May was a pretty good month. Here is the overview. See below for a brief discussion on each area:
Property –I use a combination of Zillow and CyberHomes. I make a small adjustment based on what I’m seeing things sell for, and I remove 7.75% for expected selling costs. For the month, the value continued the downward trend. You can see that it fell 2.4% for the month, and has fallen 13.2% over the last year.
Autos – The value of our two cars has held pretty steady the last couple of months as the used car market has heated up.
Investment Accounts – We had a good month, going up slightly under 9%. Still for the last 12 months, our investment account balance is down 38.84%
Cash Accounts – We slightly raised our balance for the month, but have bolstered up our cash over the last year, just to make sure we’re covered after my wife quit her job in anticipation of our baby.
Retirement Accounts – Our retirement account went up almost 9%. The total value is down roughly 19% over the past year. This would have been more, but my employer matched a good portion of my retirement contributions. Unfortunately, that is coming to an end starting this month as they’ve discontinued the match.
Mortgage – Nothing special, just the monthly payment. Our mortgage is a 30-year loan at 5.875%
Car Loans – We paid off our car just under a year ago and we have no outstanding car loans!
Credit Cards – This is the balance that’s accrued since the last statement. We pay our credit cards off every month. We’ve charged more than normal this month as we had some stuff to finish off for the arrival of the baby. We have cash earmarked to make that payment which will keep our monthly budget in line.
Student Loan 1 – This is the loan that had a higher balance and a higher interest rate. After paying the car loan off, we concentrated our debt payment on this loan. We’ve paid 57% of the balance from a year ago. The pace slowed now that my wife isn’t bringing home a paycheck.
Student Loan 2 – This is the second loan but it is at a very low interest rate. We make the minimum payments on this loan. After Student Loan 1 is paid off, we’ll have to decide whether to snowball the payments toward this loan, or switch to something else (such as the mortgage, investing, or adding even more to our retirement)
Overall, our net worth went up a modest 3% for the month, and is down 31% from a year ago. However, I also calculate this without the effect of our property. The reason for this is because I feel that gives a more accurate reading of how we’re doing in the short term. Plus, real estate is the thing that’s the most out of our control. With that calculation, we had a nice month with a 7.5% gain, but still down 13.5% for the last twelve months.
I think it was a good month. I’m extremely happy with how we’re transitioning into a single-paycheck household. Although the debt payment will slow now that we’re down to the single income, I still think we have made great strides and feel confident with where we’re at.