August 2013 Net Worth Update

Haven’t posted in about a week since I was taking a quick 3 day vacation on Fire Island with The Wife, The Boy and another couple (with their two kids).  Waking up on the beach at the Boss Man’s house is exactly the type of thing that motivates me to stay focused financially.  I know that I can have that one day, will it be when I am 32 (later this year) not without some type of lottery “miracle”, but if I stay on the right path things can work out where that is at least an option for mine and my family’s future.

My current short term financial goals were mentioned in my June 2013 Net Worth Update; they are moving along at a normal pace.  I am likely to get a nice jump in next month’s update as I have a bunch of private clients starting and finishing.

  1. Contribute $500 to my Traditional IRA – 80%
  2. Save $500 into my Son’s 529 – 10% (no gain will focus on this one after IRA is done)
  3. Save $1,000 in cash towards a future investment property purchase – 7% (the lowest on the priority list) – No gain.
  4. Invest $1,500 into my Dividend Portfolio – 53.33%
  5. Save up $750 to allocate to my whole life insurance policies – 13.87%
  6. Save $750 in the house repair fund - 36.67% No Change but was invaded recently thanks to some fantastic water in the basement.

Calculating my Net Worth

My Assets

  • My Cash Savings Accounts – I only really count my emergency savings since everything else is ear marked to be spent elsewhere.  For example, the above house improvement fund isn’t included. Last month, I mentioned that, “…I came up with a round number that I am going to use going forward.  It is sort of a multiple of my monthly nut.”  Well I invaded a bit of it to pay off some CC debt that was annoying me.  As discussed below, the CC Debt is at 0% but I hated how high the number was.  Purely personal reasons, then again it isn’t like I am making anything on a cash savings account these days.   I can now focus on getting that number back up slowly.
  • My 401(k) – Just keep throwing part of my paycheck at my 401(k) even though I sort of hate my 401k.
  • Random Non-Qualified Investment Accounts
  • The Wife’s Roth IRA – This account only holds to 2 funds. An index fund of the market and a dividend paying fund.
  • My Dividend Investment Portfolio – Easily my favorite part of my financial empirehut.  I have started updating my watch list every month since I am putting more and more money into it.
  • Home Value – A lot of bloggers seem to stress over home value.  In my old place I just rounded to a number that I thought I’d sell for (I was off by less than 1%), I think I am just going to use my purchase price for the year and look at comparable home sales next year.
  • My Traditional IRA – Have been trading using my covered call strategy, but I have waived the white flag on the strategy and just finished up betting against my first stock.  This account is going to be pure passive by the end of the year hopefully.

My Liabilities

  • My Mortgage – My mortgage was recently sold so I am not sure how to pay this month’s bill just yet!  I am hoping that this resolves itself inside the next few days so I can pay someone…anyone lol.
  • Law School debt – While I recently paid off the much smaller of the loans I have a while before this category makes any significant moves.  My first set of financial goals included an extra $500 payment (which I made) I left it off this time around.
  • Credit Card debt!

I haven’t had credit card debt in 3 or so years, but with the house purchase came a lot of fix it up purchases as well as furniture.  So as we were buying the house I called up all my dormant credit cards to see what they could do in terms of 0% on purchases until June 2014. It may be needless to say, but the card will be paid off prior to that date.  Normally, my net worth post includes,  “While I have the liquidity to pay off the debt I prefer not because I respect liquidity way too much and the debt is at 0%.”

I got annoyed this month and sent a nice $5,000 payment to them!

My Net Worth Growth

  • From July 2013 to August 2013 my net worth increased a healthy 3.75% 
  • Year to Date my net worth is still negative but only .56% Almost back to even from all those damn house closing costs and new furniture purchases!

How did you do this month? Share your links below!

5 Responses to August 2013 Net Worth Update

  1. I was up another 3% this month coming off a flat June, plus I’m sitting on a reimbursement check from my employer for travel expenses which will add more, and I’m recouping everything I fronted for the sports team this season that I captain. So, that adds to about +$3k more. The capital markets are simply incredible in terms of the pace of growth. I’ve even rebalanced my holdings. It just keeps running. #1stworldproblem

    • Wow what a fantastic month buddy! The best part for me? I know that you won’t take the $3k and blow it on some shitty purchase.

      • You’re right about that. I actually have curtailed my spending a lot this month. July was a huge month for me doing things for me so there was some significant outlay. The next few are all about building back up my play account. Then the fun starts all over again!

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