personal Finance Story

August was another bad month as far as finances went. Our assets went down while we shifted our priorities around, opting to pay off debt instead of building our cash supply. The good news is that by the first week or so of September, we will have paid off both of our cars. That is going to free up a combined $500 each and every month.

That comes not a moment too soon as I will be needing new tires before the winter. That is going to be somewhere between $400 and $500. It is a good feeling to not have to also make a car payment as well.

Final numbers show that our debt pay down more than made up for the drop in assets giving us a networth increase of $2,333.15. Not bad for a bad month. Kinda makes us both wonder what we can do when we behave…

Assets: $63,125.31

• My Checking, $537.83
• Her Checking, $382.45
• Her Savings, $7,528.58
• Emergency Fund, $1,131.35
• House Down-payment Fund, $5,060.27
• Corvette Fund, $2.18
• My 401K, $11,482.71
• Her 401K, $15,785.55
• Roth Startup Savings, $151.79
• My Taxable Stock Account, $2,924.17
• Her Taxable Stock Account, $1,490.88
• Prosper Loans, $414.05
• Family Loans, $1,780.00
• My Toyota Corolla, $8,000.00 (kbb.com value)
• Her Toyota Corolla, $5,000.00 (kbb.com value)
• Apartment Security Deposit, $1,453.50

Liabilities: $31,138.66

• My Student Loans, $18,654.89 (6.00%)
• Her Car Loan, $583.22 (6.99%)
• Her Student Loans, $11,900.55 (3.00%)

As far as spending went, this is the worst month of the year. There were several compounding factors which can ineloquently be summed up with the following phrase; I ended up having a good time.

We went to a wedding, I made a trip home to visit the parents, and I got to go on a trip that I had been dreaming about for years.

Going over budget on spending is not a horrible curse. I have the benefit of disposable income and going over just means that I can’t save as much as I would like. Our net worth results reflect this. September should see things quiet down I hope. I need to get things under control and make those numbers. There should be no excuses from here on out.

Spending Budget: $1,100.00

Spending Actual: $1,688.71

• Petty Cash: ($20.00) $64.00
• Gas: ($225.00) $213.81
• Eating Out: ($120.00) $306.88
• Entertainment: ($50.00) $0.00
• Hobbies: ($500.00) $655.16
• Fitness: ($20.00) $150.98
• Other: ($40.00) $262.88

(Budgeted) Actual

The month of July was good to us. Not only did we pay off our wedding and honeymoon expenses, but we also managed to pay off my car loan. Not bad for having been married for only a month!

Our current net worth is at $29,653.50. Since this is the first month using this calculation, we don’t know exactly how well we did from last month. Still, all told, I think we are on the right track. Time will tell as the pieces fall into place.

Assets: $63,324.58

• My Checking, $765.74
• Her Checking, $1,500.00
• Her Savings, $7,484.94
• Emergency Fund, $1,128.52
• House Down-payment Fund, $5,057.61
• Corvette Fund, $2.17
• My 401K, $10,731.41
• Her 401K, $15,165.92
• Roth Startup Savings, $76.26
• My Taxable Stock Account, $2,840.68
• Her Taxable Stock Account, $1,444.16
• Prosper Loans, $410.25
• Family Loans, $1,780.00
• My Toyota Corolla, $8,000.00 (kbb.com value)
• Her Toyota Corolla, $5,000.00 (kbb.com value)
• Apartment Security Deposit, $1,453.50

Liabilities: $33,671.08

• My Student Loans, $19,119.67 (6.00%)
• Her Car Loan, $2,849.85 (6.99%)
• Her Student Loans, $12,034.23 (3.00%)

Now then, on the spending front, I did not do so well. So much for my “Don’t Spend Crap in July” rant earlier. Lets see where I slipped up.

Petty cash was very high. And honestly, I can’t recall exactly what I did with the money. I know it got spent and thats all. I took the money out in anticipation of cash expenses while traveling, but when I did not end up using it, I was lazy and did not return that money to my checking. From there, the green trickled out of my wallet in small innocculous pieces at a time.

Entertainment was high because I got the opportunity to hang out with some distant friends more than once. Given the chance, I decided to have some fun.

Spending on hobbies was also high because I was weak while traveling with a friend. What can I say? At least my hobbies are only harmful to my wallet. And even then, not that much. Then again, just wait till next month!

