Monthly Review 

Financial Monthly Review (May ‘05)

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May was a pretty big month as it included a huge asset added onto my books – my new home. Thank you to everyone who gave me suggestions and helped me avoid many of the pitfalls of purchasing a home and hopefully, for those of you who haven’t taken the plunge, some of the articles I’ve written and some of the comments many have left will help you in your journey. Since I haven’t moved in and am currently doing a rent-back, my expenditures haven’t increased to reflect the fat mortgage payment because I don’t think it’s necessary to show it yet. As for everything else, it’s out in the open for you all to read and pick at. 🙂

Monthly Spending Review:

Spending April Budget
Rent $535 $535
Utilities $158.40 $150
Meals $118.90 $200
Groceries $161.17 $200
Clothes $0 $20
Cleaning $0 $30
Automotive $0 $50
Transportation/Gas $106.43 $200
Recreation $158.00 $285
Other $30 85


Overall it was a very lean month because I anticipated my home purchase. I lowered my meal expenditure and upped my grocery spending (targets remained the same), which is a trend I hope to continue. Utilities, which include my cell phone bill and EZ-Pass bill, was tolerably over limits. Nothing else is of notable interest really.

Assets and Liabilities:

Liquid Assets: $2,384.18 (-$18,169.52/ -88%, versus historic +9%)
Retirement Assets: $47,057.96 ( $3,390.63 / +7.76%)

  • 401K – $31,414.10
  • Roth IRA – $15,643.86

2003 Toyota Celica: $15,285 (KBB Private Party value)
Student Loans: $24,348.77

  • Federal Stafford Loan (3.12% var) – $7,388.88
  • Consolidated Loan (3.25% fixed) – $17,033.00

Revolving Credit Card Debt: $0.00

My liquid assets took an expected nose-dive when I made a downpayment on the home. With the help of my parents, we were able to put down 10% and we’ll be paying down a majority of the second 10% mortgage too (we didn’t have enough to put down the full 20%).

I’ve begun the process of consolidating my final Federal Stafford Loan into the consolidated loan and locking in a good fixed rate. The current new Consolidated Loan rate reflects a .25% rate discount for direct payment from a checking account.

My Roth account had a very good month. I bought and sold AirTran Holdings (basically AirTran Airlines) in the period (which still is going on now) when it moved from around $8 to $10. I also hold a position in one of GM’s bonds which has appreciated quite a bit in the last two weeks. The 401k also performed admirably well with the recent gains made by the stock market that has made everyone very very happy.

Net Worth:

I wish I could calculate this without the inclusion of the gift from my parents for the downpayment on the home, but the numbers become very confusing if I remove it because it’s integrated with the debt numbers. I also do not include the car because it was also a pseudo-gift. Anyway, after gross calculations, my net worth (with help) is:


Any comments?

{ 13 comments, please add your thoughts now! }

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13 Responses to “Financial Monthly Review (May ‘05)”

  1. blogreader says:

    Congrats on making the largest purchase of your life (so far). You did a great job of documenting your experience and I’m sure it’ll be useful for those who have yet to achieve that milestone. It’s also neat to see your monthly financial position and how much your purchase had an effect on your savings. I’m sure it wasn’t easy to hand over that 88%, but it definitely was the best of causes. Speaking of the house, would you consider posting pics sometime? Also, would you considering tallying up your net worth on a monthly basis? It’s only calculated as the difference between Assets & Liabilities and is an easy way to measure your progress.

  2. jim says:

    Pics are available here (Flickr).

    Once I get all the mortgage stuff sorted out (it’s sitting at home), I’ll try to update net worth. Thanks for the suggestion and the positive comments.

  3. FMF says:

    Do you post your net worth? If so, let me know and I can add it to my post on net worth of financial bloggers at\_worth\_of\_fi.html.

  4. bob says:

    how did you get 31K in 401K? how long have you been working?

  5. jim says:

    I’ve been working for almost two years and I’ve maxxed out my contribution both years. Actually technically I maxxed out the first year in in six months (I started work in June), and then again the following year, and am on my way this year. I also get 3% match on 6% contribution and my 401k appreciated 8% in the first six months and then 10% for 2004. It hasn’t performed nearly as well this year though.

  6. bob says:

    wow that is great! congrats.

  7. jim says:

    Thank you but it’s my parents who deserve the kudos. Without them, I probably wouldn’t have the education or financial jumpstart they’ve provided me.

  8. Jose says:

    Gifts are part of your networth.
    As the gifts you will give your children when they buy their first home will be part of theirs.

    However, I understand the feeling. I accepted a loan from my mom when I bought my first home. Payed it off in two years. I didn’t wanted to accept a gift.

    Money and Investing

  9. FMF says:

    Just added you to my list (link). 😉

  10. FMF says:

    Nice pics. I especially like the “using” the bathroom one. 😉

  11. jim says:

    Crap, now you know what I look like. 🙂

    Wow, what a bad pun.

  12. King Asa says:

    How do you calculate net worth? I assume there is more involved than the assets and liabilities you have listed here?

  13. jim says:

    Yeah, the difference is in equity on the home – part of that is the cash from my liquid assets (the $18,000 drop) and part of that is from a gift from my parents. I would take that net worth with a grain of salt because I don’t know how the numbers are going to shake out ultimately. Plus, I only added it in because FMF asked for it otherwise I don’t see it as very meaningful because I did receive gift funds from my parents for the house.

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