This is my first end of month report of my financial status. I recently blogged about my financial journey from the end of college to June of 2008. I’ve made a few changes to my reporting methods. I actually looked up the current Kelley blue book value for my car, which was significantly lower than what I had estimated. I didn’t include this major value adjustment as a change from the last month so I didn’t skew my percent change.
I also modified how I’ve been tabulating my car loan liability. Originally I had been taking the value I was paying off each month and subtracting it from the original car loan value. I switched to a method that involves dividing the original loan by 48 for the total number of payments I will be making. I then subtracted this new value for each payment made. This is still not a 100% accurate representation of my liability since I pay more principal with each successive payment and I pay less interest with each successive payment.
My checking account sustained a minor loss, but this is mostly due to my account management methods. Every paycheck from my 9 to 5 is direct deposited into my checking account. I deposit my roommate’s portion of utilities and rent, as well as my self-employed paychecks into the checking account as they are received. I then transfer funds into my MMA leaving $2,000 in my checking account to pay bills. My checking account value at the end of a month can be anywhere between $2,000 to slightly above.
The market continued to lose my money for the month of July. I’m not sweating it too much, but I was planning on using my Target stock (Schwab) as part of my down payment. It doesn’t make sense to sell my stock with the market so low. I’m hoping to be able to scrape together enough to cover my down payment without using my stock.
My MMA is where the most significant increase occurred. This is as planned because I didn’t make any contributions to a retirement fund, since everything is going towards my down payment. The MMA increase is not as significant as I would like, however, I had some pretty unusual costs this month. I bought a bedroom set for my new place, which cost $2,800 (although I only paid half of it this month). I did get it for half off as it was a floor model at a Bassett that was closing. Additionally, I stood up in a buddy’s wedding this month. I had to rent a tux and hotel room. The bachelor party was right before the wedding and that got a little pricey.
I was only able to increase my net worth by $2,613.32 in July, but I should be able to increase that value over the next two months. School is starting back up and I will be spending more time tutoring, which translates into more money starting in September. Also, I moved home at the end of July until my condo is finished in early October. I will save money by not having rent, utilities or groceries to pay.