Net Worth & Finance Updates
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. 🙂