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Net Worth Report - 11/05

Here's this month's net worth report. It's difficult to make useful comparisons to last month because I made large transactions like buying a new car and paying property taxes. The month's financial excitement is that I more than doubled my credit card arbitrage.

My property tax bill included a substantial change in the estimated market value of my home, and I'm including this in my property category. This single update accounts for almost all of the change since last month — the government thinks my house appreciated almost $15,000 over the past year. I disagree, but they didn't ask for my opinion.

I'm valuing my automobiles at the figure indicated by the Kelley Blue Book private party valuation. (They don't support 2006 vehicles yet, so I've entered my new car as if it's a 2005, which underestimates it.)

UPDATE 2005-11-06 22:37:50 UTC: Whoops, looks like I've already had an accounting error. I added a new entry to my spreadsheet for one of my new 0% credit cards, but it didn't get added to the formula that computed my net worth. The individual categories were correct already, and now the sum is correct also.

Here are my figures, as of 11/1/2005:

CategoryNet Worth 10/05Net Worth 11/05
Total$305,360.56$313,587.75
Short-term$54,483.70$26,706.97
Medium-term$66,933.40$62,399.44
Retirement$111,933.94$112,802.84
Property$72,009.52$110,294.90

The short-term category halved because I paid cash for my new car. I compared my options and estimated I'd come out $150 ahead over three years by taking the cash incentives over the financing incentives.

The decrease in the medium-term category is primarily caused by continuing erosion in my stock options.

The large increase in the property category is caused by both the new car and the new home valuation from my property tax bill.

My credit card arbitrage situation is $24,732.63 in balances at 0%, offset by $26,342.01 in time deposits. This will earn me over $1,000 (before taxes) in free money over the course of the next year.

I haven't put very much time into an assessment of my old college goal to be a millionaire by age 35, but my preliminary figures suggest that it will be very difficult yet still possible. I also realized that I need to precisely define success — does "by age 35" mean prior to my 35th birthday or prior to my 36th?

Tiny Island