2million - My Journey to Financial Freedom

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Tuesday, September 05, 2006

August 2006 Net Worth Update (+$18,689)

What a month! Investments faired well, I vested in my pension, and I made the most frivolous purchase of my lifetime as a sign of commitment to my fiancee. In the end I added $18,689 to my net worth ($1,261 excluding my vested pension adjustment).

Assets

Jul-06

Aug-06

Change

%

Cash & Savings

$ 27,067.54

$ 23,023.25

$ (4,044.29)

-14.9%

Taxable Brokerage Accts

$ 45,085

$ 49,046

$ 3,961.20

8.79%

Roth IRA

$ 25,492.22

$ 25,971.75

$ 479.53

1.88%

Pre-tax Retirement Accts

$ 84,665.71

$ 103,113.80

$ 18,448.09

21.79%

Stock Option

 

$ -

$ -

 

ESPP

$ 34,032.20

$ 37,579.40

$ 3,547.20

10.42%

House #1 - Rental

$ 160,000.00

$ 160,000.00

$ -

 

House #2 - Primary

$ 128,225.00

$ 128,225.00

$ -

 

Receivable (Payable)

$ 300.00

$ 300.00

$ -

 

Other Assets

 

$ -

$ -

 

Total Assets

$ 504,867.18

$ 527,258.91

$ 22,391.73

4.44%

Liabilities

 

 

$ -

 

Credit Card Balances

$ (27,954.08)

$ (31,656.46)

$ (3,702.38)

13.24%

House #1 Mortgages

$ (117,848.88)

$ (117,848.88)

$ -

0.00%

House #2 Mortgages

$ (103,900.21)

$ (103,900.21)

$ -

0.00%

Rental Deposits

$ (600.00)

$ (600.00)

$ -

0.00%

Additional Tax Liability

 

$ -

$ -

 

Other Liabilities

 

 

$ -

 

Total Liabilities

$ (250,303.17)

$ (254,005.55)

$ (3,702.38)

1.48%

Net Worth

$ 254,564.01

$ 273,253.36

$ 18,689.35

7.34%



Highlights for August
  • All credit card debt (except current month's purchases) is in the form of 0% APR balance transfers earning interest in my savings accounts.

  • I have modified the "401k" asset line item on my net worth statement to "Pre-tax Retirement Accounts" to include both my 401(k) and cash balance pension value.

  • I bought an engagement ring (part 1, part 2) which took a serious hit to my net worth, but was negated by my pension vesting.

  • I vested in my pension adding $17,406 to my pre-tax retirement accounts.

  • I experienced another strong month in my taxable brokerage accounts, mostly from a rise in my Pfizer and Merck investments.

  • I bought the last of the airline tickets for my temporary assignment; I hope for the rest of the year my monthly expenses will be more inline with the 1st half of the year.

  • I am now officially cash poor. I have purchased a new property and an engagement ring in the past couple of months and my focus for the rest of the year will be to retain as much cash as possible.

  • I have challenged myself by spending so much cash this year; if I can get through the next year (read wedding expenses) and build some cash to replace my emergency fund I will be very happy. I recognize that building my cash position for future opportunities will be a gigantic challenge. I plan to discuss this more in future posts.


Additional Stock Investments for August (Outside of 401k & ESPP):
$50 in Pfizer DRIP

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