Wednesday, March 6, 2013

Net Worth Update - February 2013

I knew February would end up being a pretty good month with high than normal income and the profit sharing from my employer hitting my 401k.  Considering the markets didn't have a repeat 5-6% gain, I got pretty close to topping January's personal record.  I had about $1,200 in combined 401k contributions and just under $900 in ESPP withholdings.  The biggest contributors for the monthly gain were the profit sharing of $4,500 and February net savings over $7,100.

Current Assets: $211,756.69
Curent Liquid Assets: $103,337.63
Current Debts: -$16,975.43
Net Worth: $194,781.26

By the end of the month I'd had my second highest monthly net worth increase.  I wasn't able to pass January, but did improve my net worth by $16,113.92.  This was a 9.02% increase from January and so far in 2013 I've increased my net worth by $38,829.08.  I didn't expect to get off to this great of a start, but I'll take it.  I'm now 38.83% of the way towards my goal of a $100k increase for the year.

My after-tax savings rate for February ended up at 82.23% which was down from January but still above my target 80% rate.  I'm now averaging 83.79% for 2013 so far.

The first two months of 2013 have been great so far, but there's still lots of work left to do to reach my goals for 2013.  I'm hoping that we can get some better opportunities to purchase some some great dividend growth stocks, because I'm behind on my dividend goals but there's still lots left for 2013 to be ableto make some improvements.


I decided to also add one more chart to my monthly updates.  This chart will show the number of years that my liquid assets, essentially cash/checking/savings/brokerage accounts, would last based on the spending for the corresponding month.  For February, this number came to 5.74 years.  Not bad considering 2.5 years ago I had a negative net worth.


I've updated my Progress page to reflect February's changes.

How was your February?  Did you do better or worse than you expected this month?

16 comments:

  1. Wow! What a great start to 2013! You're crushing it. You might have to revise your $100k increase upward.

    ReplyDelete
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    1. Headed Home,

      You won't hear any complaining from me about the big increases to start the year. I'll gladly revise it upwards if need be. Moving your goals higher is always a good thing.

      Thanks for stopping by!

      Delete
  2. Wow, two great months in a row!! Keep up the good progress! Putting away 7-8k a month is phenomenal! You're well on your way to hitting your goal for 2013!

    ReplyDelete
    Replies
    1. W2R,

      Almost 40% after 2 months is much better than I expected although I did know that these would be higher due to the ESPP purchase and the profit sharing so those helped out. The best part is that the high savings rate keeps me always on the lookout for new potential investments since it won't be long until there's more capital to invest. Keep up the good work yourself!

      Thanks for stopping by!

      Delete
  3. Congrats on your progress! You have a great start in hitting your goals. Your savings rate is incredible. Keep up the good work.

    ReplyDelete
    Replies
    1. AAI,

      I just wish I could start revising my dividend goals higher but I'll take the net worth increases for now. The savings rate bump has been more of a increase in income, but I'm not going to just give that money back. Email me if you get a chance because I got a question for you.

      Thanks for stopping by!

      Delete
  4. Well-done, what a great month! Plus you're killing it with that almost 84% yearly savings rate.

    ReplyDelete
    Replies
    1. Net Worth Snowball,

      The combination of a high income and frugality does wonders for a high savings rate. Unfortunately the net worth increases will be coming down from here but I still expect $6-10k increases if you back out market changes.

      Thanks for stopping by!

      Delete
  5. wow, your progress is outstanding! My February was great too, but obviously not as great as yours. Need to push more.

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    Replies
    1. Martin,

      The first two months were truly amazing. If only I could grow my net worth this much every month. I know it's going to come down from here but I should still be getting solid monthly increases net of market movement. I would love for a big drop to come with the sell in May go away fast approaching. I still can't believe the 1st quarter is almost gone. Keep up the good work yourself. Being consistent is the largest factor to making positive moves every month.

      Thanks for stopping by!

      Delete
  6. Awesome job! Those are some significant numbers, congrats and keep working hard. I love the savings rate you have by the way.

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    Replies
    1. Marvin,

      I was surprised to see just how much it increased, but it was almost a perfect storm between income, ESPP purchases, profit sharing and the markets going on a tear. It's crazy how things work out some times. You won't hear any complaining from me about the 80%+ savings rate. I just hope the income stays elevated most of this year so I can make even more strides towards early FI.

      Thanks for stopping by!

      Delete
  7. Not bad at all from 2.5 years ago!

    Does this mean you live off less than $20,000 a year? If so, where do you live and how do you live? Thoughts on making enough to provide for a family? I'm just discovering this site, so if you have an old post, please let me know!

    Thanks, Sam

    ReplyDelete
    Replies
    1. Sam,

      I spent about $20,400 last year. I live outside of Houston and my wife and I rent a 3 bedroom house with an office for $960. Got to love the low cost of living in Texas. I know my wife plans to keep working because she loves to teach so with her ~$45k pre tax and then $25-30k from dividends I don't see any issue with supporting a family on $70k. If it was just going to be dividend income then we'd shoot for higher because we do plan on having kids in the future and they tend to be a money drain no matter how spartan a lifestyle you aim for.

      Thanks for stopping by!

      Delete
    2. Nice, that's good to make the wife work and let us men kick back! :)

      Delete