Net Worth: May 2012

It pains me to post this update today as the purchase of our car last week made our Net Worth take the biggest negative hit in the history of this blog. We’ve been lucky to make some major leaps and bounds over the last few years so any drop in NW is not taken lightly. That said, I guess we save, give, and invest so much so we don’t feel bad about the times we want to spend our money. Last month we spent.


Checking Account: $8,377; (change not shown since money is constantly in and out of this account). I was able to put $5,000 of the car purchase on my credit card, so I have to keep the checking out relatively beefed up for the short term so I can pay that bill in full when it comes due.

Savings Accounts: $65,167; -$6,559. We put $8,200 from the sale of Girl Ninja’s car towards the purchase of Herbert (our Honda Pilot) and had to front the cash for the rest. Does it hurt giving up a big chunk of savings? You bet your booty it does 🙂 Hoping we can get back on track for next month and give this savings account a decent bump up.

Roth IRA: $28,346; $502. For shame. Still haven’t made my 2012 Roth IRA contribution yet, maybe I’ll let the markets drop a bit more before I start dabbling. On another note, I will have the ability to contribute to a Roth 401K here in about two weeks. Any insight in how I should allocate my retirement money now?

TSP (401K): $33,513; +$558.The performance on these accounts was negative, but my contributions exceeded my losses which results in a net positive movement. Add this to my Roth IRA balance and my retirement accounts went up to the tune of $56 last month. If my accounts continue to increase by $56 a month, it will only take 1,396 years for my retirement portfolio to reach a million dollars. JD wasn’t kidding when he named his blog Get Rich Slowly.

Payments owed:

Credit Card: $7,841 (change not reflected since balance is paid off each month). Oh how it pains me to write those numbers down for our credit card balance. I’m taking your advice though, and on Friday I’ll be heading to the dealership to cancel my extended warranty. This will credit back to my card and reduce this balance by $2,500. I guess the bright side to a $7,000+ credit card bill is that I earned a lot of miles? 

So what does all this mean for the Ninja household net worth? Well, my Excel spreadsheet tells me our NW dropped by $7,958, leaving us with a total net worth of $127,588. If you take in to consideration the $2,500 reimbursement, it’s more like a $5,400 loss. Definitely not pumped about a decreasing net worth, but I think I can say with reasonable confidence that things are looking up.


You can see all of my net worth updates here.

Favorite nail from yesterday: Dragon problems.

10 thoughts on “Net Worth: May 2012”

  1. Same thing happened with us this month, although not as much. Next month we already know is going to be worse. Just a hiccup though and it will be better in the long run. Just look on the bright side, GN now has a nused vehicle. I’m sure she’s happy about it.

  2. Your net worth has not gone down. It’s legitimate to include the value of the car in your assets.

    “Any insight in how I should allocate my retirement money now?” If I were you, 80-90% in stocks (perhaps 1/4 to 1/3 of that in international), 10-20% in bonds, perhaps 5% in a REIT. I favor buying low-cost index funds like Vanguard or Fidelity Spartan. You could for example have:
    – 65% in Vgd Total Stock fund
    – 20% in Vgd Total International
    – 10% in Vgd Total Bond
    – 5% in the Vgd REIT

    I wouldn’t worry about waiting for the market to drop. The market could also rise. More important to get into it.

    “If my accounts continue to increase by $56 a month, it will only take 1,396 years for my retirement portfolio to reach a million dollars.” But that’s not how things work. Markets tend to have sudden large spikes (and sometimes

    • Larry, I think he was asking for Traditional vs. Roth 401k allocation. That being the case, based on the dual income of the Ninja household and the fact that Ninja already contributes to a Roth IRA, I would say stick with the traditional 401k, since he is probably in a higher tax bracket now than when he retires. I think that they would be better served on maxing out his traditional 401k contributions and starting a Roth IRA for Girl Ninja, which should be maxed out along with his existing Roth IRA. Otherwise, I second your allocation suggestion.

      • Ah. No doubt you’re right. Sometimes it takes a subtle reader to interpret Ninja’s manifold complex meanings.

  3. Upgrading life is rarely cheap. It is nice that you can live with a “nused” car which saved you about 10k to 20k. The new Honda Pilots are not cheap. I have not been stacking cash lately. Spending a great deal of money upgrading our home, from new flooring, paint, furniture, and even a new big screen tv! There is only so much you can put off until you have the need to replace items that make our lives nicer. There are times when I want to be a minimalistic hermit but tough to do when you are married. In regards to investing, phooey! I prefer my rate of return = what we make – what we spend. I hate gambling in the stock markets. All that money your and others are putting in is just going to go to the baby boomers when they take all their money out = Ponzi scheme. Hehehe, sorry but I had to throw that in there…no offense to the stock market faithful…

  4. Ninja,

    Do you really have ~$65K sitting in a savings account? And if so, why? I can only assume that you are making next to no interest on that money. Why is it not invested?

    • Yes we really do. We would like to buy a house in the next few years and I don’t like the idea of investing money that I could theoretically need tomorrow if we find the right place. Once we break $100K, then we will start investing the rest.

      • We are in the same position and I understand the thought. But you are losing value. I didn’t want the downside risk either, but I was unwilling to accept 0.01% (approx. -2.06% real return) over an undefined time horizon. We ended up putting our down payment savings into a tax-free bond fund. It is a whole lot less volatility than stocks and gets ~2.6% in dividends with near-cash liquidity.

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