Net Worth Review: November 2009

Last month was a pretty good month.

The biggest thing that happened, which drastically accounted for some shifting, was that I sold my old car and we purchased a newer SUV from my parents.  As a result, our cash holdings went down (which is OK, since I had earmarked money specifically for the purchase of a car) and our value of automobiles went up.  The value of the autos went up more than cash went because I had ‘written off’ a portion of the earmarked cash.  When I originally started saving, I thought we might possibly purchase a ‘new’ car, which usually sees a big chunk of depreciation the moment you drive it off the lot.

Assets:

  •  Property – Zillow estimated the price of our house to have fallen a few hundred dollars, but this is pretty much unchanged.
  • Autos – This went up significantly because the car we purchased is worth more than the car we sold.
  • Investment Accounts – The market was pretty choppy but ended up pretty flat.  Our investment holdings went up just under 1% in value.  Not a lot, but no complaints since up is better than down!
  • Cash – As mentioned, this dropped because of the purchase of a more expensive car.
  • Retirement – Our retirement account went up due to contributions plus the small market gains.

Debt:

  • Property – We made our standard mortgage payment
  • Student loans – Minimum payments here for the month as has been the usual lately.
  • Credit cards – We don’t carry a balance, so this is just what’s accrued on the card since we last paid the bill.  Because this varies and makes things look worse, I’m thinking of eliminating this, and tracking it by lowering our ‘cash’ by the amount we currently owe.  This would make for much smaller month-to-month swings
  • Auto – This stayed at zero as we were able to pay cash for the car.  That’s the first time I’ve ever been able to do so!  I do have to be honest, and admit that my parents did give us a ‘deal’ on the car, but either way, we had planned all along to pay cash for the car, and I’m very glad that we were able to meet this goal and avoid any new debt.

Overall, our net worth went up around 3.3% for the month.  We are at another new ‘All Time High’ when you remove the impact of the property (both on the asset and debt side).  We are also at an ‘All Time High’ for retirement savings.  Woo hoo!

I think I need to check my Excel formulas, because I would think that since I reduced the value of our asset, that the change in Net Worth Including Property should be lower than the Net Worth Excluding Property, but it’s the other way around.  Hmmmm……

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