Alternatively titled: In which the money hemorrhaging begins
Our home renovation is now in full swing. With our non- cosmetic work complete (plumbing, insulation and electrical mostly), and a few of our cheaper projects done (prepping/staining concrete floors, and quite a bit of painting, and installing closet doors and curtains), I expect that we will be spending quite a bit of money on home improvement over the next 6-18 months (depending on how aggressive we are).
I say all this only to explain that we've started spending money like crazy, and we don't have any plans to stop any time soon. Prior to buying our house, we saved an additional $25K for renovations. We still have $19K left to spend, but I expect that our roof, bathrooms, floors, kitchen cabinets, and closet organization systems will leave us with a big fat goose egg at the end of the remodel.
And onto the spending report
May Spending $5242.05
Our spending this month clocked in $5242.05, of which $2152.78 was home spending. This was mostly flooring and various tools, but we also bought new curtains which give our home a wonderfully homey feel.
The best thing we spent money on this month was our camping vacation which clocked in at $115.88 and included campsite reservations, Chik-Fil-A, Coleman Gas Fuel, and cash (which was spent on Hawaiian ice, and I think the rest is in my husband's wallet). Our friends drove, so we did not have to pay for gas.
The second best spending was a pair of shoes that my husband bought. The threats worked!
The worst spending this month was the spending that did not happen. Our auto-pay for our rental unit's HOA somehow didn't go through. Thankfully, we have until the 15th of June to pay without penalty, but I hate investigating that kind of stuff.
So how did our Net Worth Fair?
With all our spendy McSpender pants on, we still managed to have a healthy net worth growth. Our net worth grew by $7,185.47 to $473,738.90. The growth was again split between contributions and actual market growth.
One might think it would be reasonable for us to try to achieve the $500K net worth mark by the end of the year, but unless the market is really in our favor, I don't think that's going to happen. You can read below to further understand why.
One quick reminder is that we are keeping our primary and rental homes at their "book" price which is the price we paid for them. This is a great estimate for our rental house, but our primary home is probably worth less than we bought it (since it's currently a construction zone), but will eventually be worth much more (we hope).
Although we had not specifically stated the goal of hitting $500K by the end of the year, I thought it might be reasonable to try for that number. That is until I realized that our cash position (currently worth about 5% our net worth) is going to rapidly deteriorate over the next few months due to our a renovation.
Our next project is going to be our bathroom which will be very involved since we're going to be ripping it down to the studs. This is likely to be one of our more expensive projects, although Mr. 1500 seems to think that bathrooms can be remodeled for $1-2K each. We will have to see if that holds true for us (remember, we are having to buy any tools that we don't have, which doesn't seem to be the case for Mr. 1500).
As I mentioned at the beginning of the post, our renovation money (currently sitting at $19K) will rapidly dwindle as we hit our stride on the renovation. While we think of this as spending (rather than investing), we are hopeful that the spending will pay off in investment form either when we sell this house, or if we keep it as a rental property.
Additionally, rather than doing our usual after tax investing, for the next two months, we will be spending our money on an Emergency Room visit, because I decided it would be a good idea to stick my finger in a blender while it was still plugged in. Yeah, nothing like a cool two grand to keep my fingers away from sharp objects in the future.
Although a stagnant, downward, or slow growing net worth isn't that exciting, I am mostly excited that we are meeting our various non financial goals (including being able to deal with my stupidity without having to stress about where the money is coming from).
I'm a wife, a mom, an employee, and a personal finance nerd who is devoted to spreadsheeting my way through life.