July 2018 Net Worth Update

//July 2018 Net Worth Update

July 2018 Net Worth Update

Thoughts before I calculate my net worth: I usually have a feeling as to how I did with regard to my net worth.  I think this month is going to be a down month.  It felt like the spending just did not stop, so combine that with a down month over month market and I should have a rare negative month.

My Net Worth Calculation

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 – I am finally back into undervalued dividend growth investing and I am very excited to share my screens and purchases!
  • My Wife’s Roth IRA – Nothing special – just a mixture of cheap index funds and individual companies that capture my attention.
  • My 401(k) – I still have about 50% of my contributions going into cash.  I am not entirely convinced that this marketing timing is worthwhile given my age (36) and the fact that the account can’t be touched for 24 years at the minimum.  I think after this month I am going to slow down the cash contributions and get back to a balanced investment approach.
  • 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.
  • My House – I increased the value of my home starting in 2018 3%.  This was the first time since I bought the home that I even bothered to increase the value.
  • My Traditional IRA – Just a few stocks that have captured my attention.
  • Wife’s Business – NEW IN 2018– Just going to value this at the cash that is on the books at the end of every month.  There won’t be a distribution for quite sometime, so hopefully, there is a nice trend upwards.
  • Physical Gold – Earlier this year I decided that I would buy 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.
  • Crytocurrency Account – Earlier this year I 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.

My Liabilities

  • My Law School Loans – Despite being 36 years old I have a significant amount of law school loans left. 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 $40,000 it would be a tremendous hit to liquidity.
  • 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.
  • Credit Cards – My favorite card was 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.  I just recently opened up an American Express Platinum Card for 60,000 points and a lot of benefits for the first year.
  • 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).

My Net Worth Increase/Decrease

  • From May 1st to June 1st my net worth increased .07%
  • Year to date my net worth has increased 5.4%

Wow my gut was correct! I’d consider a  .07% increase a down month.  It is going to be hard over the summer, but I need to get either spending in check or get refocused on earning money via my law practice and/or online income world.  I have always found that earning more money was easier than controlling my spending, so with that I am going to make a major push in July!

How’d you do this month?  

By |2018-07-02T11:04:38+00:00July 2nd, 2018|Personal Situation|4 Comments

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

4 Comments

  1. Dividend Portfolio July 4, 2018 at 12:56 am - Reply

    Although a down month, at least your net worth is moving in the right direction, however small of an increase it might be. Also, Either earning more or spending less (ie reduced expenses) are both good goals to go for, so good luck on whichever one you end up achieving.

    BTW, I’ve been thinking about starting to post my own net worth. I use Personal Capital to track what it is, and so I know the figure. I just haven’t decided on posting yet. Maybe I’m just waiting for it to get higher as I am so behind the curve. Looking forward to seeing you crush the summer months, which I know you can!

    • Evan July 5, 2018 at 11:56 am - Reply

      For me, I wasn’t comfortable putting out the actual number – which I know is MUCH more interesting to read. So I started in 2011 sharing the month over month and YTD growth (or retraction) numbers. Maybe start there?

  2. Buy, Hold Long July 4, 2018 at 10:42 pm - Reply

    Sometimes we do have those down months but as long as the majority of them are up then you are winning.
    I am in a similar boat where I have had a down month or two but it’ slowly climbing back up.
    Cheers

    • Evan July 5, 2018 at 1:24 pm - Reply

      It is hard not to have down months when so much of my life is correlated to the market, right?

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