April 2007 Net Worth - Slightly Drunk Edition
Posted on May 04, 2007 by Him and tagged net_worth
Working overtime stresses us both out. So we went to the dive bar about 47 steps away from our front door. We saw an old man...an old very drunk and very fat man...spectacularly fall the way only a fat and drunken man can. Some Samaritan hipsters helped him up. That was totally worth the $14.50 we spent on some beers.
| March 2007 | April 2007 | % Change | ||
|---|---|---|---|---|
| TOTAL NET WORTH | -$60,964.42 | -$59,903.97 | 1.7% | |
| TOTAL CHANGE FROM JAN 2006 | +$41,228.95 | |||
| TOTAL CHANGE IN 2007 (Goal of +$32,000) | +$10,883.97 | |||
| Assets | ||||
| Savings | $12,326.02 | $9,459.42 | -23.3% | |
| His SIMPLE IRA | $7,298.81 | $7,759.60 | 6.3% | |
| His Roth IRA | $6,369.30 | $6,616.65 | 3.9% | |
| His HSA | $683.94 | $291.57 | -57.4% | |
| Her 401K | $11,814.38 | $12,650.54 | 7.0% | |
| Her Roth IRA | $3,442.79 | $3,878.46 | 12.7% | |
| Automobile ? | $9,970.00 | $9,970.00 | +0.0% | |
| Household Items ? | $25,000.00 | $25,000.00 | 0.0% | |
| TOTAL ASSETS | $76,905.24 | $75,626.24 | 1.7% | |
| Liabilities | ||||
| Credit Card 1 (~0%) | $3,730.20 | $355.09 | -90.5% | |
| Credit Card 2 (Rewards) | $1,381.52 | $2,681.96 | 94.1 | |
| Student Loans | $132,757.94 | $132,493.16 | -0.2% | |
| TOTAL LIABILITIES | $137,869.66 | $135,530.21 | -1.7% | |
This month was WEAK. We decided to liquidate a chunk of our savings in order to put a BITCHSLAP on the credit card debt. We'll knock the rest out when (if?!?!?) I get a summer bonus. IT'S TOTALLY WHEN AND NOT IF.
I am going to attribute our WEAK showing to a few factors. (1) I used the rewards card for a business trip. I am owed more than a thousand George Washingtons from my employer. (2) FOGO DE CHAO. Like I said in an earlier post, I SHOULD JUST EAT MY PAYCHECKS LOL. (3) I'm still paying for my BIONIC KNEE. (4) We paid the entire year's balance ($$DOLLAZ$$) for our renters and auto insurance. (5) Other reimbursable (GIMME DAT MONEYS BACK) medical expenses.
The month of May will be interesting. I will go back to being stressed and listening to Feist.
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I had to google GAAP to even know what you were talking about (FYI: Generally Accepted Accounting Principles) - we're not accountants nor are we in the financial fields.
That said, we're not really worried about the exact dollar amounts. This net worth thing, to us, is an exercise in learning. In the future, maybe we'll download some fancy accounting template for excel.
We insist on including the household items mainly now as a psychological boost. We've stated that in a few different ways in a few different posts. I'm pretty certain that in the future that item will be taken out.
I mean, looking at the post, do you really expect us to take all of this very seriously?
Kevin | May 5, 2007
Does it really make sense to pay off a credit card that's charging you 0%?
Why not employ a little "financial arbitrage" and invest the money elsewhere? Even a basic money market account will give you around 5%.
I know this may sound crazy, but I actually prefer to have credit card balances at ultra-low interest rates. When I'm tempted to buy something, I just remember all the debt I have, and the feeling goes away.
Yes, I'm 33 years old with almost $300k in debt (primarily fixed-rate mortgage), but I also have close to $800k in assets.
I'd rather continually add to the asset column of my personal balance sheet and pay the absolute minimums on my credit cards. I know it flies in the face of convential wisdom, but it's worked for me.
I think you guys are doing great. Your net worth increased by a grand in April, even without adding the money that your boss owes you. And it will all balance out sooner or later - next month your net worth will go up even more when you get reimbursed.
LH2004 | May 6, 2007
Of course you shouldn't take it seriously. The point is, this was actually a pretty successful month for you, but the accounting methods that you've chosen to follow aren't letting you see that. Maybe you could choose to be ultra-conservative to increase your motivation or something, but, in this case, you're ignoring a perfectly good asset, which is causing you to reach the wrong conclusion -- which, I fear, will weaken your resolve. Fogo de Chao was a minor setback; you shouldn't think of it as having seriously set you back (though you should, of course, try to prevent similar losses in the future).
debbie | May 6, 2007
I don't see the humor in a drunk, fat man falling down...very sad that this made the "humor" section of your blog as I used to enjoy it. I see you in a different light now. I think it's time for me to unsubscribe.
