Friday, February 09, 2007
Thursday, February 01, 2007
Monday, January 22, 2007
Tuesday, January 16, 2007
Thursday, January 11, 2007
Net Worth Forecast for '07
As of today (January 11), my net worth has increased from the beginning of the month due to debt payments clearing, etc. I'm starting with a rough estimate of a net worth of $66,000, give or take a few hundred dollars (this is just an exercise!).
-$3495 auto loans
-$3456 mortgage principle reduction
-$4000 credit card balance reduction
Total liability reduction: -$10,951
$1550 ING emergency fund
$400 life insurance cash value increase
$7308 401k + company match
$2720 conservative estimated rate of return on 401k. This estimate is an 8% increase of its current value.
Total asset increase: $11,978
Total forecasted net worth increase: $22,929
This wold set my net worth at nearly $89,000, so I'd fall $11,000 short of my goal. This amount assumes a number of things:
1.) I won't get any sort of raise/bonus (which I'm supposed to get and if I don't I'll be looking for a new job).
2.) I'll only contribute $125 into my emergency account each month.
3.) A very conservative credit card reduction. After our cars are paid off this will be very aggressive.
4.) I will not hold several ebay auctions throughout the year to get rid of stuff I haven't used for years.
5.) The stock market will not be as bullish as a lot of investors are predicting.
I set my goal high so it would be a challenge. This is going to be an exciting year. Stay with me to see how it turns out!
Wednesday, January 10, 2007
December 2006 Net Worth Update
Labels: Net Worth
Thursday, January 04, 2007
Goal Outlook For the New Year
In order to reach a net worth of $100,000, I must depend a lot on the market return of my 401k. I'm sure most people with net worth goals depend on the market, so that wasn't supposed to come across as a naive comment! I'm contributing the David Bach recommended 10% of my gross income to my 401k already, and I hope to increase that to 11% by mid 2007, once some of our debts are paid off. That brings me to my next avenue of increasing net worth:
Pay our credit cards down by 50%. This will increase our net worth by a nice chunk, with the biggest chunk of debt to be knocked off in the final 2 months of the year, after our cars are paid off (which also increases our net worth because we won't any money on them anymore!). They're scheduled to be paid off in October, but there's a chance we might be able to pay them off a month or two ahead of time.
Contributing to my 401k and reducing our debts are the two biggest factors (the we are in control of) in increasing our net worth. Smaller factors include contributing to our emergency saving account and paying down the mortgage (with bi-weekly mortgage plan).
Setting up an additional account to use for "fun" stuff will be easy...I just have to do it! It's not the biggest priority right now because 1. we just bought a house and we've been buying a lot of stuff for furnishing and decorating, which falls into the "fun" basket (although I could think of things to do that way more fun than that), and 2. funding the emergency account and paying down debts are much more important.
All in all, I'm excited to start 2007 off with a bang, and I'm really looking forward to trying my best to reach my goals for the year!