This month, our net worth went down by $3,900, but not for the reasons you would think if you’ve been watching the news.
Even with the panic related to ‘Brexit’, our investment accounts ended up about where they started at the beginning of the month. The day after the Brexit vote, I checked our accounts and think it may have been the worst one day drop we’ve ever seen in our investments (a loss of more than $7,500). Thankfully, I sat tight and the market has now recovered almost everything that was lost. I didn’t get the chance to buy more stocks during the decline, but I was able to convert some money from a traditional IRA to Roth while values were slightly lower. So far this year, I’ve converted about $7,500 to Roth, and that’s probably as much as I’ll do this year.
I’m not sure what to think about the values of our cars going up, but I did change the oil and air filters on both this month, so there’s that.
We made another extra-large mortgage payment in June, paying nearly $1,300 more than our minimum payment. We’ve got some large expenses planned for July that may make it hard to pay quite as much extra, but we will continue to pay more than the minimum. I spoke this month to a mortgage banker who was trying to get me to re-finance our mortgage. We currently have a 30-year mortgage at 3.75% and he offered a 15-year at 3.25% and very low fees. It sounded good, but when I plugged it into our projected payoff amounts, it only saved us one month and we decided it wasn’t worth messing with. Either way, we should be done around 2022.
As for our cash, the big reason for the decline is that we pre-paid some expenses for a big vacation we’re planning. Our cash will likely go down again in July related to that vacation as well as some work we’re doing around the house.
Work around the house is never-ending, but satisfying. We’ve started painting the outside of the house and should have all the materials we need to get that job done. We picked up 13 gallons of paint at Sherwin Williams when they had their recent 40% off sale and still ended up spending around $500. My boss recently hired someone to paint his house, and paid nearly $10,000(!), so I won’t complain. I’ve cut down several trees since we bought this house, but we’ve reached the point where the ones we now need to take out are bigger than my chainsaw can handle and close enough to the house that they could cause some serious damage if I mess something up. We’re biting the bullet and hiring someone to come take out 12 trees for about $3,500. Our last big house project for the year will be to install a backyard fence. We don’t have the materials yet, but estimate this will be around $2,500.
Some of the work we’re doing around the house is upgrades but a lot of it is just plain maintenance. It certainly can add up, but the way I think about maintenance is that it is necessary if I want our house to actually be worth what any of the online estimates (Zillow, Trulia, Redfin, etc) say its worth. If we neglect home maintenance, small problems can become large problems, and eventually become a reason for a buyer to negotiate a lower price from us if/when we ever sell this house.
All in all, we’ve got a lot going on and continue to plug away at our goals. Looking at our net worth on a monthly basis is helpful to make sure we’re staying on course, but the real motivation comes from seeing how far we’ve come.
Here’s the breakdown of where we’re at:
And here’s where we’ve come from: