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.