Tuesday, January 10, 2012

The State of Our Union 2012

(The State of Our Union 2011)

If this is boring to you, scroll to the bottom for a cute video of Liam!

All that math for a rather unexciting result. I added up the values of all of our assets and liabilities as of January 1st and it is within a few hundred dollars of our net worth in 2011. Not to say that there wasn't a good deal of change. The value of our retirement accounts increased by 1/3, we paid down our mortgage and Dan's student loans and increased our savings accounts. I also paid off my SUV. It was the single biggest transaction that I have ever made! All of that, however, was completely undone by the continuing decline in the value of our home. Blah!

I was really hoping for a positive number by this year, but that didn't happen. It would have if our house hadn't lost anymore of its value, but it did and there isn't a single thing that I can do about that. We discussed letting our house go back in 2009, but decided that it wasn't the best option for us.

The numbers remind me that we need to redouble our efforts to pay down our debt and save for the future. Since adding it all up, I increased our payment on Dan's student loans so that we will pay extra principal each month. I did that last year for our mortgage, but left the student loans at the default payment. Now that we are paying extra on both, we will be in an even better position by next year.

I am also hoping that Dan gets a nice raise this year after his review next month. If that comes to fruition, we will increase the percentage that he contributes to his 401(k). Other money things on our to do list this year: get our beneficiaries and will in order, roll over Dan's 401(k) from the jobs he had in 2007 and 2009 and correct our homestead exemption.

Liam is learning about money. He still loves emptying out my wallet.

He also knows how to put coins in his piggy bank.

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