entirely, due to generous gifts from family from the holidays and some reimbursement for ticket purchases. I'll be transferring most of it to my condo fund when the balance is no longer being held. My online savings account improvement reflects depositing my net bonus in my emergency fund.

Investments

I was pleasantly surprised by the continued growth in the markets in December. As you can see, equity growth and increased contributions (both from raises and higher percentages) led to strong growth in my retirement account since May. I'm comfortable with my percentage level (10 percent plus 5 percent match) so this probably won't see such vast improvement in 2007.

I did not record my mutual fund balance until August, so I don't show improvement in that category from May. However, the "zero" for that line does overstate my percentage improvement in my assets and overall net worth since May, although I estimate it's only by a few basis points.

At any rate, my asset base improved by at least 50 percent since May, and I am very pleased with that.

Loan Balances

I continue to make my scheduled payments on my loans. However, the holiday prevented both of my loans that are due on the first from posting (usually, one of them posts by the 2nd). For ease of comparison, I treat the loan that I transferred to my credit union as an "other loan" in May, although I originally recorded it as a student loan. Obviously, reducing the interest rate on that loan made a large difference.

Other Debt

One of my credit cards is now officially at a zero balance. The other card has been statement-paid (in part with my Christmas savings fund), but late December expenditures still left a higher-than-average balance on my card. I should be able to pay a good chunk of that balance off with my extra paycheck this month, well before the February due date. Since I am no longer using my one credit card as a DIY 0% financing tool for my computer, I suspect my credit balances will remain lower than they were in May.

All told, my net worth improved by at least 25 percent since May 2006. I'm still a long way off from a net worth of zero, but I am pleased with my progress.

And now for 2007.

I'm not that big on resolutions, but I do have a few specific goals this year.

1. Improve my condo fund to at least $8K. I think my current contribution schedule should get me there without too much difficulty, but I will need to make extra contributions during my three-paycheck months. Stretch goal: $9K.
2. Take a homeownership class. There are two being offered in my area this month. I doubt that I'll be ready to purchase this year, but taking the class early should help me get my ducks in a row for next year.
3. Limit snack/cash withdrawal trips to CVS to once a week. I have a bad habit of sugar-crashing or wanting cash and therefore stopping at CVS on the way home. I should make more use of my network ATMs and do better grocery shopping so that I don't fritter those extra dollars away.

At any rate, I hope everyone has a lovely New Year.

Help solve my dilemma!

Really, it's not a bad one to have. But since I need to make a decision by January, advice would be appreciated.

I'm paid biweekly, but my budget is based on two pay periods per month. So twice a year (usually January and July), I receive an "extra" pay deposit. This allows me to pay off any charges accrued for Christmas or for my summer trip (that aren't covered by my holiday savings subaccount), and to do my semiannual wardrobe shopping. Most importantly, however, I take a big chunk and put it towards my finances.

In the past, it's been a no-brainer. I'd make an extra loan payment on my high-interest student loan. Now that I've refinanced that loan, I feel like I have more options.

Option 1: Make an extra payment on my credit union loan. It's a 5.9 % APR, and interest is not tax-deductible. If I continued to do this twice a year for the remainder of the term, I would shorten this loan by two months and reduce my interest by $180 or so.

Option 2: Make an extra payment on my Perkins loan. 5%, interest is tax-deductible (although for 2007, this won't be relevant). Continued extra payments would shorten this loan by 38 months and reduce my interest by over $250.

Option 3: Make an extra contribution to my emergency fund. 4.6% APY. I've already earmarked my net bonus to refill my fund, and expect a tax refund between $100 and $200 (despite increasing my withholding) that I also intend to deposit here. And I continue to make regular contributions to this fund. This is my least favorite choice.

Option 4: Make an extra contribution to my downpayment fund. 5.05% APY. This would certainly boost my savings toward my condo downpayment. I'm really leaning toward this option. However, since I'm not planning on meeting with a broker until January, I might be getting ahead of myself.

I do have a few other options (pay towards my lowest-interest rate student loan, set up a car fund, etc.), but these four are the ones that make the most sense to me.

What would you do?

December Net Worth

While I’ve been keeping track of my net worth since March, I haven’t published anything about it. I didn’t want to publish the hard numbers. However, I realized that Excel formatting can “blank out” the balances and leave the percentages, so I give you the colorful statement here. (I use the Excel net worth calculator, and that’s the scheme that they use. [shrug]) As-of dates are the 2^nd of the month.

Personal Items

The Kelley Blue Book value of my car stayed the same this month. I take an additional 5 percent or so from the “fair condition” value, to account for accidents the car has had (albeit completely repaired every time). I should probably have a real depreciation schedule for my computer, but instead I just shave $50 of the value off every three months. My other personal items are estimated at under $500, so I rarely retool those numbers.

(For the record, I value these possessions in my net worth because I COULD presumably sell them in an emergency. I take public transportation to work, and I live in a well-served area for car sharing, so selling my car is not so far-fetched. In a real emergency, I could move in with family members in the area, and that would probably involve selling some of my personal possessions. And while I wouldn’t give it up in an emergency, I also expect that I will eventually (4-6 years) purchase a new computer, in which case I would sell or donate my current one.)

Cash or Cash Equivalent

My checking account balance looks better than it “should” because a withdrawal that normally occurs on the 1^st or 2^nd was transmitted to my bank, but didn’t clear until this morning. Even so, my balance is slightly higher than last month. Savings had a sharp withdrawal this month partly because my November number was “inflated.” I received some checks to cover my family’s tickets for [Famous Performing Troupe] and hadn’t sent them to the credit card yet. I also had to pull some additional savings money to cover my plane ticket for Thanksgiving. My online savings accounts are up some from the big drop; I adjusted my withholding last month in order to refill my emergency fund after paying for the car repairs.

Investments

This improvement is basically all due to the run-up in the stock market (rising tides, etc.) But I expect my higher retirement contributions (thanks to my raise and now-10-percent allotment) will somewhat offset any drops occurring in December.

Loan Balances

My student loans improved even more than I expected because one payment posted on the 1^st that normally posts after I finish my updates. My “other loan” is the private educational loan I transferred to my credit union. I’m still so pleased to actually see principal being retired on what used to be my biggest burden.

Other Debt

I pay my credit card statement balances in full every month. I have another gift purchase I’m being reimbursed for, which will take my balance on one card down to zero. The other is a bit higher than normal due to some Christmas shopping, but will be statement-paid this month and probably paid to zero in January.

All told, my net worth improved 4.9 percent this month. I think I can live with that.

The insanity has not abated.

So I'm still going to be kind of spotty round these parts. I am still checking out posts for the upcoming roundup, so feel free to drop me an email if you think I might have missed yours.

At any rate, I was pleased about one thing. Despite pulling money out of savings for my car repair and reducing the value of my car by $100 (it's already below the KBB "fair condition" estimate and was fully repaired, but I wanted to account for the accident), my net worth IMPROVED by a few hundred dollars.

Thanks, big runup in my retirement account!

Thanks, loan payment that is no longer negligable!


Also, before my father left this weekend, I finally gave him a copy of the life list. And I dropped off my last POD form at my credit union today. Except for one account I've decided should go to my brother, he's now the named beneficiary on all my financial accounts (or the automatic beneficiary, in a few cases). I still need to do a proper will, but at least my financial assets wouldn't have to go through probate if something were to happen to me.

And if you're in the U.S., remember to vote tomorrow! If nothing else, it will be the END of those appalling ads.