NOT Included In Our Net Worth...Darn It!

We have been blessed with good incomes for the past 8 years, breaking the $100K mark in household income in 2008 and working our way up to ~$250K in 2014. Our net worth has grown considerably as well. From $23K at the end of 2008 to nearly $300K at the end of 2014.

With that being said, I feel like we should have made better progress on our net worth, considering our incomes. I looked back at the last couple of years and determined that a considerable amount of money has been “invested” into our new home, but are not accounted for it in our net worth calculation. Some of the larger ticket items are:

$7,000 new HVAC
$1,200 new pool pump
$1,700 pool fence
$1,600 white picket fence in front yard
$1,800 security camera system
$1,500 refrigerator
$2,500 wash and dryer
$600 dishwasher

I use the purchase price of our home ($489K) for its value when calculating our net worth. If I included home appreciation, that would add another ~$150K based on comps in the area.  

I have no plans to begin accounting for improvements to the property or home appreciation but it does make me feel good to know that we bought at a great time and have invested in our home to make it safer, nicer, and if we sell one day, maybe more valuable.

How do you account for your home as an asset?

November 2014 Net Worth Update (+7,220.55)

Happy Thanksgiving! November was a good month for our net worth. It increased $7,220.55 over last month, to a total of $293,750.08 (see table below).

What Worked
My wife earned a $12,490 gross ($7,664.17 net) quarterly bonus. We used this money to pay some of our 0% credit card balance down, deposited a bit into savings, and paid an additional $1,100 to our home mortgage. We contributed $617.20 to our retirement accounts in November and the total balance increased $4,577.35 to $138,021.77. I also moved my old company 401(k) balance ($68,291.73) to traditional IRA with Vanguard.

What Didn’t Work
We purchased a new (used) vehicle adding $26,000 in debt to our liabilities. Thankfully, they gave us $5,000 trade-in for our 2006 Honda Accord (120Kmiles) that was pretty beat up and needed ~$1,200 is work.

Next Month
December should be a pretty typical month. We plan to keep the Christmas presents affordable, but thoughtful.

Assets	Oct-14	Nov-14	Change	% Change
401(k) Accts	76,840.58	8,548.85	(68,291.73)	-798.84%
Roth IRAs	10,891.89	11,322.39	430.50	3.80%
Traditional IRAs	45,711.95	118,150.53	72,438.58	61.31%
Taxable Brokerage Accts	1,148.00	898.53	(249.47)	-27.76%
Cash & Savings Accts	7,814.70	9,152.70	1,338.00	14.62%
Son's 529 Plan / Upromise	10,576.31	11,034.39	458.08	4.15%
Daughter's 529 Plan / Upromise	3,313.44	3,457.07	143.63	4.15%
Home	489,000.00	489,000.00	-	0.00%
Car 1	-	30,000.00	30,000.00	100.00%
Car 2	8,610.33	-	(8,610.33)	100.00%
Car 3	13,859.24	13,720.65	(138.59)	-1.01%
Total Assets	667,766.44	695,285.11	27,518.67	3.96%
Liabilities	Oct-14	Nov-14	Change	% Change
Credit Card Balances	9,834.11	5,883.31	(3,950.80)	-67.15%
Home Mortgage	371,402.80	369,651.72	(1,751.08)	-0.47%
Car 1 Loan	-	26,000.00	26,000.00	100.00%
Car 2 Loan	-	-	-	0.00%
Car 3 Loan	-	-	-	0.00%
Total Liabilities	381,236.91	401,535.03	20,298.12	5.06%
Net Worth	286,529.53	293,750.08	7,220.55	2.46%

October 2014 Net Worth Update (-6,226.76)

The first month of me not working was a tough one financially. In October, our net worth decreased $6,226.76, to a total of $286,529.53 (see table below).

What Worked
We saw small gains in our IRA’s, savings, and 529 Plans.

What Didn’t Work
We contribution at total of $242.50 to our retirement accounts, but saw them decrease $566.41. Our 0% credit card balance increased due to purchasing a new HVAC system.

Next Month
November should go a little better because my wife will earn a quarterly bonus of ~$12K gross. We plan to use the proceeds to pay down our 0% credit card debt from the HVAC system.

