Counting My Pennies » 2008 goals

2008 Net Worth Results!

Megan — Fri, 02 Jan 2009 16:00:57 +0000

Well, this post isn’t as exciting as the title makes it sound. My net worth did not grow in 2008. In fact, it is down 3.09%.

My goal was to grow my net worth by 25%, which was a lofty goal to begin with, but I never thought I would fail this spectacularly.

What happened? Well, that’s obvious. The market happened. Overall, the value of my investments dropped by almost 30%. That really hurts when I consider that I contributed to my Roth IRA and TSP this year. (Overall, my TSP grew well, my Roth… did not. I will have to seriously which funds to invest in this year.)

That said, I was a good little saver! My savings increased a significant amount, and I will continue to keep that in savings accounts and CDs. One thing that helped was getting a roommate mid-year. I am hoping she will want to stay after she finishes grad school in May. I know I can always get a new roommate, but this one is working out so well, and I have to admit, the idea of bringing in a random roommate from Craigslist scares me a little bit. So if she decides to move, I will have some decisions to make.

Even with the overall loss, I’m really happy with 2008. I made some very smart spending decisions and became a much more frugal person than I have ever been. I certainly don’t feel like I’m scrimping on things, but I’m spending my money on things I truly want and need, not just something that catches my eye. I’m amazed at how easy a transition it’s been. Sure, there have been slipups, but I don’t feel deprived, and I’m clearly managing to put away more money than I thought possible.

Here’s to an even better 2009. Perhaps even one with returns in the black!

December Net Worth Update (+2.84%)

Megan — Fri, 02 Jan 2009 10:00:08 +0000

Well, 2009 was filled with ups and downs, which I will discuss in a different post, but December added on a high note (at least when compared to November). My net worth increased by 2.84%. Not bad at all! Looking at the numbers, this is partly due to a slight bounceback in the market and a slight uptick in savings. December was a 3 paycheck month, which helps, plus I received some gift money for Christmas and my birthday, which will be spent, but for now, resides in the bank.

The saver in me was a bit disappointed by December, as ING Direct dropped their interest rates again, down to 2.5%. I have to remind myself that it’s still way better than a brick and mortar account, and it’s much better than stashing my money under my mattress. It’s still fun to watch the money grow!

I hope this trend continues in January. I don’t need the market to take a huge leap upwards, but a nice steady climb is more than welcome.

August Net Worth (-0.6%)

Megan — Tue, 09 Sep 2008 10:00:55 +0000

For the most part, I knew August wasn’t a great month. My net worth is down almost 0.6%, which really isn’t much, but it’s down rather than up. Looking at the breakdown, the loss in my cash accounts and the loss in my investment accounts are almost exactly equal.

It was a high spending month with the surgery for the cat. Of course, I feel that I’ve been making excuses for my net worth over the past few months, which isn’t really acceptable. I can’t do much about my investments except to continue to contribute to my retirement and be glad that it will be at least 30 years before I need that money. I’ve also gotten a roommate, which should help with the finances, even if she’s only here a month or two.

I know that I’m not going to make my yearly goal to increase my net worth, which is disappointing, but for the rest of the year, I’m altering that goal to “Increase my net worth as much as possible.” And maybe something magical will happen and I will make my goal.

Or maybe I should just buy a lotto ticket.

May Net Worth Update (+8.22%!)

Megan — Wed, 04 Jun 2008 12:00:00 +0000

This month was a great month for my net worth. It increased by a whopping 8.22%!

Ok, so that was mainly due to a very generous gift from a family member that is being tucked safely away.

Aside from that though, my investments are continuing to rebound. It’s slow going, but it’s at least moving in the right direction. My cash accounts took a bit more of a hit this month, thanks to vacation, but those were planned expenses.

With this generous gift, my net worth is up 7.68% from the beginning of the year. My goal for the year was to increase my net worth by 20%. I thought it was a tight goal, but possible. With the markets as they are, I just don’t think it’s possible to make that goal. Doesn’t mean I’m not going to try though!

I also made my full Roth IRA contribution for 2008 this month. Sadly, it is already worth less than when I invested the shares. But it’s money I won’t need for years, so I’m not too concerned. Just got to keep on keeping on.

April Net Worth Update (+2.14%)

Megan — Sat, 03 May 2008 13:00:00 +0000

April was the best month for me financially. My net worth increased 2.14%. Again, the majority of this increase was due to investments continuing to bounce back, but my cash accounts also showed an increase – which tells me that I’m saving more than I’m spending. The YNAB plan is clearly working as it should.

For the year, I’m still below where I started – but by only about half a percent. I’m getting close, and I’m confident that if the markets either stay where they are or continue to rise and I just watch my spending, I’ll finally be showing growth for 2008.

I am anticipating May to be a high spending month, however. I’m going on vacation this month and still owe my parents for part of my portion of the trip, and at the end of vacation, I’m jetting off to a friend’s wedding, which will mean a hotel bill, and unfortunately, a lot of eating out. I’ve been planning for it in the budget, so I’m not too worried, but it will be interesting to see if I can still show some positive growth in my net worth anyway.

March Net Worth Update (+0.06%)

Megan — Thu, 03 Apr 2008 17:46:00 +0000

As I put together my monthly assets and liabilities table on Tuesday, I thought I was April Fooling myself! I was hoping for a month where I didn’t lose too much money.

I actually got very excited when I started entering numbers and realized that for the month of March, I was going to end up with a net worth increase!

Ok, so it’s not much. My net worth went up 0.06%. The increase was due to my cash accounts, as my investments dropped a bit, but not as much as I had feared. I’m hoping this new trend continues.

