Net Worth Update - June 2014

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 again this time adding 1.9% during June.  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 and for May a rising tide lifted all boats.  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.  I had just under $4,000 in after-tax savings from my paycheck, around $560 in ESPP contributions, and just over $770 in 401k contributions counting the employer match.  The rest of the changes were due to dividends received and changes in the stock market.  All in all June saw a $10,723.85 increase in my net worth.

Current Assets: $574,597.66
Curent Liquid Assets: $190,676.01
Current Debts: -$189,764.49
Net Worth: $384,833.17

My monthly changes have smoothed out after the decrease in January and then record setting February.  March, April, May, and now June have all been about the same in net worth improvement so it's good to see things settle down a bit.  Liabilities are pretty much just the mortgage on our house which we now have 20.92% 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.

June's increase was a 2.87% improvement over May's total and year-to-date I've had an increase of $64,718.95 for a 20.22% improvement from the end of 2013.  My goal for the year is to have a $125,000 increase in my net worth, and so far I'm 51.78% of the way towards my goal.  I'm a little ahead of pace on my net worth goal which is just how I like to be.  Of course, there's no telling what the investment assets will do towards my progress towards that goal the rest of the year.

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 June came in at 59.39% which is well over my goal of 50%, so I'll be looking to increase that target during my half year goal review post later this month.  So far this year I'm averaging a 57.47% investment savings rate which I think is awesome.  I don't expect to have too many other big expenses or items to save for the rest of this year so almost all excess cash flow will be funneled directly into savings for investment purposes.  This should help increase my savings rate throughout the rest of the year.  This is a big drop-off from 2013's 81.31% rate, but that's because I changed the way I calculate my savings rate.  It's now just savings from my after-tax income that is specifically marked for investment.  I think this gives a "purer" savings rate since it's only true savings/investment capital from my after tax income.

Based on my expenses from June, my liquid savings would last for 5.96 years, a 0.14 year increase from May.  This slight decline ended a nice 4 month streak of increases.  The decline was due to expenses normalizing after a really inexpensive May.  Expenses in May were much lower than my average month throughout the year so the normalization cancelled out some of the increase in my liquid assets.  No worries though as I should hopefully get back on track with fairly regular increases in July.

I've updated my Progress page to reflect June'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.

How did your net worth do in June?  


  1. Congrats on the jump!

    You're hot on my tail in the blogger net worth list! :)

  2. With that savings rate of close to 60%, Im sure you will reach your goal of $125K increase in net worth. Congrats on another successful month. Looks like a nice smooth upride over the last few months.

    Keep it up.

    1. R2R,

      I'll do my best to get there but so much of my net worth is out of my control. If the markets tank over the 2nd half of the year then the goal is out of the question. Although that would let me get a lot of sideline capital put to work for when the markets inevitably rebound.

      Thanks for stopping by!

  3. 60% of savings and over 65K of increase YTD is wonderful. 125K increase for the year should be easily achievable.


    1. DGJ,

      The $65k increase so far this year is pretty nice especially since the markets aren't going gangbusters like last year. If the markets have a modest increase over the remainder of the year then I should hit the $125k increase. Obviously if they tank then that goal will be shot but I'll get a lot of capital invested at much better valuations.

      Thanks for stopping by!

  4. PIP,

    Your 57% YTD savings rate is simply amazing. Most people are encouraged to save 10% and typically fail. It takes a great deal of discipline and sacrifice to maintain that level of savings. Keep up the good work.


  5. Hi PIP,

    Congrats on a great June! It looks like you're well on your way to beat your goals.

    I came to the same conclusion as you about my 30 year mortgage - it's pretty much the one time when inflation actually helps. I'm investing extra money towards its balance rather than paying it down directly. And personally for me, just realizing that I have a positive liquid worth despite the mortgage allayed a lot of concern about carrying the debt.

    Best wishes and keep up the pursuit!

  6. Liquid assets are growing nicely JC, well done! A $125 k increase will be very impressive if you can do it, good luck!

  7. PIP,
    I also track my NW meticulously and over the years I've had these long stretches of upward trends. Then like you said, it becomes out of your control, the market tanks, and NW plummets! It sucks when it happens, but it really doesn't change the strategy. We are all hoping for a dip in the market and when that happens, it really hurts on the NW, but always comes back. Nice month.

  8. Another nice month PIP! Looks like you are right on pace to meet your annual goal of $125K increase to your Net Worth. Keep up the intensity and you should meet you goal not problem. Wishing you continued success! AFFJ


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