December 2016 Net Worth Update

//December 2016 Net Worth Update

December 2016 Net Worth Update

While not everyone may not sure it on their personal finance blog, I think every adult should keep track of their net worth, and so every month I come on here and share whether my net worth increased/decreased and by how much.  I am not comfortable sharing whole numbers, and I completely get this makes my posts not that transparent but such as life.

Calculating my Net Worth

Creating a net worth statement is pretty simple.  All one has to do is honestly add up your assets and minus your liabilities.  If you build your net worth calculation on lies, what’s the point of even doing the exercise.  I know calculating my net worth helps me keep track of my decreasing liabilities while seeing if my investments are growing like they should be.

My Assets

My assets are pretty simple:

  • Emergency Fund – It is a little less than where I would like it, but I don’t calculate it in terms of monthly expenditures.  Rather I think to myself how much cash would I really need if say, the roof goes.
  • My Dividend Growth Account – It is small, but this is where I have really been focusing my efforts lately and I will writing a lot about it.
  • My Wife’s Roth IRA – Nothing special – just a mixture of cheap index funds and stocks that capture my attention.
  • My 401(k) – My 401(k) is terrible with high fees for shit mutual funds, but where else am I getting a match on my money.  I am not one to turn down free cash.
  • Wife’s Mutual Funds – This was an amount that was given to my wife from her now deceased grand parents.  They were horribly mismanaged until I stepped in, putting them in low expense vanguard mutual funds.  She and I both look at this account as a super emergency fund.
  • My House – Despite being my largest asset I don’t particularly care how it is valued.  I am not moving so it is more or less a dead asset.  I don’t grow it and I don’t reduce it.  Maybe at the end of the year I can do an annual review if there are any comparable homes sold.
  • My Traditional IRA – Just a few stocks that have captured my attention.
  • My Investment Account with my Brother – My Wife and my brother invested a nominal amount ($1,200 each) to try and give my brother confidence with his stock picking ability.

My Liabilities

  • My Law School Loans – Despite being almost 35 years old I have a significant amount of law school loans left. They are locked in at 3.5%, so what’s the rush to pay them off?
  • My Mortgage – I live on Long Island (and its on not in), so the odds of me ever prepaying this down, especially with a 3.375% 30yr fixed is unrealistic.
  • Credit Cards – My favorite card is my American Express Premier Gold Card, whose fee I fight every year.  I also have some minor outstanding balances that I’ll just pay down slowly.

My Net Worth Increase/Decrease

From November 2016 to December 2016 my net worth increased 3.20%; and year to date I am up 17.25%.

A majority of net worth is correlated with the market, so where I end up is just a guessing game dependent on the broader market.  Notwithstanding, the two items I can control is earning and spending, so that is where the focus is at!

How did you do this month?  

By | 2016-12-01T10:05:20+00:00 December 1st, 2016|Personal Situation|1 Comment

About the Author:

Evan is the owner of My Journey to Millions which was started to track his journey from a broke debt ridden law school graduate to building a positive balance. Need more Evan? Follow him on Twitter, Contact him or get new posts directly to your email

One Comment

  1. Financial Panther December 1, 2016 at 1:03 pm - Reply

    What sort of timeline are you looking on for your law school loans? I graduated law school in 2013 and ended up paying them back within 2.5 years. Did it primarily for the flexibility so that I didn’t have to stay in biglaw.

    Are you in biglaw or some other type of attorney field? (Sorry if you’ve shared your story before. I didn’t see it in the about page and I’m a new reader to your blog).

    Admittedly, I probably could have done better over the long term by investing, but since I paid off my loans by 29 years old, I should still reach my long term financial goals (I was still contributing some to retirement while I was aggressively paying off loans, just not maxing out my accounts).

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