Turning Around | Net Worth Update - April 2018
|April 2018 Net Worth Update|
After February and March's declines for the S&P 500 I have to say it was good to see a bit of relief in that department. The S&P 500 increased 0.27% during April and likewise my net worth showed a tick up as well thanks to the markets, dividends and most importantly savings.
During April my net worth increased $7,369.50.
Total Assets: $721,041.95
Liquid Assets: $250,728.00
Total Liabilities: $-178,291.66
Net Worth: $542,750.29
It sure was great to see the net worth climb higher after the two months of declines. Hopefully this will be the start of a new streak of monthly increases, but only time will tell since the movement in the markets will still play a large role in that.
For the month my net worth increased 1.38% and thus far in 2018 my net worth has climbed 1.54%.
Our main financial target for 2018 is to pay down our non-mortgage debt. There's a variety of things that just kind of came up as life happened. Some medical debt, a vehicle, an unexpected new air conditioning for the house. Nothing out of the ordinary, but burdensome nonetheless.
With taxes now behind us, and a fairly solid refund, we're now going to swap into cash hoarding mode until we get about $10k of cash on top of the expenses that we know are coming up namely 2 vacations. Then it's full steam ahead with debt pay down. A rough estimate would likely see the non-mortgage debt gone sometime in Q4 of this year and then it'll be back to savings and most importantly investing.
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 Q3 but time will tell on that since interest rates are moving higher. 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 April we have 26.2% equity in our house based on our purchase price from 2013. However, according to Zillow our house has increased in value around $43.1k 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 38.4% 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 April 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 $20k to give a more accurate representation of our liabilities.
|Net Worth Breakdown - April 2018|
|Capital Structure - April 2018|
How did your net worth play out for April?
Please share your thoughts below!