October 2013 Net Worth Update

IT HAS FINALLY HAPPENED! It took almost 9 months but I am finally positive year to date. I think if the upcoming government shut down happens there will be some buying opportunities for my dividend fund but the history on what happens to the market when there is a government shutdown is iffy at best.

My Short Term Financial Goals

I finished the last of my $5,000 goals in June and gave myself some new ones.  The progress noted is from September to October:

  1. Contribute $500 to my Traditional IRA – 100% (finished in September)!
  2. Save $500 into my Son’s 529 – Went from 10% to 45%!
  3. Save $1,000 in cash towards a future investment property purchase – Went from 7% to 12% (the lowest on the priority list) – No gain.
  4. Invest $1,500 into my Dividend Portfolio –  Went from 70% to 100%! HELL YEAH
  5. Save up $750 to allocate to my whole life insurance policies – Went from to 17.21% to 17.23% – didn’t add anything to it this month other than interest.
  6. Save $750 in the house repair fund – Went from 36.67% to 50%.

I am hoping to finish these goals up by the end of October so I can start some new ones going into the last two months of the year, I think it can be done since I only need about a $1,200 to finish me up.

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.
  • 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 dividend 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 – Every so often I think about putting money towards the mortgage but I always back off for a few reasons that I’ll highlight this month.
  • 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.

While I respect liquidity way too much The Wife had different feelings.  Despite all the debt being at 0% she wanted it gone.  It gave her a sense of security and let her better focus on what was actually being spent each month since there was no balance to worry about. Since it wasn’t like I was making a bad financial move we paid off the card.

My Net Worth Growth

  • From September 2013 to October 2013 my net worth increased 3.66% 
  • Year to Date my net worth just crossed over to the positive world! Not by much but a 1.08% is better than anything negative

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

7 Responses to October 2013 Net Worth Update

    • No, my assets have exceeded liabilities for years. What I meant, and I wasn’t clear, is that my net worth is FINALLY higher than what it was in January.

      Despite a BULL run in the market I bought a house in January and got CRUSHED in closing costs and new shit that apparently The Wife (and most other women) think we need to live in a new house.

  1. Good job so far. For us it’s been a little rough in the past months, with my pregnancy and all, but we’re doing pretty OK anyway. I hope we’ll be able to keep on saving/earning well, so that the numbers keep on climbing.

  2. Congrats on a great month! Love the strategy of dividend investing + rental property. That’s the same plan I’m on, although my main focus will be on rentals.

    I stopped funding the 401k this year… as I’m trying to ramp up early FI progress.

    Keep at it!

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