Fabulous Financials

My June Net Worth is $151,089, a ($614) or -0.40% decrease from May 2008. This has been a bad financial month, but it could have been worse. The reason(s) for the loss are:

• Poor market performance. Although I contributed over $1,600 to my investment accounts, the end of month values were significantly lower than last month - nearly $2,000. It’s the nature of the beast. I’m well diversified, so I won’t make any irrational decisions.
• I adjust the value of my car quarterly. It’s a depreciating asset, so the reduction was expected. The timing wasn’t the best.
• A surge in new credit card charges since the last payment (always PIF).
• Several big ticket personal expenses.
• My rental property is now vacant, resulting in additional business expenses.

The year is half over, but I’m still ~$49,000 away from my 2008 net worth goal. At this point, it’s probably nearly impossible, but I won’t lower my expectations just yet.

JUNE INCOME & EXPENSES

Gathering the data for this summary was very interesting. As previously mentioned, I received two unexpected checks, so my income appears higher than usual. However, my expenses were equally higher. I guess the saying is true…the more you make, the more you spend. In my case, I would have spent anyway, so the timing of extra income was perfect. Otherwise, I would have been in the hole.

Net Income: $9,619

Total Expenses: $8,897

• Saved: $2,059
• Bills: $2,435
• Necessities: $838
• Non-necessities: $1,872
• Business: $1,693

Net Cash Flow: $722

I exceeded my monthly spend plan in a few categories:

• $409 on car insurance, paid the entire 6 month premium in full.
• $280 in medical expenses, final costs for BabyGirl’s retainers
• $218 for gas, crazy! Time to adjust this category.
• $218 on dining out, now that BabyGirl is gone, I rarely cook. I’ve been eating out at least once a day. Not sure if this will change much throughout the summer.
• $260 on shopping & entertainment, my kid is gone, what’s a girl to do! LOL
• $937 on vacation planning, fun, fun, fun!!

My cash flow for the month is positive, so I don’t feel bad about spending and enjoying myself. If this past weekend is any indication, July won’t be any better. Ha!