|assets – debts
So, I think this is what a normal month looks like at this point in my career/financial life, a net worth increase of around $5,000! At this rate, I would hit a net worth of $300,000 in about 12-13 months with no bonuses!
Expenses: Going forward, I’m going to track non-mortgage expenses in these updates. I spent $1,350 in February ignoring work reimbursable expenses, which is about in line with my spending goal for the year (under
$30,000 $24,000 in non-mortgage expenses). 2013 so far is at $3,820, which would project forward to $22,920. Some of my controllable expenses broke down as follows:
- -$55 Clothing (returns from January)
- $228 Entertainment/Social ($136 last month, $216 average last year)
- $2.72 Eating out by myself ($68 last month, $51 average last year)
- $146 Groceries ($246 last month, $126 average last year)
- $48 Work lunches ($49 last month, $171 average last year)
- $117 Cell phone (paid my last Sprint bill, as well as my first Ting bill)
- $8 Internet (lowered my speed to save $19/month and somehow it saved $42 this month!)
- $238 Electricity (two months, working on lowering this for the next billing period)
- $4 Household goods (rubber gloves, cleaning sponges)
- -$10 Health (reimbursed the remainder of the money in my FSA, so future spending this plan year will just come out of cash flow)
- $20 Eyebrows
- $5 Bathroom stuff (body wash, shaving cream)
- $63 Furnishings (printed photos for DIY decorating, picture hanging strips)
- $32 Fuel (yes this is my first fuel up this year!)
Groceries was lower this month because I only went to the store on two weekend trips in a car and a few smaller trips. I also kept work lunches around where they were last month :)
First month with the new cell phone carrier (Ting) has been good so far! In February, I paid a bill with Sprint that came just before I ported my number to Ting and the first Ting bill, which is why the spending was so high for this line item. Things should even out in March and then be zero for April, May, and June or so.
Based on all the items I eliminated from my budget, I was able to reduce my direct deposit from $2,500/month to $2,200/month AND throw an extra $1,000 at the mortgage from my checking account this month and then another $200 once things settled! I could probably reduce it to $2,100 to be honest.
Savings: $36,300 (same)
- 2012 Roth IRA contribution
- $500 Condo insurance deductible
- $1,000 Auto insurance deductible
- $9,500 Appliances replacement
- ~6 months’ expenses
This is split between my rewards checking account ($5,000+interest) and targeted online savings accounts.
Investments: $79,300 (up $1,700 or +2.2%)
This includes my Roth and Traditional 401(k), my 401(k) employer matching (fully vested!), my Roth IRA, and my taxable investments. This increase comes from my January 401(k) contribution and matching, as my investments were pretty much flat in February.
Mortgage: $249,900 (down $3,300 or -1.3%)
My mortgage is a 5/1 ARM at 2.5%. Before the refinance, it would have been paid off November 1, 2038. ~$135 less was paid in interest with the February 1st payment (new mortgage) versus the December 1st payment (old mortgage). More of the regular payment should be going to principal than interest each month by May of this year!
The February 1st regular payment saw some extra principal funds from my January paycheck. I also threw some extra money at the mortgage near the end of the month when I realized just how much extra there was in my checking account with the budget adjustments. A final zeroing out of my February budget was done in early March and I threw another $200 at the mortgage. I also partially threw the extra bit at it early so that the balance would be under $250,000 for my net worth update :)
I estimate with the extra principal payments in February that the payoff date is down to July 1, 2041, shaving 5 months off of the amortization. I need to send an additional ~$31,300 in extra principal payments this year to stay on track with the five year payoff plan.
I now have over 30% in equity in the condo!! One of my stretch targets is 50% equity by the end of the year. I’m glad I refinanced when I did because mortgage rates seem to have dipped up again.
TOTAL: $235,500 (up $5,100 or +2.2%)
I ended 2012 with a net worth of $211,300, so I’ve seen a change of $24,200 or +11.5% so far this year. I’ve set the y-axis on this graph to $315,000 so we can see how my net worth grows towards that throughout the year.