Life in Transition

Navigating Personal Finances During Life Transitions

Archive for the category “Financial Snapshot”

Quarterly Financial Update:June 2012

A lot of financial things have changed the last few months.  Though we do not have a joint account yet (it’ll eventually get done, I promise), my husband and I have pooled our money together.  Here is a snapshot of what our current finances are like.

Net Worth

Total Cash: $36,672.60

  • Credit Union checking account #1: $17,188.43
  • Credit Union checking account #2: $2,094.26
  • Credit Union saving cccount #1: $404.26
  • Credit Union savings account #2: $25.05
  • Discover Bank savings account: $17,060.55

Total Investment Accounts: $3,525.93

  • Roth IRA: $3,525.93

Other Assets: $7500.00

  • Car #1: $5000.00
  • Car #2: $2500.00

Total Net Worth: $47,698.53

Right now we have a pretty large cash reserve.  At least half of it will be gone by the end of the summer once the tuition bill comes in.  In my last update, I had an additional investment account with Vanguard, and I wasn’t sure what I was going to use the money for.  I’ve decided that I wanted to use the money in that account to pay for my graduate school tuition.  I orginally planned on just taking out how much money I needed for the semester, but I would not have enough money to meet the minimum balance, so I cashed it all out.  It won’t pay for more than a couple semesters, but it’s better than taking out loans right away.

Targeted Savings

  • Dental School Fund: $22,939.65
  • Graduate School Fund: $3683.47
  • Emergency Fund: $5496.04
  • Vacation Fund: $414.71
  • Christmas Fund: $75.00

We ended up using most our honeymoon fund for something else, and we cancelled the mini-vacation to St. Louis we were going take this month.  Instead, we used the vacation money to pay for our wedding night hotel (it was a pretty big splurge).  The remaining money in the vacation fund will be for our delayed honeymoon next summer.  Other than that, we are about half-way to our goal of having $6000 in our emergency fund by the end of the year.

Current State of Finances Part 2: Targeted Savings

From part 1, you may have noticed that I have a lot more money in my checking account than my two saving accounts combined, which is unusual.   Let me explain.   I have a rewards checking account with my credit  union, which as an  interest rate of 3% on a $20,000 average monthly balance if you meet certain requirements: have a direct deposit and use the debit card on ten purchases totalling at least $200 every month.  I easily meet those requirements, so  put as much of my cash into my checking account as possible.  Since the interest rate on the total balance drops to 0.25% on balances over $20,000, I park the rest of my cash with an online banking account.  I keep a little bit of money in my credit union savings account just to meet the minimum requirements of keeping it open.  With that said, the majority of the money currently in my checking account isn’t for day-to-day spending.    I keep track of the “hands off” money in an excel spreadsheet.  Here is what I have:

  • Dental School Tuition: $16,797.67  My fiance saved up a ton of money during undergrad and was able to pay his first year of dental school without borrowing a penny.  This is how much he has left, which will hopefully cover one more semester (I’m hoping and praying that tuition won’t increase too much).  He put the money in my account since 1)  He doesn’t meet the requirements to get the 3% interest rate on his checking account and 2) I use my rewards credit card to pay his tuition so get points.
  • Wedding Fund: $2383.44  I already saved $7500, and this is how much I have left  to  spend
  • Honeymoon Fund: $869.63 We’re taking a delayed honeymoon, so we still have more time to save
  • Vacation Fund: $400.00  This is for a weekend trip to St. Louis in June.  I am a huge gymnastics fan and the National Championships this year is located within a reasonable driving distance from home. Whatever is left over from the trip will be stashed  in the honeymoon fund
  • Christmas Fund: $50.00
  • Emergency Fund: $5321.04 The goal is to save $6000 by the end of the year, should be very do-able

Total Targeted Savings: $24,952.15
Total Day-to-Day Cash: $1940.28

Right now my finances look pretty good because I am sitting on a ton of cash, but as soon as my fiance’s tuition bill comes, a large chunk will be wiped out, and we will have to start taking out loans.

Current State of Finances Part 1: Net Worth

I want to give a snapshot of where I am at financially, to give you all (and myself ) a frame of reference for future posts. I recently graduated with a bachelor’s degree about a year ago, and I am working full time as an administrative assistant. I am currently engaged to a first year dental student, and we’re getting married in a couple of months, so we have begun merging some of our finances.

First, we’ll take a look at my net worth
Bank Accounts

  • Credit Union Checking: $19,726.30
  • Credit Union Savings:$125.22
  • Discover Savings: $7,040.21

Total Cash on Hand: $26,891.43

Investment/Retirement Accounts

  • Roth IRA: $3,203.07
  • Vanguard Account:$3741.25 This is money that I rolled over from a gift trust I cashed out when I was 19. The fund that it was in performed pretty poorly, so I put it in an index fund. I already used part of the money to by a condo with my parents and my sister (more on that in future post, to keep things simple I won’t include the condo in my net worth calculations) and to start my Roth IRA. As of now, I’m not sure what the money will be used for, but I am open to suggestions.

Total Investment Money: $6944.32

Other
Car: $5000.00

Debt
None so far, but will change in the near future when my fiance exhaust all of his savings on his dental school tuition. Last semester his tuition, fees, and equipment rental topped $16000.

Total Net Worth: $38,835.75

My net worth looks impressive for my life stage, but as I learned in my statistics class, numbers are just numbers if you don’t know where they come from or what they mean. A large portion of my cash belongs to my fiance, which will be used for his tuition next semester. So, I do think that my net worth is a bit inflated, and I know it will change drastically before the year is over.

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