October 2018 Net Worth Update

//October 2018 Net Worth Update

October 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 have a bad feeling about this month.  Spending was up again while variable income was down.  My variable income is what I use for all revolving debt.  The goal is usually to zero out most of the consumer debt monthly, but months like this can be frustrating!

My Net Worth Calculation

My Assets

My assets are pretty simple:

  • Emergency Fund – My goal is to keep an amount in cash that The Wife and I believe is needed for a real emergency amount rather than a specific amount linked to monthly expenditures.  At this point it is a quite a bit lower than I’d like it to be.
  • My Dividend Growth Account – I am finally back into undervalued dividend growth investing and I am very excited to share my screens and purchases!  I decided last month to take the record keeping of this account a bit more serious than I have for the past 18 months.
  • 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 finally just reallocated future contributions after discussing it for a few months.
  • 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, but in January of last year I opened up an American Express Platinum Card for 60,000 points, and this month I opened up an American Express Delta card to get $200 off our recently booked trip to Atlanta and I got an extra 40,000 delta miles (not sure how that translates to the Amex points yet).  I’ll be canceling the Platinum card in January of 2019 because I can’t justify the $500/yr membership costs.
  • 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 September 1st to October 1st my net worth decreased .31%
  • Year to date my net worth has increased 9.40%
I thought it was going to be a lot worse, so I am okay with this small of a decrease!  Notwithstanding, that debt monster has crept up on me.  I need to get back to being focused on the online income world I have built (but don’t really talk about), and going to need to consolidate everything into a 0%.  It isn’t a lot of money, but a plan must be implemented.
By |2018-10-01T22:23:00+00:00October 1st, 2018|Uncategorized|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. Millionaire Dojo October 2, 2018 at 4:36 pm - Reply

    I didn’t have a very good month in September either. Just gotta press on and hope for better months in the future!

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