December 30, 2011

December 2011 Income Statement

December was a big expense month and our largest income month EVER (click on spreadsheet below).

Our total income for December was $25,449.19, by far the best that we have ever had. Most of the money came from selling our recreational 4x4 for $14,995. Even if you subtract out the vehicle sale, we’re still at $10,454.19. With the birth of our baby and our home purchase, I changed my filing status from M1 to M3. As a result, my take home pay increased $59.51 per check. In addition to my two regular paychecks, my wife received $4,683.14 in Paid Family Leave (had a baby via C-section). We also received $131.13 from her PTO payout, $1,638 from selling items on craigslist, $220 in cash for our son’s 529 Plan, and $75 in credit card rewards. We earned $25.76 in interest income from our online savings account.

We spent a total of $7,394.91 in December. Some of the larger expenditures include $210 co-pay cord blood banking, $950 security camera system, $400 for home appraisal and $300 for a home inspection.

January is going to be a busy month as we prepare to move from our rental unit to our new home. There should be a huge spike in our expenses and we fill the home with furniture. In terms of income, January should be a pretty normal month as my wife goes back to work. With my wife heading back to work in January, we will be paying a nanny $900 a month to care for our baby.

December 29, 2011

Poaching Retirement Accounts For Down Payment

We are currently in escrow on a beautiful 5 bed/3 bath home that should fit our needs for many, many years to come. To keep our monthly mortgage payment low and to avoid PMI, we have elected to raid our retirement accounts for some of the down payment. I know, I know, hear me out..

The 2 bedroom condo that we are renting is $1,550/month and, with our growing family, it is a tight squeeze. After finding our dream home, we quickly realized that the ~$47,000 in our savings was not enough for a 20% down payment. The home was $489,000, so 20% down is $97,800, meaning that we needed to come up with another $51,000.

We poached $51,000 from our almost $100,000 in retirement savings. $30,000 came from Roth IRA contributions and $21,000 was borrowed from my 401(k). You can withdraw Roth IRA contributions at any time without penalty or taxes. The 401(k) loan has a 5 year payment schedule at $179.44/check. If I were to leave my company for any reason before the loan is paid back, the balance would be due, or I would have to pay a 10% penalty and income tax on the money.

If the deal goes through, our interest rate will be 3.75%, resulting in a monthly mortgage payment of $1,811 on a mortgage of $391,200. Add $600/month for tax and insurance and we are up to $2,411/month. This is a very comfortable number for us, especially when you consider the tax benefits of owning a home.

Our gross annual income is $150,460, not including my wife’s quarterly bonuses. Using the rule of thumb to spend no more than 35% of our gross income on housing, we can “afford” $4,388/month. Frankly, we had no intentions of spending anywhere close to that. We simply want a nice home with payments that we can still afford if one of us lost our job.

December 27, 2011

December 2011 Net Worth Update (+$8,349.58)

December was an exciting month for us. We have been renting a condo for 2+ years and have been looking for a home as we saved money. After a lot of searching and savings, we found a beautiful 5 bed/3 bath with a pool in a great part of town. Our offer of $489,000, with 3% back towards closing costs, was accepted and escrow is scheduled to close 1/23. Anyways, on to our net worth. We had another great net worth increase of $8,349.58 from last month, to a total of $164,821.70 (click on spreadsheet below).

What Worked
We sold Car 3, our recreational 4x4, for $14,995 in order to provide an influx of cash to furnish our new home. For now this is going into savings, but it will start to flow out of savings once we move in to the new place in January. We were able to deposit $17,095 into savings, plus an addition to $51,000 from our retirement accounts for the down payment.

What Didn’t Work
We contributed a total of $893.96 our retirement accounts, but they decreased $49,649.99 because we raided our retirement accounts for $51,000 to help fund our 20% down payment ($97,800) on our new home.

Next Month
January will be a huge month for us. We’re scheduled to move into our new home and will be spending copious amounts of money to furnish and decorate it. My wife also goes back to work on January 2, so we will begin paying a nanny $225/week to care for our baby boy.

