November 2013 Net Worth Review

No time for chit-chat.  November (and Thanksgiving) was great.  The Prof and I have so much to be thankful for!  We love our little boy and have already got the Christmas decorations up and ready for the 1st Christmas with the Little Guy.

Here's to the Numbers!!

Cash - $27,126 ($1,334) 
Investments - $121,750 ($6,157)
Home Value - $336,000 ($0)
Personal Assets - $48,399 ($0)
Less: Liabilities - $335,745 (-$1,601)

Assets -

 

Cash - I love 3 paycheck months!  We were able to make larger than normal student loan and car payments this month while building cash!  

Investments - Great month for the markets.  Other than usual retirement building, these gains are solely attributable to the equity markets.  and I LOVE IT!!!  Keep it coming!

Personal Assets - 

No change here.  We'll check the car values next month and the home price will stay at sale value for some time.

Liabilities -

Mortgage - $292,391 -   This is going to be fun...Small gains here now and in the future.

Student Loans - $26,627 - Still making payments here and Prof and I have talked about eliminating the Grad School Debts in 2014 as priority #1.  Those loans are at 6.8% as opposed to my undergrad loans of 1.26%.

Acura Loan - $16,727   A larger than normal payment of $750 led to slightly higher gains here.
  

Total Joint Net Worth - $227,529.  A very nice 4.2% improvement in November.  We met our goal of $224k and appear poised for more!  Real excited for the future!

Mud on the Mountain was Great!  I finished in around 2 hours and 15 minutes.  It was definitely rough and I was not a fun of my injured thumb for the next two weeks.  I would definitely do another Mud Run in the future if I can find teammates to run it with me.  I enjoyed the thrill of the run, but would have liked to have run with others.

October 2013 Net Worth Review

Wow.  That just happened!  Somehow it's been two months since I did a review and the whole Coach World went crazy!  Here's a quick recap of the last two months:
1.  We bought and sold a house!  NBD!  We moved to USC two weeks ago after six intense weeks of negotiating, estimating, planning and waiting.  It was a long road, but we made it through unscathed.
2.  I completed a whole High School Football Season.  The Prof hasn't killed me for not being around 8 days out of the week.
3.  Our Baby Boy has grown like a weed!  He's almost 9 months old, 23 lbs and fun as heck.

Here's to the Numbers!!

Cash - $25,795 ($8,523) 
Investments - $115,593 ($1,302)
Home Value - $336,000 ($169,000)
Personal Assets - $48,399 ($-3,462)
Less: Liabilities - $337,346 ($160,229)

Assets -

Cash - Obviously, with the sale and close of houses, we saw significant cash movement the past two months.  The total cash received from the sale of our old house was $76,055.81 after all costs considered.  We paid $87,319.54 for our new house.  So, for the exchange of homes we paid $11,263.73 out of cash.  In October, we've also received $959.75 related to the closing reimbursements and insurance exchange (we changed insurance companies).  In Sept., we closed an investment for $5,534 - also being an increase to cash.

Investments -As noted above, we closed one investment for the home buying process.  Otherwise, the markets were able to grow and make up that outflow (I know I lose opportunity for growth).  We also received a nice 529 increase for our Baby Boy.

Personal Assets - 

Obviously, the value of our home went up significantly.  I'm using the sale price of the home vs. Zillow estimate because Zillow was very wrong on our house.  The car value went down more than expected, but I can't complain about that ever.

Liabilities -
Mortgage - $292,800 -   Well, the old number is gone and it has been replaced by a monster!  I'm not thrilled by this new value....not one bit.  However, (allow me to rationalize real quick) we got a deal on the home and our interest rate is still decent with no points or anything.

Student Loans - $27,102- We made good progress here.  After the close, I used some excess cash to double up one a payment.  Prof and I have made this a priority the next two years as we don't want multiple kids with these hanging around our necks.

Acura Loan - $17,438.  Same as above.  Going to get aggressive.
  

