When I first started my zero net worth experiment I was curious how long it would take me to double my net worth. Well, as the title indicates, 13 or so months later I finally did it! As a reminder on January 18, 2011 I took my positive net worth and made it zero. This way I can share my progress as I grow financially. I am well aware of the negatives of the system the main one being that you, as a reader, do not know if I went from $20,000 to $40,000 or $200,000 to $400,000 over the past 13 months. My usual reply is that you are still sharing in my growth regardless of how big or small it is monetarily. Every month since that post I have provided my growth both in terms of month to date & year to date.
Calculating my Net Worth
The assets I include are:
- My Cash Savings Accounts – This has been my main focus for over a year, as we will need all the cash we can get when we upgrade our living situation. Just a reminder our current home went on the market 30 days ago.
- My 401(k)
- Random Non-Qualified Investment Accounts
- The Wife’s Roth IRA
- My favorite personal finance item, my small but Awesome Dividend Investment Portfolio
- Value of my House – I have kept this constant choosing to ignore this variable. It should be interesting to see whether I close north or south of that number and how that will affect my net worth since this is my biggest asset (even net of liabilities).
- My Traditional IRA – Which I started actively trading last month using a Covered Call Strategy and even created a page to track all my gains (and loses)
The liabilities I include are:
While I am lucky to only have 2 main liabilities, they are very significant.
- Law School Loans
What is missing?
- Car loan – My car is paid off and I don’t consider it an asset and The Wife leases her car.
- Credit Card debt – Don’t have any except a revolving AMEX account so no reason to put it up
- Checking Accounts – Always changing and moving besides I keep my checking accounts artificially low.
My Net Worth Growth
- From March 1, 2012 to April, 2012 my net worth has increased 6.18%
- Year to Date my net worth has increased 20.02%
- From January 2011 to April 2012 my net worth has increased 107.37%
A lot of my gain this month was attributed to paying my taxes. We owed a couple hundred bucks, but since we thought we were going to owe a lot more we had a cash surplus built up in an account that I don’t count…so a lot of the gain was moving that from a shadow account to long term cash savings.
My future promise to everyone here: I will get a lot more transparent if:
- I remain anonymous
- I am still blogging and I hit 400% (25% on the way there)
How did you do the past month? Feel free to leave your link the comments!