July 2008 Net Worth Update (+$8,600)
Ok things are getting a bit back to normal now -- Our net worth just hit our highest monthly gain in May and our biggest monthly net worth drop in June. July has reverted more back to the mean and I am pretty satisified with that for now.
| Assets | Jun-08 | Jul-08 | Change | % |
| Cash & Savings | $ 92,302.47 | $ 100,910.82 | $ 8,608.35 | 9.33% |
| Taxable Brokerage Accts | $ 75,937.16 | $ 79,115.84 | $ 3,178.68 | 4.19% |
| Roth IRAs | $ 40,918.14 | $ 41,399.27 | $ 481.13 | 1.18% |
| Pre-tax Retirement Accts | $ 162,950.51 | $ 162,061.91 | $ (888.60) | -0.55% |
| Stock Options | $ 20,144.00 | $ 28,248.00 | $ 8,104.00 | 40.23% |
| ESPP | $ 41,687.51 | $ 32,339.12 | $ (9,348.39) | -22.42% |
| House #1 - Rental | $ 160,000.00 | $ 160,000.00 | $ - | |
| House #2 - Rental | $ 128,225.00 | $ 128,225.00 | $ - | |
| House #3 - Primary | $ 116,500.00 | $ 116,500.00 | $ - | |
| Receivable (Payable) | $ 9,726.00 | $ 9,726.00 | $ - | |
| Other Assets | $ - | $ - | $ - | |
| Total Assets | $ 848,390.79 | $ 858,525.96 | $ 10,135.17 | 1.19% |
| Liabilities | | | | |
| Credit Card Balances | $ (27,938.02) | $ (26,914.14) | $ 1,023.88 | -3.66% |
| House #1 Mortgages | $ (113,634.55) | $ (113,436.14) | $ 198.41 | -0.17% |
| House #2 Mortgages | $ (101,460.55) | $ (101,460.55) | $ - | 0.00% |
| House #3 Mortgages | $ (92,238.69) | $ (91,938.69) | $ 300.00 | -0.33% |
| Rental Deposits | $ (9,190.57) | $ (9,330.57) | $ (140.00) | 1.52% |
| Additional Tax Liability | $ (7,251.84) | $ (10,169.28) | $ (2,917.44) | 40.23% |
| Other Liabilities | | | $ - | |
| Total Liabilities | $ (351,714.22) | $ (353,249.37) | $ (1,535.15) | 0.44% |
| $2million Goal Progress* | $ 472,415.26 | $ 480,715.28 | $ 8,300.02 | 1.76% |
| Net Worth | $ 496,676.57 | $ 505,276.59 | $ 8,600.02 | 1.73% |
Highlights for July
- All credit card debt (except current month's purchases) is in the form of 0% APR balance transfers earning interest in my savings accounts.
- We crossed back over the half-millionaire status again this month; hopefully for good.
- Posting is lighter than normal because we are in the middle of a trip home. It is amazing how much work piles up when you are away for a year.
- Cash gew significantly this month because I sold 100 shares of IBM stock from my ESPP account in July. More details will be in the investment report.
- July investment report will be published shortly for now see our June 2008 Investment Report.
You can see my previous monthly net worth updates here.
Comments (11)
hi there. I'm pretty new to watching your blog.
A quick question for you. It would seem by the numbers that you only include the unpaid principal of your mortgage in your liabilities? Not the whole loan (including interest)? Doesn't that give you a false picture of your liabilities?
Posted by David | August 6, 2008 4:12 PM
Your gain came exclusively from a jump in your vested stock options! Your investments were up slightly (whether due to contributions or appreciation, it isn't shown).
How warm is it in Raleigh these days? We're considering a job move to Cary, but the heat is a bit of a concern.
Posted by Jonathan C | August 6, 2008 5:48 PM
David -- 2mil is doing this right -- interest accumulates (and is paid) at each monthly statement. The "unpaid principle" would actually be enough to payoff the rest of the loan, minus
Interest rates on home mortgages is specified "annual, compounded monthly". So if you hold the loan for fewer months, you pay less interest. Including all the interest from a 30-yr loan in the "liabilities" column would improperly neglect the fact that mortgage interest accumulates each month.
Posted by Jonathan C | August 7, 2008 9:35 AM
It looks like you prefer having several mortgages instead of pay off one and then buy the next one. Cheers.
Posted by A. Dawn | August 7, 2008 1:29 PM
Jonathan C -- it feels pretty hot right now in Raleigh, but I guess it depends on what your use to.
A Dawn -- I wouldn't mind paying one off before I buy the next house, but that would take too long. Look for us to buy our primary house and then when things settle look at potentially paying one of the mortgages off to increase our free cash.
Posted by 2million | August 7, 2008 4:52 PM
It's funny. I keep on trying to stay above a certain level (like your half million) for a while. I hate when it dips below because of the stock market values.
Brandon J
Money for Military
Posted by Brandon | August 10, 2008 8:58 PM
What do you use Additional Tax Liability for? Is this for additional estimated income taxes (like contract work), or saving a little each month for property taxes due at year end? Great blog, keep it up!!!
Posted by Stat Crazy | August 12, 2008 12:50 PM
Stat -- Currently Additional Tax Liability is used for estimated taxes for the stock options. At some point it should track additional tax liabilities.
Posted by 2million | August 12, 2008 10:26 PM
Are you accurately estimating the market value of the rentals or just basing it off the purchase price?
Thanks for the post. Love reading about these updates.
Posted by online savings accounts | August 15, 2008 1:06 AM
Would love to see more info on your household budget. Monthly Gross Income, Net Income, expenditures and actual savings/investments.
I'm married with a young child in New York City and it's very difficult for me to keep a lid on our expenditures (things are super expensive here).
It would be helpful to see what other couples spend/save for comparison, even though you're not in NYC and dont have childcare expenses. Thanks and keep up the great blog.
Posted by Thisson | August 19, 2008 1:48 PM
I just came across your blog a few days ago. I saw your very first net worth statement of about $184k. It's impressive how much you've grown it just within 3 years!
Because of these net worth posts, I've started tracking my net worth as well, although right now I don't have that much things to track of. But it helps setting me in the right direction, so thank you for that :)
Posted by Ray | September 6, 2008 5:04 AM