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…
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.
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.