Net Worth Update #2: August 2018
Last month I shared our net worth for the first time! You can check out that first post here.
You can also find my personal net worth template here.
Also, happy Labor Day! Now - let's talk about the numbers and how they've moved :)
Primary Bank Account: $8,927.66
Change from last month: (-1,317.27)
We've stopped using our debit cards and now all of our money is spent through credit cards, to utilize the points and savings there. This number going down isn't necessarily a bad sign for us, as it's more of just a holding account at the moment.
Savings Account: $4,840.12
Change from last month: +207.31
We are continuing to place $200 per month into the savings account right now, so that's the change here. We haven't had to touch this account in a while, though we're thinking about moving apartments in the near future, so I'm glad we have this money socked away. In California, landlords are allowed to ask for first months rent and 2x that for a security deposit, so we will certainly need to tap into this for a new place.
Change from last month: +2,678.82
Nice steady growth in our accounts this month. Nothing too exciting here, but saving generally isn't. The excitement that can be drawn out of this is that with the power of compounding interest, our accounts will continue to grow despite a relatively low semi-monthly injection from our paychecks. (For more info on my thoughts about investing in stocks, check out this post).
Lending Club: $675.44
Change from last month: +59.18
We're still keeping our semi-monthly injection of $25 per paycheck going into this account. I haven't decided whether or not this investment strategy is something that we will stick with long term due to the non-liquidity of it all, but considering that we only have $575 of our own money in the account, an increase of $9.18 in value in one month is actually pretty decent.
S Pine Street: $375,000.00
Change from last month: None
This value will continue to remain constant until the next time we have a reason to assess the property. Which will likely need to happen in the next year or so if the market continues to rise and inflate the value, as we plan to refinance into a traditional mortgage as soon as we have the equity we need to do so.
Total Assets: $454,848.43 (+1,628.04)
Change from last month: (-631.48)
The single mortgage we have right now continues to burn down slowly and continues to represent the majority of our liabilities. It's crazy to think that we send $2,800 per month to the mortgage company and the principal of the loan only decreased $631, that's only 22% of the payment! This is because most of our payment goes into interest, since we're not even three years into the 30 year loan.
Student Loans: $21,625.25
Change from last month: (-466.30)
I noticed, when tracking our student loans this month, that one of our Perkins Loans is almost paid off! We only owe another $122 on it! This is pretty exciting news, considering that the loan is in Mrs Money Smith's name, and she graduated four years ago. While we don't make it a priority of paying off our low interest loans early, I may just make the jump to pay that remaining amount off! It will feel so good to take the monthly payment we send to that loan and apply it towards our other bills.
Credit Cards: $3,451.28
Change from last month: (-6,998.34)
This represents the largest change for the month for us. If you recall from last month, Mrs Money Smith booked a ton of work travel on her card, (she's off jet setting in Europe right now). We paid off that huge chunk of money this month, so our credit card bill doesn't look as ridiculous as it once did!
Auto Loan: $18,621.14
Change from last month: (-156.29)
This is a smaller change than usual for our only auto loan. This is due to the holiday and how the timing worked for the bank. So while we paid the full amount of around 350, the second payment hasn't posted yet. As much as I'd like our numbers to be 100% real time, sometimes that just doesn't work out :/
Personal Line of Credit: 7,409.76
Change from last month: (-955.52)
This number is actually a little disappointing for us. The PLoC that we have is currently our priority for debt pay down, but we didn't do a good job of making it one this month. I am mostly to blame here because I decided that I needed a new computer to play with. Mrs Money Smith was nice enough to oblige me in here, but that means that we didn't put as much towards the amount owed as we should have. That should change this month.
Mass Save Loan: $18,997.70
Change from last month: (-138.70)
This is one of my favorite loans, since I was able to use it to build improvements, and also equity, into our first property. We were also able to do all of this with 0% APR! Because the loan was free, we have no plans to accelerate the payoff anytime soon.
Total Liabilities: $422,422.92 (-9,346.63)
OUR NET WORTH: $32,425.51
Total Change: +10,974.67
Overall thoughts for the month:
We've had a lot going on this month, but all-in-all I think we did a great job pushing the needle. Considering that I built a new PC, which set us back about two thousnad and we didn't need to pinch pennies, we still managed to move over 10k in the right direction!
I alluded to it earlier, so I'll come out and say it that I'm a little nervous for how next month is going to look. We plan to move to a new apartment sometime this month, in fact I was at two viewings in the middle of writing this article. That's something that can take a big hit to our bottom line. The expected down payment for a new apartment is essentially three times the monthly rent. We expect to get most of our security deposit back from our current apartment, but you never know if a property manager will try to nickle and dime you (if you want my opinion on that approach from a landlord's perspective - I think it's pretty shady).
Goal for next month
I'm going to try something here - I want to set a personal goal for our net worth each month. I don't know how this will be for us, but I know that I'm personally a goals driven human. I think I'll start my first goal as a relatively easy one:
The goal for September is to pay off the remaining balance on one of our student loans.
Let me know what you're goals are down below in the comments, or shoot me a message on the contact page.
-Mr Money Smith