It’s a BOY!!! Our son was born at the end of September, making this our best month EVER. Being new parents is a lot of work, but there is nothing that comes close to the amazing feeling. We the excitement of our new baby, I haven’t had a second thought about our net worth getting pummeled again this month. Our net worth decreased $6,074.95 from last month, to a total of $139,403.39 (click on spreadsheet below).

What Worked
Our beautiful baby boy was born!

What Didn’t Work
We contributed $1,013.00 to our retirement accounts, but saw them decrease $7,716.19 to $81,483.75.

Next Month
Going forward, my wife’s net income will be reduced because of her new 401(k) contribution and we will be adding our baby to her insurance. We have elected to begin contributing 10% of my wife’s pay to her 401(k) plan during her first open enrollment in October (the company matches 6% with a 3 year vesting period). We will also be adding the baby to my wife’s insurance, increasing the cost from $75/month to $325/month.

A market correction was bound to happen :). As a result, our net worth decreased $5,075.62 from last month, to a total of $145,478.34 (click on spreadsheet below).

What Worked

With the huge drop in the stock market, everything went on “sale”. William Bernstein, author of The Four Pillars of Investing, has said that young savers should be praying for a bear market so they can accumulate shares cheaply before they retire. So, we contributed $1,513.00 to our retirement accounts, but saw them decrease $6,500.62 to $89,199.94. We were blessed with my wife earning a Q2 2011 bonus of $1,006.83 gross ($937.87 net).

What Didn’t Work

Our retirement accounts were down $15,000+ earlier in the month, but rebounded considerably, cutting out paper loss in half. Our spending was completely out of control this month. I will provide details in my income statement post in a couple of days.

Next Month

September it is going to be a great month because our first baby will be born. We have a couple of large bills in September: $1,845 for cord blood banking and $400 for balance due to doula. We will also be adding the baby to my wife’s insurance increasing the cost from $75/month to $325/month. Depending on the timing of the baby’s birth, my wife and I are also scheduled to be in our friend’s wedding, which will be roughly $200 for tux (my wife already bought a dress). With these bills hitting next month, we do not plan to save anything beyond my 401k contribution in September.

We were blessed with another net worth increase this month. In July, our net worth increased $3,714.78 from June, to a total of $150,553.96 (click on spreadsheet below).

What Worked
We passed the net worth milestone of $150,000 this month! We contributed $1,213.00 to our retirement accounts in July and saw them increase $1,841.10 to $95,700.56. We also continue to increase our savings account balance for a house down payment and private adoption. Of the $31,047.79 we have in savings, $23,425.66 is earmarked for a down payment and $7,622.13 for adoption. We still have a long way to go to reach our savings goal for both.

What Didn’t Work
N/A 🙂

Next Month
August is our last full month to prepare for the arrival of our first baby. As a result, we will need to purchase any necessary items that we didn’t receive at the baby showers. As a result, we will be contributing less money next month to retirement and savings.

We were blessed with another net worth increase this month. Our net worth increased $4,791.04 from last month, to a total of $146,839.18 (click on spreadsheet below).

What Worked
We received a huge windfall in the form of a $4,470 class action settlement from my wife’s old company (that she worked at for ~6 weeks). She was automatically included in the settlement, and frankly, we weren’t expecting much to come of it. Imagine our surprise when a check for $4,470 showed up. This helped us dramatically increase our savings account balance. One step closer to having a home downpayment.

What Didn’t Work
We contributed $1,419.50 to our retirement accounts in June and saw them decrease $970.28 to $93,859.46. Not a big deal.

Next Month
My Wife receives a third “extra” check in July, but we also have a few large bills including $233 for 6 months of life insurance premiums (Husband & Wife), $400 for a 50% prepayment to our doula, and a $327 traffic ticket. God willing, we hope to hit a net worth milestone of $150K in July.

Since passing our 2011 net worth goal of $138,100 last month, any further increase helps with our 2012 net worth goal of $173,200. In May, our net worth increased $3,263.10 from last month, to a total of $142,048.14 (click on spreadsheet below).

