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Personal Balance Sheet, January 2007 ($75,174, +9.16%)

This article was written by in Monthly Update. 37 comments.


The first month of the year started off with a nice net worth increase. I now have five years’ worth of financial history recorded in Quicken. At the end of January 2002, my net worth was $9,394… below zero. I had no investments, nothing in my bank account, student loans and a small bit of credit card debt. The only income I was getting at the time was unemployment from a non-profit job I left. It was February 2002 when I found myself a stable job and started turning myself around.

Here are my latest numbers.

Net worth report and balance sheet

I made some changes to account for my car’s depreciation. There isn’t anything else out of the ordinary this month. I’m pleased with my progress so far, and I’m looking forward to the rest of the year. My income and expense statement may prove to be a little more interesting.

Published or updated February 1, 2007. If you enjoyed this article, subscribe to the RSS feed or receive daily emails. Follow @ConsumerismComm on Twitter and visit our Facebook page for more updates.

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About the author

Luke Landes is the founder of Consumerism Commentary. He has been blogging and writing for the internet since 1995 and has been building online communities since 1991. Find out more about Luke Landes and follow him on Twitter. View all articles by .

{ 13 comments… read them below or add one }

avatar klerg

NICE dent in the C.C. debt my man!!!!

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avatar Luke Landes ♦127,505 (Platinum)

The credit card gets paid off every month, so it’s not really an issue, but thanks! :-)

I should probably call that category “Accounts Payable” or something. The amount listed under the Credit Card category is just the 30-to-60-day float.

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avatar Sun

Congrates, Flexo, for the 9+% gain in one month! Five years isn’t a very long period, but the changes are significant. As you said before, keep yourself accountable for every financial decision you made is the key to be successful for everyone.

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avatar Jorge

You should probably have an entry for deferred income tax on the 401(k) balance, and if necessary an entry for deferred capital gains tax on the brokerage assets (I typically use 35% as a reasonable income tax rate and 20% as a reasonable capital gains rate). This is also an issue if you’re concerned about asset allocation and you efficiently place certain types of assets (typically bonds and REITs) inside tax-advataged accounts and others in brokerage accounts (typically equities) — to correct calculate the percentage of wealth in each asset, you’ll need to use aftertax values.

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avatar Golbguru

Congrats on the healthy gain. :)
Just one question, you don’t seem to be paying off that student loan fast enough; what’s up with that? tax breaks and all?

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avatar Saving Advice

Very nicely done. 9% is what most people shoot for in a year’s time.

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avatar Luke Landes ♦127,505 (Platinum)

Thanks Golbguru, and great question. I’ve been paying off my student loan slowly for now because the rate is quite low after the tax savings, and I’m making more money by leaving more cash in savings.

Back when I discussed my 2007 goals, I mentioned I might speed this up for the psychological advantage of getting rid of the debt sooner… but I’d rather keep as much cash as possible for the eventual down payment on a house.

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avatar Golbguru

That makes sense.

Just one more question to follow it up. Wouldn’t you knock off a few points on the mortgage rate if your student loan balance is low? (I have no idea whether it weighs much on your credit history). That might translate to long term savings in future (?).

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avatar Bobby

Congratulations on a great start to ’07!

Q: When you do purchase your house, do you plan on incorporating it’s value in your personal balance sheet?

Just wondering as I have heard both sides of the argument from others.

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avatar Luke Landes ♦127,505 (Platinum)

Yes, I’ll incorporate the house’s value as an asset and the mortgage as a liability.

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avatar jersey jen

simply amazing!

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avatar Ed

Your car only depreciated only around $300 in one year?

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avatar Luke Landes ♦127,505 (Platinum)

According to the numbers above, it lost $1,300 in one year, not $300. I just go by the numbers provided by Edmunds. The numbers they provide seem to fluctuate. I smooth them out over a longer period of time.

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