Yes, we lost $5k this month but we can’t help but smile! We freakin’ refinanced, baby!!!
Two years of trying and it finally came true. So we’re all still in celebration mode over here… as you can tell from all the recent mentions of it ;)
But that’s how powerful it was – we don’t even care about the $5k we just lost in the stock markets this month! Haha… You think we have control over that stuff anyways? Pshhh…
So while we ended up down for the count in May, our game plan still holds solid and we’re makin’ some good progress. It’s never dull around here, that’s for sure ;) Here’s how our new net worth breaks down this month:
Net Worth Breakdown: MAY
CASH SAVINGS (+$2,271.70): Besides the extra $1,000 we saved from refinancing last month, we had a good amount of blogging income this time around. A lot of renewals and a lot of non-cancellations ;) We also hardly spent anything this month.
EMERGENCY FUND (+$623.88): Back to the original $10k we like it at! We’re usually pretty good at keeping it that way for months at a time, but every now and then we get stuck like everyone else and have to dig in. Fingers crossed we have a ways to go until that happens again though…
*NEW –> TAX FUND (+$1,860.00): Still keeping this in a separate category for now… it’ll go up and up and UPPP every month, and then come crashing DOWN every quarter :) Haha… gotta love paying your own taxes.
IRAs – ROTHS & SEP (-$1,141.80): Just the markets doing their thang… we haven’t added a penny to these accounts the last few months. And probably won’t until the end of the year when I try and pump up my SEP to save on taxes.
401(k)s (-$5,400.95): Same dealio here. Nothing added, just a whole bunch subtracted ;) I SWEAR my owed 401k money is going to come in any day though! I haven’t stopped fighting for it, don’t you worry. We’re talking almost $20k here!!!
AUTOS WORTH (kbb) (+$600.00) : I know Toyota’s hold their value, but jeez! These numbers fluctuate almost as much as Zillow’s! Haha… but I still love my KBB… I buy and sell off those prices, so it is what it is. Here’s the newest breakdown:
- Pimp Daddy Caddy: $2,670.00
- Gas Ticklin’ Toyota: $11,305.00
HOME VALUE (Realtor) ($0.00): I was REALLY hoping for an appraisal when we were refinancing last month, but sadly it never was needed… which was probably better to get the deal closed anyways, but now we still don’t have an up-to-date value on the place. So it will remain at the $300k our realtor last told us it was worth (a year ago?).
CREDIT CARDS ($0.00): Always a pretty sight like that!
MORTGAGES (-$3,928.50): Yayyy!!! I have no problem whatsoever losing a little bit in the short term, to SAVE A LOT in the future! To the tune of over $300 each month now that we’re refinanced. I still don’t want to be living here for years and years to come, but figured we’d be renting it out before selling it anyways. So we’ll def. realize the gains. And a conventional 5.5% mortgage is WAYYYY better than an interest-only one at 6.875%! Yikes. Here’s how they now break down:
- 1st Mortgage: $289,961.88 – 30 year conventional @ 5.5%
- 2nd Mortgage: $62,054.22 – Maxed out HELOC @ a variable 2.8%
And that concludes another month of net worth voyeurism! It wasn’t completely the way I like ’em, but there was a lot of GOOD changes that have now placed us in much better positions. And you always gotta smile about that :) Hope you guys did well too!!
Mad love, as always
PS: Hope you guys have some good Travel Funds set up! It’s Summer time, baby!!
PS: If you’re just getting started in your journey, here are a few good resources to help track your money. Doesn’t matter which route you go, just that it ends up sticking!
- The "Budget/Net Worth" spreadsheet - the colorful Excel template I personally use.
- The "Money Snapshot" spreadsheet - a simple Excel template I created for my former $$$ clients
If you're not a spreadsheet guy like me and prefer something more automated (which is fine, whatever gets you to take action!), you can try your hand with a free Personal Capital account instead.
Personal Capital is a cool tool that connects with your bank & investment accounts to give you an automated way to track your net worth. You'll get a crystal clear picture of how your spending and investments affect your financial goals (early retirement?), and it's super easy to use.
It only takes a couple minutes to set up and you can grab your free account here. They also do a lot of other cool stuff as well which my early retired friend Justin covers in our full review of Personal Capital - check it out here: Why I Use Personal Capital Almost Every Single Day.