I will be posting a review of our 2011 Financial Goals in a few days.

December 22, 2011

Net Worth Milestone - $160,000

Today we passed the $160,000 net worth milestone! Our net worth is currently $163,973.37.

With the market ups and downs, it took us longer than expected to reach this milestone. We passed our last milestone of $140K in July and thought that we would hit $160K in October. That being said, we’re still way ahead of our $138,100 net worth goal for 2011. Based on my forecasts, we should hit the next net worth milestone of $170K by March or April.

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

December 2, 2011

November 2011 Income Statement

November was a reasonable expense month and very, very good income month (click on spreadsheet below).

Our total income for November was $12,479.03; our 3rd highest income month since we began tracking our finances in 2007. I received my two regular paychecks and a 3rd “extra” paycheck. My wife received one regular paycheck and $2,404.85 from SDI (just had a baby via C-section). We also received a $50 gift from my parents (deposited to our baby’s 529 Plan), $71.38 in credit card rewards, $75 insurance reimbursement, $20 from a craigslist sale, $18.04 from a credit card settlement, and earned $28.23 in interest income from our online savings account.

We spent a total of $6,831.93 in December, not too bad considering that we earned nearly double that. Some of the larger expenditures include a(nother) $500 co-pay from the hospital for our baby’s delivery and $300.51 in gifts.

December should a decent income month as my wife shifts from SDI to PFL and my filing status is being changed from M1 to M3 to increase my paychecks. Since we completed most of our Christmas shopping done in November, our expenses in December should be very reasonable.

December 1, 2011

November 2011 Net Worth Update (+$8,068.61)

With the ups and downs of the market, it was tough to tell where November would land. Thankfully, it landed up and our net worth increased $8,068.61 from last month, to a total of $156,472.12 (click on spreadsheet below).

What Worked
The biggest impact to our net worth this month was a $3,425 gross ($2,701.37 net) bonus that my wife earned. On top of that, this was an “extra” check month for me. So, we were able to deposit $4,891.17 into savings.

What Didn’t Work
We also contributed a total of $1,834.88 to our retirement accounts. but they only increased $1,633.64.

Next Month
December may be a tricky month as my wife switches from SDI (not taxed) to PFL (taxed). That being said, I am changing my filing status from M1 to M3, which should help our cash flow. It is also obviously the end of the year, so I'll be reviewing our 2011 goals and posting our goals for 2012.

November 3, 2011

October 2011 Income Statement

October was a reasonable expense month and an above average income month (click on spreadsheet below).

Our total income for October was $8,252.44. In addition to our regular paychecks, we received $1,050 for our new baby. We also sold some items on craigslist for $30, a $50 Chase credit card cash back reward, and earned $26.40 in interest income from our online savings account.

We spent a total of $7,346.87 in October. We actually spent close to budget, if you subtract out $1,845 for cord blood banking and a final $400 payment to our doula. After deducting these one-time expenses, our total expenses were only $5,101.87. This makes me feel a little better about keeping our regular expenses down in October.

November should be another good income month since I receive a 3rd “extra” paycheck. We’ll try to get most of our Christmas shopping done in November, which will inflate our expenses somewhat, but no other large expenses are planned in November.

October 24, 2011

October 2011 Net Worth Update (+$9,000.12)

I’m posting this a few days early because I will be away on business. After a $6K+ drop in our net worth last month, I was happy to see it recover nicely this month. Our net worth increased $9,000.12 from last month, to a total of $148,403.51 (click on spreadsheet below).

What Worked
My wife’s 10% 401(k) contributions began this month. We contributed a total of $1,428.38 to our retirement accounts and saw them increase a massive $8,477.30. We also opened a Vanguard 529 Plan for our baby, funding it with $3,000 from our savings.

What Didn’t Work
Our savings balance dropped, but only to fund our son’s new 529 Plan.

Next Month
November looks to be shaping up as another strong month. I receive a 3rd “extra” paycheck that we should be able to bank 100% of.

