August 2012 Net Worth Update

I started calculating, recording and sharing some information about my net worth in January of 2011.  Since I am not comfortable sharing whole numbers I provide growth information.

I am well aware of the shortcomings of the calculation method, but have promised that if I grow to 400% from that Jan 2011 number I would share it with everyone.

Calculating my Net Worth

The assets I include are:

  • My Cash Savings Accounts – This has been my main focus for way too long as we will need all the cash we can get when we finally move.  I am excited to think of the possibilities when this isn’t our main focus.
  • My 401(k) – I plan on evaluating the holdings and options this month.
  • Random Non-Qualified Investment Accounts
  • The Wife’s Roth IRA
  • My Dividend Investment Portfolio - Easily my favorite part of my financial empire hut
  • Home Value – I have kept it constant since the beginning of this experiment.
  • My Traditional IRA – Which I started actively trading a few months back 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 in terms of whole numbers.

  • Law School Loans
  • Mortgage

What normal Liabilities are missing?

Someone asked me last month why I have included this section for so long. After thinking about it for a bit I realized the reason was that I am proud that I have accomplished getting rid of these hurdles in my journey.

  • 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 and since I keep myself cash poor there isn’t a reason to track the account

My Net Worth Growth

  • From July 2012 my net worth increased 2.71%
  • Year to Date my net worth has increased 30.22%
  • From January 2011 to July 2012 my net worth has increased 124.98%

How was your financial month?

19 Responses to August 2012 Net Worth Update

  1. 30% in 2012 is pretty awesome. Our net worth probably increased about 5-10% this year. Now that I’m not working anymore my goal is just to keep it from decreasing.

    • You may not be working in the traditional sense of the word, but watching and caring for a child all day is 100% work!

  2. Man if you can keep the 30% average increase you have so far year to year you are going to be one rich fella. Of course that will be harder to maintain as time goes on and your net worth increases but it would be sweet. Good job on the increase!

    • Maintaining the growth has been harder and harder. Luckily the market helped me out the past 2 months. I actually recorded my first negative month in May. I was pretty pissed to say the least since my savings/investment schedule stayed the same so it was just swallowed up by the markets.

    • I resisted tracking for a long time. Probably about a year between my last debt repayment post and my first net worth post and it has served me well for motivation.

      If you aren’t comfortable sharing numbers let me know and I’ll be happy to hook you up with the spreadsheet I created so you can share growth.

  3. 2.7%? What happened? haha. Just kidding. Nice work on the +30% for the year. I can’t wait until you get to 400% and say that your networth is $4,000. ;) I know it’s more than that…

    • HAHAHAH we have a long long way to 400%!

      As far as the 2.7% it is getting annoying now because my savings/investing/debt repayment affects it less and less and just market swings more and more.

  4. This was actually the very first month we tracked every dollar we spent. From here on we will be adjusting our budget accordingly (and continuing to track every dollar) and hopefully will start tracking our net worth very soon!

  5. Congrats on the increases! I too have been seeing decent increases but that is because my net worth isn’t that significant yet. Once I get to the 6 figure net worth then it will begin slowing down I figure.

  6. More than doubling your net worth in a year and half is impressive.

    I don’t consider my car to be an asset either, although it’s worth something.

    • Hmmm going on last year’s ROUGH numbers, I would say I make a little less than half of my gross salary between this blog and the 8 other or so sites I co-own. As far as this year, I have no idea since I haven’t received 1099s and figured out expenses (Although I have to file soon for the C-Corp).

  7. I’m finally breaking even this month with my mortgage (yeah roommates!) Totally excited to be increasing my net worth.

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