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Net Worth & Finance Updates

September 1, 2014

In the weeks we were preparing to buy our house, it felt like money was flying around everywhere. From one account to another, a cashier’s check, wire transfers, checks to inspectors, escrow refunds, insurance premiums, ikea, home depot, target… Finally, we got our August paychecks, and everything is more settled financially.

Here are some tidbits about the net worth of the SP household:

  • I added a new category to our net worth: home equity.  I’m going to use Purchase Price – Mortgage balance, unless there becomes a reason to believe that the market value has fallen below the purchase price. 
  • About 70% of our net worth is in our retirement accounts.  
  • My retirement accounts are quite a bit larger than T’s, but he’s catching up.  
  • Sort of.  He’s contributing about 2x the amount I am, but our balances have increased almost the same amount.  Thank you, investment gains!
  • We’ve had a 30% increase in our net worth so far this year.  Yay!
  • I don’t expect major net worth growth for the rest of the year due to: property taxes (not impounded), a few home maintenance projects (boring stuff like furnace, seismic, drainage – not redoing the bathrooms), and reduced cash flow.

My near term financial goals are:

  • Continue retirement savings at this pace through end of 2014.  Then, we’ll likely reduce T’s a bit to support the 3rd bullet below.
  • Complete the house projects listed above.
  • Reduce mortgage balance.  I want to put at least $5k extra within the first year, but maybe more.  I don’t like throwing out numbers without doing the calculations, but $5k is a number I’m comfortable just throwing.  🙂 
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9 Comments leave one →
  1. September 1, 2014 8:01 pm

    Does this mean you guys are officially homeowners? If so, congrats! I hated how much money was flying around then too. Did you break the lease on your rental or had you signed a short term lease?

    Don’t like how big your mortgage is that you want to make sure to reduce it?! 🙂 I’m a lot more comfortable with mine in the $100k range than I was with it in the $200k range and probably wouldn’t be paying it down very aggressively anymore if I didn’t have a 5/1 ARM.

    • September 1, 2014 8:13 pm

      Yes! We are, along with the bank 🙂

      We had a month-to-month rental, and actually got even better luck! When we gave our month notice (for a date ~3 weeks after we closed), they said they had to do some major bathroom renovations (leaks in the apt. below us) and we could leave when we wanted, with a refund of rent paid. We closed on a Friday and were 100% moved in by the following Thursday (mostly ’cause we were going out of town the next day). Well, all of our stuff was moved, but it was total chaos. 🙂 Two weeks worth of rent is not insignificant!

      Yeah, it is just too big for comfort. I mean, rent was big as well, but I had gotten used to it. I see it as risk mitigation. And I feel like we have our other bases covered for now.

      • September 1, 2014 8:33 pm

        Yay! Sounds like it worked out swimmingly then! What size of a mortgage do you think you would feel comfortable with?

        • September 4, 2014 2:29 pm

          Hmmm…. $50k? Hahaha. Something that would make the payment approx $1500?

          • September 5, 2014 4:14 pm

            Hahahaha $50k. That’ll take a while 😛

  2. September 20, 2014 10:06 am

    Hot damn, congratulations! I thought I was caught up but I guess I haven’t had time to look at more than one or two blogs in the past month and a half.

    I was just looking at our mortgage too and thinking, sigh, I don’t think I can start over with the prices that houses are right now and face THAT mortgage yet. But slow and steady!

    Can you tell me a bit more about the geotechnical inspection? I’d like to get my head around how that normally goes, in case I surprise us by saving enough to buy in the next few. And selfishly, I’m just kinda happy this means you’ll be around for a while 🙂

    • October 5, 2014 9:37 pm

      I believe his credentials were geologist, and he specializes in seismic / soil. He started inside the home and and made sure the floors were all level and looking for ceiling cracks. Then he went under the house and took a look at the foundation, tested the soil type. My description isn’t doing him justice – it was very thorough and detailed. He also did pre-work to research the site and give us maps of it.

      It was expensive ($400?), but we actually are in an area designated as potential for earthquake induced landslide zone – this was basically a deal breaker for me unless I could be assured there wasn’t really a risk to our home specifically. We are in a hilly area – this may not make sense in other areas, even if they are seismically active. If you do buy in the area and are earthquake paranoid, you will become familiar with the liquefaction maps, soil type maps, and landslide maps! Also, if we ever sell, it will be great to be able to share this information as part of the disclosures.

  3. Henrietta Schermeier permalink
    October 6, 2014 5:25 pm

    What is your current net worth (with the home)?

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