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| Wednesday, January 13, 2010 |
| Net Worth January 2010 |
I am really late with my Net Worth report this month! As you can see, this was a great month for me. My Mother surprised me at the end of 2009 by paying me back the $10,000 I had given her back in 2008 to pay off her mortgage. A relative had passed away in 2009 and my parents had received a large bequest. My Mother decided to use a portion of that to pay me back. I used half of the money to fund my Roth IRA contribution for 2009 and the other half went to pay down my mortgage principal (my only remaining debt).
As you can see, I was also helped by gains in the stock market and additional money I was able to scrounge from the couch cushions and throw at my mortgage principal balance. |
| posted by Boston Gal @ 7:36 AM *
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| 5 Comments: |
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Thanks for the update.
How did that loan payoff affect your net worth? It should have been held as an asset (loan receivable) on your budget, which now moved to cash. There should be 0 impact to your net worth or Asset line.
Right?
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congrats!! Gettin closer to the 7 figures mark!
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Hi Anonymous,
When I made the loan to my Mom in 2008 the verbal agreement was she would pay me back when she sold the house.
But when I gave her the loan I knew there was a real possibility that when the time came for my Mom to sell her house the proceeds might all be needed to fund nursing home care or some other expense. I assumed that this issue would not come up for another decade.
So when I gave the loan to my Mom in 2008 I treated it as a gift as far as my Net Worth was concerned. So this early and unexpected payback bumped my Net Worth by $10,000 this month.
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BG, do you have your mortgage set up on an amortization spread sheet, so that you know how much time you have just shaved from the end? I suspect that you do. :) How about sharing that info on a regular basis when you post your monthly net worth? Last payment will be made Month, Year. That way, we can watch the progress in terms of time rather than only in terms of dollars.
I watch my own progress on my own mortgage in this manner, and it is really nice to see the time impact of my prepayment efforts.
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Can we see what your asset allocation is in your retirements and brokerage accounts? I think that would be instructive for those of us who wish to emulate your success in growing your net worth.
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Thanks for the update.
How did that loan payoff affect your net worth? It should have been held as an asset (loan receivable) on your budget, which now moved to cash. There should be 0 impact to your net worth or Asset line.
Right?