After two months of lukewarm net worth growth during the summer, our household finance is back to the fast lane. The $31,000 monthly increases makes August the second best month of this year so far.
I have to admit it is partially driven by seasonality -- every August, a few batches of stock option and stock award grants will vest in my account, and even after some hefty tax (up to 46%), it represents some handsome income. Also, the annual bonus payout didn't disappoint me. On the other hand, although the global stock market was quite a ride in August, my portfolio ended up literally at where it started in August. My $3,000 gain was cancelled almost fully by the loss in vested stock options.
During the two thirds of 2007 that is now behind us, we have added over $160,000 to our net worth figure. This includes about $130,000 from savings of multiple income streams and $40,000 from investment income, offset by $10,000 loss in stock option value. Therefore, we are slightly ahead of the game in our annual pursuit of $230,000 net worth increase.
MONTHLY BALANCE SHEET
A few footnotes:
- We made a $10,000 contribution to my Self-Employment 401(k) account for tax year 2006, hence the substantial increase in our 401(k)/IRA bucket.
- We also finally filed our federal tax return for tax year 2006, and received about $4,000 from my employer to make up for the difference in tax law changes in 2006.
- We paid off more than $14,000 of credit card balance from 0% APR balance transfers completed in the prior year since the introductory period is coming to an end. (Out of the remaining $22,000 balance, another $12,000 will be due in November, and the rest is in 1.9% APR life-time deals which I don't plan to pay off in this decade.)