July 2014 Net Worth Update

by Evan

Wow the market will just not quit, huh?  This has to end and it is going to be an ugly place around the Evan household when it does!  Not because I will have to sell anything, but I am absolutely affected by loss aversion.  Loss Aversion is the idea that a $100 lost hurts more than gaining $100.  When the inevitable correction occurs I won’t derail from my 401(k) contributions, standard debt repayment and dividend investment portfolio purchases, but I know I’ll have to keep reminding myself that a correction is a good thing since I am young and buying into the market.

Notwithstanding, until it happens my net worth which has been tied more and more to the market will continue to go up (for reasons other than being responsible).

My Short Term Financial Goals

I created a short term $5,000 savings/investing goals.  I say “short term” but really they stay alive as long they need to until I complete each objective on the list.  Not every item makes it way to my net worth growth.  For example, my vacation fund, son’s 529 and home improvement fund are not found on my balance sheet.  These goals were created in January of this year so I am now 240 days deep. Unacceptable.  Pretty pissed at myself actually.

  1. Save $500 to emergency fund – Been at 100%
  2. Save $750 to Vacation Fund – Been at 100%
  3. Save $2,000 to Dividend Fund – 59% to 67.75%
  4. Save $500 to Son’s 529 – 50% to 55%
  5. Save $750 to Traditional IRA – 6.67% stays the same
  6. Save  $500 to home improvement fund – Been at 100%

An extra few hundred dollars at these short term goals is pretty bad!  I need to refocus.  The past few months have been pretty crazy with a trip to Disney then a trip to Thomas the Train Engine/Dutch Wonderland.  I wouldn’t trade this experiences (maybe the Thomas thing that sucked) but they absolutely affect what I am able to save since I try not to carry credit card debt.  July hopefully will be a bit more controlled (going away at least once for 5 days with The Wife’s family, but the larger costs are mostly picked up which is awesome).

Calculating my Net Worth

My Assets

  • My Cash Savings Accounts – I only really count my emergency savings since everything else is ear marked to be spent elsewhere.  For example, the above house improvement fund is not included, but the funds I have saved (plus some) will be converting the house from oil to gas soon (see my calculations behind converting from oil to gas).
  • My 401(k) – Just keep throwing part of my paycheck at my 401(k) even though I sort of hate my 401k.  For the past few months I have been buying and selling within this account…I just posted my actual returns from this pure market timing technique.
  • Random Non-Qualified Investment Accounts – This thing has TUMBLED but I am proud to announce I am DONE with gambling on penny stocks.  My gambling will be kept to casinos (and some of my holdings in my investment club).
  • 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 empire hut.
  • Home Value – A lot of bloggers seem to stress over home value.  In my old place I just rounded to a number that I thought I’d sell for (I was off by less than 1%).  I am just going to keep using my purchase price for at least the next year.
  • My Traditional IRA – I started to actively trade this account lol.  Not proud.  I just made the financial confession that I was speculating in some really shitty stocks.  I am done with it – and will roll out when I can.

My Liabilities

  • My Mortgage – Every so often I think about putting money towards the mortgage but I always back off.
  • Law School debt – A while back I paid off the much smaller of the loans I have a while before this category makes any significant moves.
  • Credit Card debt – It is at zero percent but I think I need to just get rid of it.

My Net Worth Growth

  • From June 2014 to July 2014 my net worth increased 2.04%
  • Year to date I am up 8.49%

I can’t exactly complain about 8.49% YTD, but like I mentioned a few times, it is because of market gain which is pretty frustrating.

How was your month?


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1 comment

Asset-Grinder July 1, 2014 - 5:02 pm

Hey as long as you are in the green its good. 2% is a solid gain in most regards.

Good Day and Grind On!


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