DISQUS

Consumerism Commentary: Personal Balance Sheet, July 2007 ($102,011, +2.4%)

  • klerg · 2 years ago
    A HUGE congrats to you for getting rid of that car payment! BIG milestone right there!
  • Flexo · 2 years ago
    klerg: thanks!
  • Pinyo · 2 years ago
    Flexo - a great big congratulation to you. Reaching $100,000 is a huge milestone. The next $100,000 will be easier. :-)
  • Flexo · 2 years ago
    SS: Quicken works for me, Money is about the same level. The software can span to moderately difficult depending on what you're trying to do.
  • MillionDollarJourney.com · 2 years ago
    Congrats on the net worth increase Flexo. If you don't mind me asking, how old are you?
  • John · 2 years ago
    I keep track of my balance sheet much as you do. One difference is that to avoid the impact of month-to-month stock market fluctuations on my "net worth", I fix the value of my market-based investments in April of each year. I then use (the April-based value + fixed monthly contribution) every month till April next year. (April = big IRA contribution for tax season).

    The downside is that I don't get the monthly motivation boost of stock market gains adding to my net worth. But it protects me from the demotivation (and distraction) of a temporary "market correction" affecting my net worth.

    The catch is that I must believe that all market corrections are temporary, and over the long term the market will trend upwards. It's not a perfect system, but it keeps me from "market timing" (which includes re-allocating monthly contributions based on recent run-ups in the market).
  • Flexo · 2 years ago
    MDJ: I'm 31.

    John: That's an interesting idea. It's a good way to take the fluctuation out of the monthly picture. I'm trying to reduce the work I put into these monthly reports, and Quicken always reports the current stock values, so editing those balances for the purposes of reporting would be an additional step that I'd rather not have.
  • erik · 2 years ago
    Hey Flexo,

    I was just wondering why you are keeping $36k in a savings account when you have $20k in debt? Why not just pay off those debts with the $36k? You'll still have $16k for an emergency fund. Maybe you are saving iust for a down payment on a house. Just wondering.
  • Lazy Man and Money · 2 years ago
    I like a little of the market timing in the 401K plan. It's good that even if the market goes crazy good while you are conservative, you just miss out on some gains. Sounds like you are still invested so it's not the usual market timing.
  • John · 2 years ago
    > still invested so it’s not the usual market timing.

    The only problem with market timing is that it does not work. Especially in a long-term account like the 401k, it's pointless.

    It's explained in Chapter 4 of this book:
    http://www.amazon.com/Index-Funds-12-Step-Progr...