October 2012 net worth update (+1.0%)

October has been absolutely insane in terms of cash flow, with a lot of big expenses. When I originally drafted this post, I had estimated my net worth to have decreased by $1,000. In the last three years, I have a negative net worth month four times:

1) The month I moved to my current city
2) Floating expenses for an expensive business trip
3) Buying my car (I don’t count it in my net worth)
4) Stock market drop in November of 2011

But some of the big cash flow stuff at the end of the month didn’t end up posting out of my accounts until November, which is perfect because I will get reimbursed anyways :) My total expenses came in at about $8,200. I should recover a portion of that in November’s cash flow.

  • $600: I bought a few sizes of shoes online and need to return the ones that didn’t fit.
  • $400: Other clothing related things. I think my jeans collection is nicely stocked now and so if they last for a long time (I’ve had a couple of the pairs for over two years now), I shouldn’t need to buy more for awhile. I also finally found some good solid rain boots and finally caved to the trend and bought a pair of TOMS. Omg they are so comfortable! I still need to replace some of my bras though, which I will attempt again next month.
  • $100: I finally found an accent table to put in the front entrance of the condo! I’m quite excited for it.
  • Paid the second half of my property taxes.
  • Switched from a monthly pass to an annual pass for my gym. That saves a bit of money overall, but was a huge lump this month.
  • $1,000: Paid out the car insurance deductible.
  • Regular maintenance on my car. (This is the first time I actually had to pay for it!)
  • Paid to put gas in my car for the first time since August!
  • Renewed the tabs on my car.
  • Thanksgiving flights
  • Fronted expenses for a business trip.

Grand total of the irregular expenses: $3,500

How much of this was unbudgeted? Mostly the shoes, the business trip, and the decision to switch to an annual pass at my gym instead of a monthly pass. The car insurance deductible was paid out of a savings account, but that still does need to be replenished, which takes away from the amount I can save this month. The money covering the business trip and the shoes should come back next month, but it still looks pretty terrible this month.

The funny thing is that some of my regular, non-fixed expenses were actually under budget! I did really well with my Entertainment category, as well as Dining Out (by myself/with my boyfriend) and spent under 70% of my work lunches budget. I’d actually been coming in over my lunches budget quite regularly, so this was a pleasant surprise.

Cash: $8,700 (down $1,100 or -11.2%)

See above about the expenses for the month.

Savings: $27,100 (down $100 or -0.4%)

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. The $100 down is from the purchase of the accent table.

Investments: $68,400 (up $1,400 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 I am now fully vested in it! Obviously if I did lose the matching, that would be reflected in my net worth in the month that I left my employer.

I am getting so close to having over $40,000 in my 401(k) that I can feel it! There have been some days this month where I surpassed that barrier, but I should definitely surpass it next month when my contribution hits.

Mortgage: $264,800 (down $1,800 or -0.7%)

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 only made $1,200 in principal only payments in October. I had to replenish the car insurance deductible and then there were lots of other unexpected expenses. $5 less of October’s mortgage payment went to interest than September’s did! (With no pre-payments, normal drop-offs are about $1-2 per month.)

I estimate that the mortgage length is down from September’s 27 years, 1 month to 26 years, 10 months, so I eliminated 3 months of payments with this month’s pre-payments. This means that in ~4 months of making payments of some sort on the mortgage, I have paid down 3 years and 5 months worth of the mortgage.

I have made all of the pre-payments necessary to reach my end-of-year mortgage balance goal. I will likely be about $4-6k ahead of the end-of-year mortgage balance goal to be on the 5 year pay-off plan.

TOTAL: $197,400 (up $2,000 or +1.0%)

I started 2012 out with a net worth of $132,500, so I’ve seen a change of $64,900 or +49.0% so far this year. The y-axis on the below graph is set at $200,000, which I’m still edging towards with two months left in the year. I need to average a net worth increase of about $1,300 per month in each of November and December to achieve a net worth of $200,000.


9 thoughts on “October 2012 net worth update (+1.0%)

  1. I wouldn’t worry too much about the expenses you need to float. I don’t know about you but the expenses we float typically lead to higher savings. Usually by the time I receive the reimbursement check We don’t need the money in our budget and it all goes to savings.

    Glad to hear TOMS are comfortable. I kind of want a pair and I really want to get a sparkly pair for our 3 year old but am waiting for her to outgrow some of her shoes first.

    • What I usually do is count them in a Travel line item and then the reimbursement deposit goes against the same line item, zeroing it out. I think the business trips are why I spent so little on work lunches this month :)

      I’m worried about how good the soles are in rainy weather. I bought them as a more winterized flat option since they cover more of your feet, but are still slip on.

  2. My Toms are awful in any kind of weather. But, I’ve had them for a while and any traction on the sole is pretty worn down. I don’t know what your winters are like, but I’ve already retired mine for the season!

    • They probably will be awful in rain or snow, but then again, I don’t want to wear my rain or snow boots at work all day, so perhaps they will end up being a companion pair of shoes for boots. I don’t know about your snow boots, but mine are really really uncomfortable to wear for an extended period of time. They definitely keep the snow out though and are great on ice! My rain boots are a bit more comfortable, but the shaft is high enough that crossing my legs is not super comfortable.

  3. Great progress. And great tracking diagrams. There’s even apps for that now.

    You’re on a good track. Keep paying down that mortgage so that the interest doesn’t slow down your growth.

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