Total Joint Net Worth - $218,441.  I should wait two months all the time!  A $15k (or 7%) jump since August 2013.  Close to our year-end goal of $224k!  The whole process of buying/selling a home was a whirlwind and something that I do not want to do again!  My stress levels were through the roof!  Right now, its time to concentrate on my family, friends and career.

Before I do - I'm going to one last stupid thing before turning 30.  Mud On the Mountain at Seven Springs tomorrow!  7.5 mile run with 24 obstacles scattered throughout the mountain.  It will be muddy, it will be exhausting and the Prof will be right that I am stupid.  And I CAN'T WAIT.  I don't get to push myself athletically or physically too often (or ever) anymore.  Work piles up and my football days are long gone.  Before I turn 30 and the best (physically) days are behind me - I figured I would this challenge.  Nervous but exciting.

July 2013 Net Worth Review

I'm still working out the kinks in the system, but I think we are all ready for a little look-back into the month that was!!! July was crazy. We completed our central air installation and wrote a few hefty checks. In addition, our property tax bills came due and some money went out the door. Lastly, my Speed Hustle was not as fruitful as I had hoped due to vacations and cancellations. All is not lost though - Little Guy continues to be amazing!!!

Here's to the Numbers!!

Cash - $17,272 $(4,323) ($0)
Investments - 114,291 (5,850)
Home Value - $197,000 ($0)
Personal Assets - $51,861 ($0)
Less: Liabilities - $177,117 ($1,331)

Assets -

Cash - Most of that decrease is for paying the last portion of Central Air. Otherwise, we actually saw an increase of cash of $500. That's not ideal considering we should see an increase of $1,500 to $2,000 based upon Prof salary, but I'll take increases.

Investments -Nicely done markets! No contributions other than retirement 401k and 403b, so I'm very happy to see the market doing work!
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Personal Assets - 

No change to house or assets. Still looking for the next house, but until we actually sell it, I'm going to let the valuation stay where it is. Also, I need to update the car values, but I got lazy, sue me.div>

Liabilities -
Mortgage - $129,603 -   Ho-hum. Just paying it down and earnign more back when we sell.

Student Loans - $28,402- Depressing to think I paid $96 in interest in July. That motivates me to stay the course and try to get rid of these darn graduate student loans FAST.

Acura Loan - $18,970.  Another $1k milestone achieved. Celebrate a little.
  

Total Joint Net Worth - $203,307.  A small $2,858 increase is awesome considering all these extraneous things that we did in July. Obviously, the markets have a profound impact on our overall movement, but every little payment helps and I love it. It's definitely been tough the past few weeks staying the course while also dreaming of what it will be like when there are no more payments. I'm tired of the rat race or feeling like I'm running up a mountain; I want freedom..

Summer Rants

New mid-month blog post everyone!  I'm going to try and new bulleted-style and see how I like it.  Here goes nothing! 

• We have Central AIR!!  (Hallelujah!) and just in time.  They finished the implementation of the system and two days later a crazy heat/humidity wave hit the area!  Although it was brutal outside, we were nice a cozy at 75 degrees inside!  I can't believe we waited three years for this
• However, no housing project on a 95 year home go smoothly.  Although the AC system is in place and working - our electrician informed us that that our electrical panel would need to be upgraded (for $1500) and that our old Knob-and-Tube wiring would need to be removed (at $2,000, but up to $10,000 if we were crazy).  Just what I want to hear after shelling out $8k.
• The Pirates are 19 games over .500 and right on the heels of the Cardinals for the division lead.  I remain skeptical that the current roster can play .600 baseball over 162 games, but I am loving the ride and hoping for the best every night.  My skepticism comes from years of let downs and the fact that the line-up has glaring holes (RF & 1B)
• Friday morning was like every other morning.  I woke up and spent some time with the Boy.  I got dressed for work and prepared to let our dog out so she could do her business.  Then, I noticed - The Water!!   The cold water hose to the washing machine had frayed and water was spraying all over my kitchen.  By spraying, I mean visiously dispensing water and soaking everything in its path - including the garage below it.  I felt like I was in a mad Three Stooges episode as I tried to turn the water off while getting hosed in the face!
• $15 for new hoses (steel this time) and unknown damage to the garage ceiling await. 
• The Summer Semester is coming to a close.  I have a final tonight and tomorrow and then I get 4 weeks off.  Only one semester remains until I consider myself a Master of Business Administration!  Not too shabby!!!  It's been a grind, but I've definitely enjoyed the experience and am happy I did it.  However, I am looking forward to bigger and better.
• When it rains, it pours.  Or leaks.  As in, my basement lets in water EVERY time it rains.  It comes from the cracks in the walls.  It comes from the floor!  (Have I mentioned I hate old homes)  I'm not sure how or why this problem has arisen all the sudden - but it could be an easy fix (waterproof the walls) or ugly fix (dig up foundation). 
• Have I mentioned how miserable homeownership can be?
• I'm signed up for Mud on the Mountain in November!  A 7.7 mile run with 26 obstacles in between.  What could be more exciting! It's going to be tough but I'm happy with the training workouts and the change of pace that it has provided.  Bench press was getting boring.
• My Referee Side Hustle is starting up.  I'm having meetings with my crew and already have 9 games lined up for the season.  I'm real excited to be working Friday nights this year!  It should be enjoyable and exciting venture this fall!

