May 2016 Net Worth Update

What a month! The markets continued to make some small gains and we kept plodding along towards our financial goals. We’ve been doing a lot of outdoor home maintenance and have limited our inside house projects to painting a bathroom (a project that was planned for later but accelerated when my young daughter ripped off a large patch of the old wallpaper that will not be missed). Our net worth crept up ever so slightly (percentage-wise) and crossed over the $550k mark to end at $551,578.

Our cash balance continues to stay around the level we’ve planned on. Our normal emergency fund level is $20,000 but we have it temporarily higher as we wait to pull the trigger on some larger purchases. Other than home projects, we are also planning a large vacation this summer. One reason our cash balance hasn’t grown is that we again decided to make an extra-large mortgage payment. We still can’t see the light at the end of the tunnel for paying off the mortgage entirely, but it is satisfying each month to see the balance get knocked down a lot quicker than if we only made the minimum payment. I’d love to see us knock the balance below $200,000 this year, but it doesn’t look likely unless we cancel our summer vacation plans and forego any large purchases. We are 3 years into a 30-year mortgage, and are planning to pay it off in around 7 more years.

There really isn’t much to report on our investments. We haven’t changed any of our investments allocations or contribution levels, so yet again our investment growth is roughly 1/3 from our normal contributions and the rest from actual market appreciation. If it ain’t broke, don’t fix it.

Interestingly enough, both our cars and house values went down this month (according to kbb.com and Zillow.com). The cars going down in value is largely irrelevant since I don’t plan to ever sell either vehicle. When we got my wife’s current car, we kept her old car for a few months before we found a family member we could give it to (it had originally been gifted to us and we wanted to pay it forward). The nice thing about both of our vehicles is that they are old enough that their values really don’t change all that much and this is the first time either of them have changed values in several months. I don’t know quite what to think about the home value going down, other than it is good to see that the estimates are not just up, up, and up every month.

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