July was a really amazing month financially! I received quite a nice bonus, which more than offset the costs of moving, and I made my first mortgage pre-payments. Bonus: my July paycheck’s 401(k) contribution posted early – it actually posted in July, which was quite unexpected. I looked back in my net worth spreadsheet and this month is the largest net worth increase that I have *ever* seen, dollar-wise.
Overall though, it was a pretty hectic month between moving and being busy at work. I did manage to go on a few dates and we’ll see where that goes.
Cash: $8,400 (down $100 or -1.2%)
I’m starting to feel like every month is going to be a high spending month… Expenses came in at just over $4,000 this month with moving. Cash held mostly steady though since I had estimated reasonably well.
Savings: $26,100 (down $3,600 or -12.1%)
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’m also keeping a condo section around for now to cover small things that I’m planning on buying for the condo. I’m not adding to it, but I’ll let it collect some interest.
Investments: $62,500 (up $7,400 or +13.4%)
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.
This month saw my automatic 401(k) contribution, putting me at 7/12 of the way towards maxing out my 401(k) account for the 2012 year. The July paycheck’s 401(k) contribution posted actually in July, so my 401(k) balance went up about twice as much as normal since the June paycheck’s 401(k) contribution also posted in July. That means that there will probably be very little action in this category next month.
I moved some money to my taxable account and purchased shares of Vanguard’s Total International Stock Index Fund, Admiral Shares! For right now, I’m going to let the small direct deposit keep going to Vanguard, into that fund, but the rest of the activity in investments for the year will just be the 401(k) contributions and any dividends and market changes.
Mortgage: $271,300 (down $14,700 or -5.1%)
The loan is a 5/1 ARM mortgage at 3.000%. You might think I’m crazy for taking out a 5/1 ARM, but the way that I look at it is that it’s the best rate I can get and I will either pay it off in 5 years with the money that would have gone to cash savings had I not bought a place or I will move shortly after that.
I made $14,700 in principal only payments in July (almost $15k!), before my first payment came due on August 1st. This is obviously more aggressive than I can afford to make in extra payments most months, but that makes a pretty good dent into the pay-off plan.
I estimate that the mortgage length is now down from 30 years even to 27 years, 8 months. I eliminated 2 years and 4 months of payments with this month’s pre-payments.
To reach my end-of-year mortgage balance goal, I need to make about $4,900 in additional pre-payments.
TOTAL: $183,700 (up $18,400 or +11.1%)
I started 2012 out with a net worth of $132,500, so I’ve seen a change of $51,200 or +38.6% so far this year. The y-axis on the below graph is set at $200,000.