April Net Worth Update
(click for largishness)April was a record-setting month for the Crazy Money books. My net worth increased by a whopping $13,583 to settle at $261,669. The gain was evenly split between ordinary savings, market appreciation, and another deferred compensation plan vesting.
Deferred compensation occurs when my employer pays me in stock, but restricts those stock distributions by following a vesting schedule that spans 3 years. The portion that I collected this April is actually part of a performance bonus for work that I did in 2005.
Most notably, the market value of my retirement accounts rose by $5k over the last month. That jump pushed them over the $100k mark. So now I officially have a six-figure retirement nest egg. Hopefully it stays that way for a while.
Anyway, back to the balance sheet. Total assets rose to $353.8k while my debt fell by about $1200. I now have $71.7k in cash-like assets and only $86.6k in total debt. In about six months, those two numbers will be equal, and my net working capital will be back into the positive. At that point, I'll take a good look at my mortgage and decide if it's worth paying off yet.
Deferred compensation occurs when my employer pays me in stock, but restricts those stock distributions by following a vesting schedule that spans 3 years. The portion that I collected this April is actually part of a performance bonus for work that I did in 2005.
Most notably, the market value of my retirement accounts rose by $5k over the last month. That jump pushed them over the $100k mark. So now I officially have a six-figure retirement nest egg. Hopefully it stays that way for a while.
Anyway, back to the balance sheet. Total assets rose to $353.8k while my debt fell by about $1200. I now have $71.7k in cash-like assets and only $86.6k in total debt. In about six months, those two numbers will be equal, and my net working capital will be back into the positive. At that point, I'll take a good look at my mortgage and decide if it's worth paying off yet.
posted by Matthew at
11:41 AM
4 Comments:
I like the way your balance sheet looks--what kind of software do you use?
By
Mama Money, at 8:58 AM
Just MS-Excel. There's a lot of visual basic code behind it though.
By
Matthew, at 9:26 PM
Hello, I'm new to your blog. Great site!
Question for you - why are your vehicles less in value than your "vehicle loans?" Are you factoring in depreciation on the asset side?
Just curious, thanks.
Q
By
Q at $1 Million to My Name, at 8:42 AM
You've answered your own question q.
That's correct. Assets are only worth as much as someone else will pay for them.
If I were to expand my balance sheet out one more level, you'd see that each asset is made up of two line items - cost basis and market change.
I use the market change to capture depreciation when it comes to cars and appreciation when it comes to investments.
By
Matthew, at 12:16 PM
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