LH2004 - I didn't look at it that way. You're right - we're shortchanging ourselves. As Frugal Babe said though, it'll all balance out in the end. Thanks for the clarification.
I think listening to Feist fixes most things.
(Also, I think the most important issue in accounting systems is consistency.)
That's funny, I thought the exact same thing as LH. The grand owed to you by your employer is an asset. I wouldn't go creating another category, but just for ballpark figures, add it into your savings number. This month was better than it appeared.
MVP | May 7, 2007
I agree with debbie: old, drunk, fat man falling down = not funny. Imagine if that was someone you loved.
LOL, I like this post. You're still making progress. I wonder if people can pick out my posts which were unofficially "slightly drunk" editions.
An old, fat man has every right to get drunk in a bar if he wishes. So does a young, skinny man. Nobody said he was an alcoholic, homeless, poor, in need of pity, or any other assumption one might make.
Gary | May 20, 2007
You said that this month was weak. You guys are week. I understand the extra thousand for a business trip. I was impressed at first when I noticed you paid off $3400 on your credit card. Then I noticed you actually took $3000 out of saving to pay off said credit card. YOU DIDN'T PAY ANY EXTRA ON THE CARD OUTSIDE OF THAT!!??? You should have used the savings to pay the entire card off, and then cut the sucker up. Making what you do you should have that money back into your savings in a month and a half. Get some nuts. Be responsible. Be a man. Pay off your debt so you can support your future bride. Do you really want to be paying this stuff off 10 years from now?
Gary | May 20, 2007
Between my wife and I, we make $20,000 less than them, and our net worth grows by $3000 every month, cause that is how much we use to pay off debt. They are doing quite poorly at debt reduction!
Gary,
If you didn't notice, the card that we paid off the $3000 is at 0%, and we have to make two (small) purchases a month to keep it at that rate. Because it is at such a low rate, we have chosen to pay that off at our leisure. Other people wonder why we even bother to pay it off at an accelerated rate.
If you took the time to actually read a little into our archives, we only use one rewards credit card for expenses that we would normally incur as a result of our everyday living; the card is paid off every month.
Also, my future bride does not need any "taking care of." To say that implies that she can't pull her weight, financial or otherwise, in our relationship. We're equals.
Gary | May 23, 2007
Him,
I can appreciate that your bride does not need to be taken care of. I appologize if I insinuated otherwise.
If you can pay the card off each month, why not make your purchases in cash? If, god forbid, you had an accident or emergency and couldn't pay back on the card, it may become a hardship. Cash does not create that.
I did notice that your credit card was at 0%. How do credit card companies stay in business not collecting any insurance? They will get you with fees, and may raise the rate on you.
You have the ability to pay it back. You seem successful. You seem intellegent. Do you really feel that it is right to not pay back money that is lent to you, even when you have the means to pay it back?
NP | May 23, 2007
Gary, you should stop bashing the use of credit cards, especially those at 0% - this is simply a smart way to deal with everyday purchases and even make some extra money. We get tons of rewards (hotels and flights, as well as cashback), and I actually make more than a $1000 a year using 0% credit cards - i make use of promotional offers and stash money in a bank to grow at 5-6% a year. If done carefully (and don't assume people are stupid), credit card companies will not get a penny off you. It is true they survive on fees due to slip-ups, but I can pay entire balance any day if I choose to (but I like them better sitting at 6%). I see nothing wrong with having credit card balances if it helps you to save money someplace else - say, pay you higher interest loans first, or outright make money on 0% offers. It is not a good tool for people who cannot be responsible, but don't assume that about everybody. Advice to cut every piece of plastic up is simply not very smart in the modern world.
Gary | May 24, 2007
I'm impressed that you use your cards so wisely. I do actually have a card. 1 card with a low balance. It was nice to have when I went overseas because there were no added fees on the exchange rates. I have used in once in the past two years. Haven't made a $1000 a year on it either. Course, to do that you'd have to spend 50K a year if you have one of the good cards that pays 2%.
I have found that in order to reduce debt it is important to live on a budget. Getting away from using credit cards, which are so easy to use, was the best thing ever at not going over my budget. When the cash runs out, so does my extra fun for the month.
Sorry, I don't need to assume that so many people are stupid, the credit card companies make enough money to say that for me. So do all of the credit counceling businesses that have popped up over the past few year, coincidently, when the card companies started offering all of the rewards.
Val | Sep 26, 2007
I would have laughed too. Even if(especially) it was a friend of mine. Now when someone falls and needs medical attention, it's not funny. Drunk falling = usually funny. That doesn't make ANYONE a bad person. Comments on this post tend to run towards the negative---do people just read blogs to find things to criticize? I read them to see how others deal with situations that may be similar to mine. Bloggers are people (not authority on the subjects).
LH2004 | May 4, 2007
Let me get this straight: you insist on including your household items as an asset, but don't bother including your receivable from your employer, which is a perfectly valid GAAP asset?
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