Net Worth Update - September 2016
|September 2016 Net Worth Update|
In September the stock markets, via the S&P 500, did a whole lot of nothing. Since a large portion of my net worth is tied to the performance of the markets my net worth typically moves in line with the markets. Especially while we have no day job income. So flat markets mean very little change in my net worth. Although pulling in over $900 in dividends during the month helped to move things in a positive direction. Unfortunately, that wasn't enough.
For the month our net worth decreased $7,715.14.
Current Assets: $654,707.74
Current Liquid Assets: $231,722.71
Current Debts: -$183,284.33
Net Worth: $471,423.41
Well this is a streak that we need to put an end to. September was the 3rd straight month of declines to our net worth. Considering that's come during a time of relatively flat market action something else must be going on. Honestly I'm surprised that we've only suffered 3 declines in our net worth since we've been without an income from a full-time job starting in May.
For the month our net worth declined 1.61% although year to date it's climbed 14.09%.
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 September we have 23.9% equity in our house based on our purchase price from 2013. However, according to Zillow our house has increased just under $30k in value 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 32.9% 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.
Adding in the gross income earned from blogging/writing added another $510.38 to the monthly non-day job income total. I'm pretty stoked to see over $500 from blogging/writing on top of the great dividend income. That's a total of $1,404.20 of income that's not related to a regular 9-5 job.
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 over $7.2k outside of traditional employment sources, dividends, interest and blogging/writing.
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How did your net worth fare in September? Do you count any of the appreciation of your primary residence as an asset?
Please share your thoughts below!
Image courtesy of holohololand on FreeDigitalPhotos.net.