Net Worth Time Again

The following is a staff writer post from MikeS.  He is a married father of 2.  So, with the cat, he ranks number 5 in the house.  He loves numbers and helping people. Please leave any questions or comments below for either Mike or Crystal. My goal for my net worth in 2016 was apparently too light.  I looked back on the post from last year to see what I expected or hoped for at the end of 2016. “I would be quite happy if the net worth change for 2016 was a positive 25,000 or more.  That would be a nearly 17% increase, I’ll take it.” When I totaled up my numbers for 2016, I beat that guess by over 50%.  It was a good year, not as good as some, but good enough for me.  I ended 2016 with a net worth that was higher by over $39,000.  It was my second best year ever and it was mainly driven by savings increases and some modest debt repayment.  As always, I let you look at where all the gains came from. 401K Once again it was my 401K that led the change in the net worth number.  The … Read more

Marathoning

The following is a staff writer post from MikeS.  He is a married father of 2.  So, with the cat, he ranks number 5 in the house.  He loves numbers and helping people. Please leave any questions or comments below for either Mike or Crystal. Long-distance running has been one of my main hobbies now for about six or seven years.  It serves as a useful endeavor because it helps me to stay dedicated to exercising and also to reduce my stress.  I was reminded again of the parallels between distance running and long-term financial planning when I completed my third marathon. Long Build Up For those that have never run a marathon, it takes some time to prepare.  The training plan that I follow is 17 weeks long.  It is one of the reasons I like running marathons.  By signing up for the race, I set a goal for which I need a significant lead time to prepare.  It takes time to build up your running distance to the point where you can tackle 26 miles.  Do too much too fast and you risk injury. Similarly in personal finance, you need to set goals.  Goals help focus your efforts, … Read more

Performance Review Time

The following is a staff writer post from MikeS.  He is a married father of 2.  So, with the cat, he ranks number 5 in the house.  He loves numbers and helping people. Please leave any questions or comments below for either Mike or Crystal. My annual performance review has come and gone this year. I always seem to be harder on myself than my boss.  This is a good thing, as he thought I performed well over the past year.  There were a couple of areas he thought I should work on and I don’t disagree with his assessment.  Overall he liked my contributions to the team and hoped for more of the same in the coming year.  In conjunction with the performance review is the compensation review.  The money is tied to performance, so the better you perform, in theory the more money you can earn.  This is all subject to the company’s overall performance.  The money is broken into 2 pieces, salary and bonus.  Naturally, I’m going to give you a peak into how much I received and what I am planning on doing with it. The Salary In my opinion, I would almost always rather have … Read more

Seesaw

The following is a staff writer post from MikeS.  He is a married father of 2.  So, with the cat, he ranks number 5 in the house.  He loves numbers and helping people. Please leave any questions or comments below for either Mike or Crystal. The stock market has always amused me.  One day the world is apparently caving in, the next day everything is rainbows and butterflies.  I keep track of my 401K balance relatively often, more so to keep an accurate net worth number, not to see my rate of return.  Market gyrations do not change my investment plan.  My asset allocation is based on my risk tolerance and daily or monthly fluctuations are not going to change it.  I thought I would give you a peak into how my 401K has done over a 12 month time frame at monthly intervals as well as how it did during the Brexit volatility. Monthly Ups and Downs I went back and looked at the last 12 monthly statements from my 401K.  I was only interested in the change in market value, not the ending balance.  The ending balance would have been impacted by my contributions, so I wanted to … Read more

Net Worth Summary

The following is a staff writer post from MikeS.  He is a married father of 2.  So, with the cat, he ranks number 5 in the house.  He loves numbers and helping people. Please leave any questions or comments below for either Mike or Crystal. One of the tasks that I do with my finances is to track my net worth. It’s my scorecard on how I am doing financially.  I have only been diligently tracking the number since the end of 2008.  I am positive the number wasn’t pretty before that time, as I was not very good at managing my finances before then.  So, how did I do this year and what were the drivers of the overall change?  Let’s take a look. Net Worth My net worth increased 14.8% from the end of 2014 till the end of 2015. It was a roughly $19,000 increase year-over-year.  I will say that I am pleased with the number.  It’s going up and the markets did not contribute much of anything to the increase.  The increase was driven entirely by debt reduction and savings.  It is also a far cry from the roughly -$19,000 net worth I had when I … Read more

Marketers

The following is a staff writer post from MikeS.  He is a married father of 2.  So, with the cat, he ranks number 5 in the house.  He loves numbers and helping people. Please leave any questions or comments below for either Mike or Crystal. Marketers have become really good at their jobs.  They have convinced people that they can no longer live without certain things, that life is not complete unless they have certain material things.  The marketers have made ‘Keeping up with the Jones’ a way of life for some people.  I have come across a couple of instances recently that illustrate this point quite well.  You’ll have to excuse me if I come across as judgmental.  I don’t begrudge anyone’s choices.  People are free to do as they wish, but I don’t want to hear any complaints when circumstances change and people feel like they don’t have any money.  The first anecdote I’ll talk about is my wife’s college roommate (I’ll call her CR) and the second is a conversation I had with someone at work. I not sure how exactly how we came to be talking about CR, as my wife’s college reunion was a couple … Read more

Job Loyalty

The following is a staff writer post from MikeS.  He is a married father of 2.  So, with the cat, he ranks number 5 in the house.  He loves numbers and helping people. Please leave any questions or comments below for either Mike or Crystal. Recently, the company I work for announced the benefit changes for the upcoming year. One change in particular did not go down well with the employees. People were angry, bitter and talked about disloyalty from the company. I’ll talk about the numbers surrounding the benefits in another post. In this one, I’d like to talk how people felt the change was personal, that their friend had betrayed them. I never got that worked up about it and mainly just shrugged the change off. 401k Change Maybe it is because I tend to be more analytical than most that I didn’t get too upset about the change. All the company was doing was changing when they were going to give you your 401k matching contribution. Instead of matching each paycheck with your contribution, they were changing to a once a year match in the 1st quarter of the following year. While not ideal, and certainly not … Read more