Assets	Sep-14	Oct-14	Change	% Change
401(k) Accts	77,552.57	76,840.58	(711.99)	-0.93%
Roth IRAs	10,764.61	10,891.89	127.28	1.17%
Traditional IRAs	45,693.65	45,711.95	18.30	0.04%
Taxable Brokerage Accts	1,148.00	1,148.00	-	0.00%
Cash & Savings Accts	7,720.37	7,814.70	94.33	1.21%
Son's 529 Plan / Upromise	10,445.00	10,576.31	131.31	1.24%
Daughter's 529 Plan / Upromise	3,297.21	3,313.44	16.23	0.49%
Home	489,000.00	489,000.00	-	0.00%
Car 2	8,697.30	8,610.33	(86.97)	-1.01%
Car 3	13,999.23	13,859.24	(139.99)	-1.01%
Total Assets	668,317.94	667,766.44	(551.50)	-0.08%
Liabilities	Sep-14	Oct-14	Change	% Change
Credit Card Balances	3,509.80	9,834.11	6,324.31	64.31%
Home Mortgage	372,051.85	371,402.80	(649.05)	-0.17%
Car 2 Loan	-	-	-	0.00%
Car 3 Loan	-	-	-	0.00%
Total Liabilities	375,561.65	381,236.91	5,675.26	1.49%
Net Worth	292,756.29	286,529.53	(6,226.76)	-2.17%

September 2014 Net Worth Update (-4,161.88)

In September, our net worth decreased $4,161.88, to a total of $292,966.29.
 

What Worked
I separated from my company on September 19th, in an effort to find a position that provides a better work/life balance. With my departure, I paid off the $4,757.76 balance of my 401(k) loan.  


What Didn’t Work
We contribution at total of $5,000.26 ($4,757.76 of which was a loan repayment) to our retirement accounts, but saw them decrease $28.54. Our savings account balance decreased due to pulling funds from the 401(k) loan repayment.
 

Next Month
Next month will be the first full month without a dual income for our household. We’ve run the numbers and know that we can make ends meet until I find a job, but October will be telling, to say the least.

August 2014 Net Worth Update (+12,455.81)

In August, our net worth increased a whopping $12,455.81, to a total of $297,128.17.

What Worked
My wife earned a $13,050.00 gross ($8,009.69 net) quarterly bonus. She is doing amazing in her career and it has been a huge blessing our family. With proceeds from the bonus, we significantly increased our savings account balance. We contribution at total of $1,210.38 to our retirement accounts and saw them increase $4,532.01.

What Didn’t Work
For the next few months, we will be making steady, but slow progress paying down our 0% credit card (current balance $3,474.85). Our taxable brokerage account continues to wallowing.

Next Month
I will be leaving my company on September 19th, hoping to find a new job that provides a better work/life balance. In the meantime, things will be a little tighter as we live on my wife’s income. Before departing my company, we will be paying off the remainder of the 401(k) loan (~$4,800) that we took out for our home down payment.

July 2014 Net Worth Update (-3,801.50)

In July, our net worth decreased $3,801.350, to a total of $284,672.36.

What Worked
Our daughter’s new 529 Plan had a $5.61 increase over last month

What Didn’t Work
We passed a net worth milestone of $290,000 in June, but dropped back well below $290K and have not yet recovered. We also added another hospital bill to the 0% credit card. We contribution at total of $818.88 (low because my wife is currently on disability) to our retirement accounts and saw them decrease $2,216.94. 

Next Month
September 19th will be my last month working at my current company. I have decided to take a break (hopefully short) to spend time with my family and then begin looking for a new job. So, we’ll try to get more money tucked away into savings in August to help get us through my period of unemployment.

June 2014 Net Worth Update (+6,677.26)

In June, our net worth increased $6,677.26, to a total of $288,473.86 (click on spreadsheet below).

What Worked
We contribution at total of $818.88 (low because my wife is currently on disability) to our retirement accounts and saw them increase $4,895.26. We also contributed $3100 to our daughter’s 529 Plan.

What Didn’t Work
We passed a net worth milestone of $290,000 in June, but backslide a little after placing $2,276.09 in charges from our daughter’s birth onto a 0% credit card. We also dipped into our savings a bit to cover a portion of the money used to open a 529 Plan for our daughter. 

Next Month
July may be a low income month (wife on disability) and, as a result, a low net worth increase month. 

April 2014 Net Worth Update (-1,526.37)

In April, our net worth decreased $1,526.37, to a total of $275,232.94 (click on spreadsheet below).

What Worked

We received a $1,902 Federal tax refund and a $540 State tax refund.  We contribution at total of $1,632.49 to our retirement accounts and saw them increase $4,355.90.  We also contributed $150 to our son’s 529 Plan.

What Didn’t Work
We heavily depleted our savings to pay off credit card.

Next Month
May should be a better than normal income month because my wife should receive her quarterly bonus.

 

 

2014 Net Worth Update (+2,728.93)

March was a good net worth increase month.  In March, our net worth increased $2,728.93, to a total of $276,759.31 (click on spreadsheet below).

What Worked
We contribution at total of $1,223.05 to our retirement accounts and saw them increase $1,953.11.  We also contributed $150 to our son’s 529 Plan and $750 to savings.  We also closed my wife’s ESPP and moved the money into savings. 
 
What Didn’t Work
Our relatively new taxable brokerage account investment declined considerably.

Next Month
April should be a better than normal income month because I receive a third “extra” paycheck.

