Net Worth: June - Up $27,000!!! Hot damn, 401(k).
Our net worth is up 40% from last month - now at $95k!And we owe it all to my 401(k), baby! I've hinted at some problems with it in the past - we were waiting for it to show correctly in our accounts (long story) - but the good day has came and we're back on track! A whopping $30k on track.
I know I've harped on it before, but it just goes to show that consistent saving & investing DOES ADD UP over time. And hopefully you'll be able to watch it grow every month instead of getting a huge sorta-but-not-really surprise in your account one day ;) The point is, you have to start TODAY - not tomorrow, not next month or next year, but today. Start small if you have to, whatever it takes. And while I recommend the 401(k) for all that free money your company hopefully matches you on, it's certainly not necessary. An IRA or savings account would work just as nicely.
So yeah, the 401(k) stuff is the biggest change this month, with a major decrease in cash reserves being second. I'll explain more below, but this was also connected to the 401(k) stuff - and something I consciously decided to do. Only $5k more to hit that $100k mark! Woohoo!
Here's how June's net worth breaks down:
CASH SAVINGS (-$3,586.80): For the last two paychecks I've been contributing 90% of my paycheck to that same 401(k) so I can make up for some lost time. In doing that, I literally only get $69 and change per check now! Ouch. Thus, I've been dipping into my $5k+ side savings account to make up the difference each period to continue paying all bills & to stay "on budget". As you can imagine, this will only last another check or so before I run out ;) But if YOUR company matched 100% of 100% you put in up to the yearly maximum allowed, wouldn't you find a way to make it happen? It's all about taking advantage of the perks given to you and finding a way to make it work.
EMERGENCY FUND ($0.00): Our $10k is still sleeping away nicely in our Money Market account. It's mixed in with other funds so I can't determine exactly how much interest is accruing on the Emergency Fund in particular, but it's definitely adding up.
ROTH IRAs (+$358.32): The good thing here is that I was able to scrounge up a decent $550 to put into the pot this month! The downside was that the markets already sucked out $200 of it. But like everything else tied to this roller coaster economy, it has its ups and its downs. But Operation Buffett is still in effect...
401(k)s (+$30,304.58): Is there anything more to say about this? ;) I was contributing a butt load. It wasn't showing up properly. But now it is. Actually, there's a little more to it than that but I can't really talk about it here. But no, mr. punch debt in the face, I was not funding a crack house on the side - you silly goose, you.
SAVINGS BONDS (+$0.20): Oh Joy! This will actually be the last time you see this category here though, so wave it goodbye (byyyyeeee). I finally listened to Ishan's advice to unload the bonds and invest the money elsewhere. You'll hear about it soon as I didn't have the time to incorporate it all here.
AUTOS WORTH (kbb) (-$375.00): A little more than the $50 devaluation from last month, but whatever - no one ever said cars were an investment ;) Here's how they line up this month:HOME VALUE (Realtor) ($0.00): This will remain @ $300k (the price our realtor set it at) until I hit him up again later for another review. He's the master in our particular neighborhood, and has been selling (and living in) in this area for 20+ years. I keep an eye on Zillow & Redfin.com on the side too to see what else is happening out there. Zillow just fluctuates so much, it's crazy. I love the site, but it's seriously nuts.
CREDIT CARD (car loans) ($0.00): Still at Zero! The previous debt here was an "auto loan" that I happened to charge on my credit card - effectively setting my interest @ 3%. I don't recommend this for everyone, but the method works well if you know what you're doing and don't have outstanding debt lined up. I'll leave this category in until I'm tired of looking at it ;)
MORTGAGES (-$386.01): We're still eager to refinance our first mortgage, but unfortunately we're still too under water to get on it. So in the meantime we chip away with any extra money we have left from our "house budget". Here's how they breakdown:
- Mortgage #1: $287,235.91 - 30 year fixed, interest-only @ 6.875%.
- Mortgage #2: $62,808.73 - Maxed out HELOC w/ 2.8% interest.
Well, that's it for this month. How'd you all do? Anyone win the lottery or take on a major mortgage? Whatever the case, remember to judge your success off of YOUR goals only. I know it's hard sometimes, but it's really the only thing you have control of. So if you're meeting or exceeding your goals, you're on the right track!
God Bless,
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*My budget has now been updated.
*And so have my sidebars.
posted by J. Money at
10:01 AM
11 Comments:
Who what when where...?..?
What are you investing in with your 401K? Was the increase due to it finally showing up properly? Oh well, either way, enjoy it. Nice numbers you got there! :oD
That is really awesome buddy. That is a HUGE jump!
Almost 10% of the way to the Million Dollar Club.
Do you use the KBB trade in value or the suggested retail value or the private party value?? Just chking!!! GREAT JOB ON THE NET WORTH =)
So you already reached the max contribution limit for the year and that number reflects the company match too? I'm confused! Either way, awesome job, you're an inspiration!
Wowie! I am waiting for the post you are going to write next on what your portofolio is looking like in that 401k! I'll reveal my two funds this week. Keep up the good work and big high five to you for keeping that Credit Card balance at ZERO!!
If it's not a crack house it must be a brothel.
@444 - $22k of it was should have already been in there, with the remaining $8k being recent contributions and matches of 90% of my paycheck. pretty sick, huh? As for the actual investment choices in my 401k, they pretty much blow. Or, at least compared to the stuff I'd rather have in a Fidelity or another great company out there. We just have a handful of basic mutual funds to choose from, and we do our best to pick the best ones from it.
@Brian - Ooooh, I like the way you think! Is the the first million that's the hardest, or the first $100k? ;)
@Esperanza-To Infinity and Beyond - Yup, I always use KBB - they're great. For both the Caddy and Toyota I use "private party" as that's how I'd unload them if we ever did, and then I set the Toyota as "good" (not excellent or poor) and the Caddy as "excellent" - Only because it's in pretty pristine shape for being 16 years old. And with the upgrades and all, I'm confident I could sell it for *at least* that amount, if not more. For most cars I wouldn't recommend that though.
@Sallie's Niece - Sorry, I know it's confusing - I just can't get into the nitty gritty due to work reasons and my anonymity. But yeah, half of that is what I contributed and the other 1/2 is what my company matched :)
@Doctor S - Thanks bro! Yeah, I might be able to post a little something on the funds I'm in, just not sure how helpful that would be as they aren't all that great (see my comment to 444 above). I'll keep my eyes out for yours though!
@Punch Debt In The Face - You. You're good! yes you are....yes you are!
I understand, J... we all have to work with whatever our 401K offers. This is sort of like when I added the ESOP last month. Made the NW line go up like a _____ (and we're not even totally vested, but oh well - I added it anyway.) If you wanted to be nitpicky you'd go back and retro-add the smaller historical amounts but pffft on that.
I still say: Is that a big 401K you got there or are you just glad to see me?
:oD :oD
I am so jealous. I can only dream about getting a 100% match, especially in this market. Do you have good (index) funds in your 401K?
Great job!
I'm always glad to see you 444 ;) Even though your row 4's are still considered bad luck in parts of Asia! But we already went over that ;)
@DoneToZen - It's def. a blessing for sure, just wish everyone @ my company took advantage of it! And nope, no great index funds in there, but my dad's financial advisor said "they weren't bad", even though I still wonder. But again, I'm still doubling my money right away each time, right? Can't complain about that...
Soooo close to a $100K Networth! That's a very sexy milestone my friend, very sexy.
Were the 401(k) contributions being invested, it just wasn't showing up?
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