June 2013 Net Worth Review

This is very late.  We were on vacation in Hilton Head Island, SC over the first week of July and I was having connection issues at the office this past week.  So, I apologize for the tardy post, but the NW Review is here!!  Lots to discuss!!

 

Here's to the Numbers!!

Cash - $21,595 ($906)

Investments - $108,441 (-$5,838)
Home Value - $197,000 ($0)
Personal Assets - $51,861 ($0)
Less: Liabilities - $178,448 ($1,323)

Assets -

Cash - This is a little misleading.  The cash is inflated as the work done on the house was not completed yet and the money to pay the contractor sits in my checking account.  Also, our credit card bills have been higher than normal this summer - which I'm hopeful is just the Summer Blues!

Investments - The big change here is that traded $4,700 from our savings account in order to pay for home repairs.  What home repairs you ask?  CENTRAL AIR!  That's right.  Our home is now fully equipped with central air and the greatness and cool-ness that it provides.  Yes, it forced us to tap into our savings a little bit, but it cemented the return that we will be able to get when we sell it.

Also, June was a very up and down month in the market.  Just more worry that BBB (Big Bad Bernanke) will stop printing money and everything will slow down.  I'm not concerned.

Personal Assets - 

No change posted here.  We had a second realtor come through the house and confirm the $225k valuation.  However, for consistency, I'd rather keep the home value as is and just reap the rewards when we sell it.

Liabilities -
Mortgage - $129,985 - Below $130k!  Celebrate a little.

Student Loans - $28,771- A boring month compared to May.  I did get the Fed to recognize that I am a Part-Time Student again, which means that I won't be making payments on my 1.51% loans anymore, but I will snowball that payment into my 6.8% grad loan (the unsubsidized one).

Acura Loan - $19,474.  Boring...
  

Total Joint Net Worth - $200,449.  So our overall NW fell this past month, but in actuality, it rose.  Confusing, I know.  The summer spending has me a little worried, if only because Cash is a premium this month as several large bills (Real Estate Taxes and Fall Tuition) have come due.  They are all planned for, but it still creates a large hole in our savings account that will need to be replenished.

I'm still happy with the debt repayment schedule.  As much as I would like to cash in Life Insurance policies and deduct a big chunk, I'm more comfortable waiting until the house situation is resolved.  It's boring in the midst of the process, but necessary to be able to break through.  Stay the course.

May 2013 Net Worth Review

Wow....what a month!  Here's a quick review:

1.  The Professor went back to work.  Still not sure she will stick with teaching full-time but we both enjoyed getting back on a schedule and making some extra income this month.

2.  Logan went to his first full month of Day Care.  His "teachers", Elaine and Heather are very nice and his "friends" Henry, Nathan, Iyla, and Corinne make Logan a very happy boy and also very tired.