October 9, 2011

Upromise.com

My wife and I spent a few minutes this morning registering our credit cards, debit card, and grocery story loyalty cards with Upromise.com. Upromise.com allows us to earn cash back on these cards to use towards our baby boy's education expenses. Upromise works with companies to provide this benefit (FREE cash) to parents at no cost. If you have kids, check it out!

October 3, 2011

September 2011 Income Statement

The excitement of our first child’s birth in September overshadowed our pretty normal income and expense month (click on spreadsheet below).

In addition to our regular paychecks, my wife received a $25 reimbursement from her company for internet. We also sold some items on craigslist for $25 and earned $26.82 in interest income from our online savings account.

We ended up spending a total of $5,819.22 in September, including $500 for an insurance co-pay for the hospital and $156.69 for a tux rental. The $1,850 cord blood banking bill and $400 balance due to the doula were not paid this month, but will be paid in October.

I’m not sure what to expect in October. Our net income from my wife’s company will drop because her 10% 401(k) contribution begins in October; at same time we are adding our baby to her insurance, increasing the cost from $75/month to $325/month. My wife will be taking 1 week PTO and then 4 weeks short term disability (full pay). After that, she will need to take 1 week unpaid and then begin Paid Family Leave (55% of your highest gross quarter).

October 1, 2011

September 2011 Net Worth Update (-$6,074.95)

It’s a BOY!!! Our son was born at the end of September, making this our best month EVER. Being new parents is a lot of work, but there is nothing that comes close to the amazing feeling. We the excitement of our new baby, I haven’t had a second thought about our net worth getting pummeled again this month. Our net worth decreased $6,074.95 from last month, to a total of $139,403.39 (click on spreadsheet below).

What Worked
Our beautiful baby boy was born!

What Didn’t Work
We contributed $1,013.00 to our retirement accounts, but saw them decrease $7,716.19 to $81,483.75.

Next Month
Going forward, my wife’s net income will be reduced because of her new 401(k) contribution and we will be adding our baby to her insurance. We have elected to begin contributing 10% of my wife’s pay to her 401(k) plan during her first open enrollment in October (the company matches 6% with a 3 year vesting period). We will also be adding the baby to my wife’s insurance, increasing the cost from $75/month to $325/month.

September 2, 2011

August 2011 Income Statement

August was another very good net income month (3rd in a row over $9K), but also a wild and crazy spending month (click on spreadsheet below).

In addition to our regular paychecks, my wife earned a Q2 2011 bonus $1,006.83 gross ($937.87 net)! These funds will go into savings for now, but are earmarked for a 529 plan for our son. She also received a $25 reimbursement from her company for internet. We earned $170 in credit card cash back rewards and sold a portable A/C unit for $175. My wife scored us a $50 target gift card for giving blood. We also earned $25.09 in interest income from our online savings account.

We gave in to some serious communism this month - $9,022.40 worth to be exact. Some of the bigger ticket items include a $2,715.30 watch for my wife (retails for $4,200), a $532.50 gun for me, a $250 shooting range membership for me, $147.72 for a friend’s wedding shower, $106.46 for a new safe, and much, much more. Hopefully, we got it out of our systems.

September will announce the arrival of our baby boy - we are so excited. With the birth comes a few costs: $400 balance due to doula and $1,850 for cord blood banking. We also need to add the baby to my wife’s insurance so that will increase from $75/month to $325/month. Once the baby is born, my wife will take 3 months off of work using a combination of PTO, short term disability (full pay), Paid Family Leave (55% of your highest gross quarter). As a result, our income will be a bit less until December.


September 1, 2011

August 2011 Net Worth Update (-$5,075.62)

A market correction was bound to happen :). As a result, our net worth decreased $5,075.62 from last month, to a total of $145,478.34 (click on spreadsheet below).

What Worked
With the huge drop in the stock market, everything went on “sale”. William Bernstein, author of The Four Pillars of Investing, has said that young savers should be praying for a bear market so they can accumulate shares cheaply before they retire. So, we contributed $1,513.00 to our retirement accounts, but saw them decrease $6,500.62 to $89,199.94. We were blessed with my wife earning a Q2 2011 bonus of $1,006.83 gross ($937.87 net).