 

 

February 2014 Net Worth Update (+28,622.68)

February was our best net worth increase month by a very large margin.  In February, our net worth increased $28,622.684, to a total of $274,030.38 (click on spreadsheet below).

What Worked

In February, my wife earned a $66,600.00 gross ($27,808.32 net) quarterly bonus!  This positively impacted every area of our balance sheet.  We contribution at total of $4,523.05 to our retirement accounts ($3,300 from her bonus) and saw them increase to $8,361.82.  We also contributed a total of $3,704.17 to her ESPP ($3,300 from her bonus), $1,150 to savings, $150 to our son’s 529 Plan, 10% of gross to our church tithe, and bought stock in our brokerage account.  In addition, we paid off our $12,098.89 auto loan.  Thanks to the huge blessing of my wife’s bonus, we passed three net worth milestones in one month (250K, 260K, & 270K)!  We're 108.79% of our 2014 net worth goal ($251,900).  Now, we'll shoot for hitting our 2015 net worth goal ($296,000) one year early.

What Didn’t Work
N/A

Next Month
March looks like it is shaping up to be a pretty standard month.

January 2014 Net Worth Update (-49.54)

In January, our net worth decreased $49.54, to a total of $245,407.70 (click on spreadsheet below).

What Worked

In January, we began a 5% contribution to my wife’s 401(K) and 5% to her company ESPP.  We also began contributing $200/month to her H.S.A. account for our baby’s birth in May. 

What Didn’t Work
We contributed $1,223.05 to our retirement accounts and saw them decrease $772.93 to a total of $108,344.62.

Next Month
February should be a very good month, as my wife is expected to receive a large bonus.

 

 

December 2013 Net Worth Update (+$4,000.17)

In December, our net worth increased $4,000.17, to a total of $245,457.24 (click on spreadsheet below).

What Worked
In December, we contributed $818.88 to our retirement accounts and saw them increase $2,571.54to a total of $109,117.55.   We also contributed $275 to our son’s 529 Plan thanks to gifts for family.

What Didn’t Work
-

Next Month
January begins a new year with new goals.  Stay tuned!

November 2013 Net Worth Update (+2,098.03)

In November, our net worth increased $2,098.03, to a total of $241,457.07 (click on spreadsheet below).

What Worked

In November, we contributed $818.88 to our retirement accounts and saw them increase $1,018.43 to a total of $106,546.01.   We also contributed $150 to our son’s 529 Plan.

What Didn’t Work
-

Next Month
December should be another good month and strong close to 2013.

 

October 2013 Net Worth Update (+5,439.56)

Our net worth in October increased nicely again.  In October, our net worth increased $5,439.56, to a total of $239,359.04 (click on spreadsheet below).

What Worked

In October, we contributed $1,228.32 to our retirement accounts and saw them increase $4,545.84 to a total of $105,527.58.   While we don’t track current market value of our home in the spreadsheet (we use the purchase price), comps in our area are selling for $100K+ more than our purchase price.

What Didn’t Work
-

Next Month
November should be another good month. 

September 2013 Net Worth Update (+6,882.47)

Our net worth in September showed good improvement.  In September, our net worth increased $6,882.47, to a total of $233,919.48 (click on spreadsheet below).

What Worked
September was such a blessing.  We found out that my wife is 4 weeks pregnant!  We are so happy to be having a second child.  We also passed the retirement savings milestone of $100,000 in total retirement assets!  September was my wife’s first full month at her new job, which she loves.  In September, we contributed $1,062.76 to our retirement accounts and saw them increase $5,802.02 to a total of $100,981.74.   We also tucked away a little more into our son’s 401(k).

What Didn’t Work
-
 
Next Month
October should be another good month.  I receive a 3^rd “extra” check and no major expenses are planned.

August 2013 Net Worth Update (-1,390.52)

We were doing well in August until the end of the month, then the wheels came off the cart.  In August, we saw our net worth decrease a $1,390.52, to a total of $227,037.01 (click on spreadsheet below).

What Worked
My wife began a new job this month making $97K annual salary plus an opportunity to earn $35K+ in bonus each year.  The company gives her $600/month auto allowance, a gas card, $100/month for home office, and 20K shares of stock each year.  This is a huge blessing to our family. 

What Didn’t Work
Sadly, all of our numbers fell this month.

Next Month
September will be my wife’s first full month with her new company.  Her large income should really help us towards our goals.

July 2013 Net Worth Update (+6,412.78)

After a down month last month, in July we saw our net worth increase a whopping $6,412.78, to a total of $228,427.53 (click on spreadsheet below).

What Worked
My wife received an $891.92 employer match to her 401(k).   We contributed a total of $1,201.96 to our retirement accounts and saw them increase $5,951.17 to $97,009.73 total.  We refinanced our auto loan from a 6.5% to 2.29% loan.

What Didn’t Work
We continue to dip into our savings account.

Next Month
My wife may be starting a new job at the end of next month.  Stay tuned.