The balance sheet I’ve been tabulating for the past few years leaves out a few important items. My report doesn’t include my personal property other than my car, nor does it include the tax I’d have to pay if I liquidated all of my assets. Therefore, it’s not accurate to call the bottom line my “net worth.” I’ll just call it “modified net worth” for now.
I didn’t break the $100,000 milestone in my modified net worth metric this month, but it’s practically a given for July. In May, I predicted I would surpass this amount by the end of June, and in June I thought I’d be passing it within a week. Moving and rent expenses made sure that didn’t happen.
Here are my balances as of June 30, 2007. If you click on the image below, you’ll get an easier-to-read version of the table.
Answers to Frequently Asked Questions.
- The report is made with Intuit Quicken and Microsoft Excel. Here’s a balance sheet Excel template.
- The credit card balance is paid off every month.
- My student loan interest rate is 4.25% and my savings account interest rates range from 4.5% to 5.05%. I’m not rushing to pay off the student loan so I can have cash on hand to eventually make a down payment on a house, and the rate is decent.
Explanations and Details.
My cash and savings accounts are down a bit thanks to higher than usual expenses, which I will detail in a following post. The higher accounts receivable balance shows an increase in business income this month. The invoices I sent last month are recorded in this category, and when I get paid, that amount moves from accounts receivable to a savings account.
My 401(k) broke past $40,000. This account represents about one third of my total assets, and this ratio has remained about the same since around May 2003. All my retirement accounts are about one half of my total assets, and unlike just the 401(k), this ratio has been increasing by about 10 percentage points a year. Is this number too high? Fifty percent of assets may be too much to be tied up and generally untouchable. Now that I’m farming 25% of my day-job income off to the 401(k), I expect these ratios to continue to increase.
The data aren’t available yet, but on or around June 30, the funds set aside for my company stock purchase plan were used to purchase company stock. The purchase price reflects a discount of 15% off of the stock price at the lowest of either the beginning or end of the quarter. To publish this price could give away the name of my employer, so I won’t provide that much detail.
I have a higher credit card balance this month thanks again to moving expenses. In other areas, I’m slowly paying off my car loan and student loan.
Any questions? Leave them here. My income and expense report will be posted in a few hours.
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looks like your 401k has done pretty well over the past year.