Net Worth Update: January 2009

It actually was a good month for the update that I just completed. Probably not so much after the stock market took a dive yesterday, but I ran the numbers on Wednesday morning.
I actually run my net worth on the 7th of the month. I know that’s odd but I have done it that way since I started tracking. The reason I started doing it that way was simple: I pay many major bills on the 1st of the month. The mortgage and credit card payments are the biggies. I always waited a couple of days after the 1st for everything to clear, because otherwise the credit card would show paid and the bank account would still show the money. I think that the 6th was the latest I ever saw it take to balance, so I just started doing it then.
ANYWAYS…..
The numbers were actually good this month. Our net worth increased 9.8% from December. I think the stock market rally really helped. As a result, our assets went up about 2.5%.
On the debt side, we reduced 0.35% of our debt. Not the best number but about average. I know that number will be lower this month. I decided to hold a little bit extra back into savings this month with the baby coming, so I’ll be making only one extra student loan payment instead of two.
Overall, this was a good thing to see. It was the first significantly postive net worth report since May 2008. That’s a long time. While the gain of 9% plus was nice to see, it’s tempered by the fact that the overall net worth is still down 33% from one year ago report. There’s still a lot of work to be done, but we’re on our way!

Copyright 2017 Original content authorized only to appear on Money Beagle. Please subscribe via RSS, follow me on Twitter, Facebook, or receive e-mail updates. Thank you for reading.

An Important Non Personal Finance Post

I wanted to take a moment away from the personal finance theme to send a great big hug to a very special woman in my life.
My mom has been undergoing treatment for breast cancer for over a year, and she completed her last scheduled treatment yesterday! It was great and I’m so proud of her, as I know everybody else is. I know it’s been tough and she’s gone through it with strength and resolve that I can’t even imagine.
I’m hoping and praying that the treatments worked and that it proves that she is cancer free. I know it takes a while to know that’s the case, but since they caught it at a very early stage (discovered at a routine checkup), the odds are definitely in her favor.
She’s so excited to be a grandma later this year once Baby Beagle comes along, and it’s great to think that she can hopefully have the treatments and all that out of the way as she enjoys her grandchild.
So, if any women reading this haven’t had their regular mammogram, it’s definitely time!
Copyright 2017 Original content authorized only to appear on Money Beagle. Please subscribe via RSS, follow me on Twitter, Facebook, or receive e-mail updates. Thank you for reading.

2009 Financial Goals

2009 is upon us and it is that time where we start setting out goals. This is the first time I’ve ever publicly stated goals for the entire year, so I may skip around a bit. I’ll try, though to keep it organized.
Balance Sheet Goals:

  • Property – My goals here assume that we pay our normal mortgage payment, which is in our control. The thing that is out of our control is that I’m assuming that our property value remains relatively stable. Hopefully the prices in our neighborhood don’t continue double digit percentage falls this year!
  • Autos – I am assuming that the overall value of our cars goes up, but that we take on a loan. This is assuming that we sell my car, and purchase a used automobile to accommodate the baby. Neither of our cars are very ‘family friendly’ I’m looking at getting something modest and taking on a very small loan, but it’d be nice to not have to take one at all!
  • Mutual Funds – With everything going on this year, we probably will not invest in non-retirement mutual funds. We do hold some, and I’m hoping for a 10% increase in the value, which would mean that the market recovers this year. Let’s keep our fingers crossed.
  • Long Term Savings – We hold cash reserves for emergency fund as well as bigger expenses we expect to pay for in the next several years. I’m hoping that this remains stable (i.e. no big emergencies)
  • Retirement – I’m hoping that the value of our retirement account goes up about 30% this year. That would follow the expected 10% market recovery this year, as well as several other things. First, I’m assuming that I will become fully vested in my company match 401(k), which should happen due to the company being sold last year. Second, I’m assuming that I can contribute 8-10% of my salary and realize the full 6% company match.

