Net Worth Update #7: August 2019
Hello FOGA Readers! Welcome to Net Worth Update #7: August 2019. August has been a good month financially. Things got accomplished. Onto net worth!
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 share our specific income into these updates, 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 #7!
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 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 $279,700 according to Realtor.com and $281,900 according to Zillow. 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 our neighborhood.
One of the homes had the contract fall through, so only one is pending now. There are three homes on the market in my size range and neighborhood including the one under contract. There are now four homes on the market in my neighboorhood, so just waiting for closings to show what the new value would be.
Investments- $92,303.05
IRAs are maxed out. Not much to do there, but watch what happens with the market monthly when I do these updates.
The emergency fund is officially maxed out for six months of expenses. Now the next goals are investing directly and saving up for a new car for Mr. FOGA.
Both of our 401Ks did well. Considering both the IRAs went down, it’s nice to see these have kept climbing. That’s due to our payroll contributions though. I have less than $6000 to go to max out my 401K this year. 🙂
The IULs are doing their usual thing. 🙂
Emergency Fund- $30,045.50
Ally has been doing well. We have earned over $275 so far this year in interest in this account. That’s 18.3 books at $15 each or 45.8 lattes at $6 each. If you don’t have a high-interest savings account, you should definitely get one. If not Ally, there are a few places offer higher interest savings accounts currently. Most are actually higher than Ally’s 1.9% interest rate.
We put $3500 into our emergency fund and that maxed it out. Our emergency fund is fully funded. 😀 Hooray!!!!
We also earned $45.50 in interest.
Savings- $2700
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. It’s partially regular savings and a sinking fund.
We add $5 automatically every month. Then we add whatever it takes to get it to the next hundred. That was a total of $99.98. We normally have it at $2500, but we keep it growing. Once it gets to $3000, we’ll move the difference elsewhere.
Total Assets- $379,048.55
Liabilities
Mortgage- $226,314.51
It’s going down slowly. We pay $200 more a month towards the principal. If we keep this up, we will pay it off in 2038 (vs. 2044).
We will also be making a $3000 principal payment by the end of this year. Now that we have maxed out the emergency fund, this is on our radar. Unless, of course, we end up refinancing.
If we do end up refinancing, it will do more for us than lowering the total amount by 3K. We could get a lower rate and be at 20% loan to value, which would remove PMI (if those homes I mentioned close sometime this millennia). However, it would cost about $4000 (at the most).
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. We would definitely love to reduce that interest rate.
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- $226,314.51
Net Worth
Total Net Worth- $152,734.04
$150,000 has been achieved!!!! Woohoo!!!!
The new goal for the year is $175,000! Let’s do this!
In Summation
So that was Net Worth Update #7. A good month. Hopefully, we keep this up. 🙂
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 these guys:
Route 2 FI
Our Table 4 Two
New Millennial Investor
Four Pillar Freedom
Also here are some of my previous Net Worth Updates:
July: Net Worth Update #6: July 2019
June: Net Worth Update #5: June 2019
May: Net Worth Update #4: May 2019
Otherwise, what did you think? Good? Bad? Any thoughts? Please share below.
Until Next Time!
-Ms. FOGA
1 thought on “Net Worth Update #7: August 2019”