Spending Budget: $805.00

Spending Actual: $882.84

• Petty Cash: ($20.00) $80.00
• Gas: ($225.00) $265.15
• Eating Out: ($120.00) $169.37
• Entertainment: ($50.00) $165.00
• Hobbies: ($60.00) $148.95
• Fitness: ($40.00) $0.00
• Other: ($140.00) $54.37

(Budgeted) Actual

Coming up this month will be my customary monthly review. With it this month will be a change in how I have been calculating and displaying net worth. In June of this year, I got married. Together with my wonderful new wife, we have been tackling financial goals using our combined financial strength.

Just this month I have been able to pay off my car using funds that would otherwise have been added to our pile of savings. Next month, I will be pouring that money towards paying off her car. Within two months of us getting married we will be free of car loans. Not bad.

I have been tracking our combined net worth since May of this year. From this information, we will have a baseline from which we can gauge our future successes or failures.

A Look at the Numbers

May - $15,309.44

• Assets $53,663.03
• Liabilities $38,353.59

June - $16,877.91

• Assets $54,513.81
• Liabilities $37,635.90

I am looking forward to June to be a great month despite some spending slip-ups. From May to June, which included our wedding and honeymoon, we only increased our net worth $1,568.47. We hope to easily beat that in July where for the first time we have been using our combined wealth building power.  I know for a fact that we just erased over $1,800 in car debt this month alone.

It is a good feeling. Goals seem a bit easier when you know you have someone working with you.

For the month of June, my net worth actually decreased by $240.82. This is the first time this has happened since I began keeping track more than a year ago. I am aghast and slightly depressed.

But it is not as if I’mswimming against a constant current. I got married this month. I don’t plan on getting married again in the near or distant future. So that one time event aside, I expect big gains to be back in style in the coming months.

A sizable drop in the stock market did not help matters either. My 401K saw a decline in value this month. Usually, my own contributions increase the total value more than any one monthly decline. Not the case in June. Unfortunately this is an event that I will have to get used to in the future. As my portfolio grows, my own bi-weekly contributions will become a smaller and smaller percentage of the total amount. Not a bad problem to have.

Assets: $31,537.96

• Cash in Hand, $100.00
• Emergency Fund, $1,100.71
• House Down-payment Fund, $5,046.91
• Corvette Fund, $2.15
• 401K, $10,731.41
• Roth Startup Savings, $76.26
• Taxable Stock Account, $2,840.68
• Prosper Loans, $406.34
• Family Loans, $1,780.00
• Toyota Corolla, $8,000 (kbb.com value)
• Apartment Security Deposit, $1,453.50

Liabilities: $21,295.52

• Student Loans, $19,119.67 (6.00%)
• Car Loan, $1,888.74 (4.99%)

Spending was under budget by $21.99 for the month. This does not count wedding related expenses, just the usual items I track normally. I’ll have a post or two on that topic later on.

The big hitters were eating out and gas. $4.00 a gallon and a road trip honeymoon contributed to the gas part. The eating out comes from being incredibly lazy in the days approaching the big day. We were simply over stressed from planning and arranging things for relatives that we often rationalized eating out over cooking at home to help soothe our frazzled nerves.

Spending Budget: $610.00

Spending Actual: $588.01

• Petty Cash: ($20.00) $0.00
• Gas: ($180.00) $232.51
• Eating Out: ($120.00) $171.53
• Entertainment: ($50.00) $10.70
• Hobbies: ($60.00) $66.70
• Fitness: ($40.00) $0.00
• Other: ($140.00) $106.57

(Budgeted) Actual

May ended up as a good month net worth wise. I had an increase of $2,403.08 after the dust had settled. Help came from a few different sources, such as the $600 tax rebate and a continued rise in the value of my 401K and taxable stock account.

Assets: $32,065.89

• Cash in Hand, $100.00
• Emergency Fund, $1,073.19
• House Down-payment Fund, $5,035.10
• Corvette Fund, $2.15
• 401K, $11,011.03
• Roth Startup Savings, $51.14
• Taxable Stock Account, $3,181.64
• Prosper Loans, $378.14
• Family Loans, $1,780.00
• Toyota Corolla, $8,000 (kbb.com value)
• Apartment Security Deposit, $1,453.50

Liabilities: $21,295.52

• Student Loans, $19,163.04 (6.00%)
• Car Loan, $2,132.48 (4.99%)

Spending Budget: $750.00

Spending Actual: $1,234.29

• Petty Cash: ($20.00) $10.00
• Tolls: ($40.00) $40.00
• Gas: ($180.00) $179.85
• Eating Out: ($120.00) $335.45
• Entertainment: ($50.00) $0.00
• Hobbies: ($60.00) $284.26
• Fitness: ($40.00) $73.69
• Gifts: ($100.00) $133.54
• Other: ($140.00) $177.50

(Budgeted) Actual

I had a few concerns going into April. My fiancé and I were ramping up our wedding planning and that meant lots of money being put aside for current and future spending. That meant less money for saving and investing.

