Current Assets: $568,957.53
Curent Liquid Assets: $187,305.01
Current Debts: -$189,536.61
Net Worth: $379,420.92
I had put together a nice string of increases since January but July had something different in store. What's good to see, at least from my point of view, is that my net worth decreased only $5,400 in a down month for the markets. If you add back in the $5,000 we spent on the down payment for my wife's new Acura RDX then it was essentially a flat month. The asset side will eventually turn back positive so I'm not worried about it at all over the short term. Liabilities are pretty much just the mortgage on our house which we now have 21.02% equity in our house. I don't see the point in paying extra on the mortgage given our relatively low interest rate and think we'll come out much further ahead investing extra cash flow for the time being.
July's net worth decreased 1.41% from the end of June and year-to-date I've had an increase of $59,306.70. My goal for the year is to have a $125k increase but that might be in jeopardy with the backtrack this month. I'm now 47.45% of the way towards my goal but we're 58% of the way through the year. The net worth goal is more of a secondary goal since so much of it is out of my hands. I can maintain a large savings rate and invest those savings but I can't make the markets go up. And I have no idea where they go from here. If they continue to march higher or even stay flat then there's a chance I can still reach my goal but if they trend down the rest of the year it's probably not likely. Although I'd prefer that so I can get some better long term values when I invest my capital.
I've changed the chart for my net worth to better reflect our situation now that there's significant debt on the books with our mortgage. The chart will now show both assets and liabilities as well as the net worth. I also changed the colors because I didn't notice this until April but assets were red and liabilities were green. So that's now been fixed.
My after-tax savings rate for July came in at 69.47% which is well over my goal of
Based on my expenses from July, my liquid savings would last for 6.22 years, a 0.26 year increase from June. I'm glad to get this moving back in the right direction after June's decline ended a 4 month streak of increases. The increase was mainly due to the drop in expenses from June to July. But I'll take it where I can. The direction is at least right.
Make sure you sign up to receive new posts to your email so you don't miss anything. And be sure to follow me on Twitter@JC_PIP to get up to the minute news of new purchases for my portfolio.
How did your net worth do in July?