It’s that time again! I like net worth updates and restarted them early last year. Posting them pushes me to try harder, I am also forced to actually check, and I started blogging so I could share with all of you and get feedback.
Net Worth Update – May 2016
Cash (in all checking and savings accounts) – $86,800 (-$7750)
Stocks – $18,000 (+$350)
Retirement – $159,300 (+$12,550)
Home – $306,000 (same)
Rental House – $122,000 (same)
Cars – $15,000 (-$500)
Home – $194,400 ($300)
Car – $10,500 ($200)
Total Net Worth = $502,200
Last Month: $497,050
Total Monthly Change: +$5150
WHOO-HOO!!! We finally broke that $500,000 ceiling!!! The next $500,000 should be a breeze, right? 😉
Okay, so the cash hit was actually not as bad as expected. We used $11,000 to fund our new SEP IRA for 2015 so we could include that on last year’s tax stuff. So the fact that we only went down $7750 means we actually absorbed $3250 of the cost through the extra after expenses in April. I’m pretty happy with that!
The $11,000 contribution to the new SEP IRA was obviously a big chunk of the extra in that category , but that still means we bounced back $1550 too. Yay! Our home values are still spot on right now thanks to the official evaluations we just had done in April. Our car values are based off of Kelley Blue Book.
In case you are ever wondering, the car loan is at 0.9% interest, so we are not paying it off early. Our cash reserves do have a little more than necessary in them right now, but not much when we take into account what we are aiming for. Overall, we want the following padding – $3500 in checking, $20,000 in our emergency fund, $20,000 in our blog income account for paychecks, $10,000 in our rental home account, $5000 in a car account for our next down payment, and we have two accounts that build $2000 per month (hopefully) throughout the year. One of those accounts is the one we use to save for and pay our income and property taxes as well as our home insurance and HOA dues. The other is to save up for this year’s SEP IRA contributions as well as the following year’s Roth IRA contributions. So in our reality, we “only” have an extra $8300 and that will be used as padding for any lower-than-expected income months this year (and I’ll be honest, it’ll probably be used a little for any we may be short for our next cruise).
Overall, I’m optimistic for 2016. We already hit my $500,000 goal, woot! Now onto the BIG goal set at $550,000.
How have you been doing lately? What are your short-term and long-term financial goals?