Net Worth Update - June 2018

Net Worth | Balance Sheet | Equity | Financial Independence
June 2018 Net Worth Update
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.  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, but in the long run as I continue to save and invest the net worth trend should be higher even though short term fluctuations can vary wildly.  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.

The S&P 500 inched higher by 0.48% during June and my net worth followed suit thanks to the markets, dividends and most importantly savings.

During June my net worth increased $1,829.77.  

Total Assets: $735,039.06
Liquid Assets: $258,204.55
Total Liabilities: $-177,743.99
Net Worth: $557,325.08

June just barely eeked out a gain for my net worth but any kind of move forward is a step toward progress.  That pushes the streak up to 3 consecutive months of increases after the previous year long strong came to an end in February.

For the month my net worth increased 0.33% and through the first half of 2018 my net worth has climbed 4.27%.

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.  

At this time it doesn't make much sense 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 June we have 26.4% equity in our house based on our purchase price from 2013.  However, according to Zillow our house has increased in value around $42.7k 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 jumps to 38.4%.

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 | balance sheet | equity | financial independence
Net Worth History through June 2018
I've started including a % breakdown of our net worth with each monthly update.  The assets are broken down into cash, taxable investments, tax advantaged investments (401k, Traditional & Roth IRAs), house (using our purchase price) and other which covers things like our cars and various collectibles from when I was a kid (they don't really move the needle at all but I have them in my spreadsheet because I was bored).  

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 | balance sheet | equity | financial independence | assets | liabilities
Net Worth Breakdown - June 2018
Since I write so much (or at least try to) about investigating companies as an investment I figured it'd be fun to see how our balance sheet looks.  As of the end of June our debt to equity ratio remains at 32% and our debt to total capitalization is 24%.  Not bad, but I'd love to get that debt down to ZERO!
capital structure | personal finance | net worth | equity | debt
Capital Structure - June 2018
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How did your net worth fair in June?  What about for the 1st half of 2018? 

Please share your thoughts below!


  1. Very informative read. I like how you break down the numbers. The net worth numbers are very impressive. It takes discipline and hard work to get there. Congratulations on that! ��

  2. There's considerable debate as to whether to include your house as a part of networth.


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