Net Worth: July 2013

Screen shot 2013-07-07 at Jul 7, 2013, 10.27.00 PM

Breaking $200,000 was nice while it lasted, but those days are long gone now. We dropped $10,000 last month as earnest money for our house, so our savings took a hit. When we close at the end of the month, our Net Worth will take an even larger hit. But hey, I guess that’s part of the home ownership game. Remember it’s not about getting rich quickly, but making wise decisions that hopefully pay back in the long run. Anyways, let’s get to it…

A$$ets:

Cash: $92,484; -$6,043

Like I said above. We wrote a ten thousand dollar check last month, so only being down $6,000 has to be a small win right? That said, we will be wiring $70,000 off for the remainder of our down payment and closing costs in about a week. It’s gonna be weird to only have $20k in the bank after having nearly $100,000.

Roth IRA: $39,399; $689

The market has been all over the place since Bernanke announced the feds plans to slow down Quantitative Easing. Of course he mad the announcement the day we went under contract and the bond markets have imploded, while rates spiked. Terrible, terrible timing.

401Ks, IRAs, etc: $66,262; +$2,044

Before we found our house, I got sick of saving so much so I bumped my retirement contributions up quite a bit. So while the markets have been bonkers, my contributions still help the balance grow. For the time being, I’ve reduced my 401k contributions back to 10% until I get a better handle on this whole home ownership thing. May bump it back up in a few months once the initial cash bleed has settled.

Payments owed:

Credit Card: $1,952 (change not reflected since balance is paid off each month)

It’s been a while since we’ve had a credit card bill under $2,000 with all of our travels recently. We have some expenses from Boston in here, but since we stayed with a friend and used public transportation it was a pretty cheap trip. I’m sure our CC bills will be quite high over the next few months as Girl Ninja feathers our new nest.

So what does all this translate to? Well, it means we are no longer in the $200,000+ net worth club. This makes me sad. It felt good to break that barrier last month, but hopefully we can get back there soon. For the time being, we are sitting at $196,192 which is a drop of $5,727 since last update. Can’t win ’em all I suppose.

p.s. I’ve decided to reduce my Net Worth by $25,000 when we take possession. If we sold it for our purchase price one month from now, we would pay about $23,000 in fees. This is why houses are generally sucky short-term investments 😉

You can see all of my net worth updates here.

10 thoughts on “Net Worth: July 2013

  1. Please use that bedroom furniture. Just as a dare. Imagine the joy of showing friends and family your classy new place and waltzing them into that!

  2. I cannot believe you are not going to include your home equity in your networth. The same thing can be said of including your retirement and other investments in your networth because they are not liquid either. Especially your retirement accounts. I can tell you from experience that paying off my home has been my best investment EVER! Maybe you should’ve just rented instead.

    • I will include the equity. That said I’m reducing the house value by 7% once we take possession since that is about what we would pay in fees and commissions during the sale. If I buy the house for $357k, I’d have to sell for about $380k to break even on the deal. Make sense?

      • Ah, gotcha. I like to err on the conservative side of home equity value also. I also tend to forget the transaction costs because I have yet to sell an expensive house. 6% of 150k is not as significant as 6% of 380k 🙂

  3. Sweet bedroom furniture. So lively! Sorry to hear about the drop, but I know how you feel. I was happy when my net worth was increasing, but now it went down due to some losses in the bond market. Boo!

  4. Moving into my first house this friday and I’m making my final transfer thursday, so nervous and can barely sleep. I’ve pretty much just been googling things like “Holy shit I bought a house” and that landed me here, nice to see other people go through a similar freakout.

  5. Still looking good Ninja, and I know you’ll be crossing that $200K barrier again very soon.

    Any chance you can write a post in the future detailing what the closing process was like and how much you actually paid? It’s very difficult to find examples online of the true closing costs, and I’m also interested in buying within the next two years.

  6. From someone that went from that triple digit cash fund to NOT due to a house purchase I feel your future pain. It was a really weird feeling.

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