Saturday, July 7, 2012

Net Worth Updated

I had no idea how this would be this quarter, based on adding a big new asset and liability (apt and mortgage) and all of the big expenses like the closing costs of about $17 or $18K.  It turns out I'm down about $19K. If I had done this update even last week it would have been even more, but the market has made a nice little jump over the last few days (at least my accounts have recovered a little of their losses). The stock market remains extremely frustrating. I think if I checked my account balances now versus a few years ago, they would pretty much be the same. Which makes me think, why am I holding these stocks? I've owned the same index funds (for the most part) since 2003. 10 years. Of doing NOTHING. Now that I have a mortgage it seems it would be better served putting the money against that. But I do need some liquidity and I guess I keep hoping against hope that someday my account balances will grow.

This net worth update will be a new baseline/normal. My first quarter as a homeowner. So next quarter I will be able to see how much I am saving/any gains I am making. I shouldn't have any big expenses, just continuing to furnish the apt. but that's basically coming out of my paycheck, not savings. I'm putting off any really big projects like the built in bookshelves I've been considering.

So here's to a fun, low-key, low-spend summer.

All Settled

Finally I am fully moved into my new home and have all of my new financial accounts set up. The home buying process took forever i.e. about 4 months. And then getting all of my new accounts set up like the mortgage (it got sold immediately to a new servicer), new credit cards I've opened to purchase home items, new utility accounts, etc. has taken this long. I just now, a month or so into living in my new place, feel like I finally have a handle on it.

Besides home furnishing expenses (I'm not going too crazy, but there's a lot of even small things that I need like garbage pails and area rugs not mention window treatments), I just today saw my electric bill. At my old place, they usually averaged around $30 which is VERY low I know. The new bill is $90. But now I have a dishwasher, central AC and a washer and dryer, so that's the difference. However, I barely have any lights in my new apt yet (everything I want seems like it is on back order) so I wonder if this will go up even more once I actually have some lights at night.

I've decided to make additional $500 a month pre-payments towards principal. I really feel like I want to chop down the mortgage balance ASAP! I have to balance this desire with the need to keep some cash on hand, should I ever need it. Luckily the developer is still making all repairs to my apt. I've already had a plumber here 2x, an appliance repair person and the developer. That's one benefit of buying new. The cost of buying new was the transfer and other taxes. My closing costs were about 17K. Yikes! NYC is crazy with the taxes, as usual.

So far I like being a homeowner, even thought I really feel like I am just renting from the bank. I guess I own about 26% of my apt. at this point. But I hope to own a lot more over the next few years!