July was another very good income month but also another huge expense month (see spreadsheet screenshot).

Our total income in June was $15,115.91.  In addition to our paychecks, we each received a third “extra” paycheck.  I also received a monthly bonus of $830.60 gross ($453.06 net) and $662.49 in auto allowance and mileage reimbursement.  My wife received a $50 in company reimbursements.  We earned $4.29 in interest income from our savings account.

This month, we spent a total of $ 17,909.89.  The 2nd month in a row of $17K+.  Big ticket items include $5,360 in furniture, $1,272 for movers, and $760 for housing maintenance.

Next month, we need to cut back on the spending because there are no bonuses or extra income expected in August.

Overall

In January, our net worth decreased $1,553.71 to a total of $328,841.32 (see spreadsheet screenshot). My wife started her new job at the end of February but will not get her first paycheck until March.

Retirement Accounts

Our retirement accounts are comprised of my wife’s 401(k), my 401(k), our Roth IRAs and our Traditional IRAs.  We contribute 5% to my wife’s 401(k) and 15% to my 401(k).  My wife’s company matches up to 5% of her 401(K) contribution and chips in an additional 5% on top of the match (it is 100% vested when deposited).  My company matches up to $1,000 per year (vested over five years).  This month, we contributed $0 to my wife’s 401(k) (she hasn’t received her 1^st paycheck yet) and $641.47 to my 401(k).  We saw the total balance of our retirement accounts increased $2,997.60 from last month to a total of $157,789.72.

Brokerage Account

Currently, our brokerage account consists of one stock (my wife’s old company) that went down $79.23 this month.  Our balance is $400.17 on a $2,000.00 in initial investment.

Cash & Savings Accounts

Cash and savings accounts consists of a small sum of cash at home and our online savings account balance. It does not include our checking account balance that we use to pay our bills each month.  This month our cash and savings accounts decreased $6,039.48, bringing the total to $10,285.44.

College Savings Accounts

Our kids have 529 Plans through Vanguard.  This month, we contributed $100 to our son’s 529 Plan and it increased $584.74 from last month to a total balance of $13,253.74.  We contributed $0 to our daughter’s 529 Plan and it decreased $123.73 over last month to a total balance of $5,693.98.

Home

We use the $489K purchase price that we paid in January 2012 for our home value.  Current comps in the area are ~$675K.  The current balance on our mortgage loan is $356,084.60.  We paid an extra $150 towards principal this month.

Cars

“Car 1” is a 2011 SUV with ~75K miles and “Car 2” is a 2012 SUV with ~75Kmiles.  When calculating our net worth, we depreciate the vehicles 1% per month.  “Car 1” has a current loan balance of $20,898.73 and Car 2 has a current loan balance of $26,246.42.  I receive $230.13/month as a fixed car reimbursement and $0.22 per mile as a variable reimbursement (to help cover gas, wear and tear, etc.).

Credit Card Balance

We do not currently have a credit card balance that is not paid in full each month.

Overall

In January, our net worth increased $179.62 to a total of $331,293.56 (see spreadsheet screenshot). My wife and her team were laid off on December 31^st but she received a severance and quarterly bonus in January.  My wife is such a superstar that she already landed a new job that starts in February making the same salary ($130K), a similar target bonus ($35K), two months off per year, car/laptop/phone, and her new company contributes 10% of her annual salary into her 401(k).  Such a blessing!

Retirement Accounts

Our retirement accounts are comprised of my wife’s 401(k), my 401(k), our Roth IRAs and our Traditional IRAs.  We contribute 3% to my wife’s 401(k) and 15% to my 401(k).  My wife’s company matches up to 3% of her 401(K) contribution and deposits the sum once a year on January 1^st (it is 100% vested when deposited).  My company matches up to $1,000 per year (vested over five years).  This month, we contributed $397.35 to my wife’s 401(k) and $900 to my 401(k).  My wife also received her once a year 3% company match totaling $3,900 to her 401(k).  We saw the total balance of our retirement accounts decrease -$4,549.96 last month to a total of $154,792.12.

Brokerage Account

Currently, our brokerage account consists of one stock (my wife’s old company) that went down $79.23 this month.  Our balance is $642.54 on a $2,000.00 in initial investment.  Even though my wife’s team was laid off, we’re going to hold onto the stock.

Cash & Savings Accounts

Cash and savings accounts consists of a small sum of cash at home and our online savings account balance. It does not include our checking account balance that we use to pay our bills each month.  Thanks to my wife’s severance and bonus, this month our cash and savings accounts increased $4,808.46, bringing the total to $16,324.92.

College Savings Accounts

Our kids have 529 Plans through Vanguard.  This month, we contributed $200 to our son’s 529 Plan and it decreased $654.37 from last month to a total balance of $12,669.00.  We contributed $200 to our daughter’s 529 Plan and it decreased $191.82 over last month to a total balance of $5,570.25.

Home

We use the $489K purchase price that we paid in January 2012 for our home value.  Current comps in the area are ~$650K.  The current balance on our mortgage loan is $356,930.90.  We paid an extra $0 towards principal this month.

Cars

“Car 1” is a 2011 SUV with ~70K miles and “Car 2” is a 2012 SUV with ~75Kmiles.  When calculating our net worth, we depreciate the vehicles 1% per month.  “Car 1” has a current loan balance of $21,245.41 and Car 2 has a current loan balance of $26,637.61.  I receive $230.13/month as a fixed car reimbursement and $0.22 per mile as a variable reimbursement (to help cover gas, wear and tear, etc.).

Credit Card Balance

We do not currently have a credit card balance that is not paid in full each month.

February was a record breaking income month for us and a pretty reasonable expense month (see attached spreadsheet).

Our total income in February was $37,327.14.  This blew away our previous best income month of $25,449.19 in December 2011.  In addition to our regular paychecks, my wife received a $66,600 gross ($27,808.32 net) quarterly bonus.  She also received a $600 auto allowance, and a $100 company reimbursement for internet service.  We earned $1.52 in interest income from our online savings account.

In February, we spent a total of $28,200.31.  At first glance this seems insanely high, but $12,120.90 was for paying off our auto loan and $7,950.00 was church tithe.  Subtract those two items out and our expenses totaled a much more reasonable $8,129.41.  Some of the other larger, non-typical expenses include $161.00 for wife’s hair, $199 for massages, and $300 to paint our baby’s room.

March should be a standard income and expense month.

We passed the net worth milestone of $60,000!

My wife’s quarterly bonus help us reach this new net worth milestone. We hit our last net worth milestone of $50,000 in August. We’ve been blessed to have a strong second half of 2009. Based on my estimates, we may hit a net worth of $70,000 in February.