February 2007 Net Worth Update (-$1,351)
My streak of 24 monthly net worth gains has come to an end. My net worth declined -$1,351 this month. Its my first monthly net worth loss since Jan 2005 when my net worth declined -$1,903. The bulk of the decline this month was the result of a significant decline in my employer's stock price (IBM).
| Assets | Jan-07 | Jan-07 | Change | % |
| Cash & Savings | $ 76,647.40 | $ 76,595.31 | $ (52.09) | -0.07% |
| Taxable Brokerage Accts | $ 59,184.41 | $ 59,889.54 | $ 705.13 | 1.19% |
| Roth IRA | $ 32,758.22 | $ 32,638.53 | $ (119.69) | -0.37% |
| Pre-tax Retirement Accts | $ 122,142.43 | $ 124,184.47 | $ 2,042.04 | 1.67% |
| Stock Options | $ 4,640.00 | $ - | $ (4,640.00) | |
| ESPP | $ 30,456.71 | $ 28,549.13 | $ (1,907.58) | -6.26% |
| House #1 - Rental | $ 160,000.00 | $ 160,000.00 | $ - | |
| House #2 - Primary | $ 128,225.00 | $ 128,225.00 | $ - | |
| Receivable (Payable) | $ - | $ - | $ - | |
| Other Assets | $ - | $ - | $ - | |
| Total Assets | $ 614,054.17 | $ 610,081.98 | $ (3,972.19) | -0.65% |
| Liabilities | | | | |
| Credit Card Balances | $ (64,332.98) | $ (63,178.81) | $ 1,154.17 | -1.79% |
| House #1 Mortgages | $ (116,716.89) | $ (116,519.97) | $ 196.92 | -0.17% |
| House #2 Mortgages | $ (103,272.95) | $ (103,163.62) | $ 109.33 | -0.11% |
| Rental Deposits | $ (1,000.00) | $ (1,000.00) | $ - | 0.00% |
| Additional Tax Liability | $ (1,160.00) | $ - | $ 1,160.00 | |
| Other Liabilities | | | $ - | |
| Total Liabilities | $ (286,482.82) | $ (283,862.40) | $ 2,620.42 | -0.91% |
| Net Worth | $ 327,571.35 | $ 326,219.58 | $ (1,351.77) | -0.41% |
Highlights for February
- All credit card debt (except current month's purchases) is in the form of 0% APR balance transfers earning interest in my savings accounts.
- My net worth took a $9k hit from the sudden stock market drop last week.
- I am planning a year long assignment in China.
- I finally got around to setting my 2007 financial goals. Better late than never I guess.
- I continued the annual review of my net worth performance. I calculated investment returns, company ownership, and investment property.
Additional Stock Investments for February (Outside of 401k & ESPP):
- $850 in ConocoPhillips DRIP
- $100 in USG DRIP
- $250 in Vanguard Roth IRA
- $2000 in Vanguard Extended Markets ETF
Comments (5)
2M, you've had a great run. A 0.41% total setback on the heels of the worst week for the stock market in 4 years is really not that bad when you put it in perspective. Looks like you're doing great.
Posted by LAMoneyGuy | March 5, 2007 10:39 AM
Very good point! Im not too beat up about it - too much other stuff going on even think about it really.
Posted by 2 million | March 5, 2007 11:13 AM
Dear 2M,
I am impressed by your ability to track the net worth to such a great detail, especially month-to-month changes. What kind of system you use to track your assets/liabilities? I am a novice and hope to learn on how you are able to assimilate disparate financial data and show in a meaning full way. Any tips will be helpful.
Posted by NoviceFI | March 6, 2007 4:40 PM
I was perusing some of your earlier posts, and noted that you have achieved an incredible savings rate, typically 50%. Well done. This explains the hefty monthly investments (e.g. $2000 Vanguard).
I'm afraid that my savings rate excluding the home principle payments would be a fairly dismal 9%, whereas if I include the home equity we bring that number up to around 43%. Yes, this indicates we bought WAY too much house. But 50% is something to strive for--
I appreciate your method of calculating this, as well.
Posted by Jonathan C | March 14, 2007 2:16 PM
Ah, Mr. 2 million man, I've been reading your posts and I have to hold myself back from laughing. Are you serious? Do you actually give out advice? Do people really listen to you?
Your debt ratio is 50%. You have $76K in savings but $64K in credit card debt? You have a terrible FICO score (600's are bad) and did some serious damage to your credit score with these zero credit cards. You only have $43K equity in 1st home and $24K in 2nd home. Are you for real? Has someone sued you yet?
You should seek out a reputable financial advisor as fast as possible. If you don't, you are going to find yourself in deep doo doo.
Posted by Never Again Debt | March 14, 2007 8:53 PM