One of my 2008 goals had to do with a percentage net worth increase. So far for 2008, my net worth is still down 2.58%. Not great, but it could be worse. It could be much worse.
Here’s to April also moving in an upward direction!

February Net Worth Update (-0.69%)

Megan — Sat, 01 Mar 2008 12:57:00 +0000

Another drop in my net worth this month. Down 0.69%. I suppose that’s not a huge drop, but it’s movement in the wrong direction. I look at the numbers and just shrug. There’s not a lot I could do about it. The loss is mostly due to the downward movement in the market. In terms of cash accounts, the decrease was very small, and the fact that I already paid my state taxes but haven’t received my federal income tax return was part of the reason I wasn’t in the black. So I can take faith in the fact that my spending is under control.

It is interesting to see the variety in how my investments are playing out. Two of my mutual funds dropped by a small percentage, but one plummeted by almost 3%! My TSP (Thrift Savings Plan – the government version of the 401(k)) is doing ok. My Roth IRA is still down over $400 since I opened it last fall. I should start putting money into that while the market is down.

On the other hand, the six shares of Yahoo that I’ve had since the late 90′s did quite well this month, with all the talk of a buy-out. Those are the only individual shares of stock I own. Years ago, I had a Geocities website, and when they went public, a number of us got 10 shares of Geocities stock. They were bought out by Yahoo, and I ended up with 6 shares of Yahoo stock as well as a check for what I believe was about $300. Since then, I’ve just let the stock play. I got it for free, and I’ve already gotten $300 from it. For now, I’m just letting it ride.

One of my 2008 goals is to increase my net worth by 20%. So far for 2008, my net worth has dropped 2.65%. I still think it’s possible to come back from that though. I’ll just keep plugging along.

January Net Worth Update (-2.0%)

Megan — Fri, 01 Feb 2008 14:30:00 +0000

My net worth in January actually ended in a better place than I thought it would, based on some tentative calculations I did mid-month. My net worth dropped a total of 2%. This is mainly due to current market conditions, but I also spent more money this month than I would have liked. Much of that is due to infrequent expenses, such as 6 month insurance bills coming due, and the fact that I had to buy a very overpriced plane ticket, but some of it was just me spending money where perhaps I should have been saving.

Clearly, I can’t control the market, but I continue to hope for an upswing, and in the meantime, as I’ve mentioned, I’ve decided to really tighten my budget and see if I can save a bit more every month.

One of my 2008 goals involves increasing my net worth by a significant percentage. Clearly, this drop doesn’t help, but I remain optimistic. It’s just one month. Let’s all hope that next month is better.

Suze Orman’s Top 10 List for 2008

Megan — Sun, 30 Dec 2007 13:50:00 +0000

On last night’s Suze Orman Show, Suze gave a top ten list of things to do for 2008:

Suze’s Top Ten List for 2008

Try to get out of credit card debt.
Begin a 6-8 month emergency fund
Sign up for your 401(k) to the point of the match, then fund a Roth IRA
Look for the best buy on a home. Purchase only if you have enough for a 10%-20% down payment and qualify for a 30-15 year fixed mortgage.
Never loan money or co-sign for someone
Annuities – single premium deferred annuity is ok, but never buy variable annuities within a retirement account
Buy individual bonds, not bond funds
Get a will and a living revocable trust
Get term life insurance only
Buy no-load mutual funds only.

I’m pretty good on most of these, but not all of them, and it’s a good goal to work towards. I do still rent my home, but mainly because I’m not sure that I plan to stay in this area long term. I’m giving myself 2 years, and then I’ll make a decision. The other thing that I absolutely need to do this year is set up a will. I really should have done this years ago, but like so many people, I don’t like to think about it. My uncle is an estate lawyer and would do it for me, but I only see him on holidays, and well, at Christmas, the last thing I want to think about is my demise.

So that is my goal from this list. How about you?

2008 Financial Goals

Megan — Sun, 16 Dec 2007 21:41:00 +0000

As the year is winding down, I’ve finally taken the time to solidify my financial goals. I made a list of things, some of which I think are very doable, some of which I think will be a struggle and might be a bit more dependent on the market than I like.

So here we are, my 2008 Financial Goals.

1. Fully fund my Roth IRA for 2008 (if possible).
The plan this year is to set aside the full $5000 for my Roth IRA contribution. Because I’m not sure what’s going to happen financially, I’m not sure if I will be eligible to make the full contribution. Therefore, rather than contribute all throughout the year, I plan to set aside $5000 in a high yield savings account and then put it into the Roth IRA if I can. If not, I will have to look into other options.

2. Keep a running total of all taxable income.
This ties into goal #1. What better way to track whether or not I can make the full contribution than to keep a running total of all of my taxable income?

3. Place 3 paychecks directly into savings.
In 2008, there will be three months where I receive three paychecks. Because I’m used to budgeting with only two paychecks a month, I plan to take those extra three paychecks and put it directly into savings. Again, this may tie into goal #1, and be a relatively painless to at least partially fund my IRA.

4. Save a minimum of $400 a month outside of the above goals (not including investment income).
I think I can do much better than this.

5. Increase net worth by 20%.
This is the one that I think will be the hardest to achieve, and will be very tied to my investments. The past two months haven’t been so great for my net worth, but I believe the market will bounce back, and hey, if nothing else, it lets me start at a low point. But in all seriousness, I would like to see a significant increase in my net worth. I have been pondering buying a home in the next few years, and I want to have at least a 20% down payment for that. So some serious savings are definitely in order.

So there you have it. My five financial goals for 2008. Pretty simple, but definitely worthwhile.