The Balanced Spreadsheet-Financial News, Budget Advice, Debt help, Financial Tips, and other advice

July 2, 2009

Net Worth June ’09

Filed under: Personal Finance — Tags: — thebalancedspreadsheet @ 6:57 pm
Net Worth June '09

Net Worth June '09

This is the first of monthly net worth updates. I’ve been keeping track of my personal net worth since June ’08, so I finally have a years worth of data now to compare it with. Eventually I would like to post a graph of my net worth from June ’08 to current to see our progress. Also since my marriage in May, my wife and I have combined our finances so this is the second month that the net worth has our money together. Before that time the net worth was just mine. Some FYI on the amounts above:

Cash-We have cash broken down into a few categories. First we have a $10,000 emergency fund. The cash is set aside for emergencies such as job loss or big medical problems. This represent between 4-6 months worth of expenses if needed. The rest of the cash is a mix of working funds available for upcoming expenses and other savings for vacations and cars. I hope to have a breakdown of the cash soon in the following weeks. Cash decreased sharply this month due to a big pay down on the mortgage discussed below.

Employee Stock Purchase Program (ESPP)-This is an option that my current employer runs. The program allows you to contribute up to $20,000 a year. Company stock is purchased at a 10% discount on the last day of every quarter and can be resold immediately if desired. I always contribute the max every month of $1,667 ($20,000/12) and always sell as soon as the stock is purchased. This basically allows me to reinvest the same $5,000 every quarter and make a quick and easy $555 every three months. This translate to a $2,200 gain every year or an approximately 45% return. I will write about this more in detail soon. This is the last month of the quarter, so I should be getting this cash sometime in the middle of July.

House-In this market, trying to figure how much your real estate is worth is a shot in the dark. I have done the best I can by comparing other condominiums sales in my subdivision. I haven’t changed the value since January.

Retirement-This is made up of 401(K)’s that my wife and I both have from current and former employees. They are down now, but I have a long term perspective and know that they will come back.

Pension-This is a cash balance pension provided by my current employer. They contribute a set percentage of my salary each moth. I just became vested in the plan in May and I am free to roll this money over to an IRA when I leave the company.

Mortgage-The Mortgage was paid down this month to get below 80% of LTV to get rid of PMI. The original terms of the mortgage were 30 years at 6.1%. We have talked about refinancing with the super low rates but have not done so due to not knowing how much longer we will be in our condo.

I plan on doing this monthly so if you have a question or comment please leave it below in the comment section.

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