We are a couple days into the new year and it is about time to calculate how I did in 2012. I have been tracking and sharing my net worth since the beginning of 2011. Each month I come on here and provide my change in terms of month over month, year to date and since Jan 2011.
I had set a reach goal of increasing my net worth by 50% in 2013, and I am positive even before tallying up the final numbers that I didn’t hit it. The main reason I don’t believe I hit the goal has to do with my house sale. In converting that asset to cash I took a percentage point or two lower than what I had it valued all year, then I had to pay out the non-profit that runs the neighborhood 1%, then I had to pay my attorney, etc. With all the “hidden” costs it makes me wonder how people flip houses, but I digress.
Calculating my Net Worth
- My Cash Savings Accounts – This account is usually just sitting in ING but I have more money than I have ever had in my joint checking account waiting to sign over the next 10% to our sellers. In addition I have the remaining amount from operation horde cash still in our ING account. There has already been tremendous waste on the sale side I can only imagine what kind of waste I am in for on the buy side!
- My 401(k) – Just keep throwing part of my paycheck at my newly rebalanced and reallocated my 401(k).
- 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
- Home Value – For the first time since I started this blog I don’t own a home. So I replaced this category with the 10% already in escrow for the new home. That 10% will meet its cousin the second 10% hopefully by the end of the month.
- My Traditional IRA – Been trading using my covered call strategy. I recently made some sales and am waiting for one more to expire at the end of the month to buy one or two more and provide an update.
The liabilities I include are:
While I normally only have 2 main, but significant, liabilities (mortgage and student loans) since selling the house I don’t have a mortgage! Nice feeling but hopefully won’t last lol. So the only liability I have right now is my law school loans although I recently paid off the much smaller of the loans. Next month I should have my mortgage back in the mix as well as some new credit card debt (at 0% of course).
My Net Worth Growth
- From December 2012 to January 2013 my net worth increased Decreased -1.76%
- My Net worth Increased in 2012 36.74%
- From January 2011 to January 2013 my net worth has increased 136.25%
I have a lot going on next month in terms of money shifting around so it’ll be interesting to see where all the chips fall:
- Part of my bonus has moved through to assets that I don’t count (my sole checking account) to assets that I do count (investments, savings, etc), but not all of it yet.
- The house purchase should be completed
- I will not be paying utilities for a few weeks as I don’t have a home
- I should get back some of my escrow from renting my own home from buyers
How did you do this month?