Networth Milestone: 500K!

I'm excited because today I updated my net worth entry on NetworthIQ for Q4 2012 and I've crossed the 500K threshold!!! I also checked back over the last 4 years of net worth entries and realized that I tend to jump by about 100K a year. Which is insane. And only possible because of the generous bonuses I have been receiving. So I'd like to be around 600K this time next year. That would be sweet. Ultimately, I think I'll feel a lot more secure once my net worth hits 1 million (of course it won't all be liquid). Hopefully that will be in about 5 years. That's a great long term goal. Then maybe I'll feel like I can chill out a bit more about life and not have to have such a stressful (but for the most part manageable and sometimes even fun) job.

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.

Networth

I updated my NetworthIQ entry for Q1. Things look really good. I almost hate saying that because I don't want to jinx it! But basically since I started to be so super organized with my finances in 2008 (after finishing grad school), I've managed to put away a good chunk of money each quarter. So I guess I can be less superstitious because really it's about hard work, the boring day in and day out of making good financial decisions and staying on top of myself to stay organized and on course. I think anyone who manages to save any money at all should take time to feel proud of themselves, because we all know, it's not easy. Most people don't manage to do it at all.

General Update

So I usually only update my NetworthIQ on a quarterly basis. I just did Q3 at the end of September. That said, I just updated it again. I can't believe how much the market has gone up this month. So much for sell in May and go away. I'm just so glad that I never took any money (barely) out of the market after September 2008. I've been fully in (while also building my cash position) the whole time, which has allowed me to recover A LOT of the value that I lost two years ago (on paper). I also wanted to update my NetworthIQ so (I am ashamed to admit this) I could resume the top position on the page that ranks networth in NY (I'm on the top of the 5th page). I am really motivated by moving up the list. I do not know why. I wish those other people success, but I guess it's just nice to have a visual way to be rewarded for saving more. Since it's not like anything really changes in my life when I save more money.

I'm also excited to try some new investing strategies. I'm going to open up a Lending Club account. I have also meant to buy some foreign currencies (being all-in on the dollar scares me) and maybe some gold. I'd like to buy shares in a REIT, but that's a little more complicated. I also think about buying some GLD. The last time I thought about this it was at 1K and today I saw it's at 1,300. Insane.

Networth

I'm stoked cause I just updated my Networth and passed a few people on NetworthIQ. Not that I don't wish them much prosperity and hapiness! But for some reason, I always focus on the people that are a few in front of me and it helps motivate me. I guess we have to use whatever works to motivate us to save!

Although this quarter was really strong due to the market, my savings were really low compared to every other quarter of the year so far. So, I'm going to try to be good in October. Although of course I have some "expenses"coming up. Such as Billy Elliot on Broadway, haha. Luckily all done with social security tax, so that gives me a big boost and this year it's for all of Q4. I also have probably close to $1,000 or more owed to me from my health insurance company. I'm always out of pocket about $1500 because I pay the doctor and they pay me back.

NetworthIQ

I added the handy NetworthIQ widget. Note: I am lazy and just threw all my stocks and bonds into the stocks line item.

So, how am I doing? Big hit late last year due to stock market, but then I got my bonus and paid off my Sallie Mae debt. The leftover student loan debt is interest free on one of my mother's credit cards. I could pay it off, but why bother? I'm earning interest on the money in the bank.

Same principle applies for my credit card debt. Not only am I earning 4% interest on my cash, but I get 2% cash back on the card. Total return from credit card spending = 6%. I know everyone says credit card arbitrage is risky, etc. but I think it's awesome. If I could get a balance transfer check without the 3% I would move the debt again when my 0% teaser interest rate is up in October.

My ultimate goal is to have $100,000 in cash. It's such a nice neat number. As of the end of June, I've got about $57,000. Almost 60% of the way to my goal. In a perfect world, I'd have this much by January 2010, but for those who don't know what happens when you plan for something, consider a line from one of my favorite poems:

"The best-laid schemes o' mice an 'men
Gang aft agley,
An'lea'e us nought but grief an' pain,
For promis'd joy!