What Worked
Passing our 2011 net worth goal so early in the year is a major blessing. We contributed $1,063.00 to our retirement accounts in May and saw them increase $340.00 to $94,829.74. Remarkably, our traditional IRA balance did not change from the month prior. We were also able to sock away a nice chuck of change into savings.

What Didn’t Work
All accounts moved the right direction this month:)

Next Month
I’m hoping the good progress will continue next month. I receive a third “extra” check in June, which also includes an extra 401(K) contribution. However, we also have a few large insurance bills due in June for a total of $2,289.31.

We passed our 2011 net worth goal of $138,100 in April! That gives us 8 months to made headway on our 2012 net worth goal of $173,200. Our net worth increased $4,511.92 from last month, to a total of $138,785.04 (click on spreadsheet below).

What Worked
Passing our 2011 net worth goal so early in the year is a major blessing. Our $2,325 tax refund ($2,155 Federal & $170 State) helped put us over the top. We contributed $1,063.00 to our retirement accounts and saw them increase $2,787.01 to $94,489.74. We also continue to improve our savings account balance.

What Didn’t Work
All accounts moved the right direction this month 🙂

Next Month
Progress towards our 2012 net worth goal of $173,200 begins now. May will be my wife’s first full month of pay in her new position, at a much higher income. We’re going to try to bank as much of the extra income as possible before the baby arrives.

March was another solid month. Our net worth increased $3,607.99 from last month, to a total of $134,273.12 (click on spreadsheet below).

What Worked The big news this month is that we found out that our baby is a BOY! We are very excited. Financially, we were also hugely blessed because my wife accepted a new job that starts next month with a $20,000 higher annual salary (33% increase). She also has an opportunity to make a larger bonus each quarter. I am very proud of her. This is going to really help us reach our goals. To celebrate, we paid off the last of the $2,954.60 student loan. We are now completely DEBT FREE. We contributed $1,213.00 to our retirement accounts and saw them increase $2,020.07 to $91,702.73.

What Didn’t Work Not really a negative, but our savings account balance decreased because we paid off the student loans.

Next Month There is a good chance we will pass our 2011 net worth goal of $138,100 in April, 8 months ahead of schedule. My receives her final paycheck from her old company, gets paid for her remaining vacation time, and starts her new job. We also receive a combined Federal and State refund of $2,325.

We were blessed with our 2nd largest net worth increase month ever. Our net worth increased $10,191.88 from last month, to a total of $130,665.13 (click on spreadsheet below). Our largest net worth increase of $14,753.11 was in March 2010. But more importantly, my wife is pregnant! We are extremely excited and will be “nesting” from now until the baby is due in September.

What Worked
In addition to the great news that my wife is pregnant, we also passed the net worth milestone $130,000 in February. This is largely thanks to my wife’s nice Q4 2010 bonus of $6,041.28 gross ($3,499.51 net). We contributed $813.00 to our retirement accounts and saw them increase $4,605.31 to $89,682.66. We also increased our savings account balance to $18,915.21.

What Didn’t Work
February was a perfect month.

Next Month
I don’t expect March to be able to compete with a month like we just had. The biggest unknown is our taxes. Last year we received a combines Federal and State refund of $4,111, but we have change a few things to reduce or possibly eliminate our refund. We will see…

I know I’m posting this a little late, but I wanted to take the time to review our 2010 net worth. Below is a table of our net worth data for each month in 2010 (click on table to enlarge). 2010 was a strong year for us, even though we had a couple of close calls with the economy in terms of our employment. Some highlights from 2010 include:

• We increased our net worth from $68,437.63 to $115,300.07 ($46,862.44 increase), surpassing our net worth goal for the year by $9,600.07.
• We contributed $17,288.45 to our retirement accounts. Our total retirement account balance grew from $54,620.37 to $83,594.59 ($28,974.22 increase).
• We increased our savings from $2,492.73 to $9,215.82 ($6,723.09 increase).
• We reduced our debt from $4,148.46 to $3,127.35 ($1,021.11 decrease).
• In March my wife was laid off, but in April she found an even better new job.
• I survived a large layoff at my company.
• We paid cash for an “extra” vehicle, primarily for recreation.

We already a couple of months into 2011 and things are looking great. Hopefully there will be exciting highlights to review at the end of the year.