February 2015 net worth update (+0.7%)

31-Dec-2014 31-Jan-2015 28-Feb-2015 MoM YTD
cash $12,300 $11,400 $6,600 -$4,800 -$5,700
savings $47,800 $42,300 $42,200 -$100 -$5,600
investments $164,500 $168,600 $176,500 +$7,900
+4.7%
+$12,000
+7.3%
mortgage $143,000 $142,300 $141,500 +$800
+0.6%
+$1,500
+1.0%
net worth $531,600 $530,000 $533,800 +$3,800
+0.7%
+$2,200
+0.4%
taxable assets – debts $70,600 $75,400 $73,800 +$1,600
+2.1%
-$3,200
-4.5%
$ until FI $845,000 $713,200 $785,600 +$72,400
+10.2%
-$59,400
-7.0%

Well, the stock market reversed my net worth loss from January. I had no income in February as I spent most of the month in New Zealand. I did get an update from a real estate agent from the firm who helped me buy my condo and they confirmed that my place is worth about what the other real estate agent had told me last spring. We’ll see what this upcoming spring brings in that area!

Expenses: I spent $5,579 in February including the mortgage or $4,552 without it. Some of my controllable expenses broke down as follows:

  • $587 Clothing – Ahem. Some of this was in New Zealand buying cute summer clothes and some of it was some online shopping to stock up on some shorts and a new skirt after we got back, some of which I will be returning. So, estimate: $59 on three tops, $168 on three dresses, $18 for a pair of shorts in New Zealand, $74 for a new skirt in NZ, $X for hemming a pair of pants I bought in January, $42 on a new skirt that I’m 80% likely to keep, and $214 on some shorts in a bunch of sizes via online shopping of which I’ll probably keep 1-2, so $60 worth, so I really only spent $437 on clothing this month?
  • $31 Entertainment/Social [average so far this year: $146, average last year: $211] – Wasn’t here for most of February, so not much spending here.
  • $0 Eating out by myself [average so far this year: $6, average last year: $18]
  • $89* Groceries [average so far this year: $89, average last year: $185] – This was low since we were gone for most of the month. We somehow managed to spend exactly $0.09 more on groceries in February than in January, after spending $0.55 less in January than in December. That is crazy!
  • $6 Work lunches [average so far this year: $25, average last year: $147] – There weren’t too many work days in February :)
  • $96* Electricity – December/January [$240 at this time last year]
  • $5* Household goods – stocking up on Kleenex
  • ($16)* Internet – Negative because I overpaid in January.
  • $8 Toiletries [average so far this year: $15.5, average last year: $33] – vitamins
  • $22 Recreation – yoga
  • $X* Costco membership – we decided to try it for a year
  • $39 Fuel [$0 at this time last year]
  • $10 Taxis – home from dinner with a friend
  • $5 Tolls
  • $3,640 Travel – the rest of our New Zealand trip

* indicates expenses that were in the joint account. I calculate my expenses by tallying up all of my individual expenses for the month, adding in my mortgage payment, and adding in half of the joint expenses.

Savings: $42,200 (down $100)

These funds are spread across a checking account that gets free ATM fees anywhere in the world, my health savings account, a savings account at my credit union, and a bit of a buffer in my credit union checking account.

This is down from an ATM withdrawal in New Zealand. It should be down a bit more, but I didn’t transfer the money to my checking account to cover my March spending until March 1st.

Investments: $176,500 (up $7,900 or +4.7%)

This includes my 401(k) from my former employer: Roth, Traditional, and 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. My former employer depositing the matching money I missed out on – I was not expecting this!
  2. Some healthy gains in the stock market

My former employer 401(k) account is back above $100,000! And my Roth IRA is now worth just over $40,000! Woo!

Mortgage: $141,500 (down $800 or -0.6%)

Some statistics here:

  • 2.5%: the interest rate on my 5/1 ARM
  • January 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
  • 28.9%: portion of my regular payment went to interest (originally was 59%; down 0.1 percentage points)
  • 60.5%: amount of equity in my condo, assuming purchase price (up 0.2 percentage points)
  • 50.5%: amount of the mortgage I’ve paid down (up 0.3 percentage points)
  • $24,500: amount extra remaining to pay to be on track at the end of 2015 to pay the mortgage off before the rate resets in 2018 (no change from last month)

I’m just letting the regular, automatic payment go for now. Nothing special to see here.

