My financial status update will be a little different this month as I added a major asset and liability during the month of October. For this reason my standard percent change column is not very useful. I decided the best way to compare the changes for the month was to post the October and September numbers side-by-side.
I decided to combine all of my savings accounts and checking accounts into one category called cash. I did this because over the past month I’ve added two new ING accounts and my money market account is completely drained after my down payment. I plan on opening more accounts in the near future so this is a change that confuses my financial status for the October update, but it will be better in the long run.
The stock market is still dragging a few of my assets down. I was fortunate to have most of my assets in cash due to the down payment on my condo. My Target stock (Schwab) dropped 10.1%, my Roth IRA dropped 13.1% and my mutual fund dropped 11.4%. I have not contributed to retirement accounts so far in 2008, but not because of the poor performance of the stock market. All of my savings have gone towards either my down payment or furnishing my condo. Between now and the income tax deadline for 2008, I will be trying to maximize my retirement contributions. I plan on taking advantage of purchasing stocks at a discount.
The major change in my financial status is the addition of my condo to the asset section and my mortgage to the liability section. The value of my condo was assessed by my lender prior to my purchase. Fortunately, the valuation was greater than my purchase price. Before I make my first payment on December 1st, I will have to decide if I want to make extra payments every month to pay down the principal. I will be blogging about this in future posts.
For a second straight month, my assets in the stock market took a hit. Due to the built in value of my condo, I was able to increase my net worth by a huge 10.9%. I’m extremely happy with the increases every month in my net worth. These monthly updates motivate me to continue saving and keep me honest.