June ’10 Update (Bloody Friday)

I have dubbed this the Bloody Friday update. I have been putting off doing the update because I knew what it was going to look like. I know I have supported all of the decisions I have made over the last month. And while I don’t necessarily regret them you certainly get a good perspective on things when you write it all down. My net worth took a $30k hit last month. All of that hit was buying my wife’s new car. We paid a good chunk of change down on it so we could avoid being upside down. I could always “fudge” the number and put the value of the car in, it is $12k over what we owe but I do not consider a car an asset so that ain’t happening.

As you may have noticed I have been in and out of writing lately. I am working on time management but I have been working on building up my business and it is taking more and more of my time lately. I am really enjoying the work I am doing, if you are interested in keeping up you can check out my recent projects, I also do WordPress consulting and programming if you ever need help with your blog.

Assets
Cash Savings$13,932.00-$5,636.00
IRA$10,180.00-$495.00
Roth IRA$4,081.00+$112.00
401k$53,606.00-$1,382.00
Other Investments$760.00+$68.00
$82,559.00
Liabilities
Credit Cards$2,643.00+$921.00
Car Loan$22,108.00+$22,108.00
$24,751.00
Net Worth$57,808.00-$30,362.00

{ 6 comments… read them below or add one }

1 AMY June 21, 2010 at 9:54 am

You should fix your Net worth number. It says $88,170 in bold and $57,808 after it.

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2 Ned June 21, 2010 at 9:33 pm

Your net worth is 58k and you bot a 50K+ Infinit SUV? Talk to us about this decision pls. Thx

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3 brent June 23, 2010 at 10:15 am

@Ned – the way i read it in his other post was that when he was close to getting out of debt he was having trouble controlling his spending as it was creeping back up on him so to curtail that he figured going back into debt with a car was the best way to control his spending

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4 Financial Samurai June 27, 2010 at 11:47 pm

Brent, do you think it’s good to buy a car with debt that equates to one’s net worth to counteract spending creep? Seems kind of backwards no?

To each their own I guess. Perhaps Kyle and his wife make over $500,000 a year to comply with my 1/10th rule, who knows. There are a lot of wealthy people/high income people out there where nobody would ever have any idea how much they have.

Kyle, are you out there? Haven’t seen you around for a while posting or responding to comments.

Sam
Yakezie Lifestyle

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5 Brent June 29, 2010 at 10:21 am

Sam,

i was being facetious when i wrote that. When i read his post on how he jusitfied his car i thought it was kind of backwards. But I might also be weird as I would only pay cash for a car and would never agree to borrowing for anything with an engine. I was mostly restating his justification to see if he might notice how odd it sounds. I’m guessing the wife just wanted a new car and didnt want to wait.

Brent

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6 Austin @ Foreigner's Finances June 28, 2010 at 7:11 am

It’s always difficult to crunch the numbers in a tough net worth month. I try to look at the my savings minus stocks category to put a positive spin on things, but if my Roth has taken a big hit it’s always disheartening.

Congrats on the new car and at least you won’t have to buy again for a while. How long did she have the last one?

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