What Didn’t Work
Our retirement accounts were down $15,000+ earlier in the month, but rebounded considerably, cutting out paper loss in half. Our spending was completely out of control this month. I will provide details in my income statement post in a couple of days.

Next Month
September it is going to be a great month because our first baby will be born. We have a couple of large bills in September: $1,845 for cord blood banking and $400 for balance due to doula. We will also be adding the baby to my wife’s insurance increasing the cost from $75/month to $325/month. Depending on the timing of the baby’s birth, my wife and I are also scheduled to be in our friend’s wedding, which will be roughly $200 for tux (my wife already bought a dress). With these bills hitting next month, we do not plan to save anything beyond my 401k contribution in September.


August 25, 2011

Bonus Time Baby

My wife received her Q2 bonus (first bonus) at her new company! He earned a $1,006.83 bonus (gross). We plan to deposit this money into savings until our son is born and then it will be seed money for his 529 Plan. Go wifey!

August 1, 2011

July 2011 Income Statement

We had another very good income month in July ($9,800.70 total), however, we also had a higher than average expense month ($6,975.51 total) (click on spreadsheet below).

In addition to our regular paychecks, my wife received a third “extra” check in July and a $25 reimbursement from her company for internet. We earned $25.00 in credit card cash back rewards. We also earned $23.04 in interest income from our online savings account.

Our expenses lower than June, but still high, totaling $6,975.51. This included a number of large bills: $400 for a 50% payment to our doula, $327 for a traffic ticket, $320 for 20 prepaid chiropractor visits, $233.50 for life insurance, $213.48 for clothing, and $185 for new brakes.

August should be a pretty standard income month, but may be an above average expense month because we have purchases for the baby, including possibly $1,800 after discount cord blood bank.

July 28, 2011

July 2011 Net Worth Update (+$3,714.78)

We were blessed with another net worth increase this month. In July, our net worth increased $3,714.78 from June, to a total of $150,553.96 (click on spreadsheet below).

What Worked
We passed the net worth milestone of $150,000 this month! We contributed $1,213.00 to our retirement accounts in July and saw them increase $1,841.10 to $95,700.56. We also continue to increase our savings account balance for a house down payment and private adoption. Of the $31,047.79 we have in savings, $23,425.66 is earmarked for a down payment and $7,622.13 for adoption. We still have a long way to go to reach our savings goal for both.

What Didn’t Work
N/A :)

Next Month
August is our last full month to prepare for the arrival of our first baby. As a result, we will need to purchase any necessary items that we didn’t receive at the baby showers. As a result, we will be contributing less money next month to retirement and savings.

July 7, 2011

Net Worth Milestone - $150,000

Today we passed the $150,000 net worth milestone!

We passed our last milestone of $140K, in May. As you probably have noticed, our networth milestones are in $10,000 increments. Since January, we have passed a networth milestone 4 out of 7 months. Way ahead of our expectations. Based on my forecasts, we should hit the next net worth milestone of $160K by October.

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

July 5, 2011

June 2011 Income Statement

We had our best income month ever in June ($14,358.74 total), but ended up spending a good deal too (click on spreadsheet below).

We were shocked to receive a $4,470 class action settlement from my wife’s old company at the end of June. This was a windfall was a total blessing. In addition to our regular paychecks, I received a third “extra” check in June and my wife received a $25 reimbursement from her company for internet. We earned $125 in credit card & hotel rewards and made $90 selling items on craigslist. We also earned $21.11 in interest income from our savings.

Our expenses were high in June, totaling $8,633.86. This included: $1,464.90 for auto insurance (Cars 2 & 3), $376.82 for rental insurance, $447.59 for Cobra insurance, and of course, more baby items.

July will be another great income month (>$10K) thanks to a third “extra” paycheck that my wife will receive. It could also be a pretty reasonable expense month even though we have a few good size bills to pay: $233 for 6 months of life insurance premiums (Husband & Wife), $400 for a 50% prepayment to our doula, and a $327 traffic ticket.

