• January 2007 Net Worth – Two Negatives Make A Positive

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     December 2006January 2007% Change
    TOTAL NET WORTH-$70,787.94-$66,274.276.4%
    TOTAL CHANGE FROM JAN 2006+$32,341.1232.8%
    Assets
    Savings$15,330.33$9,387.56-38.8%
    His SIMPLE IRA$5,851.56$6,670.0814.0%
    His Roth IRA$6,470.53$6,455.70-0.2%
    His HSA$1,030.93$557.76-49.9%
    Her 401K$9,531.94$10,605.5711.3%
    Her Roth IRA$1,695.85$2,732.9461.2%
    Automobile ?$10,045.00$10,080.000.3%
    Household Items ?$25,000.00$25,000.000.0%
    TOTAL ASSETS$75,518.14$71,489.61-5.3%
    Liabilities
    Credit Cards$11,560.40$4,276.06-63.0%
    Student Loans$133,931.93$133,487.82-0.3%
    TOTAL LIABILITIES$145,492.33$137,763.88-5.3%

    Bears lost. Boooooooooo.

    This months was a crazy month for us in terms of moving money around. We were motivated this month by making progress on our 2007 financial goals. In summary, we had a net decrease in assets in order to get a large decrease in liabilities, thus giving us a nice increase in net worth this month. Some of the details:

    Much of our increase in assets is attributed to our retirement funds. First, we decided to start contributing to our Roth IRAs – much of this month’s increase is due to gift money and an unexpected settlement that Her received (I’m sure she’ll write about that later). Second, the reinvested dividends from our mutual funds combined with rising NAVs for those mutual funds all provided a healthy rise the values in those accounts.

    We’ve rid ourselves of the cash and upromise categories, and haven’t added those values back in anywhere. It’s nice to know that those categories don’t really amount to much.

    Of course, the main increase in net worth comes from the decrease of our credit card balances, at the cost of a large chunk of our savings. Because of that action, we’ve managed to get both of our bad debt ratios to under 15%. All we have is one card that has a 0% rate for the life of the card, provided we make two purchases a month on that card. We’re going to pay off the card by the end of the year, so the interest on a few packs of gum is negligable.

    So far, 2007 has been a pretty good year.

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