Current Assets: $607,852.35
Current Liquid Assets: $204,445.72
Current Debts: -$187,915.97
Net Worth: $419,936.38
What a difference a month can make. The stock markets soared during February and a rising tide lifts all boats and my net worth appreciated the increase. I on the other hand wasn't thrilled about it because I want to buy excellent companies at discounts to their fair value. My net worth is now solidly above the $400k level but that's subject to change depending on how Mr. Market wants to behave. Over the next few months my plan is to try and rebuild our cash savings up to a more comfortable level and then hopefully between May and July I can start aggressively investing once again.
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 February we have 21.77% equity in our house.
My net worth at the end of February showed a 4.27% increase from January 2015's tally. YTD there's been a small 0.48% increase in our net worth or a total of just over $2.000. 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 February since I didn't have any income from my job during the month. I guess technically that pegs it at 0% but February was a bit of an anomaly since I shouldn't have to go without income again anytime soon.
Based on my expenses from February, my liquid savings would last for 6.58 years, a 0.60 year increase from January. The rising stock market did all of the work for increasing my liquid savings this month. 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 now that income will be rolling in during March.
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 fare in February? Did you get started off on the right foot towards your financial goals for the year?