Friday, April 6, 2012

March Net Worth Review

As I've been following various PF blogs out there, one of the most interesting things I've found is the idea of monitoring Net Worth.  It seemed like a different way to check your financial status.  I liked it.

So, last weekend, I reviewed our Joint Net Worth.  Let's review:

Cash - $28,989
Investments - $65,622
Home Value - $180,000
Personal Assets - $28,750
Less: Liabilties - $175,565

Here's how it breaks down:

Cash - We are currently keeping $4,061 in our checking accounts and $24,928 in our Growth Checking Account.  I need to maintain a $2,500 balance in my checking account and another bill payment is being made in early April.  As for the Growth balance, $15,020 is for future student payments and needs to kept liquid.  Also, we will be making an IRA contribution in April and we're saving for the Professor's new car.  Thats's why we're keeping so much cash.

Investments - We have $44,412 set aside for retirement.  Only 6 years after graduating college and the money just keeps growing!!  This also does not take into account the Professor's pensions from teaching - so its actually higher.  Also, we have $15,355 in Mutual Funds and $5,834 in individual stocks.  They all performed really well in Q1 - so I'm excited to keep contributing and investing!

Personal Assets - Our home was purchased less than two years ago for $170k.  In addition, we performed some major kitchen repairs in the past year which should increase the value.  The number above isn't scientific by any means, but I do not trust or believe the Zillow value one bit considering the current neighborhood market.  Other Assets include our two vehicles valued by KBB and our Bling Bling!!  The car value will hopefully go down as we try and sell the lady's ride, but the jewelry should hold strong.

Liabilities -
Mortgage - $131,901 - No matter changes as we pay mostly interest right now.
Student Loans - $37,114 - Attacking these first and going strong toward the 6.8% Graduate loans while they are in deferment
Home Depot Credit Card - $6,550 - 0% Interest for 1 year - so knocking this down one month at a time.

Total Joint Net Worth - $127,797

I'm really happy with this number because I am certain that it will only grow as time passes.  I told the Professor that the goal is $170k by the end of the year!  Not sure if we can do it, but the sooner the debt is reduced, the quicker this number will rise!

I like the Net Worth Review - I think it will help me not micromanage our finances.  It's easy to do a one month look back/ahead and assess.  There's no reason to track every expense and cash coming in or out every day.  We have a gameplan and now it's time to execute.  No fear in living a little.

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