I have been debating for awhile whether or not I want to do public net worth updates. I had thought about doing mortgage updates, but I’ve decided to do full net worth updates, with some caveats. I’m breaking my assets into several categories (cash, savings, investments, property) and also listing my mortgage loan balance*. I am not, however, going to detail the specific values of my savings or investments sub-groups and I’m going to round everything to the nearest $100. I check the balance on EACH account as of end-of-day on the last day of the month and since my 401(k) takes awhile to post the monthly dividends on my bond funds, this post will at the earliest come on the third business day of the following month, but I’m still going to call it by the previous month’s title.
*Until I close on my condo, I will include the earnest money deposit in the savings category.
Cash: $10,400 (down $300 or -2.8%)
I count “Cash” as the value of my checking account, the value of short-term savings accounts like vacations, property taxes, etc., the balance on my credit cards (which I pay off in full every month, but I let float in my checking account until the bill date), and the estimated current value in USD of foreign currency. I keep Canadian dollars and Euros around and have a personal float of these. I would consider keeping a small personal float of Mexican pesos as well, but my parents were burned by that one accidentally. This grouping of accounts tends to fluctuate up and down as larger expenses that I have saved up for are withdrawn from my checking account, however, the cash flow is pretty consistent overall.
Savings: $86,500 (up $1,500 or +1.8%)
Most of my savings is kept in my dividend rewards checking account, with the closing costs being in a savings account at the lending institution. I have about 6 months in emergency reserves, as well as funds set aside to replace my car and the money for closing and moving costs. Once I’ve finished re-paying the savings buckets that I borrowed from to buy my condo, I will also have savings set aside towards buying a house eventually. Since my car is just over a year old, the car replacement funds are essentially extra emergency reserves.
Investments: $49,400 (up $12,600 or +34.2%)
This includes my Roth and Traditional 401(k), my Roth IRA, and my taxable investments. I also include the employer matching in my 401(k) since I don’t plan on leaving my employer until the 401(k) matching has vested. Obviously if I did lose the matching, that would be reflected in my net worth in the month that I left my employer. Per my 2012 financial goals, I plan on maxing out my Roth IRA contributions for 2012 at $5,000 (as I did in 2010 and 2011) and I am en route to maxing out my Traditional 401(k) and receiving the maximum match amount from my employer.
I don’t track the value of my car in my net worth since I bought it new and plan on keeping it around for 10 years. So in 2010, my net worth took a bit of a nose dive to buy the car since I took the money out of savings, but I think that makes more sense than manually depreciating it each year according to the current market. My plan is to hold my car for 10 years or so. I’m not sure how good it would be at fitting car seats, but I suppose that’s something I would figure out when/if I run into that “problem”!
TOTAL: $146,300.00 (up $13,800.00 or +10.4%)
I started 2012 out with a net worth of $132,500.00, so I’ve seen a change of $13,800.00 or +10.4% so far this year.
Overall, January was a pretty awesome month. Not only did some of my stocks vest, but the markets also rebounded and I now have an overall positive return on my investments! I absolutely love the net worth updates from bonus months :)
I’m still on a path to closing on my condo, so I have no idea what my cash flow will look like during closing month. At the moment, I’m estimating that I have about $6,000 in expenses outstanding for closing and moving, so I will most likely take a net worth hit in the month that I close and move. We’ll see what happens!
I’m trying really hard to not move any money around until after closing so that the lender doesn’t have to trace too many transactions, so instead I’m making a list in my notepad of exactly how much money I’m going to move where, to simulate my future actions.