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Home > January goal progress and budget update

January goal progress and budget update

February 5th, 2015 at 10:55 am

As expected, my net worth took quite a hit last month. We closed on our house and were quite surprised that we had to come to closing with approximately $5000 less than we were anticipating (sellers paying some costs and refunded property taxes.)

Because of the way we're buying the new house, my net worth has dropped (at least on paper). I put down the money for the down payment and my partner is paying the mortgage and some other expenses until we are "whole," then we will split those expenses evenly. We are joint owners of this house so I will only include my half in tracking my worth, both value and mortgage.

Here's the damage: -10,892.95

I did not make my goal of $5,942.98 by a LONG shot but I am unconcerned. My rental house's value went up along with my IRA and work retirement account. One of my beneficiary accounts was down a tad and the other down about $2,000. But the house was appraised at $5,000 more than we paid for it, so that was a helpful boost.

Going into February I will need to increase my net worth by $6,143.41 to make my goal by 35. I do not anticipate hitting this goal, but I want to get as close as possible.

As for the January budget we did pretty good this first try at a hard budget. Our biggest budget buster is food and alcohol. We don't spend on clothes or gadgets or haircuts or entertainment. We like a good meal and something to drink. But we're figuring out how to do it on the cheap. January we went over our food budget by about $20, and our eating out budget by $100. BUT we did move into a new house and ate out the first two nights and I feel like that is partly justified.

Know that we came so close last month means I am motivated to get even closer this month!

The other bad thing this month was that my car needed an expensive repair. I went ahead and did it (for a tune of $458) because I knew the longer I left it the greater chance that it would turn into something far more expensive.

Luckily not needing as much for closing provided an excellent buffer for this month and for the start of the year. I feel good about how much I have in savings and hope I can continue to stock away as much as possible before we start the repairs and renovations.

2 Responses to “January goal progress and budget update”

  1. snafu Says:

    Congratulations on new house ed and being a new home owner. Expect a bumpy ride your 1st few months as a new home owner.

    You had mentioned a plan to added a basement suite so I suggest you begin to investigate the process in your specific community. Your plan has potential to be more involved than expected for approval, permits and sign offs. You have a wonderful opportunity to learn a lot of DIY skills that save a fortune over the time you are home owners. BTW, it's cost efficient to buy pre owned/gently used/tools so long as you've researched the brand and details.

    One starting point is bookmarking all the terrific DIY sites on You Tube.

  2. jokeabee Says:

    Thanks, snafu! It's been two weeks and already we've had some surprises Smile
    We brought a contractor in before we put an offer on the house and he gave us some tips and gave us a ballpark figure. I've inflated that number by 50% because there is always going to be some surprise and it will take longer than expected. Once the roof is figured out we will begin to get actual quotes from a couple contractors and begin the suite process. There are some things we are willing to do our selves, but not the electrical or plumbing.

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