January 2006 Net Worth Update

I’m excited to post this January 2006 net worth update because it is the start of a brand New Year — and this will become our first FULL year of working!  Having just graduated in May, last year only included 1/2 year of full-time work.  As a self-proclaimed data nerd, it will be nice to have a complete year worth of information to analyze at the end of 2006.

But maybe I’m getting ahead of myself.  It’s only January, after all.  There are several months to go before I can really dive into things.

Largest monthly $$$ increase ever!

Our first Net Worth Update statement for 2006 continues the positive streak!  For the 8th straight month we have been able to record a monthly GAIN to our net worth. As of the end of January 2006, our net worth has increased by $6,823 to a new total of $69,259.  

In addition to being an all-time high for our net worth, this is also the largest monthly increase that we’ve ever seen, in dollar terms.  The previous high was back in September, when we gained $5,464 during the month.

FI Champion's Net Worth Update for January 2006

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

Noteworthy highlights for the January 2006 update:

  • I contributed a large amount into our Roth IRA accounts, to the tune of $2,600. Normally I would spread the contributions throughout the year, but since we had some extra money available, I decided to put it to use in this retirement account sooner rather than later.
  • The stock market was off to a good start in 2006.  The 2% boost further helped to increase the value of our Roth IRA, 401(k), and Taxable Brokerage Accounts.
  • I moved over $8,000 out of our Vanguard Money Market accounts in order to pay off one of our 0% credit cards.  This is the reason for the significant drop in value of our Taxable Brokerage Accounts for the month.  The money has always been earmarked for paying off the credit card.
  • Although I paid off one of the 0% cards in its entirety, we continue to utilize another credit card with the same type of offer.  Each month I take the money earmarked for paying our credit card bill and instead, put that money into the Vanguard Money Market funds.  The credit card we’re using has a 0% interest rate being charged to the monthly balance.  We’ll earn interest on the money kept at Vanguard while paying no interest or fees to the credit card companies.  I consider it “free money” so we will keep it up as long as they let us!  But at any time we can “write a check” and pay it off though.  This is the reason for the increase in our credit card liability for the month.
  • Since I paid our January mortgage payment early, on December 30, there was no other payment required for the month.  As a result, our mortgage balance owed remained the same.  We will pick back up with the regular payment schedule in February.

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