March was an interesting month. I took out a new student loan to pay for my MBA (while awaiting reimbursement from my company) and received a small portion of that for “living expenses.” It should help me out a little, and I only took it knowing I can come out slightly ahead with that money in my ING Direct or Emigrant Direct savings accounts.
My investments didn’t perform favorably, but I’m not terribly concerned about that.
Keep reading to see my account balances for the year. I’m posting the numbers in a new format, so let me know if you have any problems reading the chart. My income vs. expenses data will follow shortly.
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I’ve included an income/expense report within this post. By looking at the numbers, here’s some quick thoughts on improvements I can make for the rest of the year.
* Spend less money on dining. Lunch at the cafeteria is almost $7.00! That’s unacceptable.
* Find some ways to make more money. Yeah…
* I’ve modified Quicken’s “Auto” category to include depreciation for my car. That category also contains mass transit expenses and should probably be renamed “Transportation” instead.
* The “Interest Exp” category contains the interest paid for my car loan (at 2%) and student loan (at about 3% last time I checked).
View the remainder of this entry to see the chart.
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Two things helped to stabilize my net worth over the past month. First of all, the bonus, although relatively small, helped me out. Unfortunately, that money will go to my car insurance payment and the balance due on my taxes. Secondly, the market turned upwards in February, so my investments gained some value, although that makes little difference to me until I liquify the funds. That’s not part of my plan for many, many years.
If you look at the chart, you’ll see I switched a few things and made some changes.
* I’m evaluating my funds on the last day of the month now instead of the first. I’ve revised the past numbers to fit the new accounting style.
* I reevaluated the value of my car through edmunds.com, including past values.
* My next paycheck (to be received this week) will be the first to include a reduction of 401(k) pretax contribution from 12% to 4%.
* My student loan is now in deferrment since I have started taking classes for my MBA again.
Continue reading to see the numbers.
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Below you’ll see the charts for the month. I still have one paycheck left to receive, so that should add to the month’s tally, but since I’ve done the last few months on the 23rd, I didn’t want to break that habit just yet. I guess it would make more sense to do this count on the first of each month for better consistency.
There’s really not much to say. I’d like to be making and saving more money, but it’s just not happening right now. With the winter coming, I’ll probably be spending $50 to $100 more a month for heating (electrical). I will be spending $50 less in rent for the next six months. Hopefully I can keep the rest of my spending down.
I’m currently putting 12% of my salary into the 401(k). Only the first 4% of my salary gets matched by company contributions; maybe I would be better off just putting in 4% to get the company match and saving more cash. Any suggestions from the readership?
I’ve decided to change my accounting technique, so I’ll include some past numbers to show any increases or decreases. For instance, I’m no longer including my “home inventory” and I’ve stopped including what amount I’ve had for “cash on hand,” since those calculations are most likely inaccurate.
| |
09/23/2004 |
08/23/2004 |
07/23/2004 |
| Savings/Checking: |
$ 9,432 |
$ 8,369 |
$ 10,837 |
| Other Assets: |
$ 15,457 |
$ 15,493 |
$ 18,644 |
| Taxable Investments: |
$ 3,179 |
$ 3,128 |
$ 3,086 |
| 401k (Pre-Tax): |
$ 11,211 |
$ 10,276 |
$ 9,815 |
| Roth IRA: |
$ 3,734 |
$ 3,418 |
$ 3,126 |
| Credit Cards: |
($ 1,815) |
($ 548) |
($ 1,891) |
| Car Loan 2.00%: |
($ 11,781) |
($ 12,057) |
($ 15,478) |
| Student Loan 2.82%: |
($ 6,266) |
($ 6,323) |
($ 6,323) |
| TOTAL |
$ 23,152 |
$ 21,759 |
$ 21,817 |
From the looks of things, my net worth is still improving, but onliy slightly. I’ve had a decreasing amount of cash. I currently shovel 20% of my gross income directly into the 401(k) and $125 twice a month into the Roth IRA. The IRA will max out at $3,000 for this year’s contributions. An additional $400 or so of each paycheck is distributed directly to ING Direct savings accounts to be earmarked for special uses, such as car payments and a relocation fund.
