I started my personal finance blog, myjourneytomillions, to share my personal financial situation in an anonymous way. Sometimes I will highlight things that are going on in my life that are not financial in nature. In addition, in this category I share all my net worth updates.
With another month in the books it is time for me to calculate my net worth and share how it has changed month over month and year to date. I am not sure how many people actually track their assets and debts outside of the personal finance world, but I am sure that if more people did the state of America’s finances would be in a better place.
Thoughts Before Calculating: I usually have a feeling as to how my family has done over the past month. I am pretty sure this is going to be a negative month. March 2019 was an amazing month that included a skiing trip and disney! Two very expensive items.
My assets are pretty simple:
- Emergency Fund – My goal is to keep an amount in cash that The Wife and I believe is needed for a real emergency amount rather than a specific amount linked to monthly expenditures. At this point it is a quite a bit lower than I’d like it to be. Last month I wrote, “I am hoping a healthy tax refund gets me to the number I’d like” well that tax return went right to the trips!
- My Dividend Growth Account – I am finally back into undervalued dividend growth investing and I am very excited to share my screens and purchases! Year to date I have been KILLING it. I have been able to get out from underneath some shitty trades and things are turning around.
- My Wife’s Roth IRA – Nothing special – just a mixture of cheap index funds and individual companies that capture my attention.
- My 401(k) – Recently I went back to a long term allocation rather than trying to market time.
- Wife’s Mutual Funds – This was an amount that was given to my wife from her deceased grandparents. 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. In January of 2019 I moved a good portion of this account to cash, not because of marketing timing but because we may have a liquidity need that I don’t want to be beholden to a time like Q42018.
- My House – I increased the value of my home starting in 2018 3%. I have decided to leave it flat in 2019, if The Wife and I sell it it’ll just add a large jump in the net worth statement.
- My Traditional IRA – Just a few stocks that have captured my attention.
- Physical Gold – In 2018 I decided on buying a small amount of physical gold every month or two. After doing some quick math, I am getting killed in transaction costs. I set up a capital one 360 account to save the amount I would be buying in gold and I will make a larger purchase less often.
- Cryptocurrency Account – Earlier in 2018 bought a tiny amount of Bitcoin. By the time my initial payment cleared bitcoin had dropped 40%. I am not exactly sure what I am going to do with this account just yet. Right now I am going to ignore it.
- Cash Surrender Value Life Insurance – I am not a “buy term and invest the difference” kind of guy. Mainly because no one actually invests the difference! I have been building my Cash Surrender Value for a number of years, but I never captured it on these statements. This year I’ll be adding/updating this line item.
- My Law School Loans – I still have a significant amount of law school loans but they are locked in at 3.5%, so I have no real rush to pay them off. I’d like to get the monthly cash flow back but at about the $35,000 it would be a tremendous hit to liquidity. I figured out last year that my student loan company, NELNET, was misapplying my extra payments but that is all fixed now.
- My Mortgage – I live on Long Island (and it’s on, not in) so the odds of me ever prepaying this down, especially with a 3.375% 30yr fixed is unrealistic. I just chip away month after month, year after year.
- Credit Cards – My favorite card is my American Express Premier Gold Card, whose fee I fight every year. I open and close other cards to get ridiculous offers but right now I am rolling out of them with nothing on the horizon.
- My HELOC – A good portion of it was to capitalize The Wife’s Business. I decided to keep the debt of the HELOC on the balance sheet, but ignore the corresponding asset (the removed checking account). Starting last month, I have been putting a lot of cash flow into paying this asset down. Without a substantial change this will take years to pay off, but after last quarter’s shit show I realized I am not comfortable with this much debt on my books, even at ridiculously low rates. I am not sure I’ll keep up with it for the entire calendar year, but right now it is my plan.
Net Worth Increase/Decrease
- From to March 1 to April 1 my net worth increased .91%
- Year to date my net worth has increased 20.12%
Green is definitely better than red! Given all the added expenses I had in March it was great to see some positive movement. I think a lot of the reason it even went green vs a BIG decrease was getting my tax return (and then subsequently using that tax return for debt repayment vs buying shit I don’t need).