Wednesday, April 10, 2013

Net Worth Update - March 2013

March was a much better month that I expected for my net worth.  I actually almost topped February's increase and that was without having any extra contributions to my 401k for profit sharing or a ESPP purchase, so I'm quite pleased.  I had a little over $1,460 in combined contributions to my 401k and another $1,000 to my ESPP plan.  The really big contributor for the gain was my high income combined with a very high savings rate.  I was able to sock away just under $7,600 from my take home pay, with almost $7,000 going straight to the portfolio.  The rest of the changes was due to the markets or other transactions within the portfolio and of course the dividends received.
Current Assets: $227,247.72
Curent Liquid Assets: $114,051.53
Current Debts: -$16,975.43
Net Worth: $210,272.29

By the end of the month I'd had my third highest monthly net worth increase, +$15,491.03, and crossed the $200,000 mark.  This ended up being a 7.95% increase from February and so far in 2013 I've increased my net worth by $54,320.11.  I expected 2013 to be a great year, but I'm over half way to my goal of having a $100k increase and we're only a quarter of the way through with the year.  This has been a total shock but goes to show how the power of saving and investing can combine to give truly remarkable results.  I'm now 54.32% of the way towards my goal and will probably have to revise that upwards later in the year.

My after-tax savings rate for March ended up at 84.41% which was a nice bounce back after February's dip.  I'm now averaging 84.00% for 2013 so far which is a great start towards my 80%+ after tax savings goal for this year.


I decided to also add one more chart to my monthly updates.  This chart will show the number of years that my liquid net worth, essentially cash/checking/savings/brokerage accounts, would last based on the spending for the corresponding month.  For March, this number came to 7.23 years.


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

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

8 comments:

  1. That's a great looking chart for net worth. You are killing your savings rate! Nice job and keep up the good worth. I look forward to watching your accounts grow.

    Cheers!

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    1. AAI,

      You won't hear any complaints for me. Although a cool off in the markets would be nice. I know I'd take a hit on the net worth but it'd set me up much better for the long-term.

      Thanks for stopping by!

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  2. Your savings rate makes me drool. I'm guessing you either make a boat load of money, or live in a very cheap very dull place. Or both.

    Great job on your net worth.

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    1. MyFIJ,

      It's only this high because of the very high pay, although with an average salary I'd still be around the 50% mark. I end up making a little over $130k per year pre-tax so that helps out a lot. We actually rent a house from one of my wife's co-workers, although we got a steal on it. We're paying less for a house with 3 bedrooms and an office than most people I know are paying for an apartment.

      Thanks for stopping by!

      Delete
  3. This is awesome man. It's awesome to see you obtained a skill that was highly sought out and therefore make a good salary. Now you can save all that money and put it towards assets. Bravo!

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    1. Marvin,

      The funny thing is there's nothing super complicated about my job. I get paid so well because I have to be gone away from home for unknown amounts of time. It's very hard to be gone, especially once you start a family, but it's allowing me the opportunity to not have to work again by saving up as much money as possible. If I'd have found this job right out of college and had the knowledge I do now about FI/DGI, I'd be retiring within a year if I wasn't already retired. Of course I could put in a few extra years to have some truly awesome passive income.

      Thanks for stopping by!

      Delete
  4. Great work. Thats a phenomenal savings rate!. Its always great to be able to revise your goals upwards because you are smashing them! Nice to have a nest egg that you can draw down on for 7 years if you need to also.

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    1. Integrator,

      I hope to be able to keep it up the whole year, but it will really depend on how the oil/nat gas drilling goes. As of now it's looking good for the rest of the year, but it's a very boom/bust industry.

      I have no problem revising them upwards, it always feels good to get a chance to do that.

      I was pretty surprised when I actually started making that chart and keeping track of it to see that it's up to 7 years. Granted it's not a sustainable nest egg, but knowing that all my cash and equivalents could last that long is awesome.

      Thanks for stopping by!

      Delete