August 2012 net worth update (+2.7%)

August was a pretty quiet month overall, once work finally slowed down: expenses were pretty low, savings were “normal”, and I had plenty of time to spend with my boyfriend :) I’m sad that summer is coming to an end (it is my favorite season after all), but I’m really enjoying my new place and am so glad that I doubt I’ll be moving for awhile.

Cash: $9,800 (up $1,400)

Last month, I said: “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.” Well, this month, expenses came it at $2,048.29. Wow. That figure includes my mortgage payment. You have to go back to my last month of college to find a month where I spent less than that.

Apparently (who knew) the trick to low spending months is: don’t travel and don’t move. I mean, I bought some clothes, groceries weren’t any cheaper than normal, I went over on my lunch budget, my electricity and internet bills were higher than expected. Entertainment was a bit low though?

I think that expenses shouldn’t be too bad through the rest of the year, since I have no big trips planned and no moving, but I do have to pay half of the year’s property taxes one month.

Savings: $26,100 (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’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: $63,800 (up $1,300 or +2.1%)

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.

There were no 401(k) contributions this month since the July paycheck one posted in July (early). This was all market gains.

Mortgage: $269,100 (down $2,200 or -0.8%)

I’ve rounded this a bit from the purchase price. At this time, I don’t have a plan for adjusting the value in my net worth.

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 $1,600 in principal only payments in August from my paycheck and I also made a small extra payment when I got the security deposit back on my last apartment, in addition to the first regular payment being made on August 1st.

I estimate that the mortgage length is now down from July’s 27 years, 8 months to 27 years, 5 months. I eliminated 3 months of payments with this month’s pre-payments.

To reach my end-of-year mortgage balance goal, I need to make about $3,200 in additional pre-payments.

TOTAL: $188,600 (up $4,900 or +2.7%)

I started 2012 out with a net worth of $132,500, so I’ve seen a change of $56,100 or +42.3% so far this year. The y-axis on the below graph is set at $200,000, which I’m definitely edging towards with four months left in the year.

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10 thoughts on “August 2012 net worth update (+2.7%)

  1. That’s really awesome!

    Sadly for us, every month has turned out to be a higher spending month (or it’s that way if we average over a 2 month horizon)… so I just decided that was the new norm. The unplanned spending does seem to be pretty steady.

    • I was starting to think that, but it looks like it was a combination of the multiple moves and re-settling after the moves, plus all the travel I’ve been doing. I’m glad the other spending level shouldn’t be the new norm because that was scary for a single person :/

        • Definitely! I think that this move was less expensive than the February one or, at the very least, it was significantly less stressful, since it was much more planned. Plus, I’m slowly doing the getting new stuff thing this time around since I don’t want to just buy the first thing I saw.

  2. Nice work! Impressive to see the change from the beginning of the year. I have no doubt you’ll be able to make your year end goal.

    Well, we finally moved and now I feel like money is flying out the window. In expected ways, but still. I’m looking forward to getting to a low spending month!

    • Thanks! The only categories I can look at year-over-year really are investments and overall. Investments has almost doubled. I found a journal from last December predicting my end-of-year net worth as about $183,000, which I hit in July! It is so motivating to see year-over-year progress as we get further along in the year.

      Moving is definitely like that, but you guys are finally in your house! Congratulations!

  3. Another great month for you! Summer was definitely expensive for us spending wise, but I’m sure it will normalize once the fall hits.

    I still love hearing the word boyfriend. :P Hope things are going well for the both of you!

    • Summer patio season? Surprisingly, that doesn’t encourage me to spend more money. I also can’t really separate “summer” expenses from “moving” expenses.

      Thanks! Things are still going well :) I think I’m finally getting used to the word boyfriend myself – it took some time!

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