random number pictureFirst of the month, so it is naturally that time to take account and see how I did for the past 30 days or so!  I have said this in the past, but I have no idea how other adults keep track of their finances without a spreadsheet or similar online tool.  Maybe they just don’t? I get not having to share it with the world, but if you aren’t keeping track of your net worth you are completely doing yourself a disservice.  At the very least it forces you to load up your debt and take account to make sure it isn’t increasing.

Thoughts before I calculate my net worth: I usually have a feeling as to how I did with regard to my net worth.  I don’t think this month is going to be anything special.  The markets, which I am pretty correlated to, have done alright and with regards to debt there will be the normal amount of reduction (i.e. normal reduction in amortized loans).  While The Wife and I traveled through Ireland for 8 amazing days, it was all covered! I have a vacation account that I keep fully funded, so the day after I got home I had transferred the cash needed to pay off all the credit cards.

My Net Worth Calculation

My Assets

My assets are pretty simple:

  • Emergency Fund – I am about $4,000.00 from my next goal (where I’ll keep it for a year or two).  I don’t have any plans to fund it quickly, but if I have a particularly low spending month this is where some of the money will go.  I have discussed in the past that my funding level is not in terms of month, but rather 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.  I just buy and sell companies that grab my attention.  We do not actively contribute to this account.
  • My 401(k) – I still have about 50% of my contributions going into cash.  I am interested in building a solid cash position so that I can deploy it when there is another pull back in the market.  My goal is to get it up to about 15% of the overall account and then just adjust quarterly. 
  • 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.  Interestingly, The Wife and I decided a few months ago to put it up on Make Me Move for 20% higher than what I have it marked down as.
  • 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.
  • 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.  Removed in May of 2018.
  • Physical Gold – I decided that I would buy a small amount of physical gold every month or two from basically now on.
  • Crytocurrency Account – I recently 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 hope to create a realistic payback schedule in a few months when we get use to running the business. I decided to keep the debt of the HELOC but ignore the corresponding asset (the removed checking account).

My Net Worth Increase/Decrease

  • From May 1st to June 1st my net worth increased 1.5%
  • Year to date my net worth has increased 5.33%

Not a bad month, nothing spectacular, but I’ll take any positive movement.