July 2014 net worth update (+4.2%)

31-Dec-2013 30-Jun-2014 31-Jul-2014 MoM YTD
cash $13,500 $9,100 $5,400 -$3,700 -$8,100
savings $27,400 $23,700 $21,800 -$1,900 -$5,600
investments $134,600 $156,700 $156,500 -$200
-0.1%
+$21,900
+16.3%
mortgage $187,600 $152,200 $151,500 +$700
+0.5%
+$36,100
+19.2%
net worth $345,900 $395,300 $412,000 +$16,700
+4.2%
+$66,100
+19.1%
liquid assets – debts $49,000 $6,900 $12,000 -$5,100
-73.9%
+$37,000
+75.5%
$ until FI $823,900 $835,700 $901,300 +$65,600
+7.8%
+$77,400
+9.4%

You’re probably wondering where the big bump comes from when cash, savings, and investments are all down and the mortgage balance only went down a tiny bit. Well, after much debate, I decided to increase the value of my condo in my spreadsheets by 3% for each of the two years that I’ve owned it, compounded. It’s a pretty modest increase based on what prices are looking like around here (I think it’s actually up in value by about 25% from my purchase price), but it seemed closer to accurate than using my purchase price. That bumped me over $400,000 overall :)

Expenses: I spent $4,952 in July after the mortgage or $3,924 without it. So far, my total spending for 2014 is $27,702, which is $47,489 annualized. To hit my $38,500 spending goal for the year, I need to spend no more than an average of $2,160/month over the remaining 5 months this year. I’m not sure that’s going to be possible. We will see how things unfold though!

Some of my controllable expenses broke down as follows:

  • $175 Clothing – mostly stocking up on underwear, but also buying a hat and two dresses (mostly with gift cards)
  • $142 Entertainment/Social [average this year: $198, last year: $224]
  • $28 Eating out by myself [average this year: $16, last year: $25]
  • $355 Groceries – for two people [average this year: $225, last year: $152]
  • $183 Work lunches [average this year: $162, last year: $77]
  • $53 Internet
  • $150 Condo insurance, 12 month policy [-$123 from last year based on actual cost, +$10 from last year based on this billing plan]
  • $0 Household goods [average this year: $26, last year: $29]
  • $0 Toiletries [average this year: $19, last year: $31]
  • $90 Recreation – 5 pack of yoga classes
  • $115 Furnishings – home decor :)
  • ~$1,500 Car insurance, 12 month policy [-$500 from last year based on actual cost, +$300 from last year based on this billing plan]
  • $30 Fuel [$100 so far this year, $273 last year]
  • $13 Taxis [first laziness this year]
  • $158 Umbrella insurance, 12 month policy [-$223 from last year based on actual cost, no change in billing plan]
  • $584 Travel – had a nice weekend away! So relaxing. Also started paying for a trip in the fall with some girlfriends.

Note that in 2013, I paid monthly for my 2012-2013 insurance policy through July and then in full for my 2013-2014 policy in August, which is what I’m referencing with last year’s actual cost.

July was a pretty expensive month, though about average if you take out the insurance costs.

Savings: $21,800 (down $1,900)

These funds are spread across a Chase savings account, a general online savings account, a checking account that gets free ATM fees anywhere in the world, and my health savings account.

I’ve decided to keep the Chase savings account open even though I could now close it with no penalty as it has come in handy a few times, for example to get a deposit rather than a statement credit for credit card rewards and then immediately send them to the mortgage. Plus, it is only the opportunity cost on $300, which at the Ally online savings account rates loses me $2.55/year.

I took my August budget money out of here since I made the final 401(k) contribution with my July paycheck.

Investments: $156,500 (down $200 or -0.1%)

This includes my Roth and Traditional 401(k), my 401(k) employer matching (fully vested!), my Roth IRA, my taxable investments including stock index funds and Series I Savings Bonds.

The change here comes from:

  1. Some stock market losses
  2. June paycheck 401(k) contribution and employer matching

Mortgage: $151,500 (down $700 or -0.5%)

Some statistics here:

  • 2.5%: the interest rate on my 5/1 ARM
  • February 2018: when the interest rate on my mortgage is set to reset, possibly to 7.5%
  • 0: months of payments eliminated with this month’s pre-payments
  • $0: extra payments made on the mortgage this month
  • $0: interest this month’s extra payments will save me on the next regular payment
  • 30.9%: portion of my regular payment went to interest (originally was 59%; down 0.1 percentage points from June)
  • 57.6%: amount of equity in my condo, assuming purchase price
  • 47.0%: amount of the mortgage I’ve paid down

A pretty bland month for the mortgage.

TOTAL: $412,000 (up $16,700 or +4.2%)

I ended 2013 with a net worth of $345,900, so I’ve seen a change of +$66,100 or +19.1% so far this year. I’ve set the y-axis on this graph to $465,000 so we can see how my net worth grows towards that throughout the year.

July 2014 Net Worth Graph

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6 thoughts on “July 2014 net worth update (+4.2%)

    • I was tracking (assets – debts) and assets became larger than debts in April: https://leightpf.wordpress.com/2014/04/30/april-2014-net-worth-update-1-2/ so then I started tracking (liquid assets – debts). Liquid assets = the amount I would have if I liquidated all assets, including taxes and penalties due, assuming 33% income tax.

      I talked about the second one a bit here: https://leightpf.wordpress.com/2014/06/01/may-2014-net-worth-update/

      I decided to start tracking a new metric here: $ until FI. I’ve rounded the number to the nearest $100 like all of the other numbers. The formula I’m using is (Rolling monthly average expenses – Mortgage payment) x 12 months x 25 + Condo value – Current net worth. I thought it would be interesting to track this since it is not only affected by the current amount of money I’ve saved, but also by my current spending level. It is really strongly affected by small variations in spending. Some past numbers on this:

      EOY 2010: $1,027,400 (average monthly spending $3,600)
      EOY 2011: $856,500 (average monthly spending $3,300)
      EOY 2012: $1,104,800 (average monthly spending: $4,220)
      EOY 2013: $823,900 (average monthly spending: $3,730)
      It sure has fluctuated a lot! So my number is definitely a bit of a moving target and definitely a ways away and I’m sure it’ll continue to change before I hit it, but it’s still interesting to see. If my spending this year ends up being exactly the same as last year, then I should lower the $ until FI marker by $100,000 to about $723,000 and if I lower the $ until FI marker by ~$100,000 each year, it should take me about 8.5 years to reach FI at my current spending.

  1. The update to your condo value still seems pretty conservative. Do you think it’s a forever hold? Or is it worth tracking the value of it more closely to know if it ever gets to your “sell point”?

    • It is still pretty conservative. Honestly, even a 12% increase would be conservative and I only increased it by 3% per year or 6.09% with compounding.

      It isn’t a forever hold since I don’t want to be a landlord. I have been going back and forth on how I should track the value in my net worth exactly. This is my first attempt at changing it. My sell point would only be if renting became cheaper than owning or if I want to move cities or types of housing, e.g. to a house.

    • Selling my place will cost a pretty penny (my estimate is around $30,000 to $40,000), so sometimes I want to include the costs of selling it in the net value of the place in my net worth spreadsheets. That’s part of why I’m being conservative.

    • Hmmm you were right. I just got my county property value notice in the mail and they’re usually low by about $100,000, so I think I’m going to take that number and add $100,000, so maybe my net worth will surpass $500,000 in August :) Looks like my property taxes will likely go up 20% again this year!

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