January 2007 Net Worth Update (+$9,666)
A mediocre start to the New Year. Any month where the markets have healthy gains is sub par for me if I can't get a 5 figure increase. I made some progress, but overspent during the holidays and adding some furnishings to my house as I re-settle in from my temporary assignment. I need to finish up my annual net worth performance review and create my financial goals for 2007.
| Assets | Dec-06 | Jan-07 | Change | % |
| Cash & Savings | $ 66,940.00 | $ 76,647.40 | $ 9,707.40 | 14.50% |
| Taxable Brokerage Accts | $ 53,888.90 | $ 59,184.41 | $ 5,295.51 | 9.83% |
| Roth IRA | $ 30,131.03 | $ 32,758.22 | $ 2,627.19 | 8.72% |
| Pre-tax Retirement Accts | $ 118,827.71 | $ 122,142.43 | $ 3,314.72 | 2.79% |
| Stock Options | $ 3,040.00 | $ 4,640.00 | $ 1,600.00 | 52.63% |
| ESPP | $ 27,523.29 | $ 30,456.71 | $ 2,933.42 | 10.66% |
| House #1 - Rental | $ 160,000.00 | $ 160,000.00 | $ - | |
| House #2 - Primary | $ 128,225.00 | $ 128,225.00 | $ - | |
| Receivable (Payable) | $ - | $ - | $ - | |
| Other Assets | $ - | $ - | $ - | |
| Total Assets | $ 588,575.56 | $ 614,054.17 | $ 25,478.61 | 4.33% |
| Liabilities | | | | |
| Credit Card Balances | $ (48,224.37) | $ (64,332.98) | $ (16,108.61) | 33.40% |
| House #1 Mortgages | $ (116,904.98) | $ (116,716.89) | $ 188.09 | -0.16% |
| House #2 Mortgages | $ (103,381.58) | $ (103,272.95) | $ 108.63 | -0.11% |
| Rental Deposits | $ (1,400.00) | $ (1,000.00) | $ 400.00 | -28.57% |
| Additional Tax Liability | $ (760.00) | $ (1,160.00) | $ (400.00) | |
| Other Liabilities | | | $ - | |
| Total Liabilities | $ (270,670.93) | $ (286,482.82) | $ (15,811.89) | 5.84% |
| Net Worth | $ 317,904.63 | $ 327,571.35 | $ 9,666.72 | 3.04% |
Highlights for January
- All credit card debt (except current month's purchases) is in the form of 0% APR balance transfers earning interest in my savings accounts.
- I bit on my 4th balance transfer and still expect to profit despite balance transfer fees.
- I broke down an bought a 32" LCD HDTV for a net $463 and its paying for itself!
- I tallied the passive income I earned in 2006 - over $5,000.
- I reviewed my monthly net worth for 2006 and computed how much I saved for the year.
- I started the annual review of my net worth performance. I calculated retained earnings, cash account returns, and retirement investments returns.
Additional Stock Investments for January (Outside of 401k & ESPP):
- $250 in Pfizer DRIP
- $2200 in Vanguard Roth IRA
- $3500 in Vanguard Emerging Markets ETF
- $600 in USG DRIP
Comments (13)
It looks like you had some stock options vest? Or a new grant? It looks like you kicked in quite a bit to the ESPP; I can't remember if you posted about it.
Have you thought recently about updating the prices of the homes, based on comparable sales?
Posted by CPA1298 | February 5, 2007 6:41 PM
Nice track record.
Posted by Nagel | February 5, 2007 8:03 PM
3.0% gain is phenomenal in a month. Dont get stuck up with 10K.
Posted by Anonymous | February 6, 2007 12:37 AM
What is it that you do? I know you're an engineer @ IBM, but how much are you making annually from that job for you to be investing so much of your income?
Posted by Sharpie | February 6, 2007 1:45 PM
how did you make $ 25,478.61
in one MONTH!!! That's awesome...teach me!
Posted by Haz | February 6, 2007 2:09 PM
How did you earn 14.50 % from Cash & Savings???
A $ 9,707.40 change in one month???
Thx
Posted by Haz | February 6, 2007 2:14 PM
Sharpie - its not how much Im making- its how much I am savings. Last review it was near 50% of my earned income.
Haz - My assets gained $25k because I added a 0% balance transfer - if you factor in my liabilities youll see that I really only gained $9k.
The jump in my cash/savings is a result of the money from the balance transfer going to my savings account.
Posted by 2 million | February 6, 2007 4:39 PM
I agree with Anonymous up above ---- a $10K jump in one month (3%) is tremendous. Let's hope for many more 3% growth months; that would be great! :)
-N.W.
Posted by N.W. | February 6, 2007 11:44 PM
the money (9707.40) that is money from a BT, right? So you still have to pay that back. So what did you make off the BT?
thanks
Posted by Haz | February 7, 2007 10:55 AM
Read this guide on balance transfers for more info.
Posted by 2 million | February 7, 2007 11:00 AM
Sharpie, My annual income is in the $75-$100k range.
Posted by 2 million | February 10, 2007 9:49 AM
$2m,
No need to beat yourself over the head with this one.
I had very challenging times in November 11/2006 and December 2006 12/2006 for pre-planned expenses. Until we're both alot richer, you won't be able to count on your investment gains exceeding abnormal monthly expenses. Besides, even with regular monthly spending the market can go down!
You're doing great!
BTW, would you mind submitting this posting to the new Networth Carnival of Personal Finance? I'm creating a carnival that aggregates everyone's networth progress. Here's the link: http://blogcarnival.com/bc/cprof_1112.html.
Regards, your friend and admirer, makingourway
Posted by makingourway | February 14, 2007 10:06 AM
I know a number of people playing the 0% balance transfer game. My advice? Don't even consider it. The toll it takes on your credit in the interim is not worth the 5% APR you can get on the money. In other words, would you rather get 5% on 50K, or qualify for a lower mortgage interest rate on a home or investment property? Paying .5% higher in mortgage interest could equate to TENS OF THOUSANDS OF DOLLARS A YEAR, which far outweighs the couple extra thousand you make in your savings account.
Posted by Mike Jackson | March 2, 2007 1:28 AM