Friday, June 1, 2012

May New Worth Review

It's been one month since we've taken a 5,000 ft fly-by of our financial progress.  So, let's review:

Cash - $27,930  (+$1,835)
Investments - $66,612 (-$4,460)
Home Value - $180,000 ($0)
Personal Assets - $23,250 (-$5,000)
Less: Liabilities - $172,060 (-$3,350)

Here's how it breaks down:

Assets -
Cash - An increase to cash as we received money upon selling the Prof's Passat!  We received $4,500 for the car.  Side Hustlin ($850) and selling items online ($100) should help build or keep steady this balance as we continue to pay down debt and build our savings for the Prof's next car.
Investments - Ouch.  Well, the stock market experienced its worst month in two years as the S&P and DJIA fell over 6% in May 2012, which is right in line with my 6.2% reduction in investment assets!  The losses were consistent across the board, and there's nothing too critical to take from it.  Sometimes the market bounces like it did in April, sometimes it falls flat.  There is a lot of pending crisis going on in Europe and China, and the U.S. isn't bouncing back as well as everyone hoped, but I believe the markets will move in the right direction.  Anyway - that's why I'm concentrating more on debt reduction than trying to play the market.  Interest expense is very real and I do not get that back.  The market should bounce back.
Personal Assets - No Change to the Home Value.  No sales in the area and aside from the back-splash in the kitchen, no major improvements to it.  However, we did sell a car!!  We sold Prof's car for $4,500.  We had it set around $5,000, but with the new tire, trunk latch, and possible oil changes due - I felt it was best to get rid of it and move on.  Besides, with taxes, insurance, and title transfer - the young couple paid over $5,000 for the car.  No other changes to personal assets.  The Sonata is pimping along!!
Liabilities -
Mortgage - $131,511 - Another small incremental change.  I considered refinancing it to a 15 year fixed rate, but ultimately don't think we will live in the house long enough to recoup closing costs.
Student Loans - $36,303 - As discussed earlier, I paid nearly $300 in interest this month so the overall balance is pretty good.
Home Depot Credit Card - $3,598 - Backsplashing costs were about $250 for the entire project.  In addition, to a calendar issue, we actually made 2 payments in May (on the 1st and 31st).  Three months to debt free on this one.
Anniversary Gift - 2nd to last payment on the Anniversary gift.  Again, it's not July and I don't want her to receive it until closer to the actually greatest day of my live (July 16th)!  Otherwise, no need to panic here.
Total Joint Net Worth - $125,732...

Ouch.  The stock market definitely affected our growth here.  While cash increased and debts decreased, we still lost over $4k in Net Worth due to the loss on our investment accounts.  It stings to that, but I'm really happy with our debt paydown.  $3,350 debt reduction is nothing to snooze at and if we keep up the attitude we should be able to buy the new car without having to finance it.  It won't be easy and would require a lot of discipline, but is defiinitely doable, especially if the markets keep struggling!

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