Had a pretty good month money wise, but it was mostly because I got a larger than average tax refund.  On the one hand I am bothered that I am giving the government a tax free loan, but on the other, it feels freaking fantastic to get an unexpected lump sum deposited into my checking account (that and owing money would bother the hell out of me).  Most of the money was used to attack our credit card debt (which is at 0%).  While I know this isn’t the right move mathematically The Wife and I aren’t a huge fan of it on our balance sheet.  We also used the remaining money to help out on my short term financial goals, which explains why I made some quick moves on those.

Just as a reminder to myself the current short term goals I am working on are:

  • Invest $500 in my Son’s 529 Account (30% Completed)
  • Save $500 to put towards my Student Loans (56.96%)
  • Increase Home Improvement Fund to $1,000 (100% Completed)
  • Invest $3,000 in my Dividend Investment Fund (57.5%).

I really like the idea of focusing $5,000 at a time – will keep this A.D.D. guy pretty focused. Inside a few weeks with this kind of focus I was able to allocate a few grand!  Again, this is mostly because of having a decent side income and the tax return.

I have already been given thought to how my next $5K will be split up, but am hesitant to write about it until this first round of mini-goals are met.

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, I have a vacation fund, the aforementioned house improvement fund, etc., and since last month I have come up with a round number that I am going to use going forward.  It is a multiple of my monthly nut.
  • My 401(k) – Just keep throwing part of my paycheck at my 401(k) even though I sort of hate my 401k.
  • 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 financialempirehut.
  • 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 think I am just going to use my purchase price for the year and look at comparable home sales next year.
  • My Traditional IRA – Been trading using my covered call strategy and earlier this year I bet against my first stock!  I am currently getting KILLED on that bet.  KILLED. I have until June so hopefully the stock falls a bit and I recoup some of the paper losses until they turn into real losses.

My Liabilities

  • My Mortgage – I can’t believe the amount of principal paid in one month when compared to my last mortgage.
  • Law School debt – While I recently paid off the much smaller of the loans I have a while before this category makes any significant moves.  I mentioned above I am going to throw an extra $500 at it.  I would put more (versus the investment fund) but it is still tax deductible for me and is locked in for 30 years at 4%.
  • Credit Card debt!

I haven’t had credit card debt in 3 or so years, but with all these new purchases I knew it was coming.  I called up all my dormant credit cards to see what they could do in terms of 0% on purchases.  One of them offered me 0% until June 2014!  The Wife and I have been using that card as our main card since I am thinking about breaking up with American Express.  While I have the liquidity to pay off the debt I prefer not because I respect liquidity way too much and the debt is at 0%.  The debt isn’t as much as when I started this blog (~$18K) but it is a good amount.

Since its high in February of this year, I have whittled it down by about $4,500.  I think that is pretty damn good!

My Net Worth Growth

  • From April 2013 to May 2013 my net worth increased 4.4%
  • Year to Date my net worth is still down 6.58%.
  • Since January 2011 when I started this little project I am up 120% (down from 136% when I bought the house earlier this year).

Last month my net worth was down 10.51% year to date so that number is decreasing.  If I have another good month of side income and if the market cooperates I can get back to even for the year.  Secretly (or not so secretly since I am putting it here) I’d love for the market to correct so I could buy some cheaper stocks! Short term it will hurt but long term it could catapult the balance sheet.


How was your Month?