June 30, 2011

June 2011 Net Worth Update (+$4,791.04)

We were blessed with another net worth increase this month. Our net worth increased $4,791.04 from last month, to a total of $146,839.18 (click on spreadsheet below).

What Worked
We received a huge windfall in the form of a $4,470 class action settlement from my wife’s old company (that she worked at for ~6 weeks). She was automatically included in the settlement, and frankly, we weren’t expecting much to come of it. Imagine our surprise when a check for $4,470 showed up. This helped us dramatically increase our savings account balance. One step closer to having a home downpayment.

What Didn’t Work
We contributed $1,419.50 to our retirement accounts in June and saw them decrease $970.28 to $93,859.46. Not a big deal.

Next Month
My Wife receives a third “extra” check in July, but we also have a few large bills including $233 for 6 months of life insurance premiums (Husband & Wife), $400 for a 50% prepayment to our doula, and a $327 traffic ticket. God willing, we hope to hit a net worth milestone of $150K in July.



June 2, 2011

May 2011 Income Statement

May was a very good income month and an relatively low expense month (click on spreadsheet below).

This was my wife’s first full month at her new job. She takes home $2,142.21 (net) each bi-weekly check. That’s a total of $444.84 per check more than her previous company! In addition to our salaries, my wife received a $45 reimbursement from her company for internet. We earned $20 in credit card rewards, received a $100 gift from my parents, and sold an old GPS for $40. We also earned $19.34 in interest income from our savings.

Our expenses were pretty reasonable, at a total of $5,708.25. We have worked hard to spend less and save more and were very successful in May. It helped that both my wife and I were traveling on business part of the month. Some of the larger expenses in May were: $223.80 for cobra insurance, $285.49 in clothing, and $424.01 for a little vacation.

I wish I could say we will carry over our low expense level into June, however, we have some large bills due. We have to pay $1,464.90 for auto insurance (Cars 2 & 3), $376.82 in rental insurance, and $447.59 in Cobra insurance. Thankfully, I will be receiving a third “extra” check for $1,781.07 in June.

June 1, 2011

May 2011 Net Worth Update (+$3,263.10)

Since passing our 2011 net worth goal of $138,100 last month, any further increase helps with our 2012 net worth goal of $173,200. In May, our net worth increased $3,263.10 from last month, to a total of $142,048.14 (click on spreadsheet below).

What Worked
Passing our 2011 net worth goal so early in the year is a major blessing. We contributed $1,063.00 to our retirement accounts in May and saw them increase $340.00 to $94,829.74. Remarkably, our traditional IRA balance did not change from the month prior. We were also able to sock away a nice chuck of change into savings.

What Didn’t Work
All accounts moved the right direction this month:)

Next Month
I’m hoping the good progress will continue next month. I receive a third “extra” check in June, which also includes an extra 401(K) contribution. However, we also have a few large insurance bills due in June for a total of $2,289.31.

May 3, 2011

Net Worth Milestone - $140,000

Today we passed the $140,000 net worth milestone!

We passed our last milestone of $130K, in February. Based on my forecasts, we should hit the next net worth milestone of $150K by August.

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

April 28, 2011

April 2011 Income Statement

April, for how chaotic it was financially, ended up looking pretty benign on paper. Our bottom line income and expenses remained pretty typical (click on spreadsheet below).

This was a transition month, with my wife leaving one company to join another company for a higher paying position. Because of this, she only received one (much larger) paycheck in April. In addition to our salaries, my wife received $1,037.55 for her cashed out vacation, and a $75 reimbursement from her old company for her cell phone. We earned $100 in credit card rewards, sold a table for $50 and received a $2,325 tax refund ($2,155 Federal & $170 State). We also earned $16.63 in interest income from our savings.

Our expenses were much lower than the insane spending we had in March, but still high at a total of $6227.99. Some of the larger items were: $447.59 for cobra insurance, $763.50 in vet bills, and of course more baby stuff.

