In January of 2011 I started tracking my net worth, but I wasn’t comfortable putting the number out there, so I came up with a system where I calculated my net worth and made that number a zero. This way I can share my gains and loses. Thankfully since January I have only had gains in my family’s Net Worth.
The assets I include are:
- My Cash Savings Accounts
- My 401(k)
- The Wife’s Roth IRA
- My Small but Awesome Dividend Investment Portfolio
- Value of my House
- My Traditional IRA
The liabilities I include are:
- Law School Loans
What is missing?
- Car loan – Paid that off last month
- 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 kept low on purpose so no reason to track it
- Cars – I have no idea why people count cars as an asset. Its transportation not an asset.
- Jewelry – I joke that The Wife’s hand is worth more than my car…but there is NO way anything is being pawned/sold so why list it as an asset?
My Net worth Update
- From July 1, 2011 to August 1, 2011 my net worth has increased 3.38%
- From January 18, 2011 to August 1,2011 my net worth has increased 46.84%
I am not upset by the number, but this is my lowest month to month gain since I started tracking. I think the reason has to do with market forces since I put my standard amount into my 401(k) but the balance actually decreased. While this excites me in the long run, in the short run it is pretty frustrating. Further, I am positive that that as my actual net worth increases, it will become near impossible to gain 3% month in month out….but for now I’ll take it!
How was your month? Do you have an update?
My First Post Almost 3 Years Ago
I started this blog almost 3 years ago (August 5, 2008 to be exact). In that post, I wanted to put it all on the line, and I will tell you writing/reading that post still annoys me:
- Approximately $16,800 in Credit Card Debt!
- Approximately $250,000 in Secured Debt (House Mortgage and my car – wife leases)
- $60,000 – $70,000 Law School Loans
It took me almost 1 one year to pay off all that credit card debt and another 18 months after that to pay off my car. I would never say that I wasn’t financially “happy” but it feels good when debt repayment isn’t your primary goal!