June was our first month in our new
home apartment with our new jobs, our new budget, and our first paychecks! Did I mention we bought a duplex last week too? There were so many activities involved for each of those items above, in addition to getting settled in our new city, that we did not have much free time for anything else! I guess we did squeeze in a baseball game or two.
Even after all of that, I am really pleased to report our first GAIN to our net worth! At the end of June 2005, our net worth increased by $3,727 to a new total of $37,900. That’s a healthy 10.9% increase in one month’s time.
Noteworthy highlights for the June 2005 update:
- Our Cash & Savings as well as Taxable Brokerage Accounts saw big drops because of money used for the down-payment on our new duplex. In total we put 20% down, which was $37,000. But in addition to our down-payment, we also had several “one-time” fees associated with the purchase, such as inspections and closing costs.
- I have added a line-item for “House #1 – Primary & Rental” under the Assets heading. This represents the value of our new duplex. We know the current value because of an appraisal done during the purchase process, which should validate the number as reasonably accurate. I do not intend to update this every month, but will consider doing it yearly.
- I have also added a line-item for “House #1 Mortgage” under the Liabilities heading. This will contain the amount owed on the bank loan for our first property. The loan terms are 5.5% over 30-years. We will make regular, monthly payments for this loan.
- No payments were made on our student loans or the general loan during the month. The student loan is still in the process of getting settled after we performed a consolidation. I expect payments to start getting deducted automatically in the upcoming months.
- Depositing our first paychecks felt good…..really good! After 4-years of college, earning minimal income, it was very nice to see that hard work rewarded in this way. Our gross income was $6,608.86 and from that, the net income deposited was $4,713.51. Those taxes… Wow! Ouch! Federal, State, local, medicare, and social security withholding sure adds up fast!
- My fiance did not start working until the middle of June, so her overall monthly check was lower than what it should be normally. Our overall income will be higher for July since we both will be working full-time the entire month.
- We received some very generous cash gifts from grandparents, parents, and other family and friends as a result of our college graduation. They were deposited into our bank accounts, which will be reflected in Cash & Savings.
- Since buying the duplex was the big activity of the month, no new investments were made in our Taxable Brokerage Accounts or Roth IRA accounts.
Overall it was great month and a great start for us. We have 31 days until the next update. I expect to make adjustments to our budget and start laying the foundation for better habits of savings and investing during this time.