May should be an interesting month. It will be my wife’s first full month employed at her new company. We will also both be traveling for business in May, so hopefully our expenses will be lower than normal (living on the company dime).

April 2011 Net Worth Update (+$4,511.92)

We passed our 2011 net worth goal of $138,100 in April! That gives us 8 months to made headway on our 2012 net worth goal of $173,200. Our net worth increased $4,511.92 from last month, to a total of $138,785.04 (click on spreadsheet below).

What Worked
Passing our 2011 net worth goal so early in the year is a major blessing. Our $2,325 tax refund ($2,155 Federal & $170 State) helped put us over the top. We contributed $1,063.00 to our retirement accounts and saw them increase $2,787.01 to $94,489.74. We also continue to improve our savings account balance.

What Didn’t Work
All accounts moved the right direction this month :)

Next Month
Progress towards our 2012 net worth goal of $173,200 begins now. May will be my wife’s first full month of pay in her new position, at a much higher income. We’re going to try to bank as much of the extra income as possible before the baby arrives.

April 27, 2011

Already Passed our 2011 Net Worth Goal

Great news! We just passed our 2011 net worth goal of $138,100. That puts us 8 months ahead of schedule. This should allow us to gain some serious ground on our 2012 net worth goal of $173,200. I will update our net worth meter (on left) at the end of the month.

April 6, 2011

March 2011 Income Statement

As expected, March was a “spendy” month and a relatively standard income (click on spreadsheet below).

In addition to our paychecks, my wife received two $75 company reimbursements (Feb & March) and we earned $125 in credit card rewards We also earned $15.47 in interest income from our savings.

Our expenses totaled a whopping $11,033.55! Some of the larger items were: $2,954.60 for paying off the student loan, $346 registration for cars, $205.40 flight to see family, $119.42 hotel, $523 pet care (vet), and a lot on “nesting” for our baby.

April should be a very good income month. In addition to my wife starting her new job, she also receives gets paid for her remaining vacation time (5 days). Plus, we will receive a combined Federal and State refund of $2,325. No large expenses are forecast for April.

April 3, 2011

March 2011 Net Worth Update (+$3,607.99)

March was another solid month. Our net worth increased $3,607.99 from last month, to a total of $134,273.12 (click on spreadsheet below).

What Worked The big news this month is that we found out that our baby is a BOY! We are very excited. Financially, we were also hugely blessed because my wife accepted a new job that starts next month with a $20,000 higher annual salary (33% increase). She also has an opportunity to make a larger bonus each quarter. I am very proud of her. This is going to really help us reach our goals. To celebrate, we paid off the last of the $2,954.60 student loan. We are now completely DEBT FREE. We contributed $1,213.00 to our retirement accounts and saw them increase $2,020.07 to $91,702.73.

What Didn’t Work Not really a negative, but our savings account balance decreased because we paid off the student loans.

Next Month There is a good chance we will pass our 2011 net worth goal of $138,100 in April, 8 months ahead of schedule. My receives her final paycheck from her old company, gets paid for her remaining vacation time, and starts her new job. We also receive a combined Federal and State refund of $2,325.

March 2, 2011

February 2011 Income Statement

As I mentioned in our February Net Worth Update post, we were blessed to learn that my wife is pregnant. Our expenses are going to be higher than usual as we prepare for the new arrival (due in September). February was an outstanding income month and we did a pretty reasonable job managing our expenses (click on spreadsheet below).

Our total income in February was $10,614.56. In addition to our paychecks, my wife received a Q4 2010 bonus of $6,041.28 gross ($3,499.51 net). She received a $30.78 H.S.A. reimbursement and a $50 Chase credit card reward (her $75 company reimbursement for February will come next month). We also earned $15.11 in interest income.

Our total expenses were $5,394.78, not to much higher than our budget of $4,900. As first-time parents, we’ve been buying a few things for the baby’s room and also taking time to enjoy ourselves a little more while we have free time.

