Money360*

A look at MONEY from all angles.

31 October, 2006

How2: Manage Your Money #1 Getting Started

Managing your finances can be a daunting task. The earlier you start and the more you plan, the more satisfied and stress free your life will become. To me starting is one of the most important steps anyone can take. If you have been putting it off, START NOW! The way to start is to figure out where you stand. The easiest way to figure out where you stand is to calculate your NETWORTH. This is pretty easy:

Networth = sum(Assets) - sum(Liabilities)

Your main assets are bank accounts/cash/real estate/stocks/bonds/CDs/material things and your liabilites are credit cards/car loans/student loans/mortgage/etc... I prefer to not count any material things in my assets column. This is mainly because they are not as liquid as one would think. In either case find out where you stand. Congratulations you have completed the first step to managing your money! Next up #2 Goals

How2 Series

Starting this month, Money360 will be restarted with a new focus. I will be presenting series' called How2s. Suggestions to improve any How2s are always welcome.

11 October, 2006

Re-starting the blog!

I have been thinking that since I started this blog I have only put up a few posts here and there about interesting money stories/emotions/etc... and a lot of my own networth posts keeping track of how I am doing. In order to really help any readers out there get value out of this blog. I am going to consider re-starting the blog with simple personal finance how-to's and building up from there. What are your thoughts?

Networth Statement September 06

Networth Statement September 06
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Assets
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401k $ 36710.92
Roth IRA $ 9496.32
Brokerage $ 21703.32
Checking $ 3913.07
Savings $ 38574.47
CDs $ 15000.00
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Total Assets $ 125398.10


Liabilities
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Credit Card 1 $ 786.35
Credit Card 2 $ 57.59
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Total Liabilities $ 843.94


Networth August 06 $ 115699.21

Networth September 06 $ 124554.16 +7.65%
Positives:
  • Another great month, I am on a little roll here.
  • The ESPP shares that I didnt sell have rebounded quite a bit. I have since sold them now and taken a modest profit (+$1500).
  • The market rallied again this month which upped my 401k, ESPP, and Roth.
  • The 15000 in CDs are actually 28-day T-Bills. T-Bill investing is quite simple as it turns out.
Negatives:
  • None to complain about.
Bottom Line: While the numbers I am posting are spectacular, it really doesnt capture one aspect that I have not included in my Networth calcuation. I am going to need to transfer out some money to family in the next few months for various expenses which I owe but hadnt been calculated until now. More to come...