I can’t believe summer is coming to an end! With another month in the books it is time to update my net worth spreadsheet.
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 an up month. I don’t think it is based on anything The Wife and I have done differently, rather, the market has been on a tear and my net worth is extremely correlated to the market.
My Net Worth Calculation
My Assets
My assets are pretty simple:
- Emergency Fund – This month I used good percentage of this to pay off my AMEX bill early. The Wife and I keep this at an amount that we believe is 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 I 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 August 1st to September 1st my net worth increased 2.66%
- Year to date my net worth has increased 9.74%
Not too bad! Again, a lot of it is correlated to the market so eventually I am going to take some biggggg hits (but then again I have been saying that for years and years).
