Net Worth: August 2010

I don’t know if I’ve ever loved Girl Ninja more than I do right now! On last months, Net Worth Update, I predicted my NW would go down by three thousand dollars after some wedding/honeymoon/moving expenses. Fortunately, Girl Ninja, coupled with some Stock Market positivity, actually helped my NW increase! Totally not expected, but I’m a happy camper 🙂

Here’s the breakdown…

Assets:

Checking Account: $4,216, -$1,823. Still keeping the checking above the normal $1,000 balance I generally try and keep, because I leave for Aruba one week from today and want access to quick cash in case Girl Ninja gets kidnapped or something…only kidding…kind of.

Savings Accounts: $13,047, +$0. No change here because I’m keeping my cash in the checking account until after I get back from the honeymoon. I’m keeping my fingers crossed this Dual Income No Kids thing is as cool as I hear. Should provide for some major saving capabilities for the rest of the year.

Roth IRA: $13,851,+$1,114. Still haven’t made my 2010 Roth Contribution, but I’m 75% sure I will before time is up. Just waiting for life to settle down a bit before I part ways with another $5,000.

TSP (401K): $15,069, +$1,603. The standard 5% contribution heads this direction each month. I also get that 5% fully matched. I invest in virtually the same funds in both my Roth IRA and in my 401K so they generally perform the same.

Liabilities:

Student Loan: $0. That’s right. My student loan is still $0 and it will be FOREVER. I’m not quite sure if I’ll ever take this account off my NW updates. It feels too darn good to re-post it each month and it reminds me I Punched Debt In The Face!!!!

Credit Card: $0. I typically show my CC balance for each month, even though I pay it off in full. Right now the balance is $0 because I just sent in a payment. I use my CC for just about every purchase I make. Some months it’s a couple hundred, others a couple thousand.

Even with a $2,500 honeymoon deposit and $800 in home furnishings, my net worth went up +$2,496. There are really only three explanations for this: 1) Girl Ninja started moving her money in to my/our checking account, 2) the stock market went up, 3) I lived within my means. All said and done, this leaves me with a Net Worth of $46,186. Ready or Not $50K…here I come!!!!!

**I chose not to include possessions (including my car) in my NW calculations, which would probably increase my worth by about $8K.**

Your Net worth is more important than eating!

I went around the other day asking some of my friends if they knew what ‘net worth’ meant. I realized something after hearing their definitions… I need to get new friends. They didn’t have the slightest clue. Seriously people, no clue? Your net worth is really important.

If you are serious about getting your financial life in order, you already know what your net worth is and how to calculate it. If you’re a financial infant, than you probably don’t so let me explain via this super technical formula….

If you don’t know what your net worth is right now, I’d encourage you to take a minute to figure it out (you can even use this calculator to help). After you’ve got it calculated, you can then compare your worth to the rest of America….

Wanna know something? Your net worth TODAY isn’t really that big of a deal. You can’t change the past, but you sure can change your future. The most important thing about your net worth is tracking it. If you don’t update your net worth at least once a year (I do mine every month), you’re a big fat stupid head. Yeah, that’s right… a stupid head!

Sometimes you can’t really control the fluctuation in your net worth (like if you own a home and it temporarily depreciates or if the stock market is having a bad month), but there are two general rules.

1) If you’re net worth goes up each month, that is AWESOME.

2) If your net worth is spiraling downward, you may have some BIG problems.

So remember, when it comes to your net worth, it’s not your current number that matters. It’s where your worth is going (hopefully up) that’s important.

Questions for my beautiful readers…

What is your net worth? (Mine is $41K)

How long have you been tracking it? (2 years)

Is it generally moving up?

If you haven’t calculated it before why not?

Net Worth: January 2010

Screen shot 2009-12-01 at Dec 1, 2009, 5.32.56 PM

I popped a cap in 2009’s a$$. It was an incredible year, increasing my net worth over $30K. December, however, was a not so exciting. Oh wait, YES IT WAS. I got engaged, but with engagement comes expenses, and with expenses come a less than ridiculous net worth growth. Let’s take a look…

Checking Account(s): $4,361, +$1,301. Got the checking account slightly stacked as my $2,500 credit card bill is coming due. I’m being a good Ninja, and paying that bill in full. I try to keep $1,000 in this account, but have come to realize that is almost never the case as I am constantly moving money around. Also, I now have two checking accounts, after opening up my online savings with ING, I decided to open a checking account with them also.

Savings Account: $17,725, -$1,800. Ahh the savings account decrease…tear. It’s for a good reason though. I finished off my last bit of contribution to my Roth IRA. You’ll see the increase in the next section…

Roth IRA: $13,755 +$1,868. I almost didn’t max out my Roth IRA for 2009, but after much thought I decided to go for it. I’m glad I did…I think 🙂

401K: $11,641, +$869. Eight percent of each paycheck makes its way in to this account. I invest in very similar funds in both my Roth IRA and 401K. I get 5% of my paycheck fully matched, so you know I’m not about to pass up free money.

Student Loan: -$16,193, +$108. Whoops. Got a little side tracked with purchasing an engagement setting and contributing to my Roth IRA. I promise to get back to paying this biotch down in 2010. Pink promise!!!

I’m rocking a solid $28,793 net worth. I’m up $1,404 from last month. Not quite as cool as the $5,000 I went up last month, but I guess I’ll be okay. If I had to choose between getting engaged, or having a larger Net Worth growth, I would pick…. well don’t make me answer that 🙂

Anyone care to make any PDITF 2010 predictions. Think I’ll be President by the end of the year? Maybe I will fizzle out and give blogging up? Think I’ll have a kid (I sure hope not). Humor me with some new year predictions.

If you have wondered why the blue bar (debt) in the graph sometimes increases, it’s because my credit card balance gets taken in to account each month. Even though I pay the balance in full it still appears as a “liability” in Quicken. I just deduct this from my checking account balance to give myself an accurate net worth reading. I choose not to include my car in my NW calculations, which would probably increase my worth by about $8K.