3.  We continued the house search.  We even almost put an offer on one.  The markets are kind of out of control and finding that "forever" home has been a challenge.  For the money, we want to get a "fixer-upper" but it's hard because there aren't that many houses with space in our price range.

4.  I decided to put my Graduate studies into over-drive.  By taking an extra class in June and one in the Fall, I will be eligible to graduate in December!!  I'm really excited to close out this chapter as it has been a major stressload and it is tough being away with the little guy! 

5.  The Pirates went 18-7 in May!  They are one of the best teams in baseball and continue to be a joy to watch!! Hopefully it can continue!!!

 

Here's to the Numbers!!

Cash - $20,689 ($2,589)

Investments - $114,279 (+$2,587)
Home Value - $197,000 ($0)
Personal Assets - $51,861 ($-251)
Less: Liabilities - $179,771 ($-1,221)

Assets -

Cash - We received three additional paychecks this month thanks to The Prof returning back to work!  Also, I reviewed the CSV on our Life Insurance policies and saw some incremental increases!  All in all, it was a good month although we had some larger expenses last month that needed to paid off and I made some extra payments on student loans (one interest only).

 

Investments - The markets were even for May.  Although we had some growth early, the markets fell during the last week as concerns about Bernanke's fiscal policy!  We continued to invest in our retirement accounts and saw growth within various accounts.  Slow and Steady wins the race in this game.

Personal Assets - 

No change here.  We are continuing to search for a new house, but no reason to alter the current valuation.  Also, basic depreciation holds steady for our cars.

 

Liabilities -
Mortgage - $130,354 - Another mortgage payment.....
Student Loans - $29,171- Lots of action, lot of action!!  First, we paid off a Student Loan!  One of our 6.8% graduate loans is paid down!  Boom!  Then, I made payments on the other graduate loans.  So, some payments had no interest attached and one $500 payment was interest only!  I guess that's what I get for waiting to make a payment.  Still on track to pay down all loans by July 2015!

Acura Loan - $19,978.  Below $20,000!!!!  Just another payment....

  

Total Joint Net Worth - $204,508!!  We crossed the $200k threshold!!! I'm so excited that I could do a little jig!!!!   

Property Taxes - Really?

The Prof and I are looking for a house.  We like our current home, but also know that it is not our forever home.  So, the Prof scours the Internet in search of the “dream house”. 

We live in an area that wasn’t crushed by the recent housing bubble.  Property values didn’t increase or decrease to a considerable degree over the past decade or so.  However, the area we live in has several of the top public school districts in the state.  Therefore, the home values can differ greatly depending on whether or not you are in one of these districts.

The schools make realty in certain districts very competitive.  Luckily, we currently live in one of those districts and have seen that home value appreciation in recent years.  However, that makes buying the “dream home” tough.

The biggest hurdle to our home buying process is property taxes.  We’ve found several homes that were very nice and crossed off a majority of key things the Prof and I required.  However, they also come with property taxes at over $12k a year. 

That’s the steep price of quality public education.

That’s so hard to wrap my head around.  For reference, our $170k home has property taxes of $3,500.  We’re mostly searching for $300k to $400k homes.  The mortgage and interest payment associated with homes in that range would be manageable and wouldn’t hinder our current living situation.  ON THE OTHER HAND – those taxes create some difficulties.

In my experience, that is one thing that real estate agents do not discuss enough.  Several of their websites only post monthly mortgage and interest estimates.  That is deceiving to a potential homebuyer.  Unlike a mortgage, you cannot pay down the principle of property taxes.  They are consistent, every year, and likely to go up every so often.

Failure to pay your property taxes is a serious issue and can result in foreclosure.  However, you don’t hear individuals consider the amount of property taxes when purchasing a home.

Be careful in your home search to do your due diligence and ensure that the home value is reasonable, but also that the taxes are management as well

April 2013 Net Worth Review

Logan started his first day of day care today.  It really reminded me how important our personal finances are and that I REALLY want to eliminate debt and grow our net worth.  The sooner I can get the Prof. out of the classroom and home with the man, I will be a happy camper.