The stock market continued to recover from earlier losses which allowed my net worth to continue its own climb despite lower contributions. My 401K for the first time ever for me broke into the 5 digit range, a milestone that I am very happy to see.

Net worth ended up $1,693.27, which was below par. Given the situation this month, I am happy that I am making progress anyways.

Assets: $30,727.33

• Cash in Hand, $100.00
• Emergency Fund, $1,045.52
• House Down-payment Fund, $5,022.51
• Corvette Fund, $1.00
• 401K, $10,054.40
• Roth Startup Savings, $26.02
• Taxable Stock Account, $2,894.82
• Prosper Loans, $349.56
• Family Loans, $1,780.00
• Toyota Corolla, $8,000 (kbb.com value)
• Apartment Security Deposit, $1,453.50

Liabilities: $22,360.04

• Student Loans, $19,314.62 (6.00%)
• Car Loan, $3,045.42 (4.99%)

I ended the month with over spending in gas, eating out and entertainment. I did a check up on my spending early in the month and knew that I needed to cut back if I wanted to have a shot at coming in under budget. I buckled down in the later half of the month and managed to come in under budget as a whole. It is my second biggest surplus of the year and I have still not had a negative month. Quite an improvement from last year.

I still feel that I can and should be more disciplined when it comes to spending. I would like to see much larger surpluses. I know I can make it happen. Three over budget categories is simply unacceptable.

Spending Budget: $950.00

Spending Actual: $923.44

• Petty Cash: ($20.00) $20.00
• Tolls: ($40.00) $40.00
• Gas: ($180.00) $190.95
• Eating Out: ($120.00) $137.30
• Entertainment: ($110.00) $195.08
• Fitness: ($40.00) $0.00
• Gifts: ($300.00) $254.99
• Other: ($140.00) $85.12

(Budgeted) Actual

Next month should be a quiet one I hope. Besides the wedding planning kicking into high gear that is. That is all the more reason to take a breather on my personal spending. Still there seems to be a long lost of items I need / want to have.

My wiper blades need to be replaced on my car, I ran out of cologne in February, I need to replace my running watch battery, my regular watch broke months ago, and my wallet is falling apart in my pocket. The list never seems to end.

Ever the optimist, I am looking forward to May. It is another opportunity to grow my net worth and prove to myself that I can make things happen financially.

March was another good month for me. My net worth received boosts from rebounding stock prices which helped counteract lowered additions from my pay. I also finished paying off the debt left on my credit card which is a very significant short-term milestone.

Assuming that I can maintain discipline over the months, I will be able to actually use leftover surplus instead of simply applying it to consumer debt. Even though back in February I was ahead by over $70, it didn’t matter because it just got rolled right into the debt. From here on out, I will be able to make use of that surplus rather than see it frittered away to line the pockets of the VISA. Expected uses are many including non-consumer debt payoffs, additional investments, and spending money for luxuries.

Assets: $29,385.69

• Cash in Hand, $300.00
• Emergency Fund, $1,016.59
• House Down-payment Fund, $5,010.14
• Corvette Fund, $1.00
• 401K, $9,070.09
• Taxable Stock Account, $2,432.57
• Prosper Loans, $321.80
• Family Loans, $1,780.00
• Toyota Corolla, $8,000 (kbb.com value)
• Apartment Security Deposit, $1,453.50

Liabilities: $22,712.67

• Student Loans, $19,427.06 (6.00%)
• Car Loan, $3,285.61 (4.99%)
• Credit Card, $0.00

Spending was inline with estimates but only barely and only as an aggregate. I spent far more on eating out as well as in the ‘other’ category.

