Current Status (6/21/2009)

I only just started this blog, but I have been steadily climbing my path to financial freedom for the past two years. Right now, I am by no means rich, but it is a starting point.

This is my current status as of June 2009:

Assets:

• Checking & savings accounts – 9,000
• Internet savings account – 5,000
• Stock market – 7,000
• Mutual funds – 2,000
• Roth IRA – 6,000
• 401k (current employee) – 20,000
• 401k (previous employee) – 16,000
• House #3 – 147,000 (34,500 equity)

Total Assets: 212,000

Liabilities:

• Student loans – 28,000
• House #3 mortgage – 112,500

Total Liabilities: 141,200

Why did I call it House #3? Well actually I have my name on another property (House #1) and will be adding my name to a second property (House #2) in the next month. Both of these properties are my parents and both of them have mortgages. The mortgages for both properties (~147,000 and ~39,000 respectively) are relatively small compared to the houses’ market values (~500,000 and ~480,000 respectively). I’m not completely sure of the specific mortgage amounts and house value amounts (although I know one of them recently was reassessed to ~480,000). I will add these two properties to the list once I figure out the actual equity and mortgage amounts and have my name added to both their deeds (currently only on one).

Now I know some people might complain that I shouldn’t add these properties to my Assets and Liabilities list but I believe it is okay. I did contribute some money for one of the houses (44,000) but it is pretty small relative to the total net worth of the two properties. However, the reason I do include it is because it is one of the forms of wealth I listed in my prior post Definition of Financial Freedom. It is the form of wealth called inheritance. There’s no reason to exclude it other than being falsely humble or report inaccurate information. And besides, my name is getting added to the deed, it doesn’t become more real than that.

About House #3: I bought this condo much below market value about two months ago. If you look at recent market prices, there still isn’t a price that matches what I bought it for, which was ~147,000. However, since the real estate market is still relatively unstable, I will only report the price bought, the equity I have accumulated on this purchase, and the mortgage I owe on it. I will talk about the specifics of House #3 in another post.

About Student Loans: I owe a total of 28,000 from both my ungrad and graduate education. I haven’t paid it off yet except for the minimum payments because my interest rate has been fixed at a low 1.875% to be paid monthly until 2025. Seeing how I can get better return investing money, there is no incentive for me to prepay the loan.

Related posts:

• Status Update (11/23/2009)
• Status Update (7/1/2010)
• Status Update (5/1/2010) & Everything Else
• August 2009 Budget Breakdown
• Goals for 2009