Cash - $18,100 ($596)

Investments - $111,692 (+$1,146)
Home Value - $197,000 ($0)
Personal Assets - $52,112 ($0)
Less: Liabilities - $180,992 ($-1,645)

Assets -

Cash - Very interesting.  The only month in which the Prof did not receive any funds on her maternity leave, our cash balance increases.  The only additional funds we received was a $400 tax refund from an amendment I processed on my 2010 tax return.  I did sell my golf clubs and win a Masters Pool, so that could explain $200.  Otherwise, we would have broken even.

 

Investments - More growth in the markets!  Also, we did transfer some money around this month though.  I cashed in our investment in Muhlenkamp Fund and made our annual IRA contribution, for the 2012 tax year.  So, $4k has been transferred from Investments to Retirement.  The only negative is the progress of our "wedding present".  Shares of II-VI have plummeted based upon March 31 financial results and the stock continues to be beaten up for its low earnings potential in 2013.  Very frustrating.

Personal Assets - 

No change here.  We are continuing to search for a new house, but no reason to alter the current valuation.  Also, we'll review the cars next month on the bi-monthly cycle.

Liabilities -
Mortgage - $130,734 - Another mortgage payment.....
Student Loans - $29,384- Very nice to see this fall below $30k!  Also, I'll be paying off one of the Graduate Loans on May 2nd!  As I said last month, its time to get aggressive with this.

Acura Loan - $20,486.  Back to the usual $550 payment.

 

The Prof and I have set out on becoming debt free.  As we have gotten serious in the house search, we have realized how much farther our money would go without these payments every month.  The minimum pay-off period is set at April 2016.  Three Years from today.  That's the minimum!  I hope to get it done in 2015.  It's going to be hard, but I know we can do it!  I'll break down the amortization some other time.

 

Total Joint Net Worth - $197,983

OHHHH!! Almost at $200k!!  That would be awesome!!!  The wife starts her job again in May - so the extra income will be nice!  We're still on track for our 2013 goal of $225k!

Let's Do This

I am tired.

I am tired of feeling like I have no money.

I am tired of disappointing my life because she thinks we have no money.

I want to enjoy life.

I do not want to stress about making debt payments.

I do not want to cringe every time my wife wants to look at a house.

I do not want to see the look on her face when I say we can’t afford it.

I make $62,700 a year in a job I do not love.  I enjoy it at times.  However, I don’t get any satisfaction from it.  I worry that I won’t find my passion.  I worry that my passion won’t be able to provide for my family.

I have a $20,000 car loan and $30,000 in student loan debt that needs to be paid off.  I have a mortgage for $131,000.

My wife wants to buy a $360,000 house.  It’s a great house.  It has lots of space and the neighborhood is fantastic.

How come all I can think about is “how the heck am I going to afford the mortgage?”  How can I pay those taxes?  How much is insurance going to cost me?

I don’t want to live like that.  I don’t want to live like this.  I need to change.  I need to do something.

I’m going to start blogging again to try and find my passion.  I am going to vent more.  I am going to research things more.  I am going to have fun more.

I’m not going to solely talk about money and finances.  I started this blog to talk about everything.  I’m going to post my weight-lifting goals and achievements.  I’m going to research home-brewing and bourbon.  I’m going to talk about money – because it comes up – but it’s not going to consume me.

I’m not going to settle.  I’m not going to be average.  My little boy upstairs is not going to have a dad who is miserable and can’t provide for him.

I’m going to be better than that.  My son deserves better than that.  My wife deserves better than that.  I deserve better than that.

List of topics I want to blog about by the end of April:

1.     Property Taxes and how they effect the home buying process

2.     The weight lifting program I need to get into beach shape.

3.     The best bourbon for my dollar.

4.     The Pirates

5.     Derivatives.

I am tired.  So, I’m going to go to bed.  April 17, 2013 is the beginning of my journey to make sure my wife can be a stay at home mom.

