I’m buying a condo!! So my net worth is way down this month. I’m not going to write a long explanation defending my decision, but it’s definitely the right decision for me. I did have to borrow from my 401K though.
Ok! So where do I stand financially in all of this?
|Cash & Checking||$1,000||$1,000||($0)|
|Short Term Savings||$3,000||$1,900||($1,100)|
|% Change||– 35%|
So there you have it, I’ve lost over a third in net worth! This is mostly because I’m not a condo owner yet.
I’ll have a little bit of equity by my next Net Worth post. Had I included the equity, my net worth would have decreased by $8,350, or 14.4%, instead. I am treating the 401K withdrawal as a loan. And. for every $1 I repay, my net worth will increase by $2. I plan to pay it off faster than the payment plan.
The great thing about buying in November is that my first mortgage payment isn’t due until January. This will allow me to max out my 401K for the new year AND buy a condo! I won’t be trying to max out in 2018.
I spent a lot in October. Due to the condo situation, I didn’t really follow a budget. I’m going to list my spending anyways against an ideal budget, for the record.
|Fixed Expenses||$125||$119||$6 under|
|Everything Else||$250||$566||$316 over|
Rent – I paid the usual too much
Fixed Expenses – I had to increase this budgeted category due to my internet costs increasing. There is a monopoly in my internet provider market so I can’t negotiate.
Condo – These are expenses directly related to getting my condo.
Food – I went over but not as much as I was expecting. I’ve been eating out more due to the move that’s upcoming.
Travel – this is for my upcoming vacation. It’s the Airbnb costs for 7 days in South America.
Everything else – I went over budget. This is mostly due to the move. I also purchased an expensive gadget. The gadget will make my life easier and I’d been thinking about it for a while.
My (very) tentative goals next year will be to:
- Max Roth
- Save 15% of income towards retirement
- Keep monthly recurring variable expenses to $500/month (Electricity + Cellphone + Internet + Food + Everything Else).
- Budget better for periodic expenses.