Thursday, December 29, 2016

Net Worth Update - November 2016

net worth, balance sheet, equity, financial independence
November 2016 Net Worth Update
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.  Since more and more of my net worth is tied to the markets, there's a larger correlation between my net worth and the markets but in the long run as I continue to save and invest the net worth trend should be higher even though short term fluctuations can vary wildly.  As a dividend growth investor I'm not overly concerned with the short-term gyrations as long as the dividend stream remains in tact, but the markets' effect is noticeable.

In November the stock markets, via the S&P 500, were a bit hesitant to start the month but ended it with a bang after Trump's surprising victory in the election.  All told the S&P 500 climbed over 3.4% during November.  Since a large portion of my net worth is tied to the performance of the markets my net worth typically moves in line with said markets.  Of course pulling in over $250 in dividends helped out as well.  

For the month our net worth increased $4,228.08.

Current Assets: $650,645.22
Current Liquid Assets: $230,487.00
Current Liabilities: $182,776.26
Net Worth: $467,868.96

We finally broke the 4 month streak of net worth drawdowns and ended November with a solid $4k improvement.  Much of the increase was due to the rally in the markets after Trump's victory in the election.     

For the month our net worth increased 0.91% although year to date it's climbed 13.23%. 

At this time I don't see much reason in paying extra on the mortgage given our relatively low interest rate as well as the tax break on mortgage payments 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 the plan is to aggressively pay down the mortgage.

As of the end of November we have 24.1% equity in our house based on our purchase price from 2013.  However, according to Zillow our house has increased in value $23.5k from our purchase price which is a nice bonus, although I keep the purchase price as the value in the net worth equations.  Based on Zillow's estimate the equity in our house is 31.5% thanks to the appreciation.

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.
net worth, balance sheet, equity, financial independence
Net Worth History through November 2016
During June's update I started including a % breakdown of our net worth with each monthly update.  The assets are broken down into cash, taxable investments, tax advantaged investments (401k, Traditional & Roth IRAs), house (using our purchase price) and other which covers things like our cars and various collectibles from when I was a kid.  The liabilities are much simpler and fall into either the mortgage or a personal loan that we have.  
net worth, balance sheet, equity, financial independence, assets, liabilities
Net Worth Breakdown - November 2016
Truly passive income, dividends and interest, totaled to $279.99 during November which is over a $50 decrease from August's total of $333.63.  All of the decline is due to dividend payment timing and the closing of positions within the period.  *Dividends are from my taxable accounts only.  

Adding in the gross income earned from blogging/writing added another $242.03 to the monthly non-day job income total.  I don't think anyone out there would complain about an extra $500 coming their way each month that isn't tied to their day job.  Although admittedly I hope to find a way to boost up the blogging/writing income in 2017.  

We've still got a long ways to go to reach our goal of financial independence, but we're heading in the right direction.  Year to date we've generated just under $8.4k outside of traditional employment sources via dividends, interest and blogging/writing.


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

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.  If you prefer Pinterest or Facebook I'm on there too!

How did your net worth fare in November?  With one month left in 2016 are you on track for your net worth goals?

Please share your thoughts below!

Image courtesy of holohololand on FreeDigitalPhotos.net.

6 comments:

  1. PiP -

    Nice work and great addition. I agree on the no paydown on the mortgage, I am in the same boat, and if rates are increasing - your rate is more favorable to keep for longer; as you can't refi or even take out a new loan at the rate you currently have.

    Nice job and I bet December will be great as well for you.


    -Lanny

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  2. Hi JC,
    Congrats on a return to positive growth! It looks like December will continue those gains too. I look forward to seeing you beat the $500k threshold in 2017.


    November was a good month for me too - around 8.5% gains in my wet worth. I don't include the house price in that calculation though. I think my Zillow estimate was down a bit for the month.

    Best wishes to you and your family. Have a great new year!
    -DL

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  3. Nice results. Making 8.4 K outside a traditional job is quite impressive. Keep the system running for a few more years and you will be fine.

    Best wishes

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  4. Excellent Job PiP. Always awesome to see you crushing it! Keep up the great work,

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  5. Nicely done, JC. Good to see the trend reverse after 4 months of drawdowns. Neat little bump there with a $4K increase. Dec should also be going well as far as your portfolio is concerned. Thanks for sharing...always enjoy this series

    Best wishes
    R2R

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  6. Excellent progress, PiP! December is probably going to be another great month for your net worth!

    Happy new year!
    FerdiS

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