Welcome to another edition of Financial Friday. A series of weekly posts where we share some of financial gold with you on our personal finances, savings, and investing. Once again, these are just things we have done ourselves and might not work for you, but it doesn’t hurt to try a new way to pan for your own financial gold!
January 2014 was an interesting month for us on the financial front. In September 2013, our basement flooded after the Colorado rain storm of the century where we received 15 inches of rain over three days. Over the last few months of 2013, we replaced the carpet in our basement but still needed to do some grading and replacing a retaining wall and fence in our backyard.
All of the work was done in January and the cost was over $12,000. For this reason, you will see a drop in our cash and an increase in our credit card debt. Since we pay off our credit card in full every month, we are not worried about this number and have most of the money on hand for this backyard fix. Overall, this will also increase the value of our house. The credit card bill for this large payment is not due until March but we will pay it off sooner.
Additionally, we had one final satellite television bill that was due in January. This is the last time we will pay this and we had not accurately budgeted for this amount. Read more about our experience cutting the cord next week.
Below is a list of our assets as of January 31 2014. We will give a monthly overview on or near the last day of the month.
- Cash: $7,141; Change: -45%
- Home: $267,728 (we update our home value based off of Zillow every quarter; last update was Jan. 2, 2014)
- Car: $10,300 (we update the value of our car once a year using Kelley Blue Book; last update was Jan. 2, 2014)
- Lending Club Account: $328; Change: 0.92%
- Total Assets: $285,497; Change -2.03%
Note: We used cash to pay off $4,000 towards the credit card bill of $12,000 for the backyard fixes. The work done in the backyard will also add value to the house which is not shown in this summary.
Below is a list of our debts as of January 31, 2014.
- Home Mortgage: $186,019 (at 4.125%); Change: (-0.30%)
- Student Loans: $31,916 (at 2.25%); Change: (-0.44%)
- Credit Cards: $8,248; Change: 274.91%
- Condo Personal Loan: $4,500 (no interest); Change: 0%
- Other: $2,191; Change: (-1.17%)
- Total Debts – $232,874; Change: 2.32%
Notes: As you can see our home mortgage, student loans and other debt all had a decrease. For January 2014, we paid off $770 towards these debts. We did have an increase in our credit card debt but this was due to the backyard fixes and the payment for this is not due until March 2014. We will be paying off the entire backyard fixes in February.
Our Net Worth
To date our net worth is $52,623 which is a change of -17.55%. This was due to the drop in our cash and an increase in credit card expenses. We expect this to turn around in February.
How was your January 2014? Did you have any unexpected expenses? Did you make extra income?