We’ve been saving and managing our money better than ever, but we decided it was about time to man up and accept the loss in home value now, rather than pretending it doesn’t exist and dealing with it later. (as you may have recently read).
It sure ain’t fun, but it’s all about keeping it “real” and tightening the grasp on your financial situation! Much easier to do in small doses, overtime, than with a powerful punch down the road. Plus if the market miraculously recovers, we’ll be able to enjoy the nice spikes in our total worth! But def. not holding my breath there ;)
You’ll also noticed we’ve added a cple new categories too, while ditching some older ones. We’re now tracking our Emergency Fund, Home Worth, and Mortgages – and we’re unloading Condo Investment, and Home Equity just because it doesn’t make sense anymore.
Here’s how Jan’s Net Worth breaks down:
CASH SAVINGS: Well that’s a nice jump! $11k extra certainly won’t hurt us. he he….although i’ll have to admit that at least $10k of that is earmarked for the Mrs. remaining grad school costs and “her portion” of the mortgage/house stuff – $1200/mo. This is the money we got from selling some of her oil stocks, as well as that Pay it Forward amount we got last year :) So in reality, it just prolongs the time where we need to pick up some side money to pay for our quality of life next year…but maybe by then i’ll be a professional blogger! (100% kidding).
EMERGENCY FUND (*New!): Yup, this used to be factored into our “Cash Savings” account, but I much prefer looking at it as it’s own category here :) Plus, it’s technically in a Money Market account anyways, which is close to cash, but not all the way ya know? And now that we’ve hit $10k between the two of us (she brought in $6k of it!) we’re @ a good stopping point.
ROTH IRAs: Up $4k! Thanks again Mrs. Budgetsaresexy ;) Her Roth is actually much better off than mine these days as it’s in a CD gaining a bit of interest every month, whereas mine dropped $2k in the last 2 years due to mutual funds tanking…but soon enough i shall have my glory!
401(k)s: Even WITH her extra $1k we still dropped a good $3,000. How crazy is this market, eh? Again, I’m still missing a good sized chunk of money that still hasn’t showed up here yet, but It may be a blessing in disguise as I’ll be able to pick up even MORE funds once it hits my account since they’re all so low. Definitely more fun last month though!
SAVINGS BONDS: Keep them dollars coming baby! (You can check out the breakdown here.)
CONDO INVESTMENT: Outta here! My brother paid me back the entire $1200+ loan, and we’re now all settled up. 1 for 2 in loaning my family money ain’t too shabby :)
AUTOS WORTH (kbb): Zero loss again for my pimpin’ Caddy ($3,595), and a first time checker-checker on the Mrs’ Toyota @ $10,610. Unlike her though, I still have around $1700 to pay off still. Hers is all paid off baby! (whew)
HOME VALUE (Zillow & Realtor) *New!: I ditched the “Home Equity” category and finally owned up and threw our home value and mortgages out there to show a more precise (and honest) picture of our finances. It really just made better sense doing it this way, and now I can track the 2 amounts closer and work on improving our situation!
As some of you know, I am now calculating our “Home Worth” by taking the average of what Zillow shows, and what our Realtor is saying he can get for us. This way I can still monitor the value every month through Zillow without bothering my Realtor every 4 weeks ;) Right now Zillow has it valued at $307k vs the est. $300k per Mr. Realtor. It sucks overall, but at least we already paid a good $10k off the original amount!….even if it WAS by accident.
CREDIT CARD (car loans): This amount is from buying my Caddy and selling my Highlander (i owed more than i sold it for) last year. While it’s technically ON my credit card, it’s really just a loan @ around 3% interest. No consumer debt whatsoever. And to keep on track with paying it off by May, I’m still applying my old $443 car payments (plus any other leftover amounts from my budget) towards the balance every single month!
MORTGAGES: 1st Mortgage @ $288,000 (30 year fixed, interest-only @ 6.875%), and the 2nd Mortgage a maxed out HELOC @ $62,818.15 with a measly 2.8% interest! The game plan is to start knocking away more of this now that the budget is back on track.
So welcome to our newly formed “Family Net Worth”! It took some time smashing them together, I won’t lie, but now it’s all in one sexy little spot (and will be much easier to update now). I finally did it! And it only took me 8 months after getting hitched ;)
*The sweet & sexy side bars have been updated.
*And here are all the Net Worth Updates.