My Personal Finance Odyssey

Net Worth – May 2008

pf — Sun, 01 Jun 2008 01:06:21 +0000

Well, another milestone achieved as we have finally surpassed $600K in net worth. I had eclipsed $500K in March 2007, and so it took me just a tad bit over a year to make the next one. I’ll take it. Unless the stock market takes off, I am not expecting to achieve the same kinds of gains I’ve had the last couple of months. Gains made possible by a perfect brew of stock market gains (feeling like I actually benefited from some of my investments made in January), year end bonuses, and tax refunds.

Now that we are in summer, we are engaged in the typical activities like yardwork, BBQ, and the ice cream man. As far as spending is concerned, although nothing exciting to report this month, we will have some fairly significant expenditures coming up very soon…not the least of which will be our property taxes. To that extent, I could actually see a drop…bah.

Anyway, let’s get into the thick of it:

Results at Networth IQ

NET WORTH FOR MAY

	2 Mo Ago Mar – 08	Last Month Apr – 08	This Month May – 08	Monthly Change	Monthly Change %
Cash	152,888	144,405	152,461	8,056	5.58%
401(k)/IRAs	248,608	273,651	282,474	8,823	3.22%
Home	290,000	290,000	290,000	0	0.00%
Other Real Estate	130,000	130,000	130,000	0	0.00%
Total Assets	821,496	838,056	854,935	16,879	2.01%
Home Mortgage	123,675	122,909	122,139	-(770)	-0.63%
Other Mortgage	107,054	106,716	106,445	-(271)	-0.25%
Credit Card	13,280	9,754	3,532	-(6,222)	-63.79%
Other	0	0	0	0	0.00%
Total Liabilities	244,009	239,379	232,116	-(7,263)	-3.03%
NET WORTH	577,487	598,677	622,819	24,142	4.03%

MAY HIGHLIGHTS

In April I asked “may I order another please?” – the net worth gods delivered
Well into $600K territory…would like to reach $700K at a faster pace
Tax refund arrives
Playing “small ball” with credit cards…not carrying big balances
Summer has finally arrived

JUNE PREVIEW

Won’t be greedy and ask again (although tempting)…stay the course!
Some significant expenses on the horizon (several thousand) – who took the punch away?
Investments remain on auto-pilot…focus on family and work
Stay cool!

Net Worth – Apr 2008

pf — Thu, 01 May 2008 03:22:14 +0000

My net worth in Sept 2007 was $555,433 and in Feb 2008 sat at $556,032 for a whopping gain of $599 (I guess I should be thankful it wasn’t negative?!). In March, we finally started to see some healthy movement to the upside. This month, the stock market followed it up with a strong showing that pushed my net worth to $598,677. I don’t know whether it will be short-lived, but a treat to see an increase two months in a row.

In general, April was another quiet month with no major purchases to speak of. However, I did complete my 2008 Roth IRA contributions (trying to buy while it was down…hopefully as low as we’ll see in 2008). Anyway, here is the breakdown:

Results at Networth IQ

NET WORTH FOR APRIL

	2 Mo Ago Jan – 08	Last Month Mar – 08	This Month Apr – 08	Monthly Change	Monthly Change %
Cash	130,899	152,888	144,405	-8,483	-5.55%
401(k)/IRAs	248,376	248,608	273,651	25,043	10.07%
Home	290,000	290,000	290,000	0	0.00%
Other Real Estate	130,000	130,000	130,000	0	0.00%
Total Assets	799,275	821,496	838,056	16,560	2.02%
Home Mortgage	124,439	123,675	122,909	-(766)	-0.62%
Other Mortgage	107,373	107,054	106,716	-(338)	-0.32%
Credit Card	11,431	13,280	9,754	-(3,526)	-26.55%
Other	0	0	0	0	0.00%
Total Liabilities	243,243	244,009	239,379	-(4,630)	-1.90%
NET WORTH	556,032	577,487	598,677	21,190	3.67%

APRIL HIGHLIGHTS

Stock market makes solid gains overall
Completed 2008 Roth IRA contributions
Fed cut once again at the end of the month…looks like they may pause for awhile. Those 5%+ CDs we opened just before the cuts began are looking better and better
Reduced credit card balances a bit. I know I had said we were back on the credit card arbitrage wagon. We still are, but I’ve not really ramped up new credit to take full advantage and paid some off to stay well within the limits (I don’t want to be guessing whether or not I’m close and get hit with some stupid charges that wipe out any benefits)
Did a tune-up on our monthly process of paying bills. A few loose ends to tie up, but much smoother

MAY PREVIEW

April results – may I order another please?
I’m still not sure about the exact timing, but expecting a one-time payment that all things being equal, should push us solidly into $600K net worth
Keep plugging along…

Newsweek: Spending Spree Over

pf — Mon, 21 Apr 2008 21:16:39 +0000

I came across the following article from Newsweek

Essentially, the writer outlines how the spread of credit created a boom in spending that had both positive (increased accessibility to funds for housing, etc) and negative (overspending) effects. Due to the current crisis and the generally indebtedness of our population, the author wonders if the era of free spending which generated significant growth not only in our own economy but for others around the world is over and what it may mean.

In my view – GOOD. I have waxed on about similar topics in the past where I have expressed concern about our country ranging from the dire state of personal finances (too much debt, too little savings) to broader topics such as the crisis we are facing with Social Security and Healthcare.

I remain deeply distressed and concerned about the path we are on and the recent bailout proposals for both businesses and consumers who have made foolish mistakes and may be saved via a taxpayer rescue only strengthen this view. WAKE UP.