August 2005 Net Worth Update

It feels like Summer is coming to a close.  Normally at this time of year we would be sitting in our first classes of the new semester.  Instead, we have our 9-to-5 jobs to attend.  We’re a little sad — well, bittersweet is probably the better description.  We miss seeing familiar faces of friends and enjoying life in college.  But we don’t miss reports, projects, and homework!  I guess working at our jobs and earning a nice paycheck is a worthy trade off.

Once again we have been able to record a GAIN to our net worth! As of the end of August 2005, our net worth has increased by $5,228 to a new total of $47,189.  In terms of dollars and percentage, this is a new “increase” record for us.  We are quickly approaching the $50,000 net worth level too. 

FI Champion's Net Worth Update for August 2005

(View details and definitions for all line-items in our monthly Net Worth Updates)

Noteworthy highlights for the August 2005 update:

  • My wife was able to setup and begin contributions to her company’s 401k account this month.  As such, I have added a new line-item for “401(k)” under the Assets heading above.  For now this will just be my wife’s account value.  Eventually, when I am allowed to start my 401k plan at work, we will include my account value too.
  • I am taking advantage of a 0% interest and 0% balance transfer credit card offer that came in the mail.  No interest will accumulate and only minimum payments are due for the next 12 months.  I was able to write a check and deposit it directly in our Vanguard taxable brokerage account.  For this reason, there is a bump up for that account as well as an increase in our credit card liabilities.  I will let the money sit in a money market account and earn interest over the next year.  Since it is a money market account, this ensures almost no risk to losing the money.
  • Even with our new 401k account and subsequent contributions, we made sure to contribute a little to each of our Roth IRA accounts.
  • We made our first official mortgage payment on 8/1/2015.  The total payment to the bank came to $1,047.94.  Of this amount, $735.94 went towards interest, $207.61 went towards property taxes (to be held in an escrow account until December), and only $104.39 went towards lowering the principal balance.  Only $147,895.61 left to pay off now.  I expect to keep paying this minimum amount for at least another year.  But at some point I may increase the payments so we can pay down the loan balance faster.

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