I write this update on the night of my son’s 4th birthday. It is almost unbelievable to me that I have a 4 year old! I know it such a cliche statement, but it is incredible how fast time flies. I almost remember writing the post welcoming him to this world. I know there is nothing I can do to slow it down, but milestones like this remind me why I behave the way I do financially. Every dollar not spent on garbage is another dollar that can be used to build financial freedom. The milestones I have watched over the past year with my boy are awe inspiring, and it is painful when he realizes I am going back to work every Monday. While I spend far less than most of those in my life, I am not anywhere as extreme as I wish I would be/could be.
Consumer Debt Repayment
As I stated over the past few months I accumulated consumer debt for the first time in years. I have the liquidity to pay it all off but choose not to because truth be told I value liquidity way too much. First step was create the following step by step outline for myself. I then chose to call an audible and more or less ignore my own outline.
- In September I paid off $1,689.
- In October I was actually -$422 even with adjustments made for the “found” account.
- November was another negative moth at $588 – however, most of this will be gone by the time I pay off my revolving AMEX (but not attacking that much principal in the other accounts).
When I decided to take charge of this part of my financial life I said that if I wasn’t hitting $1,000/mo in the right direction I would force myself to sell something that is going to hurt, namely a piece of my dividend investment portfolio. I have yet to pull this trigger for the exact reason I said I would. Pain (in the very first world sense of the world). I have two positions I am thinking about liquidating, but then I remember that I really do believe in the underlying business and am I going to look back and kick myself.
I haven’t quite figured out to do with this problem.
Calculating my Net Worth
- My Cash Savings Accounts – I only really count my emergency savings since everything else is ear marked to be spent elsewhere. This amount is lower than what I would like to be. I am hoping to move it up to a comfortable level with my bonus at the end of the year.
- My 401(k) – Just keep throwing part of my paycheck at my 401(k) even though I sort of hate my 401k. For the past few months I have been buying and selling within this account…I just posted my actual returns from this pure market timing technique.
- Random Non-Qualified Investment Accounts – This thing has TUMBLED but I am proud to announce I am DONE with gambling on penny stocks. My gambling will be kept to casinos (and some of my holdings in my investment club).
- Wife’s Non-Qualified Account – In this monthly post for the past few years I would lump this in with the random qualified accounts, but this is not how I kept my records. So I have partitioned it out for future posts, and recaptured some Disney stock which was in a UTMA account for The Wife despite her being 34 years old. The “recapture” created a noticeable big bump. In addition to her $DIS stock she owns 2 broad based index funds.
- 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
- 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 am just going to keep using my purchase price for at least the next year or two.
- My Traditional IRA – I started to actively trade this account lol. Not proud. I just made the financial confession that I was speculating in some really shitty stocks. I am done with it – and will roll out when I can.
- My Mortgage – Every so often I think about putting money towards the mortgage but I always back off.
- Law School debt – A while back I paid off the much smaller of the loans I have a while before this category makes any significant moves.
- Credit Card debt – As mentioned above the goal is to reduce it by a net $1,000 per month.
My Net Worth Growth
- From November 2014 to December 2014 my net worth increased 4.81%
- Year to date I am up 9.87%
Even without the recapture of the Disney Stock the net worth would be positive, but at a much more normal 2%.