June 2014 Net Worth Update

With another month in the books I come back to the site to track how I have done.  While it is a positive number I think it is largely because of market gain versus responsible personal finances.  The past two months or so were harder than average on the old credit card.  I have been taking steps to increase my earnings which I find much easier than cutting most expenses.

My Short Term Financial Goals

To keep myself focused I provide myself with short term $5,000 savings/investing goals.  I say “short term” but really they stay alive as long they need to until I complete each objective on the list.  Not every item makes it way to my net worth growth.  For example, my vacation fund, son’s 529 and home improvement fund are not found on my balance sheet.  These goals were created in January of this year so I am now 180 days deep.  Completely unacceptable that I haven’t completed these yet!  Too much of my income is going to spending/lifestyle!    

I stated last month

By the end of the next month there is no doubt that I’ll be done with these goals.

I think by the end of June I could be just about done if not actually finished.

  1. Save $500 to emergency fund – Been at 100%
  2. Save $750 to Vacation Fund – Been at 100%
  3. Save $2,000 to Dividend Fund – 54% to 59%
  4. Save $500 to Son’s 529 – 20% to 50% (there was a missing $125 contribution from the previous month plus just another $25 from this month).
  5. Save $750 to Traditional IRA – 6.67% stays the same
  6. Save  $500 to home improvement fund – Been at 100%

Calculating my Net Worth

My Assets

  • My Cash Savings Accounts – I only really count my emergency savings since everything else is ear marked to be spent elsewhere.  For example, the above house improvement fund is not included, but the funds I have saved (plus some) will be converting the house from oil to gas soon (see my calculations behind converting from oil to gas).
  • My 401(k) – Just keep throwing part of my paycheck at my 401(k) even though I sort of hate my 401k.  For the past few months I have been buying and selling within this account…I just posted my actual returns from this pure market timing technique.
  • Random Non-Qualified Investment Accounts
  • The Wife’s Roth IRA – This account only holds to 2 funds. An index fund of the market and a dividend paying fund.
  • My Dividend Investment Portfolio – Easily my favorite part of my financial empire hut.
  • Home Value – A lot of bloggers seem to stress over home value.  In my old place I just rounded to a number that I thought I’d sell for (I was off by less than 1%).  I am just going to keep using my purchase price for at least the next year.
  • My Traditional IRA – I started to actively trade this account lol.  Not proud.  I just made the financial confession that I was speculating in some really shitty stocks.  I am done with it – and will roll out when I can.

My Liabilities

  • My Mortgage – Every so often I think about putting money towards the mortgage but I always back off.
  • Law School debt – A while back I paid off the much smaller of the loans I have a while before this category makes any significant moves.
  • Credit Card debt – It is at zero percent but I think I need to just get rid of it asap.

My Net Worth Growth

  • From May 2014 to June 2014 my net worth increased a measly .75%
  • Year to date I am up 6.31%

How was your month?

4 Responses to June 2014 Net Worth Update

  1. Your “financial empire – hut” statement made me chuckle. I agree with you and like that you are making smaller goals over the course. They are easier to achieve and thus we do not give up our goals when they are unrealistic.
    How old is your son and with whom do you have the 529 plan? We have it with Nebraska NEST529direct for both of our daughters (9 and 11). I am quite pleased with the results so far.

    • I need smaller goals to keep me focused. The alternative is that I spend more lol.

      My son is 3 and a half at this point. I know I am not saving enough into the 529 but I figured something is better than nothing. My goal is that I will have assets in my name to pay for college (maybe even use the income from the financial hut to help).

      I went with the NY 529 b/c they have low cost vanguard funds, and, as a NY resident I get a state income tax deduction for contributions.

  2. You are really organized with this and being so focused will most definitely help all your little family in the future years.

    I could certainly do with listening to any advice you have, as I’d have to be talking in investments of $10-$15. How do people manage $500?

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