Higher & Higher | Net Worth Update - January 2018
|January 2018 Net Worth Update|
January started off with a bang for the markets with the S&P 500 gaining 5.6% for the month. Although that's down from the high point when it was up 7.5% earlier in the month. Of course the dip at the end of January was apparently just the beginning of a crazy start to February.
During January my net worth increased $19,325.38.
Total Assets: $732,928.05
Liquid Assets: $261,387.10
Total Liabilities: $-179,105.10
Net Worth: $553,822.95
My net worth increased a whopping 3.6% during January. Even crazier is since January 2017 my net worth has climbed over $84k or 17.9% which is especially impressive since we weren't investing new capital in that time. We were still transitioning back to me working again so investing wasn't the main focus.
It's fun to ride the wave of a bull market higher, but that will only last so long. The more important thing is seeing that we're back to being cash flow positive by a few grand each month. During January I set some financial targets for my wife and I to get our debt paid down which is priority #1. There's honestly no reason to keep that debt hanging around even though it is at low/no interest.
At this time I don't see much reason to pay 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. Actually I'm considering trying to do a refi sometime during Q2 or later. 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 January we have 25.8% equity in our house based on our purchase price from 2013. However, according to Zillow our house has increased in value just over $35k 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 36.1% 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 January 2018|
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 $25k to give a more accurate representation of our liabilities.
|Net Worth Breakdown - January 2018|
Non-Work Cash Flow
Truly passive income, dividends and interest, totaled $279.01 during January which was about a $21 increase from October 2017. *Dividends are from my taxable accounts only.
With my writing taking a back seat the past few months the EBIT from blogging/writing has been fairly negligible the past few months. As such, January saw a big, fat ZERO of EBIT.
Thus far in 2018 I've totaled $279.01 worth of income outside of a traditional day job.
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Is your net worth riding the bull market wave to new heights?
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