March Net Worth Update (+$14,753.11)

March was the craziest month we have had in quite awhile. Our net worth increased an amazing $14,753.11 from last month, to a total of $88,056.45 (click on spreadsheet below). This is a new record monthly increase for us.

What Worked

My wife’s company laid off the entire sales force this month, but within two days, she secured her 1^st interview and ended up getting a great new job that she starts mid April (more details to follow in another post). We had a major influx of cash this month including her $733.52 of cashed out vacation, a $4,111 tax refund ($3,730 fed & $381 state), and a check for two weeks of severance for my wife should be coming in any day. We also sold 20 shares of BofA stock for small $48 gain. We contributed a total of $1,883.01 to our retirement accounts (401k’s and Roth IRA’s) and saw them increase $4,947.42!

What Didn’t Work

We purchased a great used 4x4 for $12,250 cash. This purchase absorbed most of our savings and our influx of cash from this month. I’ll be using the 4x4 as a daily driver until my wife gets her new company car in a couple of months. After that, the 4x4 will be a fun toy for us to enjoy on the weekends. Now we have to get our savings built back up.

Next Month

We have a little catching up to do in April. Purchasing the 4x4 threw off our cash flow, so we’ll need most of April to recover.

Bought a 4x4

Just a quick post to say that we bought another vehicle. This vehicle, a 4x4, can be used as a daily driver if it takes awhile for my wife to get a job, or can be used as a fun weekend "toy". We got a great deal by paying cash, $12,250 to be exact.

My wife is on her final interview today with a great company. If she gets the job, she will have 5 weeks of home study before receiving her company car. So, the extra vehicle will come in very handy.

Net Worth Milestone - $80,000

We just passed $80,000 net worth milestone! Thanks to our $4,111 tax refund and good performance in our retirement accounts, we currently at a net worth of $81,635.73. We passed the $70,000 net worth milestone in January, so it only took us 2 short months. God willing, we should hit our $90,000 net worth milestone in July.

I will provide further details and update our net worth meter (on the left side of the screen) at the end of the month.

Wife Laid Off

My wife’s company has been struggling and finally decided on Friday to layoff the entire sales force off.

It’s unfortunate, but not a total surprise. She had already survived 2 rounds of layoffs with this company and there were rumors and signs things were coming to a head.

Where does that leave us? Not in too bad of shape, actually.

• She will receive 2 weeks severance
• Her vacation will be cashed out
• She’ll be bonused on any sales until 4/2
• She gets to keep her company car for 2 more weeks

With $475/week of unemployment and reducing some of our expenses, we shouldn't even have to dip into savings. Speaking of savings, with our tax return, our savings jumped from $4,327.37 to $9,320.43. We’ll likely need to use some of this to buy a used car, but the rest can act as a cushion. Plus, we should be able to continue to add a little bit into savings each month.

My wife is so on the ball, she’s already lined up a phone interview for tomorrow.

2010 Taxes

We paid a total of $2,025 in federal and state taxes last year. This year, we wanted to get help with our taxes because we had to account for our condo short sale. Thanks to a referral from a trusted friend, we met with our new tax accountant today and, boy, was it was worth it.

While we had less mortgage interest to deduct this year, he helped us find other deductions that we didn't realize we were eligible for. We paid him $275 and he helped us receive a total refund (federal & state) of $4,111!

We should get the $4,111 refund via direct deposit in ~2 weeks. We plan to deposit the money into our savings account to build our emergency fund back up.

February 2010 Income Statement

Thanks to my wife, February was strong income month and a low spending month (click on spreadsheet below).

In addition to our regular paychecks, my wife received a $3,000 ($1,217.53 net) quarterly bonus. My paycheck was also a bit higher because my company gave everyone another salary increase. My wife received a $110 company reimbursement for internet and phone service, we earned $75 in credit card cash back rewards, and we received a $50 rebate.

Our expenses this month were only $4,930.82, within $200 of our monthly budget. I was on business travel for 7 days, which probably helped save us some money.

March should be a pretty typical income month, but may be a large expense month, depending on how our taxes come out.