Spending Budget: $1,140.00

Spending Actual: $1,137.11

• Petty Cash: ($20.00) $50.00
• Tolls: ($0.00) $0.00
• Gas: ($180.00) $147.00
• Eating Out: ($120.00) $228.52
• Entertainment: ($410.00) $345.68
• Fitness: ($40.00) $9.61
• Gifts: ($230.00) $112.30
• Other: ($140.00) $244.00

(Budgeted) Actual

The other spending reflected a few things. I purchased and mailed invitations for our upcoming wedding. To be honest, I should be tracking these expenses separately, my fiancé even suggested it the other night. However, by absorbing these and other smaller expenses within my ordinary spending plan, we will in essence lower the final bill that would need to come out of our joint savings. That savings is for a down payment on a house, something I want very badly.

Eating out was a disappointment. I spent on one dinner and one breakfast with my fiancé totaling around $70. After that, I squandered my money in non-threatening $5-$10 increments. To see the final number so large at the end of the month is a wakeup call. I need to hunker down in April and keep this spending controlled. There is no excuse for running up so far over budget.

I spent a good deal on entertainment but it was all planned for. I managed to be comfortably under budget in this category which makes me happy. At least I do have some planning and discipline in me.

For April, I plan on spending in just about every category including purchasing some nice-to-have items. With a bit of help from my fiancé, I should hope that upcoming spending will be far more controlled. I don’t want to be surprised again next month.

February was a recovery month for my finances.  My net worth increased by an admirable  $3,069.86.  However, most of the gains were in the form of paying off debt accrued just last month.  February was also better for my 401K and stock account.  Not a good month at all, but certainly better than January.

Assets: $28,508.54

• Cash in Hand, $217.34
• Emergency Fund, $1,012.67
• House Down-payment Fund, $4,996.98
• Corvette Fund, $1.00
• Savings Bonds, $153.56
• 401K, $8,462.85
• Taxable Stock Account, $2,111.93
• Prosper Loans, $318.71
• Family Loans, $1,780.00
• Toyota Corolla, $8,000 (kbb.com value)
• Apartment Security Deposit, $1,453.50

Liabilities: $24,256.11

• Student Loans, $19,336.35 (6.00%)
• Car Loan, $3,678.79 (4.99%)
• Credit Card, $1,240.97 (0.00%, for now…)

Spending was again under expectations.  I’m batting two for two so far this year.  I ended up not spending any money on gifts as I had expected.  I doubt that will be the case next month.
Spending Budget: $840.00

Spending Actual: $761.18

• Petty Cash: ($20.00) $0.00
• Tolls: ($40.00) $0.00
• Gas: ($180.00) $188.42
• Eating Out: ($120.00) $82.17
• Entertainment: ($110.00) $118.77
• Gifts: ($200.00) $0.00
• Other: ($140.00) $139.41

(Budgeted) Actual

January is in the books. It was one to remember financially.

Here are the numbers. Net worth went down by $2,564.95. Ouch!

Assets: $28,022.81

• Cash in Hand, $1000.00
• Emergency Fund, $1,008.84
• House Down-payment Fund, $3,984.85
• Corvette Fund, $1.00
• Savings Bonds, $153.56
• 401K, $8,072.60
• Taxable Stock Account, $2,251.60
• Prosper Loans, $317.57
• Family Loans, $1,780.00
• Toyota Corolla, $8,000 (kbb.com value)
• Apartment Security Deposit, $1,453.50

Liabilities: $26,840.24

• Student Loans, $19,201.17 (6.00%)
• Car Loan, $3,914.07 (4.99%)
• Credit Card, $3,720.00 (0.00%, for now…)

So just what the hay happened?

First, I bought an engagement ring. Pricetag: $3,720.00 from BlueNile.com. My soon to be fiance does not know about this site so I get to blog all I want without ruining the surprise. Honestly this was a long time coming. I’ve know this woman for almost 6 years now and I know for a fact that that little rock will make her happy. And me too. Seriously, I do want to get married. Seriously.

Second, the equities market got hammered this month. Both my 401K and my individual stock trading account too large hits. If anything, I am wondering if this would be the best time to throw extra money into the market. Over the long term, these valuations are quite tempting.

I’m glad this month is over. It was tough but my spending was also in line with expectations, barely.

Spending Budget: $700.00

Spending Actual: $692.53

• Petty Cash: ($20.00) $0.00
• Tolls: ($40.00) $40.00
• Gas: ($180.00) $156.28
• Eating Out: ($120.00) $132.61
• Entertainment: ($110.00) $67.77
• Gifts: ($100.00) $100.00
• Other: ($130.00) $195.87

(Budgeted) Actual