Wednesday, December 11, 2013

Net Worth Update - November 2013

While cash flow is more important when it comes to financial independence, it's still good to look at the balance sheet too, which is why I provide these net worth updates.  The S&P 500 was up another 2.80% in November in its' non-stop quest to infuriate me and my fellow DG/value investors.  However, thanks to the rising tide lifting all boats and a solid savings from my income, I was able to notch my 9th $10k monthly net worth increase.  I didn't expect anything close to this kind of improvement when I started the year.  At the end of the day the increase for November came in around $13,750 with just over $1,200 in combined 401k contributions, $760 in ESPP withholdings, and over $8,800 in savings from my after-tax income.  The rest of the change was due to market changes and dividends received throughout the month.

Current Assets: $499,333.05
Curent Liquid Assets: $141,537.03
Current Debts: -$191,334.71
Net Worth: $307,998.34

I almost hit the $500k assets mark which I didn't expect to see until probably sometime in 2015.  Granted over $200k of that is due to our recent house purchase, but it's still amazing to see.  After our second mortgage payment we're now sitting on 20.20% equity in the house.  The monthly net worth increase was a 4.67% increase over the end of October and brought the total 2013 increase to 97.50%!!!  My original goal for the year was a $100k increase in my net worth which I've been able to zoom past.  I've since revised my goal higher twice this year and I've now passed the most recent revision of $306k.  My net worth at the end of November ended up just shy of $308k for a total increase of $152,046.16 which blows my mind.  The markets have played a big part in the increase this year but I've been doing the best that I can to insure that my savings rate remains high.


My after-tax savings rate for November ended up at 78.82% which is great considering the elevated expenses for the month due to our house purchase.  Going forward I expect it to drift down to the mid-70% level which will be just fine by me.  I'm now averaging 82.36% savings rate through the end of November which is ahead of my 80%+ savings rate goal.  This is only savings from my net income that actually hits my checking account.  However, I do have another 8% after tax being withheld to purchase shares through the employee stock purchase plan provided by my employer.


My non-retirement accounts net worth took a big dip from October due to the the higher expenses.  Based on my expenses from November my liquid savings would last for over 5.01 years, which is a 1.77 year decrease from October.  Luckily this should get back on it's rising ways as my expenses level out from here.

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

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

19 comments:

  1. Great job PIP. With an 82% savings rate you were bound to accumulate wealth, but this "rising stock market tide" has certainly lifted your boat
    -Bryan

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    1. Bryan,

      That 82% average sure is nice. I didn't expect anything close to this kind of year from the markets or from my personal financial situation. The markets did a lot of heavy lifting but I've been able to contribute over $40k to my brokerage account this year. I'd love to keep that 82% savings rate through 2014 but I don't expect to barring a raise which could be coming.

      Thanks for stopping by!

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  2. Wow, i love the trend of that first graph of net worth. Great job, PIP. Inspiring, as always!

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    1. Roadmap,

      That trend is awesome. Hope to keep it in place but with more and more of my net worth tied to the markets it's bound to get a bit choppier. It's crazy when I look at that graph and remember that I was at a negative net worth the first 5 months of my journey. Hope you have a great end to the year.

      Thanks for stopping by!

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  3. I'd be retired if I could get 4% on your current net worth.

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    1. WE,

      Unfortunately not all of my net worth is in accessible locations, there's our equity in our house and just over $100k in 401k/Rollover IRA and $20k in Roth IRAs. That muddies the waters a bit when it comes to tax time and planning on FI/ER. I'm definitely hoping to get there sooner rather than later though.

      Thanks for stopping by!

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  4. Another great month for you. looking strong. keep it up!!

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    1. FFDividend,

      Thanks and congrats again on reaching 10k pageviews.

      Delete
  5. PIP,
    Love seeing that upward trajectory in NW. I had a nice string of years leading up to 2008-2009 when it all tumbled. When things are good, enjoy the ride. Hopefully we keep it up for a few more years.
    -RBD

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    1. RBD,

      It's been great so far but eventually that party is going to end. I wouldn't mind a stretch like from April-June 2012 when I kept saving large amounts but my net worth was stagnant due to market declines. That would give us all better opportunities to invest new capital.

      Thanks for stopping by!

      Delete
  6. Awesome stuff! That net worth plot looks textbook exponential!

    Next stop? $1,000,000 in assets!

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    1. FI,

      No complaints from the growth there. Would love to be able to keep it going, but with more of my net worth tied to the markets it'll start getting volatile when the markets get into a sour mood. It's crazy to think that in around 3.5 years I've gone from a negative net worth to a positive $300k and almost $500k in assets. That $1M mark will be huge to hit.

      Thanks for stopping by!

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  7. Great job PIP. I am impressed. And a bit ashamed that I am so behind.
    My November was actually great, the best of all months, but not as good as yours :(

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    1. Martin,

      I wouldn't be ashamed at all. The key is that you have a plan in place and are doing the best you can to get there. We all have different financial capabilities with different incomes and different base expense levels, so comparing to others is only useful if it helps to push you. I'm trying to take advantage while I can before children also come into the picture, the house alone has significantly increased my expenses. Congrats on having your best month!

      Thanks for stopping by!

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  8. WOW 82% Savings rate? That is f'n nuts and awesome.

    I guess your wife is on board with your plan? do you 2 have kids?

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    1. Evan,

      It's definitely nice. The savings rate is just from my income because we keep our finances separate. I work out of town and am gone from home a lot so we each have a set of bills that we pay. We've found that's the easiest way to try and handle our combined finances because it's too hard to track since I'm gone.

      We don't have any kids right now, but they will hopefully be in the future. We both wants kids and are going to start trying soon, but you never know how long it'll take. She's about half way on board with the plan. I've slowly worked her over to half way and I'm hoping to truly convince her this is a great route. I've been trying to get her to read some books/blog posts but she doesn't have the time. All the more reason to get her to finally read them I guess as there is a way out. Even if we decide we want to keep working, it's nice to have the option to do as you please and will be a huge burden lifted off our shoulders.

      Thanks for stopping by!

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  9. Hey JC,
    New reader here great work on the net worth increase. Isn't the market something. Do you also invest in real estate? I'm always amazed with people who save 70+% of their income. When you hit a million in assets will you say "one million dollars"

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    1. Charles,

      Glad to have you as a reader and I hope to have you keep coming back. The market has definitely helped out a lot with me having to raise my net worth goal. I'm looking at investing in real estate in 1Q 2014. I've actually got some potential properties that should cash flow quite nicely and I'm really excited to add that to my potential passive income sources. I can't wait to hit that $1M mark, and sure I'll say it in the Dr. Evil voice with my pinky up.

      Thanks for stopping by!

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