If we manage all this and things work out favorably in the market, this would increase our net worth by about 20% this year. This is what I was averaging in years past until the free fall in stock and real estate in 2007 and 2008. It’d be nice to get on the ‘right path’ again.
Personal Goals:

  • Continue my quest to level out our monthly expenses
  • Make a successful adjustment from a two-income household to a one-income household as my wife will not be working following the birth of our first child
  • Don’t freak out when the expenses hit for the baby! I took my first walk through of Babies R Us this week, which was my wife’s way of easing me into it!
  • Maximize our rewards for normal spending. We have a Citi Dividends card which pays us 2% for grocery and gas purchases, and 1% for everything else. We also signed up yesterday for our bank reward program, which gives points for using our debit card. I’d like to make sure we’re maximizing our rewards as the year goes on.
  • Reduce student loan payments by 30-40%. If we can hit this number, then the higher end loan that my wife has will be mostly paid off. This would be awesome!
  • Refinance the mortgage – We are currently paying 5.875% for a 30-year mortgage. This is a good rate, but I think that rates will be below 5% before long to where a re-finance might make sense. It’d be nice to reduce our interest obligation.
  • Begin saving for major house expenses – Our house is about 10 years old. I know that we’re getting a few years away from routine tasks that cost a good deal of money. I expect a new hot water system will be needed within 3 years, a new roof within 5 years, new windows within 7, a new furnace within 10, a new deck and driveway within 12 years. I’d like to begin saving for those now rather than figure out how to pay for them as they come up.

All in all, it will be a very interesting year with a lot of changes. I will look forward to updating throughout the year as well as looking back at the end of the year to see how we did.

Copyright 2017 Original content authorized only to appear on Money Beagle. Please subscribe via RSS, follow me on Twitter, Facebook, or receive e-mail updates. Thank you for reading.

I’m A Little Bit Less Of A Fan Of Amazon

I have always been a big fan of Amazon since the advent of online shopping. I’ve always thought that they had many great features that appealed to me. Some of the best features in my mind included:

  • Excellent pricing – I’ve always felt that they are very fair in price and have good deals
  • Order history – They keep ordering history of every purchase I’ve made. Many sites keep your history for only 12 months, if even that long. I’ve always been able to look back at previous purchases for reference.
  • Recommendations – Many sites have now built in features where you are recommended products based on your ordering history. Amazon was one of the first and I think still one of the best at it.

A few months ago, my list would have included one more thing that was key: 30-day price protection. Amazon guaranteed that if their price went down anytime within 30 days of your purchase, that you were eligible for a refund. You had to e-mail them the price you paid as well as the new price, and after checking it out, they would refund your credit card. I used this several times.
That was an excellent feature, but unfortunately they discontinued that as of September 1, 2008. I just found out about it today as I was going through and checking my prices, and discovered that the new policy had been instituted.
This is a huge letdown to me.
I can understand the business reason behind it. They were probably losing money by having to return part of the sales back to people. But, I still think that’s a big short sighted. Why?
Well, not everybody checks the prices to see if the price has dropped. There are sites such as PriceProtectr.com which automates this process for you (plug: it works with over 150 online retailers and is one of my favorite sites), but even so, my guess is that a very small percentage of people actually remember or take the time to check.
The people that do take the time are probably among the people that spend the most at Amazon. I feel that this decision might have turned away many loyal customers. Yes, Amazon might save money in avoiding refunds, but what if they lose all that plus more in sales because people gravitate to other e-commerce sites?
In other words, why take the risk of alienating your best customers?
Now, I won’t boycott Amazon and they’ll probably still get a majority of my online business. But, it’s just a bit of a letdown and a bit puzzling that one of my favorite shopping sites got rid of a great feature, and one that gave them a pretty big competitive advantage.

Copyright 2017 Original content authorized only to appear on Money Beagle. Please subscribe via RSS, follow me on Twitter, Facebook, or receive e-mail updates. Thank you for reading.