It’s hard to say what March may bring. My wife’s company may be doing raises in March, which would be icing on the cake for how well she is doing. We’ll be doing our taxes as well and I don’t have a clear picture at this time on what the outcome will be.

March 1, 2011

February 2011 Net Worth Update (+$10,191.88)

We were blessed with our 2nd largest net worth increase month ever. Our net worth increased $10,191.88 from last month, to a total of $130,665.13 (click on spreadsheet below). Our largest net worth increase of $14,753.11 was in March 2010. But more importantly, my wife is pregnant! We are extremely excited and will be “nesting” from now until the baby is due in September.

What Worked
In addition to the great news that my wife is pregnant, we also passed the net worth milestone $130,000 in February. This is largely thanks to my wife's nice Q4 2010 bonus of $6,041.28 gross ($3,499.51 net). We contributed $813.00 to our retirement accounts and saw them increase $4,605.31 to $89,682.66. We also increased our savings account balance to $18,915.21.

What Didn’t Work
February was a perfect month.

Next Month
I don’t expect March to be able to compete with a month like we just had. The biggest unknown is our taxes. Last year we received a combines Federal and State refund of $4,111, but we have change a few things to reduce or possibly eliminate our refund. We will see…

February 27, 2011

Net Worth Milestone - $130,000

Today we passed the $130,000 net worth milestone!

We passed our last milestone of $120K, in January. Based on my forecasts, we should hit the next net worth milestone of $140K around June.

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

February 9, 2011

2010 Net Worth Recap

I know I’m posting this a little late, but I wanted to take the time to review our 2010 net worth. Below is a table of our net worth data for each month in 2010 (click on table to enlarge). 2010 was a strong year for us, even though we had a couple of close calls with the economy in terms of our employment. Some highlights from 2010 include:
  • We increased our net worth from $68,437.63 to $115,300.07 ($46,862.44 increase), surpassing our net worth goal for the year by $9,600.07.
  • We contributed $17,288.45 to our retirement accounts. Our total retirement account balance grew from $54,620.37 to $83,594.59 ($28,974.22 increase).
  • We increased our savings from $2,492.73 to $9,215.82 ($6,723.09 increase).
  • We reduced our debt from $4,148.46 to $3,127.35 ($1,021.11 decrease).
  • In March my wife was laid off, but in April she found an even better new job.
  • I survived a large layoff at my company.
  • We paid cash for an “extra” vehicle, primarily for recreation.

We already a couple of months into 2011 and things are looking great. Hopefully there will be exciting highlights to review at the end of the year.



February 1, 2011

January 2011 Income Statement

Thankfully, we made up some lost ground in January (click on spreadsheet below).

In addition to our paychecks, my wife also received $150 reimbursement from her company for cell phone for December and January. We earned a $175 Chase credit card reward and $50 from selling dog stuff on craigslist. As our savings account balance creeps up, we’re earning more interest income to the tune of $11.06 in January.

We worked hard in January to control our spending and it worked. After a HUGE expense month in December ($7,919.80), we righted the ship in January, only spending $5,591.83. Now we need to carry this momentum into February.

Next month is going to be a big income month. My wife is doing awesome in her job and, as a result, is receiving a Q4 bonus of $6,041.28 gross. Plus, we do not have any large expenses forecast for February.

January 31, 2011

January 2011Net Worth Update (+$5,173.19)

We had a solid increase start to 2011 in terms of our new worth. Our net worth increased $5,173.19 from last month, to a total of $120,473.25 (click on spreadsheet below).

What WorkedWe contributed $813.00 to our retirement accounts and saw them increase $1,482.76 to $85,077.35. We also dramatically increased our savings account balance by substantially.

What Didn’t Work
Everything worked out great :)!

Next Month
February looks like it is shaping up to be a great month. The main reason being, my wife made 120% of her sales goal for Q4 and will be getting a large bonus check. We’re going to use this extra money to continue increasing our savings.

January 13, 2011

Net Worth Milestone - $120,000

Today we passed the $120,000 net worth milestone!

We passed our last milestone of $110K, in December. Based on my forecasts, we should hit the next net worth milestone of $130K around May.

