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Net Worth Report - End of 05/06

It was a bad month in the financial markets. The S&P 500 dropped 2.7%, which is also remarkably close to how my own investments performed (if I ignore my salary and appreciation of my home). This drop cost me about a month of time toward my personal goal.

The interesting news this month is that I've damaged my credit with so much credit card arbitrage that I was turned down on a new card I was going to transfer a balance to. So I had to pay off one of my cards. :(

Even more interesting, I got a telemarketing call from a company in the debt consolidation industry. I talked to them for a very long time and this call will be the basis for a longish and scathing article in the near future. I've already started writing it, but there's a lot more writing to do.

That's all the commentary I have for this month. Here are the standard tables and explanations, with one twist — I'm providing a two month view of my credit card arbitrage info so the change is more visible.

Net Worth Figures
Category04/0605/06
Total$441,735.11$439,321.99
Short-term$15,933.36$17,077.73
Medium-term$100,702.26$95,603.98
Retirement$155,021.45$150,881.38
Property$170,078.04$175,758.90

Recall that I'm defining "Adjusted Net Worth" as net worth excluding the value of autos and unvested stock. The "Estimated Contribution" is how much money I believe I'll need to invest in order to meet the following month's ANW target. A declining EC indicates that I'm ahead of plan, and an increasing EC indicates that I need to save more in order to reach my long-term goal.

Goal-Tracking Figures
Item04/0605/06
Adjusted Net Worth$404,754.46$404,501.19
Next Month's Target$407,039.38$406,814.01
Estimated Contribution$331.06$388.80

My credit card balances are 100% backed by time deposits and/or savings accounts earning interest at a higher rate than I'm being charged by the credit card companies. The monthly payment is estimated as 2% of the balance. (Most credit cards are now using a 2% minimum payment, and due to this it is important to have a strong cash flow and/or pay with funds from your credit card arbitrage savings account.)

Credit Card Arbitrage Figures
Item04/0605/06
Balances @ 0% APR$31,444.72$31,934.98
Balances @ 1.9% APR$14,165.77$19.69
Total Balances$45,610.49$31,954.67
Monthly Payment$912.21$639.09

You can keep track of other personal finance bloggers at NetWorthIQ. I've updated my entry there.

Tiny Island