May Net Worth Update Fan of American Express Edition

Between a combination of my side business income and market forces this was a pretty good month for my household.  On January 18, 2011 I decided to start a new way to track my net worth.  I created a private spreadsheet and zeroed out my net worth. By starting at Zero, I can share my growth without sharing my actual account balances.  Some people like it some people don’t.

Assets I Include in my Net Worth Calculation

  • Liquid Savings Account
  • My 401(k)
  • Non-Qualified Investments
  • Wife’s Roth IRA
  • My Perpetual Income Machine
  • Value of my House

Liabilities I Include in my Net Worth Calculation

  • Student Loans
  • Auto Loan
  • Mortgage

You’ll notice missing from the equation Cars (don’t see them as an asset), Jewelry (not an asset), Credit Cards (don’t have any CC debt except revolving American Express – discussed below) and Checking Accounts (they are a pass through entity with only $1,000 – $2,500 at any given time).

From April 2011 to May 2011 my net worth increased 5.54%

From January 18, 2011 to May 1, 2011 my net worth has increased 22.70%!

I know 22% can mean $100 to $122 OR $100,000 to $122,000 OR $1,000,000 to $1,220,000, well it is obviously not the last one lol, but I think sharing just the percentage is enough for some people’s curiousity.

Next month should be great since my tax refund is currently in the interwebs hitting certain accounts.

My American Express Premier Gold Review

Since August of last year The Wife and I have been using our Gold Amex card whenever possible.  The American Express Gold Card is a charge card, not a credit card so it has to be paid off in full every month.  That actually benefits us, since we are not looking to have any credit card debt.  So The Wife and I use it as a super charged, super protected debit card since American Express makes it really easy to send payments in.

Remember this is a charge card so it must be paid off every month.

They run fantastic promotions like this one:

 

9 Responses to May Net Worth Update Fan of American Express Edition

  1. Very cool idea about net worth tracking. Good for the nosey folks and keeps the numbers private!

  2. Hey Evan,
    What has had the greater impact on your increase in net worth…an increase in the value of your assets or a decrease in your liabilities as you pay them down?

    • I just checked my spreadsheet and in terms of whole numbers I have saved/invested/gained from market more than I have paid down debt.

      But if I pay $1,000 towards debt or save $1,000 – my net worth increases the exact amount…

  3. I don’t like to reveal our savings numbers, either, which is kind of funny since I’m an open book about our debt. Something about publicizing an exact amount, though, makes me nervous. Like I’d be telling a would-be kidnapper exactly how much ransom he could get for our kids.
    Do you find that the rewards for the AmEx offset the annual fee? $175 seems kind of steep, when you could use a regular CC with rewards for free…

    • I feel the same way! CC Debt I put it all out there…but to tell someone/anyone (forget kidnapper but lets say even a buddy) how much cash I have sitting in the bank seems wrong.

      AMEX usually waves first year annual fee, so not sure what will happen post-that date when I owe $175.

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