March Net Worth Review

Here's an updated picture of the reason we are all here:

There he is!!  It's amazing how fast they grow up!  It's true though - all the investment monitoring and budget checking is done for him.  So that he can grow up with the necessities he needs to grow up strong and with the same opportunities that his mother and I had growing up.  I want him to go to college and not be stressed about loans or food money.  I want him to dream big and then work to achieve those dreams!

For the March breakdown:

Cash - $17,504 (-$3,837)

Investments - $110,546 (+$6,715)
Home Value - $197,000 ($0)
Personal Assets - $52,112 ($1,289)
Less: Liabilities - $182,567 ($-2,087)


Assets -

Cash - Lots of greenbacks flying around this month!  So, March is the month my bonus and raises go into effect - so that was a nice bump to offset the loss of the Prof's pay since she's not back working.  The major change is just a re-allocation from cash into RLS's 529 Account!  The original contribution of $3,000 was set aside in Growth, so not a big deal.

Investments - On March 30, 2012, the S&P set an all-time high!  The markets are doing their thing and we are doing ours!  As I said before, we set up RLS's 529 Account.  We have a good mix of growth mutual funds to help him pay for ND in 18 years!  (That's probably a good blog post in the future - the funds I picked and why).  Otherwise, I am still contributing to retirement and I made a small transfer to House Fund.

Personal Assets - 

I have no idea why the cars would go up in value.  The Sonata was only driven 3x, so it shouldn't be depreciating too much - but that's not really how it works.  It's really just odd.

Liabilities -
Mortgage - $131,100 - Another mortgage payment.....
Student Loans - $30,112- I nice decrease here.  An extra $500 payment made this balance decrease sharply.  The Prof and I talked about paying down high interest loans faster and trying to get debt free in 3 years.  So, I'm going to take a more aggressive approach to these bad boys so that I can buy a bigger house and make larger college and retirement savings contributions in the future!

Acura Loan - $20,988.  I paid down an extra $200 in order to get the balance below $21k!  Every little bit helps!!
Total Joint Net Worth - $194,596

Well, well, well!!  Not too bad considering the wife is on maternity leave!  Obviously, our investments are making greater headwinds as the Joy of Compounding Interest takes effect!!  Otherwise, we're going to continue paying down loans and paying less interest!!

February Net Worth Review

I'd like to introduce RLS!!!!

 

Isn't he the cutest thing EVER!!  It's amazing how awesome he is!  I feel so lucky to have him and my wife in my life!

 

That being said - I should probably get down to the reason we are all here - the February Net Worth Review!!!  (crowd goes wild)

 

February was an interesting month.  Obviously, we have our son, which led to some changes within our financial spectrum.  First, the Professor went on Maternity leave.  So, she received pay for the first 4 days she worked this month and one disability benefit payment.  Also, we are hermits now.  RLS isn't vaccinated, so that means we are spending our nights at home just enjoying him.  It's awesome - plus, everyone (mostly grandparents) have been super kind and made some very delicious dinners for us to enjoy.  Lastly, I filed our Federal Income Tax Return for a refund of $1,447!!  It's less than last year, but still a nice pay back (See post from last year on getting a refund!)

For the breakdown:

Cash - $21,341 ($11,755)

Investments - $103,831 (+$893)
Home Value - $197,000 ($0)
Personal Assets - $50,823 ($0)
Less: Liabilities - $184,654 ($-1,290)


Assets -

Cash - I thought we changed this to avoid these crazy swings!!  We did.  However, we received a Life Insurance policy from grandpa Prof that has a cash surrender value of $11,918!  So, we had to add that to the breakdown - which encompassed the entire gain in February.  Otherwise, things were pretty good considering Prof didn't get her usual pay this month.  Plus, our balances actually grew, but we're putting most of the money aside for tuition.

Investments - It was actually a very wild month for the markets.  The Sequester begins March 1, and everyone is afraid of the impact it will have on the economy.  Therefore, the markets were constantly in a state of flux based upon latest governmental headline.  We are still investing in retirement and saving for the next house - but I'm keeping that money more liquid right now until uncertainty eases.