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

January 5, 2011

2011 Financial Goals

We did pretty well knocking down our 2010 financial goals. Now it's time to set the bar a little higher for our 2011 financial goals.

1) Increase net worth to $138,100
We have a good head start on our 2011 net worth goal because we passed our 2010 goal by $9,600.07. If we stick to our plan, this goal seems very doable.

2) Increase savings account balance to $20,000
We haven’t been able to hit $20,000 in savings as a goal the last two years. Let’s give it a try again in 2011. We are starting 2011 with $9,215.82 in savings, so we’re already ~1/2 way there. The challenge with this goal is that we will plan to start a family in 2011 and private adoption is very expensive.

3) $100,000 total balance in retirement accounts
We’re starting 2011 with $83,594.59 total balance in our retirement accounts. My forecast shows that we should end the year with less than $100,000 total balance in our retirement accounts. So, achieving this stretch goal will require extra effort and determination.

4) Decrease debt by $1,000
Our only remaining debt is $3,041.81 in student loan debt. We successfully reduced our debt by $1,000 in 2010, so we’ll try to knock it down another $1,000 in 2011. Cash flow may be tight in 2011, so this goal may be harder than it looks.

5) Start a family
We hope to start a family in 2011, whether naturally or through private adoption, or a combination of the two. While this isn't a financial goal in the traditional sense, it does have big financial commitments. The private adoption is ~$30K, so we need to plan, save, and make it happen.

Okay, now we wait 12 months to see our results.

January 4, 2011

Review of 2010 Financial Goals:

We set five goals for ourselves 12 months ago. Here's how we did relative to each one:

1) Increase net worth to $105,700 SUCCESS
We blew right past this goal in November and didn’t look back. We finished 2010 at 109.08% of our goal with a net worth of $115,300.07, $9,600.07 over our net worth goal. This feels great after missing our net worth goals the past two years. We are 4 years in to our 21 year plan to retire early and so far, we’re on track.

2) Increase savings account balance to $20,000 FAIL
We would have probably achieved this goal, but in March we paid $12,000 cash for a vehicle. Even so, we were able to get our savings back up to a pretty respectable $9,215.82.

3) Contributing at least 15% of income to company 401(k) SUCCESS
I’m going to say we met this goal because we contributed 15% to both of our 401(k) accounts until my wife was laid off. We have continued to contribute 15% to my 401(k) account, but my wife’s new company does not have a 401(k) plan. To make up for this, we have contributed an additional $4,000 total (2K each) our Roth IRAs.

4) Decrease debt by $1,000 SUCCESS
We pulled this one off at the buzzer. We increased our student loan payments slightly at the end of the year so that the balance dropped to $3,127.35. That’s $1,021.11 less than what we owed last December.

5) Increase tithe $25/month SUCCESS
Thankfully, we were able to increase our tithe not just $25/month, but $35/month to $835/month. Taking this step in faith and giving back a portion of what we are blessed with has continued to reward us.

So, it looks like we reached 4 of our 5 goals. Not perfect, but not too shabby. I’ll be posting our 2011 goals shortly.

January 3, 2011

December 2010 Income Statement

If I had to pick one word to describe our personal finance in December, it would be “excessive”. We had one of our best income months of the year, but ended up spending most of it (click on spreadsheet below).

In addition to our paychecks, I received a third “extra” paycheck for $1,775.43. My wife also received another special bonus of ~$500 gross ($280.10 net). We earned a $75 Chase credit card reward, a $25 HSBC credit card reward, sold a speaker for $40, and sold an old bond my wife had for $49. My wife’s $75 reimbursement from her company for cell phone won’t come in until January.

We were the perfect model of consumerism in December. We spent $7,919.80this month on everything ranging from $150 for my resume to $2,100 for a beautiful bracelet for my wife. We spent $361.12 on gifts (I thought we got most of our Christmas shopping done last month, guess not).

Next month should be a typical income month and, God willing, a low expense month. We need to do some catching up to ensure we start 2011 off strong.