August 2011 Personal Net Worth

Another month has come and gone. Now it’s time to review the personal net worth to see how my finances are progressing. As you’ll see, the markets had another negative effect on my numbers. But my cash accounts saw some improvement mainly due to business income being strong over the late Spring and Summer months. The numbers will also reflect the completion of our refinance. Let’s take a look…

Checking (250%) – If you recall, last month I hadn’t quite made my business income transfer by the end of the month. Thus, numbers were down. As expected, I made sure to transfer funds before the end of the month and my checking account is back to normal levels. We’ll use these funds to pay off the credit card (in full), pay our new mortgage payment of $842, and a few other bills (water and electric) which we have to pay with our checking account.

Emergency Fund (67%) – Our emergency fund is now more than fully funded. As I said in the intro, business income was strong this Summer and we had the funds to get this account up to speed. We spend around $3,500 each month, so $25,000 is a little over 6 months. Truthfully, Mrs. PT and I also look at this account as a partial down payment fund. We’ve discussed it and we would like to at least leave $15,000 in this account when we decide to buy a new home and rent out our current place. In the coming months I may establish a true down payment account with Capital One 360 so that we can have a dedicated home for our goal. Another factor involved here is that we are going to sell our Car #1 soon, and temporarily become a 1 car family. This would instantly give us at least $20,000 to beef up the emergency fund or down payment fund.

Mortgage (1.3%) – You’re probably wondering how a mortgage can increase. Well, we refinanced and Quicken Loans used the credit report value of the mortgage to set up the loan. They didn’t use the current bank pay off amount for some reason. Regardless, we received a refund check from our old lender, Bank of America, for $1,135. This was deposited into our checking account and will be used to make an extra principal payment when our first mortgage payment under the new lender (Wells Fargo) become due this month.

I’m not going to even comment on the retirement accounts this month. Just another down month to stomach. These accounts are all going to be used 15 years or more from now so we have aggressive allocations and will ride the short-term ups and downs.

Credit card usage was down again. That’s nice to see. In the future I may show you the details of our monthly spending so you can see what goes into this.

Any comments or questions? I welcome them in the comments below.

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Last Edited: February 22, 2013 @ 12:50 pm
About Philip Taylor

Philip Taylor, aka "PT", is a husband and father of two. He created PT Money back in 2007 to share his thoughts on money and to meet others passionate about managing their finances. All the content on this blog is original, and created or edited by PT. Read more about Philip Taylor, and be sure to connect with him on Twitter, Facebook, or view the Philip Taylor+ Google profile.

Comments

  1. Nice job despite the effects of a down market. :) Great personal finance management. Keep it up :)

  2. Wow, we are pretty close in net worths bro! That’s pretty cool…. except for that your house is worth MORE than you owe, haha.. i hate owning a home!! :)