I’ve been through many changes in the past few months. As you might have read below, I stopped working at my former corporate job and began working as a high school teacher, hence the pause in my 401(k) increases. During the summer, I am working part time at my old job and considering whether I will be teaching again in the fall. When I started teaching, I needed a car to get around, since no public transportation is available. I purchased a 1997 Honda Civic at that time. In June, after having some problems with that car, I decided to purchase a 2004 Honda Civic.
Yes, I know I’ve talked about buying new cars in mostly negative terms. I considered many things, and I decided that buying a 2004 Honda Civic for a good price was the best way for me to go. The car will last me as close to forever as possible, and was not much more expensive than a slightly used version. Included in my “home inventory” is the old Civic which I am still trying to sell.
Additionally, I recently spent a week in California. I managed to limit my expenses there by staying with relatives. The stock market has also not been kind over the past few months. So, on with the financial update:
| |
July 17 |
February 17 |
| Cash and Savings: |
$ 13,200 |
$ 13,408 |
| Taxable Investments: |
$ 3,129 |
$ 3,242 |
| 401k (Pre-Tax): |
$ 9,989 |
$ 9,660 |
| Roth IRA: |
$ 3,179 |
$ 2,041 |
| Credit Cards: |
($ 1,709) |
($ 2,165) |
| Student Loan 3.97%: |
$ – |
($ 1,720) |
| Student Loan 2.82%: |
($ 6,323) |
($ 9,250) |
| Home Inventory: |
$ 13,059 |
$ 9,454 |
| Equity in Car: |
$ – |
$ – |
| TOTAL |
$ 34,524 |
$ 24,575 |
Now it’s what you’ve all been waiting for. Here is my financial update for the month. I’ve been a bad spender, and I’m waiting for a tuition reimbursement check as well as my tax refund, a bonus, and a raise. Let’s see how we did. Remember, the credit card gets paid off every month. I don’t want you to think I’m running up some kind of a bill.
| |
February 17 |
January 17 |
| Cash and Savings: |
$ 13,408 |
$ 13,760 |
| Taxable Investments: |
$ 3,242 |
$ 3,189 |
| 401k (Pre-Tax): |
$ 9,660 |
$ 8,919 |
| Roth IRA: |
$ 2,041 |
$ 1,763 |
| Credit Cards: |
($ 2,165) |
($ 1,821) |
| Student Loan 3.97%: |
($ 1,720) |
($ 1,720) |
| Student Loan 2.82%: |
($ 9,250) |
($ 9,250) |
| Home Inventory: |
$ 9,359 |
$ 9,359 |
| TOTAL |
$ 24,575 |
$ 24,254 |
Well, at least I haven’t moved backwards.
It has been a month of gift giving and trip taking, so I’m not expecting to see much progress. To the tape!
| |
January 17 |
December 17 |
| Cash Accounts: |
$ 13,760 |
$ 14,621 |
| Taxable Investments: |
$ 3,189 |
$ 2,974 |
| 401k (Pre-Tax): |
$ 8,919 |
$ 8,250 |
| Roth IRA: |
$ 1,763 |
$ 1,416 |
| Credit Cards: |
($ 1,821) |
($ 2,918) |
| Student Loan 3.97%: |
($ 1,720) |
($ 1,727) |
| Student Loan 2.82%: |
($ 9,250) |
($ 9,250) |
| Home Inventory: |
$ 9,359 |
$ 9,259 |
| TOTAL |
$ 24,254 |
$ 22,626 |
Well, it’s definitely not a huge increase. I’m planning on cutting back my spending by making my lunch more rather than going out… I tried this last year but gave up after my lunch bag was destroyed. I’ll pick a new one up this week.
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