We are on a mission to pay off our 6.5% interest auto loan ASAP. Last month, we paid an extra $6,250 to principle. This month, we’ve paid an extra $1,900 to principle on our auto loan. Most of the money for this payment came from the sale of 86 shares of our Bank of America stock. We are making good headway.
Sold Bulk Of Our BofA Stock
We sold 86 shares of our Bank of America stock today for $17.50/share. We purchased 106 shares of the stock for $14.00/share back in January, so after fees, we earned over a 20% gain. That’s a lot more than we would have earned keeping the money in our savings account for 9 months.
Selling the 86 shares basically cashes out the $1,500 that we originally invested. We’re going to let the remaining 20 shares ride. This is money (currently ~$350) can now grow without any risk to our original $1,500.
Another Bump Up
More good news! My company again is increasing everyone’s salary by 10% of the amount they were reduced back in February.
My salary was reduced 10%, so it will go back up 1%, or ~$700/year. My company did the same thing last month, meaning I’ve earned back ~$1,400 of my ~$7,000 salary reduction.
This is a great trend and a blessing in these tough times.
August 2009 Income Statement
Our income statement spreadsheet (click on spreadsheet below) for August shows total expenses of $12,685!
While that number is startling, August was, in fact, a pretty reasonable spending month. If you subtract $6250 in extra auto loan payments and $850 for a boat tower, our expenses only totaled $5,585. That’s pretty close to our $4,919.55 budget.
In addition to our regular salaries, we earned $111.35 in credit card rewards and my wife received a $896 ($480.84 net) quarterly bonus and her $110 company reimbursements. We also earned $4.26 in interest income from our online savings account. My wife’s 15% 401(k) contribution (increased from 5%) kicked in her 2nd check in August.
Next month, there are no large expenses planned, but our net income will be less because we increased my wife’s 401(k) contribution from 5% to 15%.
Net Worth Milestone – $50,000
I already spilled the beans in my August New Worth post, but we passed the net worth milestone of $50,000! There, now it’s official.
We hit our last net worth milestone of $40,000 in 12 months ago, in August 2008. With the depressed economy and short selling our condo, reaching a net worth of $50,000 has taken us a bit longer than expected. Nevertheless, that doesn’t take away from how great it feels to hit this goal.
Thank God for all of our blessings!
August Net Worth Update (+$5,473.52)
We’ve been blessed to string together 3 strong net worth increase months in a row. Our net worth in August increased $5,473.52 from last month, to a total of $50,125.05 (click on spreadsheet below). That means we’ve passed the $50,000 net worth milestone!
What Worked
August was full of nice surprises. We received my wife’s $896 ($480.84 net) quarterly bonus a month earlier than we expected, my pay was increased 1%, and we decided spontaneously to pay $6,250 extra to my auto loan. We contributed a total of $1,181.48 to our retirement accounts (401k & Roth IRAs) and saw our retirement accounts increase to a total of $3,814.65! We increased my wife’s 401(k) contribution from 5% to 15%, starting with her 2nd paycheck in August. That’s makes her new total 401(k) contribution $346.88 a check or $8,325.12 a year.
What Didn’t Work
August was a great month. Thank God.
Next Month
September looks like it will be good month. I want to take a moment to say that if you haven’t seen the movie “Pursuit of Happyness“, it’s a must see. I just caught it on TV for the 2nd time. It’s the true story of a single dad fighting for a stockbroker position at Dean Witter, while facing challenges such as a period of homelessness and trouble with the IRS.
Bought New Suitcases, And Got A Deal
I travel a lot for work and have been destroying our suitcases. Actually, I’ve destroyed a couple by overpacking, but the airlines have also contributed by knocking off wheels and generally beating them up. My wife treats her luggage gently, so I destroyed hers for her.
With our upcoming vacation to Hawaii next month, we realized that we’re all out of functional luggage. We decided to see what offers are out there in this beat down economy.
We found 50% off deal on high quality Atlantic luggage at a local luggage store. We bought an Atlantic 25″ Expandable Upright Spinner Suiter (normally $240) for my wife and Atlantic 29″ Expandable Upright Spinner Suiter (normally $280) for me. In addition to the 50% off deal, my wife had the good idea to ask for an extra discount for purchasing two suitcases. The lady agreed and gave us an extra 10% off.
Another Income Post
I posted yesterday regarding my wife’s quarterly bonus, which was great news. It turns out we received more positive news today.
My company has strung together a few good months and, as a result, has decided to give everyone a small bump up from our February salary reduction. They increase everyone’s pay by 10% of the amount it was reduced. My salary was reduced 10%, so my pay will go up 1%, not big money, but a good sign that my job is getting more secure.
Bonus Time!
My wife received her quarterly bonus this month, a month earlier than we expected. Her quarterly bonus was $896 gross ($480.84 net). This money falls into the “gravy” category, since we don’t plan for it.
This next quarter should be even better. My wife’s been selling like crazy and in the first 3 weeks of the new quarter already has earned ~$2,156 gross towards her bonus check in December. Sweet!
Early retirement here we come.
Raided our Savings
My wife is kicking butt in her job and my job is seems to be getting more secure. That being said, we’ve decided to throw caution into the wind and pull a large chuck of our money out of savings to pay down our auto loan.
We’re sick of paying 6.5% interest each month on the auto loan and only making 1% on our savings. My parents have always paid their cars off very quickly, and saved a ton of interest as a result. We paid a whopping $6,250 to our auto loan this month, cutting it in half, from $13,383.86 to $6,789.83. Our goal is to pay the balance of the loan off in the next 6 months or so. That will free up $450/month to save or invest.