Net Worth Update - December 2018
|December 2018 Net Worth Update|
The S&P 500 sold of 9.2% during December. So much for the Santa Claus rally?!?!? Luckily I had some solid cash flow/savings and a personal best for dividends to help buffer that drop in the market, but that only did so much.
During December my net worth decreased $66,240.18.
Total Assets: $700,801.86
Liquid Assets: $261,109.25
Total Liabilities: -$191,005.10
Net Worth: $509,796.76
For December my net worth declined 11.5% which pushed the YTD change to -4.6%. Oooofff!?!?!
That decline was much worse than what my investments showed during the month due to having to buy a new car. Unfortunately in early November I had gotten into an accident on my way to work (don't worry I'm 100% fine from it). I had to go looking for a new car since well, it doesn't take much to for a 10 year vehicle to be considered totaled.
Luckily though I was paid roughly $3,900 for my vehicle by the insurance company which helped to fund the down payment for my replacement. I ended up going with a 2018 Hyundai Tucson. If I had more time to search for a vehicle and work on it myself I'd have gladly bought used; however, when I was looking at used Tucson's most of them were in the $18k range with 20k+ miles so I figured that I might as well just buy a new one with essentially 0 miles on it. I'm not too concerned about it though because the goal is to own this car for at least 10 years which I should easily hit assuming no random accidents.
Taking on the additional debt for the new vehicle really hurt the net worth. Especially since I don't keep the "value" of the car on the books as an asset. Luckily the big hit will only come for December and then it'll be back to making steady, but slow progress until sometime between March and June. According to Kelley Blue Book my wife's car and my car are worth ~$40-45k combined.
Our main financial target for 2018 is to pay down our non-mortgage debt and apparently by pay down the non-mortgage debt I meant take on more debt. That obviously wasn't the plan but man it feels like it's been 2 steps forward, 1 step back for the last few years. With new baby on the way we won't be prioritizing debt reduction until there's enough of a cash buffer to get us through the delivery and have an ample emergency fund in place.
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. 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 December we have 27.2% equity in our house based on our purchase price from 2013. However, according to Zillow our house has increased in value around $30.4k 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 36.1%.
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 December 2018|
|Net Worth Breakdown - December 2018|
|Capital Structure - December 2018|
How did your net worth fare during December's stock market sell off? What about for all of 2018?
Please share your thoughts below!