April 2012 net worth update (+4.9%)

I’ve been anxiously waiting to run these numbers pretty much all month. February was crazy spendy, March was calm, and April was pretty awesome in the upwards net worth sense. Early in the month, I got my income tax refund, which went directly to the down payment savings account. I then found out that I’m getting a pretty awesome raise (re: more money to savings, permanently). And near the end of the month, I had some other money come in (and went directly to the down payment account again), rounding out the month quite nicely. All of that brought my down payment savings goal projection in from January of next year to JUNE. Holy cow.

Cash: $8,200 (up $600 or +7.9%)

April was a pretty normal spending month. Total expenses came in at around $2,800 and there was no travel. If there are no travel expenses, the Cash category doesn’t change much in the month.

Savings: $97,800 (up $5,500 or +6.0%)

  • Vehicle replacement: $3,800 (same)
  • Down payment: $69,900 (+$5,500)
  • Reserves: $24,100 (same)

Reserves includes my auto insurance deductible ($1,000), renter’s insurance deductible ($500), and health insurance deductible ($950), as well as 6 months expenses at $3,600 per month and the interest accumulated.

I cancelled the $250 automatic savings plan for my vehicle replacement savings account because that’s far enough away that I’d rather put the cash towards a higher down payment amount on a condo. Plus, that was just easier since I could only direct deposit my pay into so many accounts.

I got my income tax refund finally, rounded it up to the nearest $100 and sent it to the down payment savings account. It was kind of fun to contribute to it in the middle of the month for once! :) I also got a raise, so more “normal” money than originally forecasted went to the down payment savings account as well. (No, the increase wasn’t all a raise. There was some other money that went directly here too.) I almost transferred ~$100 from the vehicle savings account the down payment savings account on the 30th so that it would round to $70,000 instead of $69,900, but I decided that was silly :)

I’m forecasting right now that my overall savings will surpass the $100,000 marker in May (was September) and that I will hit my down payment savings goal of $76,800 in June of this year (was January of next year).

Investments: $51,800 (up $1,300 or +2.6%)

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.

The only activity here this month was my automatic 401(k) contribution. I am now ~1/3 of the way towards maxing out my 401(k) account for the 2012 year!

I lowered my 401(k) contributions for the rest of the year, based on the amount of my raise. I’m still maxing it out at the same time, but I don’t need to contribute as high of a % each month! Right now, I want to put all of my cash savings towards the condo down payment. I will move some money to my taxable investment account once I have that sorted out.

TOTAL: $157,800 (up $7,400 or +4.9%)

I started 2012 out with a net worth of $132,500, so I’ve seen a change of $25,300 or +19.1% so far this year. And here is a pretty graph of my net worth so far this year:

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10 thoughts on “April 2012 net worth update (+4.9%)

  1. It should be pointed out that the market was more or less flat for the month of April, so almost all the appreciation is from savings – Good Job! We were pretty much flat month over month (not that it matters long term), mainly because we are doing some major home improvement stuff and we have a huge chunk in our checking, which we don’t count for NW purposes.

    We also locked in some I-bonds at 3.06% for the next 6 months (will be 2.65% APR over the full year we must hold them), score! In this market anyway….

    keep plugging away!

    • Those i-bonds sound like a pretty good deal! I had a flat (minus markets) February and things are fine really. Flat months are a shrug.

      Yup, my investments actually lost a few hundred dollars, but I see that as irrelevant for the moment.

      I love watching my income grow. That is pretty much the best thing ever for my net worth appreciation! :D

    • It’s very prudent to not capitalize hypothetical home equity gains resulting from home improvements. If you sell for more $$, great. But if the housing bubble taught us anything, it’s that the free market doesn’t give a damn what you spend to upgrade the bathroom counter.

      • Agreed. I’m wondering how I should track the value of a place (when I buy) in my net worth. Should I just leave it at purchase price until I get an appraisal? Or should I increase it by the increase in property tax assessments? Should I do comparables on Redfin once a year and update the value?

        • I think you need to be realistic about the “fair market value” of any dwelling you buy. E.g. you can sink $16k into the countertops, but that doesn’t make it worth $16k more for multiple reasons: 1) Other people don’t value that upgrade as much as you do, 2) usually when you pay someone to do something you rarely get “your money back,” 3) market forces may push the value of your home downwards. But, there can be some intangible value I call “sellability.” Those $16k worth of countertops can get your dwelling sold.

          We bought cabinets for our entire basement and garage which an avg person would have paid probably $50-60k for. Would everyone have gone with the top of the line cabinets for their storage area or garage, probably not, but it is something that makes our dwelling more marketable. We paid $8k for all the cabinets, so we will most likely see some return on the investment. But, for NW purposes, we keep our home at the same value because I firmly believe, with our upgrades we could sell the house for what we bought it with a minimal hit on fees (which is something else we consider in the value of the home, less the 5-6% to sell the home).

      • Some listings specify “New $16,000 kitchen counters” and I’m going “Why do I care?” and then “Wait, so they spent $16,000 on the counters, but the cupboards still look ugly? Why?” I think partial renovations look worse than no renovations…

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