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Kathleen, April 2013 Net Worth

This article was written by in Naked With Cash. 5 comments.

Naked With Cash is the year-long series on Consumerism Commentary where seven readers’ households share their financial progress on a monthly basis. I’ve partnered with financial planners who will offer some guidance along the way. Read this introduction to learn more about the series.

Kathleen is thirty-one years old, single, and living in Portland, Oregon. She loves her job, even if it isn’t very lucrative. With her $33,000 income last year, she’s looking to make more money from “side hustles” this year, such as her blog, Frugal Portland. To learn more about Kathleen, read her bio here. Kathleen is on Team Sara, with Certified Financial Planner Sara Stanich.

Kathleen’s report this month, below, includes Kathleen’s progress over the three months leading up to the end of April 2013. Following Kathleen’s own self-analysis, Sara Stanich will offer thoughts from her perspective. Sara’s comments are followed by feedback from budgeting expert Jacob Wade from iHeartBudgets.

Sara Stanich, CFP appears courtesy of Stanich Group and Cultivating Wealth.

Comments and analysis from Kathleen

April was the first month since I’ve been keeping track that my net worth went the wrong direction. But I can explain! I’m buying a condo (I close May 23!) and I had to take a big part of my savings and put that into earnest money, so the sellers could be certain I actually wanted to buy the thing.

Next month should be better. I mean, sure, I’m adding several digits (and a comma!) to my overall debt, but I am also adding approximately the same amount to the asset column, so it shouldn’t affect my overall net worth dollar amount by much at all. Thanks for asking last month what I was going to do once I was debt free! Now, I won’t have to think about that for another couple of decades. Phew.

Feedback from Sara Stanich, CFP

Buying your first home is a big deal, Kathleen. Congrats!

Your finances are definitely in flux this month. Moving into your new place will be a big adjustment. I can’t wait to get the details next month!

This communication is intended only for the person or entity to which it is addressed. Any taking of any action in reliance upon, this information by persons or entities other than the intended recipient is not recommended. Any information provided is for informational purposes only and does not constitute a recommendation. Every investor’s situation is unique and you should consider your investment goals, risk tolerance and time horizon before making any investment. Be sure to contact a qualified professional regarding your particular situation before making any investment or withdrawal decision. Raymond James and Sara Stanich, CFP, are not affiliated with and do not endorse, authorize or sponsor any third party websites, their respective sponsors, or user comments found on this or other sites.

Feedback from Jacob Wade

Woot Woot! Pretty darn excited for you, Kathleen. And yes, I know you still don’t want to put together a budget, but now that you’d got a few more monthly expenses on your hand, it might be nice to see it all on paper. Just sayin’. Looking forward to next month!

Updated June 22, 2016 and originally published May 28, 2013.

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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 .

{ 5 comments… read them below or add one }

avatar 1 Anonymous

Thanks, Sara — I know, not much to report. Just wait, though. HOLY COW have I been spending money left and right.

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avatar 2 Anonymous

Buying a home is a big deal and your analysis is correct that you’ll be adding almost equal amounts to each side of the ledger. With interest rates what they are, the interest expenses charged against your cash flow shouldn’t be the back-breaker they used to be ( in the 80s). Congrats on moving forward – now you’ll need to give special attention to managing debt as well as managing money (there is a difference), but I’m certain you’ve got the right attitude.

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avatar 3 Anonymous

Sounds good! Looking forward to hearing how it all plays out. Moving is a pain, and it’s not the best for immediate cashflow…but you have done great this year and I’m sure it’ll continue to move forward in the right direction.

What will your new payment be vs. your rent?

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avatar 4 jake21

Just keep in mind that additional expenses will be closing costs which will reduce your net worth. A one time hit for the purchase.

Also, taxes, insurance, home owner association fees, and others will also hit your budget and net worth. Make sure you account for these expenses.

Overall, purchase is a better financial decision, as long as you account for maintenance and other costs.

Good luck.

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avatar 5 qixx

How did you make the decision that purchasing is a better financial decision than renting? Or was this more of a peace of mind or emotional decision? What did you determine as incidental costs (future maintainence, taxes, etc)? How long before buy became more financially sound? What other factors did you use?

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