Personal Assets - No changes here.  Mostly because I haven't had the time to review the car values.  I feel like every other month is adequate time period to jot down depreciation - especially since we probably only put 100 miles on the car this entire month!  On the other hand, we did have a realtor come through our house to get an idea of the market and what our house would sell for.  She gave us a listing price of $225k with idea that it sell for $215k.  I'm not boosting our value herein though.  I believe her, but just don't want to get false sense of security yet.

Liabilities -
Mortgage - $131,491 - Another mortgage payment.....
Student Loans - $31,052 - Another modest decrease here - although we had a lot noise from these accounts.  Since I'm only taking 3 credits this semester with the baby - my loans went into repayment/grace mode based upon losing my half-time status.   Not that big a deal since I'll gain the status back in Summer - but it does mean I had to pay $69 toward undergrad loans now.  Actually, it turns out my payments based upon loans now would be $394 - just a tad more than I'm paying now.  I still plan on making my payments and using excess cash to reduce high interest loans, but I was glad to hear the payment terms aren't outrageous.

Acura Loan - $21,693.  Another payment.  I'll probably make larger payments on this as well.  No benefit from this guy (unlike tax benefit from student loan interest).

Total Joint Net Worth - $188,341

Not too shabby!  This gain was mostly due to CSV on Life Policy, but we still had modest gains in February elsewhere.  Also, RLS's Savings account is not included within this calculation - which is awesome to see the little guy making money!!!

January 2013 Net Worth Review

2013 is going to be a great year!! Little guy is set to come any down now!  It's so exciting!  I can't believe the pregnancy has gone so fast!  The nursery is fully stocked, the diapers are organized, and Mom and Dad are anxious to meet him!  With all that established - its time to review our finances!!!  YEAAA!!!

Cash - $9,586 ($-10,464)

Investments - $102,938 (+$4,863)
Home Value - $197,000 ($0)
Personal Assets - $50,823 ($-578)
Less: Liabilities - $185,944 ($-2,578)

Okay - let me explain...

Assets -

Cash - I've changed the presentation of cash in the Net Worth calculation.  Within our Growth account, I've set up various sub accounts for future liabilities (ie. Auto Insurance, Property Taxes, and Education) and it doesn't make sense to keep including these as Net Worth when I know they are going to be subtracted in the near future.  In addition, this should eliminate the drastic swings in Net Worth that occur within various months when I make a Tuition payment.  Overall, cash actually held steady.

Investments - Go Market Go!!!!  We only made one small contribution ($500) to our house account, but the markets grew nearly 6% in January!  It was one of the best months since pre-2008!  We continue to invest in retirement and I've noticed bigger gains as the accounts have grown, compound interest baby!!!

Personal Assets - Small amount of depreciation on our two vehicles.  Ho-hum.  We have been going to open houses in our neighborhoods, which has got me very interested in selling our house.  I'm intrigued by what the real value of our house/neighborhood is.  However, I don't want to take on a bigger mortgage right now with new baby and other debts in line.  The Joneses can have their fancy crap, we'll live in comfort and harmony for our entire lives!!

Liabilities -
Mortgage - $131,882 - We made our first mortgage payment on the refi and saw a $362 reduction to the original balance, which is much better than the $200 reductions we were seeing on the old mortgage. 

Student Loans - $31,405 - Big move here as I used a portion of our Christmas gift to make a $1500 payment in January.  Seeing the balance drop so significantly really got my juices flowing for more debt reduction.  It's like an addiction - I want the balance to be ZERO RIGHT NOW!!!
Acura Loan - $22,191- Double payment made in January.  See above.  I might have a problem - or I"m a genius!!  I hate paying First Commonwealth $50 a month for the right to use my car....

Total Joint Net Worth - $174,639!

So, we saw a slight reduction in NW, but only because of the reclassification of the accounts.  Overall, we saw massive gains in our investment portfolio, our debts were greatly reduced, and we still live comfortably and happily.  Unfortunately ND lost in National Championship game, but we still had a great time!  The little guy can't get here soon enough!!!

