August 2017 Net Worth Update

//August 2017 Net Worth Update

August 2017 Net Worth Update

My favorite post of the month is here. I add up all my assets minus my liabilities and see how my net worth has changed as compared to the month before.  I wish I were a little bit more open about sharing how I have been doing, but I just can’t get behind putting the real numbers out here.  Instead, I provide a watered down version that shows if I am up or down and by how much.  Luckily, I have only had a few down months which is a combination of luck in the market, paying down debt, and keeping expenses relatively low.  If you need a little bit more detail to get your personal finance net worth voyeuristic kick I would check out the Rockstar Finance Net Worth Tracker.

My Net Worth Calculation

Creating a net worth statement is pretty simple.  All one has to do is honestly add up your assets and minus your liabilities.  If you build your net worth calculation on lies, what’s the point of even doing the exercise.  I know calculating my net worth helps me keep track of my decreasing liabilities while seeing if my investments are growing like they should be.

My Assets

My assets are pretty simple:

  • Emergency Fund – It is a little less than where I would like it, but I don’t calculate it in terms of monthly expenditures.  Rather I think to myself how much cash would I really need if an emergency happens.
  • My Dividend Growth Account – It is small and been dormant this year (much to my extreme displeasure).
  • My Wife’s Roth IRA – Nothing special – just a mixture of cheap index funds and individual companies that capture my attention.  I have started to sell covered calls within this account.  Just boosts my investment capital – small (read: very tiny) droplets of capital I wouldn’t have had otherwise.
  • My 401(k) – My 401(k) is terrible with high fees for shit mutual funds, but where else am I getting a match on my money.  I am not one to turn down free cash.  I rebalanced the account a few months ago.
  • Wife’s Mutual Funds – This was an amount that was given to my wife from her now deceased grand parents.  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.
  • My House – This is the first year after buying the house for 4 years where I increased the value of the home.  I increased it an nominal 3% in 4 years.  I don’t plan on reviewing this dead money asset for another year or two.
  • My Traditional IRA – Just a few stocks that have captured my attention. Similar to my wife’s Roth IRA I will often sell covered calls on holdings to generate nominal amounts of cash flow.
  • Investment Account with my Brother – The Wife and my brother invested a nominal amount ($1,200 each) to try and give my brother confidence with his stock picking ability.

My Liabilities

  • My Law School Loans – Despite being almost 35 years old I have a significant amount of law school loans left. They are locked in at 3.5%, so what’s the rush to pay them off?
  • My Mortgage – I live on Long Island (and its on not in), so the odds of me ever prepaying this down, especially with a 3.375% 30yr fixed is unrealistic.
  • Credit Cards – My favorite card is my American Express Premier Gold Card, whose fee I fight every year.  I also have some minor outstanding balances that I’ll just pay down slowly.

My Net Worth Increase/Decrease

  • From July 1 to August 1 my net worth increased 2.77%%
  • My net worth increase YTD has increased 16.22%

I’ll take it!

By |2017-08-31T10:18:19-04:00August 1st, 2017|Personal Situation|1 Comment

About the Author:

Evan is the owner of My Journey to Millions which was started to track his journey from a broke debt ridden law school graduate to building a positive balance. Need more Evan? Follow him on Twitter, Contact him or get new posts directly to your email

One Comment

  1. Church August 1, 2017 at 9:25 am - Reply

    Way to keep grinding it out. I like your description on the home as a dead money asset. Couldn’t be more on point with that.

    Great job. Keep it up.

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