2010 Year-End Progress Report

This is my (belated) 2010 year-end financial review.

Due to family obligations last year, I hadn't been updating my blog regularly other than to blow steam about my parents' financial irresponsibility.

With my father now deceased (RIP), I am hoping that my life will return to "normal" and that I will be able to resume a semi-regular update of my financial progress.

MY DEBT

	Starting Debt (6/08)	Last Month	This Month	DIFFERENCE
Private SL	$49,528.99	$33,936.80	$33,486.00	$(450.80)
Fed'l SL	$55,852.68	$52,101.45	$51,953.37	$(148.08)
Car Loan	$9,779.33	$0.00	$0.00	$(0.00)
CC	$13,610.75	$0.00	$0.00	$(0.00)
TOTAL	$128,771.75	$86,038.25	$85,439.37	$(598.88)

I totally fell off of the snowball plan last year. It's partly because my monthly budget took a whack every time I traveled out-of-state to attend to my parents' bankruptcy and health care issues. I also blew beaucoup cash to deal with my emotional upheavals in dealing with my parents. Hey, retail therapy is a proud American tradition, no? Even if it isn't, our economic recovery depends upon it, sadly.

Anyhow, here's a recap:

Total debt in 12/31/09: $96,750.67
Total debt in 12/31/10: $85,439.37
Reduction in $: $11,311.30
Reduction in %: 11.69%


SAVINGS

LAST MONTH	THIS MONTH	DIFFERENCE
$9,592.59	$9,696.45	+$103.86

The savings I report here is with respect to my emergency fund savings only and does not include my future spending earmarks. My ultimate goal is to save $36,000.

Total EF in 12/31/09: $8,472.64
Total EF in 12/31/10: $9,696.45
Increase in $: $1,223.81
Increase in %: 14.44%


MY "X"-FUND

LAST MONTH	THIS MONTH	DIFFERENCE
$28,443.10	$28,523.41	+$80.31

My "X"-Fund represents a part of a recent windfall that I'd set aside for some unplanned expense. I was thinking it could serve as a supplement to my emergency fund or a down-payment for my first home, but I'm very, very tempted to use this money to pay off my private student loans some time down the road. After all, this money is currently accruing interest at an anemic 1.3% APY. My private student loans are costing me ~3.6% APR. On paper it's a no-brainer, but the emotional security this money gives me is incalculable.


MY ROP (LIFE INS) FUND

LAST MONTH	THIS MONTH	DIFFERENCE
$1,003.23	$1,066.14	+$62.91

Long story short, I bought term life insurance but created a hypothetical whole life insurance policy (or, return of premium (ROP) term life insurance policy). I'm basically trying to see whether I can earn back my life insurance premiums through various investments.

So far, my investments have yielded a 9.06% return. With the stock market surging though, I don't think I'll be buying any stocks or ETFs in the near future. I'll wait for the inevitable (yet somehow unexpected) market correction.


MY NET WORTH

LAST MONTH	THIS MONTH	DIFFERENCE
$133,127.73	$143,084.85	+$9,957.12

Looks great doesn't it? But if I omit my 401k and IRAs, my net worth is... -$35,413.41. I'll do the happy dance when my net worth (excl-retirement accounts) is no longer in the red.

Net worth on 12/31/09: $53,922.34
Net worth on 12/31/10: $143,084.85
Increase in $: $89,162.51
Increase in %: 165.35%

The increase in my net worth is mostly attributed to: (a) 401k value increased by ~$45,000, (b) net windfall of ~$28,000, (c) debt reduction of ~$11,000.

The breakdown and the history of my net worth can be seen here.