Current Assets: $590,884.46
Current Liquid Assets: $201,774.56
Current Debts: -$188,150.24
Net Worth: $402,734.23
The combination of a declining stock market and about $7k in medical bills is a sure fire way to drop your net worth. Especially since I was on FMLA and had no income coming in from my job. Despite the large decline it's great to see the total still over the $400k mark, although, just barely. February will be my last month with no job income so March should be back to normal operations with an above average income and a relatively high savings rate. Over the next few months my plan will still be to hoard cash, although there should still be the occasional stock purchase. By May I expect to be back into full on aggressive investing mode with the majority of savings going into building up my portfolio and dividend income streams.
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 the extra cash flow. So the liabilities side of the net worth equation will be slow moving. However, once the FI portfolio is able to get to a self-sustaining level of dividends then I'll aggressively pay down the mortgage. As of the end of January we have 21.66% equity in our house.
My net worth at the end of January showed a 3.6% decrease from December 2014's tally. So year to date there isn't a great showing for my net worth but I expect that to get back on track throughout the year. I haven't set any goals yet for my net worth because there's just too much in flux with our financial house to be able to come up with reasonable goals. The net worth goal has always been a secondary goal since a lot of it is out of my control since I invest primarily in the stock market. I'll just continue to focus on what I can control which is maintaining a high savings rate and investing in high quality companies at fair prices.
The following chart shows my assets and liabilities, as well as my net worth, since January 2012. While I have accurate records for my net worth dating back to July 2010, I didn't keep track of my assets and liabilities on a monthly basis until the start of 2012.
There's no after-tax savings rate for January since I didn't have any income from my job during the month. I guess technically that pegs it at 0% but January was a bit of an anomaly since I shouldn't have to go without income again anytime soon.
Based on my expenses from January, my liquid savings would last for 5.98 years, a 0.26 year decrease from December. The decrease was spurred along by the drop in my net worth as well as higher than my base line expenses. While expenses should stay the same or creep higher throughout the year, I expect the liquid assets side to of the equation to start trending higher once again.
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How did your net worth fare in the first month of 2015? Did you get started off on the right foot towards your financial goals for the year?