Saturday, April 01, 2006

April 2006 networth update


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Here's my networth update for April 2006.
I will summarize March 2006 and project for the month of April.

Below is my networth chat for March 31, 2006.


The biggest changes are as follows:

  1. Monthly investment savings which had been occurring through January may be delayed until January to rebuild my operating cash reserve $25k and my cash reserve.
  2. Tax liability - I've learned that I'll owe NC income tax and be owed by the federal government. Since the federal exceeds NC, I've put it as a negative amount in the liability side; i.e. ($.00). I need to learn more about what federal deductions don't carry over to NC. One big deduction is the state income tax deduction itself. Your state taxes don't give you a discount for what you pay them. Unfortunately NC has very high income taxes 8.25%. Oddly our rural part of the state doesn't seem to get much for it.
  3. Once again, the credit card liability is a temporary amount that is paid off about every two weeks. I don't charges for more than a month, but because I put everything on it, there's always a balance. I'm almost never charged interest.

Projections for April:

  1. Prepaid expenses for the new house will kick in and lower our cash (est. $5,500)
  2. Movinge expenses for the new house will occur (est. $4,500)
  3. Housing set-up expenses ($3,000)
  4. Income tax payment to NC ($2,800)
  5. Continuing education classes paid either April or May ($3,000)

All in all a pretty heavy cash hit for April, most of which will decrease rather than increase our networth. How depressing.

Long shot possibilities:

  1. Conversion of Variable Insurance - penalties for liquidation ($10,000)
  2. Increased business income ($2,000)

Networth IQ

I'm updating my networth IQ information simultaneously. You can find it here.

Request for comments

  1. Any changes you recommend?
  2. Is the networth table helpful?
  3. What other information should I add to the May 2006 report?

Have a great Saturday,

Making Our Way

4 comments:

John said...

Those are some great gains. Good luck on making your 2006 goal! We'll be watching...

makingourway said...

John,

Thanks alot!

Next month's networth update will be pretty Rocky. I anticipate about:
$11k increase in real estate assets
$2.8k in debt reduction and who $1.6k investment performance, (wild guess)
$0.4k interest
for a total of $15.8k upside.

Now here's the downside:
$11.75k house construction related expenses
$4k moving expenses
$1k unexpected expenses
$3.5k income tax owed
for a total of $19k downside

That puts me at ($3.2) down overall.

May should be a decent month. Of course I could have LOTS more new expenses for the house, but I'm praying it will remain under control. May should be a chance to recover and save a little. The recovery will show up in the June 1st networth update.

Have a great Sunday,
Making Our Way

Madame X said...

Hi, just found your site after reading the interesting anchovy recipe on AllFinancialMatters.
Just curious about the $70k in personal property you include in your net worth-- I"m always interested to know what kind of property people consider assets and how they value it. Can you share any details?
thanks!

makingourway said...

Madame X,

The $70k in additional assets is a conservative valuation of a number of easily liquidated things:

a. collectibles
b. certainly easily liquidated personal posessions
c. jewelry
d. bonds not listed in our investment category
e. currency
f. personal loans outstanding (what people owe me)

Hope that helps.

Have a great Sunday,

makingourway