Saturday, May 3, 2008

April Networth Update

This was an interesting month, where I found myself on the short end of a bank account when I accidentally paid my credit card bill the day a bill was generated, rather than the due date. This along with a week-long visit by a friend, where we indulged on steak and seafood much of the week, caused this month's networth growth to be a meager $600.

My current networth is -$11,162.59 or -1.12% from my goal.

However, as many of you know, I have embarked upon an interesting venture, which by October, could net me a one month big jump or decline, depending on my investment picks.

If you look at my networth statement, you can see that Card #1 has a huge outstanding debt, which is offset by a $6,500 investment account asset. I have borrowed $8,500 at 0% from that card for 6 months, and I'm investing $6,500 of it in the stock market, while holding $2,000 in my bank account collecting interest. I hope that this two-prong method will allow diversification in this "investment" and provide me a net profit after I pay back the loan.

I've included my networth chart below, and you can see that the past few months have not been good for my networth goals. I will have to work hard in May to get back on top.


Anonymous said...

Looks like the loan/investment is paying off so far. $500+ in 10 days isn't bad. I hope this works out for you, it could be huge. 30% taxes are a killer though.

Just comparing old networth (last month) to today, did you forget to depreciate the BMW? Also, looks like the emergency fund went down...?

I understand how hard it is to keep spending under control with friends, I had several friends visit for a few days and going out to eat certainly is a budget buster. So being +$600 after eating out for a week (esp. steak and seafood) plus other activities isn't bad at all.

Did you get your stimulus check yet? That will help the networth too. (Just got mine this week) :)

Finance Guy said...

Thanks anonymous!

I haven't depreciated the car or taken down the loan, but it's because I wanted to account for both more accurately.

Prior to this month, I always accounted for the loan and car assuming it was already 10 days into the month, which is the monthly anniversary of both. Instead, since I really account for my networth at the end of the previous month, I haven't reached those days yet.

Additionally, I have realized though that my "Poker Fund" should not be decreasing my assets, as it's not really an additional decrease, since whenever I'm losing money at poker, those funds come out of the bank and I already don't have them.

Next month, I will correct for that.

And no, I haven't received my stimulus check yet, but I think I'm later on the list to receive checks.

Anonymous said...

That makes sense. It will just take a month to "catch up" with the car stuff.

Do you play Texas Hold'em or another type of poker?