Net Worth Update #6: July 2019
Hello FOGA Readers! Welcome to Net Worth Update #6: July 2019. July was a good month. Not as good as June, but still good. 🙂
For anyone who is not aware, your net worth is your total assets minus your total liabilities. Also known as everything you own of value minus everything you owe.
I don’t put our specific income into this, but I am sure you will be able to tell the good months from the bad ones. I get paid twice a month if I have closings. If I don’t, I do not get paid. It tends to make things interesting around here.
Mr. FOGA has regular bi-weekly paychecks, so that keeps us afloat on my bad months.
Of course, there is not always going to be a lot of change with some of the sections here (like our house), but it will be helpful to see the fluctuations overall.
So without further ado, let’s get into Net Worth Update #6!
Assets
Home- $254,000
The usual stuff: I don’t consider our home to be an investment. We live here, and that’s all. However, it does it have a value, so I’ve added that as part of our net worth. Not to mention, since we have to include the mortgage, we might as well note the value of the home. Otherwise, our net worth is incredibly negative, and that’s no fun.
Our home is worth $279,400 according to Realtor.com but the appraisal we got when we refinanced our home put it at $254,000. We plan to use the lower number until we see a comparable home sell in the neighborhood.
The two homes from last month are now pending. Hooray!!! I am waiting for them to close to see where our house would be valued now. Another home also went on the market in the same size range. There are five total homes on the market in my neighborhood, which is strange. The community is only about three-four years old. We’ve been in our home for two years. I guess we’ll see how this goes.
Investments- $91,156.85
We had a goal for July to max out our IRAs. Spoiler alert: We did it!!! 😀
Now we focus on maxing out the emergency fund.
Both of our 401Ks did okay. Higher than last month, so I cannot complain.
I am over halfway to maxing out my 401K for 2019! 😀 Mr. FOGA is contributing 8% for the time being. He finally got a paycheck with his new salary, so after August we may look into increasing this.
The IULs are back to going up. Starting to think I misread it. I am going to be meeting with these guys in August. We try to meet up once per year.
Emergency Fund- $26,500
Ally has been doing well; I am pleased with this savings account. We have earned nearly $230 so far this year in interest in this account. That’s 15.3 books at $15 each or $38.3 lattes at $6 each. If you don’t have a high-interest savings account, you should definitely get one.
The new goal is to get this account to $30,000 by the end of the year. It’s achievable, and we were hoping to hit that number by the end of October. Now, it looks like I may happen in August! Hooray!!!
We added $3166.30 to our emergency fund, and we earned $41.30 in interest. Interest is less this month since Ally has reduced its interest rate.
Savings- $2600.02
Here is where we keep the rest of our savings. This savings account is essentially an immediate emergency fund. If something comes up, we have easy access to some money, but not ALL the money. This account is also the funds we use for projects around the house and vacations. I guess it’s partially regular savings and a sinking fund.
We added money here to round it up from the $5.00 plus interest that goes in every month. $90.98. Once it gets to $3000 again, we’ll move the money elsewhere.
Total Assets- $374,256.87
Liabilities
Mortgage- $226,939.19
It’s going down slowly. We started paying $200 more a month towards the principal. If we keep that up, we will pay it off in 2038 (vs. 2044).
We are also planning on making a $3000 principal payment at some point this year. We’ll be doing that after we max out the emergency fund.
We’re trying to see if it makes any sense to refinance again if the homes for sale around us sell in the $270s. We could get a lower rate and be at 20% loan to value, which would remove PMI. However, it would cost about $4000. We also have the option to recast, which could do the same thing in regards to the 20% LTV and removing PMI. Recasting does not change the interest rate, though. Decisions.
The goal is to pay this off. Freeing up over $15,000 a year is highly appealing, and would go a long way towards making us financially secure.
Total Liabilities- $226,939.19
Net Worth
Total Net Worth- $147,317.78
Things are moving on up! Not bad for a month with one paycheck from me. It looks like we will make the original goal of $150,000 in August.
The new goal for the year is $175,000. Fingers crossed!
In Summation
So that was Net Worth Update #6. Hopefully, we get some growth similar to June in next month’s update. 🙂
Do you have a net worth update? If so, I would love to read it. Please put a link in the comments below. If you like reading Net Worth Updates, check out Route2FI. He does his monthly as well. 🙂
Otherwise, what did you think? Good? Bad? Any thoughts? Please share below.
Until Next Time!
-Ms. FOGA
Yay for progress and hitting goals earlier than you would have otherwise! That’s such an exciting adventure. Here’s to hoping you reach your stretch goal this year.
Thanks! That would be awesome.
thanks for reading! 🙂
Awesome job to the two of you! I also love reading net worth updates, and getting a sense of how others allocate their funds. Can I ask why you chose to go with Ally for your savings account? There’s so many options out there, it can be quite hard to just choose one.
I just recently started “officially” tracking my net worth too. Having climbed my way out of $100,000 in debt, it’s finally starting to be fun. My most recent is here: https://financialfitnessfanatic.com/how-i-doubled-my-net-worth/
Looking forward to following along on the Mr. and Mrs. FOGA journey!
Elise
Thanks Elise. We opted for Ally because at the time they had one of the higher rates and great reviews. No issues working with them so far, but the rates have gone down from 2.2% to 1.9%. There are a lot of options for sure. Marcus & American Express currently offer 2.1% and Personal Capital offers 2.3%. As of now, I think we are comfortable to stick with Ally though.
I read it and commented. Awesome job!
Thanks for reading!