Making Progress | Net Worth Update - October 2017
|October 2017 Net Worth Update|
September saw us cross a pretty milestone of $500k net worth and while October didn't have anything significant happen we were able to build on our net worth thanks to both a rising market and being back to positive cash flow.
During October our net worth increased $4,345.41.
Current Assets: $684,653.20
Current Liquid Assets: $240,131.73
Current Liabilities: $179,908.96
Net Worth: $504,744.24
We had stalled out over the last few years with being proactive on building our net worth but that was largely due to "life" getting in the way. My wife had to quit her job while we dealt with all of the issues with our son, then I was laid off, then she got a new job while I stayed home with our daughter and then finally we returned back to a two income family earlier this year. Considering all that's happened over the last 3 years I can't really complain about where we're at now.
The bull market is nearing a decade long run which has definitely helped to move our net worth higher these last couple years. That's the power of compounding and time. The savings/deferred spending from years prior allowed our investments to keep working even if one or both of us weren't.
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 October we have 25.4% equity in our house based on our purchase price from 2013. However, according to Zillow our house has increased in value around $33k 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 35.4% 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 History through October 2017|
The liabilities are much simpler and fall into either the mortgage or a personal loan that we have. Although I do need to gather more information on the various medical, funeral and other debts that total around $40k to give a more accurate representation of our liabilities.
|Net Worth Breakdown - October 2017|
Non-Work Cash Flow
Truly passive income, dividends and interest, totaled $257.70 during October which was ever so slightly higher than July. *Dividends are from my taxable accounts only.
My writing/blogging has been slow to come back, although that's due to having trainees with me for most of the day which means I have to show them the "by the book" way to do the job and teach them. So total non-day job income for October was just $257.70.
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Is your net worth riding the bull market wave to new heights?
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Image courtesy of holohololand on FreeDigitalPhotos.net.