Can Saving and Debt Co-Exist?

I love spreadsheets.  We have our budget on a spreadsheet with various categories and calculations.  We also have our debts allocated in a spreadsheet with interest calculations and amortization.  I also monitor our investment growth in a spreadsheet.

I like reviewing spreadsheet and manipulating them. 

However, I'm starting to think spreadsheets may not be a good thing.  Can you obsess over a spreadsheet?

I'm constantly flip-flopping between saving money for future expenditures and paying down our debt.  One month, I love making a trade and watching our savings balance grow.  The next, I'm pissed off about our debt level and want to make a double debt payment.  It's a vicious cycle.

I'm content with our plan to save money and pay down debt.  I just wish I could do both more.  We have a pretty substantial amount of investment funds available to us and we also have $5k in an emergency fund.  Our debt payments aren't outrageous right now, mostly because the student loan debt doesn't have a minimum payment due to deferment period.  Our debt to income ratio is about 34%, which is a bit high.

Is this why Dave Ramsey screams about paying off debt first and then saving.  The simplicity of the action.  Perhaps.  However, the accountant in me also understands that my interest rates are low and that the student loan and mortgage interest is tax deductible, which helps alleviate some burden.  However, I still get angry about those debt balances - especially when I look at my spreadsheets!!

Where is the middle ground?  I have a son on the way and desperately want my wife to stay at home.  However, I worry with our debt levels that that is not possible.  On the other hand, without saving more money we may not be able to put 20% down on our dream home, which would be worse.

Perhaps I should get a 2nd job....

December Net Worth Review

Well, 2012 is over and done with and 2013 brings about the year of "Little Guy" in our household as we prepare for the February birth of our son!  We're very excited and also very excited to get crackin on some debt reduction and Net Worth boostin!!  Here we go!!

 

Cash - $20,050 (+$2,915)

Investments - $98,075 (+$10,619)
Home Value - $197,000 ($0)
Personal Assets - $51,401 (+$509)
Less: Liabilities - $188,522 (+$823)

Here's how it breaks down:

Assets -

Cash - A nice increase to our cash balance that was caused by a SERIOUS Christmas gift of $5k from Gram and Pap S.  Amazing how fortunate the Prof and I are.  However, we did make a tuition payment of $3.6k for the Spring semester.  So, we still had a nice increase without those two items, however, the first item will help us pay future tuition and pay down current student loans.  Also, I'm looking into 529 Plans for the little guy.  So, it's nice to have the liquidity.

Investments - This increase is a bit deceiving.  I've added a Pension Fund of $6.7k that the Professor has which I did not know existed.  I guess its a mandatory thing for all teachers at her Charter School.  So, that was a nice bump.  Otherwise, the Fiscal Cliff didn't really happen, which saved our investments and we made our usually $2k contribution into House Fund.

Personal Assets - No change here other than the car values inexplicably going up!  I can't explain it, but I'm sure it will go down more often than not.

Liabilities -
Mortgage - $132,244 - So, we added about $1.7k to our Mortgage Loan this past month as we closed on the refinance loan.  The actual loan is $132k, but because its a Home Equity Loan, the interest is calculated daily and reflected on the website.  Frustrating because I see the balance go up every day, however, I'm okay because we'll be paying this down faster with the 20 yr term.  Plus, I used the small amount left over to pay down a student loan.
Student Loans - $33,089 - As I said, we made an additional $126 payment this month, which was almost all principal.   

Acura Loan - $23,190 - Second payment in the books.  I'll be making extra payment on both of these items in January as part of the Christmas gift utilized.
Total Joint Net Worth - $178,004!! 

We accomplished our 2012 goal of $170,000!!!  Amazing!  The increase is largely attributable to the new Pension Fund account and the extra Christmas gift.  However, with those two things, we still saw an increase of $2k even though the mortgage went up.  With the baby on the way, we've discussed getting more aggressive with the student loans - so we may see more head-way there.  But, for now, I'd like to wait and make sure we have a healthy, happy baby until doing anything major to our current savings/debt ratio.