Tuesday, February 1, 2011

February Net Worth Update

Here's this month's summary explanation:

403(b): (+2356.90) I recently updated my 403(b) contributions from $100/pay period to $125/pay period. You'll notice that the $4300+ listed next to this account is more than double what I posted last month. Well, I finally got around to accessing my account. When I first started my current job, I received an email (which I didn't print; nor did I receive any mailed copies) of my customer ID. This ID number allowed me to access my account to view my balance, change asset allocation, and a bunch of other stuff related to employer sponsored retirement accounts. Unfortunately, since receiving that email, my work computer crashed and my laptop was later stolen. And I hadn't backed up a single thing. 

At any rate, I finally got around to calling my plan's sponsor to retrieve my customer ID. Now, I have access to my account and can see all the money I (and my employer :>) have been contributing. By the way, my job contributes up to 4% of my salary to my account, and I'm making sure to get every last penny of it!

Emergency Savings: (+111.57) I'm still not contributing funds to this account on a regular basis. However, I moved $111.17 into this account from my Bank of America savings account because I earn a higher interest in this account...and I didn't have any plans for the excess. I earned $0.40 in interest this past month (versus the typical $0.01 from BofA).

Regular Brokerage Account and Roth IRA: (+117.07) The increases in these accounts are attributed to market increases (i.e. the value of my investments increased). Starting February 4th, every two weeks I will deposit $25 to the Roth IRA. It's not much, but I figured I could cut out some frivolous spending for something of more value. I can't wait to supercharge these deposits!

Savings Account: (-24.87...and other deposits through January) I deposit $25 plus any money left in my checking account at the end of a pay period into this [BofA] savings account each month (I like to match my pay checks with "expense periods," a sort of personal billing cycle). I previously mentioned that I moved some "excess funds" from this account into my emergency fund.

Car Loan: (+300.96) I'm chugging along with eliminating this debt. I'm halfway through paying off this account in 18 months. Had I stuck with the assigned payment amount, I would be halfway through my debt in 31 months.

Credit Card: (+433.33) I paid off the previous balance using funds set aside for my super-duper car payment (just as I suspected). Hooray for no credit card interest charges. Boo for compromising the debt reduction plan for the car. I intend to pay off the current small balance with funds in my checking account and BofA savings.

Student Loan: (+98.26) Hooray for a principal reduction of ninety-eight bucks (sarcasm). I can't wait to unload this sucker, too!

Considering that my liabilities are close to 3.5 times more than my assets is a bit discouraging. At the same time, it's a reminder that I need to work harder to improve my financial situation.  

What do you think is an appropriate balance between assets and liabilities?

No comments:

Post a Comment