Wednesday, July 10, 2013

Net Worth Update - June 2013

With talks of the Federal Reserve ending QE Infinity and interest rates rising, the markets went on a pretty wild ride in June.  The S&P 500 dipped about 5% over a short time and then recovered just as quickly.  I'm hoping for more and more gyrations in the market despite the negative short term effects on my portfolio and in turn my net worth.  I was actually surprised by my net worth calculation and figured I had to have a formula that somehow got messed up.  I haven't found anything yet, but the much lower increase for June surprised me.  The change in value was due to $825 in combined 401k contributions, $600 in ESPP withholding, over $5,200 in savings from my take-home pay, and then of course dividends, interest and market fluctuation.

Current Assets: $257,088.82
Curent Liquid Assets: $142,366.16
Current Debts: -$16,975.43
Net Worth: $240,113.39

It was actually a pretty disappointing month for my net worth, although it was still positive.  I managed only a $3,169.04 increase.  A far cry from the almost $16,200 average through the first five months.  I know that I did my part though and that Mr. Market accounted for much of the negative swing.  This was a 1.34% increase of May's net worth and is 84.16% of the way towards my goal of a $100k increase for the year.  I'll be revising my goal for the year higher but I'm still not sure what I should aim for.  I'm leaning towards another $65k increase through the 2nd half of the year, although the numbers could get messy with my wife and I starting to look for a house.


My after-tax savings rate for June ended up at 77.71% which was my lowest so far in 2013.  This was expected thanks to having lower than average income but July should see 80%+ again.  I'm now averaging 82.55% through the first half of the year which is phenomenal.  This is currently ahead of my 80%+ savings rate goal.


My non-retirement accounts net worth would increased, although very slightly to 8.01 years from 7.99 at the end of May.  It's pretty amazing to see that with just my liquid assets I could cover my minimum expenses for over 8 years.  It would have been higher had my spending/budgeting gone better but the expenses weren't anything too outrageous.

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

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

14 comments:

  1. $240,000? That's beast mode, my friend! 80% savings rate it godly. I hope you aren't doing any kind of 401k or IRA, you're gonna be retired within 5-6 years I bet!

    Retirement accounts will only hold you back.

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    1. It's pretty crazy to think that when I started this journey I had a negative net worth and now 3 years later it's up to $240k. It's amazing to see that kind of change.

      I've been torn on contributing to a 401k. I was originally contributing something around 15% which ended up being 24.5% after the company match and 4% profit sharing. Then I realized just how possible FI/ER could be and cut it down. Now I'm contributing just 6% which is enough to get the full 5.5% match and 4% profit sharing so I'm still saving a solid 15.5% in total contributions. It's hard to pass up that free money even though it means that I'm locking it up without access unless I want to pay the penalties and taxes on it. I still think I'll come out ahead if I did withdraw it all and take it as cash although I'd have to time it right to try and be in the lowest tax bracket possible when I do.

      Thanks for stopping by!

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  2. Your net worth is growing at a rate of over 100% a year, that is outstanding!

    Michael

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    1. Michael,

      This year has really juice the net worth growth with the markets taking off and averaging a higher monthly nut. That's a good combination to have if you're aim is to growth your net worth but I'm mainly focused on the dividend income since the plan is to live off of that.

      Thanks for stopping by!

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  3. I dont actually track my net worth but from what I see of yours you are doing great even if this was an off month. 80% savings is crazy but it will be so worth it in the end. Keep up the great work. Look forward to seeing what you do in July.

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    1. Thomas,

      It was an off month but I think most of that was attributable to the markets waffling a bit toward the end of the month combined with a lower income. Overall it was still a good month and I know at some point I'm going to have negative months due to the markets. But I'm focused on the dividend income that my portfolio spins off so as long as that keeps flowing then I don't have a problem moving backwards on the net worth number. I know I'm doing the best that I can to do my part and I can't control what the markets do but in the long run they should be higher.

      Thanks for stopping by!

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  4. Pursuit,

    Another insane month. Absolutely insane. You're killing it. Keep it up!

    How long do you anticipate before you're completely financially independent? 5 years? Less?

    Best wishes!

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    1. DM,

      It was a great month for saving. There's so many changes that will be happening in the next year or two with a house purchase and possibly a kid on the way as well so it's much harder to forecast. If I was single it'd probably be another 2-3 years and then I'd be done. I hope it still works out to around 5 years because I'm ready for it now.

      Thanks for stopping by!

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  5. WOW.

    "My after-tax savings rate for June ended up at 77.71% which was my lowest so far in 2013."

    If that's a bad month...geez.... :)

    I don't know where our net worth is, likely something north of $500K. Half of that is the equity in our house though. I've got a long ways to go to reach $1 M in invested assets and a paid off home to retire on.

    You're gonna kick my ass at this rate. Great stuff.

    Mark

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    1. Mark,

      You won't hear any complaints about having a 77% savings rate in a down month. Well not any real complaints with ground to stand on.

      I'm not as worried about our net worth because that doesn't give the full picture. Plus home equity can really skew the numbers and it's not exactly liquid.

      The sad thing is I really like the job that I do. Hell how many jobs can you sit there and just browse the internet all day and get paid six figures? I can't think of too many. I just hate the fact that there's no schedule. So the drawback is I might be gone for 1 week or it could be 2 months. I never know until I get there and I'm on call once I'm done with a job. So there's no work/life balance to speak of.

      My plan when I hit FI is go to management and tell them that I really can't deal with not having any work/life balance and that something needs to change and pretty much demand a schedule. If they don't give it to me then oh well. Peace out. If I had my way this would actually coincide with the oil field going into a downturn and them looking to get rid of some people and hopefully get a decent severance package.

      Thanks for stopping by!

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  6. Think you might have an extra digit somewhere in there: $1142,366.16, that, or perhaps you are already ready to retire?!?

    In any case, $240k in net worth is very impressive. You just keep bringing it every month! Good stuff.

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    1. FI,

      Trust me that's a typo because I would have been finished a long time ago if I already had over $1M.

      I do the best that I can with my options. I'm still interested in getting some rental properties and will probably be bothering you with some questions sometime next year. At least I hope so.

      Thanks for stopping by!

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  7. Wow. that's a phenomenal effort on the savings rate!. Nice job. I think we do well to get close to 50% these days. Don't feel too bad on the networth performance. Mine actually went back 10k over the last quarter :)

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    1. Integrator,

      Despite the lower net worth increase, I try to do everything that I can to create positive change. That involves saving a large percentage of my income. Although I make a great income and have no kids so it's easier to save such a large amount. I'm taking advantage of this opportunity to get to FI as soon as possible.

      50% is still a very solid amount. I'm not sure what the average savings rate is in Australia, but I'm sure it doesn't come close to 50%. Hopefully that pullback in your net worth is letting you add to some positions.

      Thanks for stopping by!

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