(There's also Mint.com too btw which is also free and automated, but its more focused on day-to-day budgeting rather than long-term net worth building)
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The loss in net worth is explained by the 401(k) and IRA which are longer term investments and would be expected to fluctuate as you mention. It looks like a solid month overall. Congrats.
I find that when things are going well in my financial life I can just shrug off the vagaries of the stock market and remember I’m a long term investor. When I’m feeling stressed though having thousands evaporate is a big bummer, but I tell myself I’m a long term investor and stocks are just going on sale ;)
Thanks for this very generous post. You really do share a lot with us – and we’re mighty glad!
I love how you are always looking at the positive side of things… it really brings a smile to my face!
So, $5 K down in a long term relationship? No biggie. You got REFINANCED!!!!! WOOT!!!!!!!!!!!!
I just found your site through Twitter. Very cool stuff! It’s awesome that you’re so transparent. Your $5k loss is not a big deal markets go up and down.
What you’re doing is truly inspiring!
Congrats on the happy loss! :-) How often do you get to say that, lol?
@cashflowmantra – Yessir, you know it.
@No Debt MBA – Especially today!!! WOW did that market crash.
@Skint in the City – Just keepin’ it real, baby! :)
@Katie – Haha, that’s right ;) Gotta stay positive and look at the overall picture of things or you get down on yourself for nothing…. or for things that are outside your control. You focus on what you’re *doing* and planning for, and it makes life a lot easier to deal with. And of course you can bitch here and there too, just not ALL the time like some I know. That drains you after a while.
@Zero Passive Income – Thanks so much man for stopping by man, appreciate it :) Gonna hope on over to your site here after I post this – looking forward to learning more about your stuff.
@Crystal – Haha, hopefully not a lot! :)
J. Congrats on the refi. I totally understand your relief. If it’s any consolation, there are people in lots wose shape with their home values than you are. Home, stocks, and all real assets go up and down in price, it’s just how it goes. I still have to remind myself of this fact when the portfolio(s) take a dip.
Yup, for sure! I count my blessings that my mortgage issue is one of the only ones I have :) one day we’ll get rid of it and be free as a bird!!! Haha… have a great night my friend :)
Thanks for sharing! Congrats on the re-fi! Great financial news, even if it did result in a $5K loss!
Thanks Diva! Hope your month went well too! :)
5.5% is a lot better than the previous term, but I was hoping you would get a better deal. The rates are unbelievable now. I guess it’s tough for underwater properties though.
We are refinancing our rental home too. :)
Is it weird that I have 401(k) Envy…
@retirebyforty – I wish we’d had gotten a better rate too! If only I was in a spot to negotiate ;) Going over to your post now — looks like it’s gonna be a good one!!!
@Evan – Hah! No. 401ks are sexy :)
Does your cash savings used for multiple things like trips, cars, repairs, household fixes? I’ve recently broke mine down into a Trip fund, car fund, maintenance and repair fund … Do you have a goal for it or is it just what it is.
On a personal note I just passed 200K in net worth. As a single parent soon to be newly married again to a responsible saver who understands my budgetary obsessive behavior is great. I’m quite the happy.
Updated my Net Worth today +$762.47 *happy, happy, joy, joy* It all adds up!
@F – My total cash up there is a combination of all my funds & accounts we have all over. But most of it is just there for whatever we need, I don’t break it up into “travel” or “maintenance” etc anymore, although that does work for a lot of people. Now that we’re financially secure and I understand how our money works each month, it’s much easier for me to just lump it all in :)
And congrats on the engagement!!! And passing $200k net worth – that’s hot!!!
@Jen – Yes it does, Jen! And it gets even more exciting every month as you continue to watch it grow :)
I’m a bit late to the party here, but I figured I’d throw my hat into the ring.
First: net worth is not happy after May, but June contains five paychecks, a bonus, and becoming fully vested in my 401(k) employer match! I may have a positive net worth (not counting 401k) by the end of the month and with 401k it’ll be nearing 20k!
Second: KBB is bizarre. It says my car (2008 Mazda 3) is worth $1,000 _more_ than a year ago and has gained $2,000 in value in the last two months. Edmunds TMV seems more reasonable, with the price dropping most months.
Ooooh congrats!!!! 410ks are my all-time favorite financial vehicle – that’s exciting :) And yeah, KBB is always a bit of a tricky one. I’ve been using it for so long though that it’s still my #1 source whether I’m buying or selling and so far seems to work out. I need to spend some more time on Edmunds though, it’s been a while.