I sat down for my monthly financial review recently to see what sort of progress I’d made in the last month. I generally break things down by evaluating my assets, my debts, and then my net worth, and then using these numbers, I attempt to set goals for the coming month. This is a useful exercise for everyone to do, simply so they can keep tabs on their overall assets. Let’s break it down.
Assets My assets increased in value by 2.3% this month. This is mostly due to a steady diet of savings. I managed to put $761.38 into my emergency savings fund, which accounted for much of the aset bump. The rest of it was accounted for by a healthy bump in my 403(b) plans, which went up a total of $537.88. I also opened a mutual fund late in the month using some excess in my emergency savings fund, but there was little change in this asset.
Debts My debts decreased by 1.5% this month. Steady does it; my primary automobile will have its final payment sent in on July 9 of next year, and I made a payment and a half each on both of my student loans.
Net Worth Taking into account my simultaneous asset increase and debt decrease, my net worth went up 9.7% this month, an amount I’m quite pleased with. Obviously, as I move on to future investments, my worth won’t increase at such a steady rate, but for right now, that’s an incredible jump, one that I hope to be able to repeat for the next few months.
Last Month’s Goals
1. An asset increase of 1.5% My assets increased by 2.3% this month, so I greatly exceeded this goal. Unfortunately…
2. A debt reduction of 2%. I only reduced my debt by 1.5% this month. I could have met this goal as well by putting less into savings and investments and more into debt reduction, so I don’t feel too bad about it.
This Month’s Goals
Since I have to buy a new laptop this month (my desktop machine grows more worrisome by the day) and buy most of my Christmas gifts, my goals for next month are much more sedate.
1. An asset increase of 0.5%. I don’t plan on any major bumps in savings for the coming month.
2. A debt reduction of 1.5%. I do plan on making debt payments that match what I paid out this month.
My expected goals for January are much more impressive, I assure you.