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June 2010 Net Worth

For anyone new to BFS, I post a net worth update at the beginning of every month in order to keep myself motivated and to involve BFS readers. Please feel free to ask questions, make suggestions, or even post your net worths too. I am a particpant-motivated blogger, so please jump on in. I calculate our net worth as listed below. I don’t include the value of our possessions, I round down to the nearest hundred for assets, and I round up to the nearest hundred for liabilities. I also don’t include my husband’s pension account since I’m too lazy to keep up with it and it shouldn’t actually matter until he retires. Assets 1. Cash – $13,500 (we paid off $4000 of the car loan, paid $500 for the rest of the cruise, and paid $2600 for dental work) 2. Stocks – $15,800 3. Retirement – $32,600 4. Home – $130,000 5. Cars – $16,000 Liabilities 1. Home – $71,600 2. Car – $4,600 (We made an extra $4000 principal payment in mid-June and our regular payment at the end of the month as usual) Total Net Worth = $131,700 instead of $135,500 Increase/Decrease = Down $3800 from last month 🙁 It … Read more

Three Levels of Budgeting

What a fanastic way to think about budgeting, to make sure that you're not missing anything and can cover all of the annoying htings that come up to try to wreck your budget! I love thinking about my finances this way and am going to implmeent the 3 levels of budgeting system into how I manage my money going forward. I can't wait to discuss this with my husband and get him on board too. Our net worth is going to climb this year, I know it!

These last couple of months have been filled with all sorts of unexpected monetary hurdles, so I thought this would be a good time to bring up the three levels of budgeting we use to keep ourselves on track.  Our monthly, annual, and random expenses are all taken into account on our monthly budget. Our Monthly Budget I use three columns of an Excel spreadsheet to list all our budgeted categories, the target amount for each category, and how much we actually spent.  This makes it easy to do spot checks.  It also has helped me to have detailed records of our expenses. It’s amazing how often I want to know how much we spent on food, vacations, or grad school in any given month.  I used to simply be curious and anal, now I have a blog to think about.  Having those records makes blogging so much more fun for me since I don’t have to estimate my numbers.  It’s hard to have full disclosure without having the actual data, right? For non-bloggers, long-term budgeting data is useful in order to see how you are looking overall.  It also can be used to track spending differentiations that may lead to budget changes in … Read more