TOTAL: $533,800 (up $3,800 or +0.7%)

I ended 2014 with a net worth of $531,600, so I’ve seen a change of +$2,200 or +0.4% so far this year. I’m going to set the y-axis on this graph to $650,000 so we can see how my net worth grows towards that throughout the year. The graph is still boring, but I’ll post it once it gets interesting.

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17 thoughts on “February 2015 net worth update (+0.7%)

  1. Tomorrow I talk about why we’ve stopped doing pre-payments for the time being. I may just let it ride out for the next couple of years even after we get back from leave/paradise and back to full pay. With the mortgage balance so low, it isn’t really much of a potential liability anymore and retirement funds are a better use of the extra. After we go back to full pay and max out our retirement I’m not sure if it’ll be better to pay off the mortgage or put our extra money in the stock market. It probably won’t matter since at that point there will only be 7K left on the mortgage and half a year. Maybe we’ll finally redo the kitchen. Who knows!

    • My balance is still high enough that I don’t think I want to ride it out completely. I mostly wanted to pay it off before the rate reset because I was worried the rates would go super high – it could reset to 7.5%. But, I’m 2 years in to the mortgage aka 3 years away from it resetting and the same product I have, with no points, if I got from scratch with the same lender would be 3%. It seems reasonably unlikely to me that rates would more than double in the next 3 years and even if it did, my payment would go *down* with how far ahead of the original amortization table I am. Also, if we don’t end up wanting to move in the next five years, we’ve discussed my boyfriend buying into the place so that we both own it, which would more than zero out my mortgage. I could technically pay it off this year, but I’d rather put the funds into the after-tax 401(k) and roll that into a Roth IRA…

        • That’s the plan! I figured out how much I’m going to contribute to my HSA and 401(k), so I should come up with an actual savings plan for the year… It also depends on what I end up doing for the mystery goal, as I was setting aside a good chunk of savings for that. I should know more within the next month or so.

  2. You are making solid progress. With respect to your option ARM mortgage, there is a cap of 1% a year right? So even if the mortgage reset in 2018 it would take 5 years of resets before it reached 7.5%.

    You don’t have much to worry about because like you mentioned you are already so far ahead of the amortization schedule and in my opinion, interest rates are not likely to rise substantially for a long time.

    That would be awesome if your boyfriend bought in and you guys were completely mortgage free.

    Cheers!

    • The cap is actually 5% per year, so it could go up to 7.5% in January 2018. That currently seems unlikely though. And also, the payment will reamortize when the rate resets, so it’ll most definitely go down when that happens, which is cool.

      • What is the lifetime cap on that then? I have never seen a 5/1 ARM that could go up by 5% in a year. I have seen it with a 5% cap for the lifetime of the loan. Most of the ARMS I have seen can’t go up more than 2% in a given year with a lifetime cap of 5%.

        My 5/5 ARM for example is at 3.675% and can reset once every 5 years for a maximum of 2% every 5 years and a lifetime cap of 5% (so max rate would be 8.675%).

      • I double checked the docs just now. My starting rate on the 5/1 ARM is 2.5%. The initial cap (meaning the amount it can change by at the first adjustment) is 5%. The annual cap is 2%. The lifetime cap is 5%, making my maximum rate 7.5%. And my rate will never go below 2.25%.

        Every ARM has different initial, periodic, and maximum caps. My current one is a 5/2/5. My previous one was a 2/2/5.

    • I was quite excited when I saw that! I’m sure glad I hadn’t done anything with my 401(k) yet. I thought the stock markets had just gone up ~1% in one day for a moment :)

  3. I’m new to your blog and really enjoy it. Quick question, can you explain how you are calculating your net worth? It seems that your net worth is higher than your cash, savings, investments, and home equity added together. I assume that I am missing something, but I am not sure what.

    • Oh totally a fair question! The piece you’re missing is my condo value. I don’t list it directly for privacy reasons. So net worth = cash (checking account balances – credit card balances) + savings account balances + investment account balances + condo value – mortgage balance. Thanks for commenting – it’s great to “meet” you! :)

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