Net Worth Update - February 2019

Net Worth | Balance Sheet | Equity | Financial Independence
February 2019 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 continued it's rally from December adding another 2.97% during February.  Since a large portion of our net worth is tied to the stock market our net worth saw a nice bump.  Of course the dividends that rolled in helped as well.  

During February my net worth increased $20,197.61.

Total Assets: $744,826.87
Liquid Assets: $279,098.99
Total Liabilities: -$188714.66
Net Worth: $556,112.22

That's a solid 3.7% increase from the end of January and outpaced the markets climb.

We've now recovered ~70% of December's market selloff induced decline.  December also included the addition of a car loan for my new car as well as the asset write-down, just on our own books, of the vehicles.  I don't consider our vehicles assets and noticed that I had them included in the calculation for the asset side of the net worth.  The liabilities were unaffected by the write down.

Our main goal for 2019 continues to be reducing our non-mortgage debt.  As of the end of February we have a roughly $30.2k non-mortgage debt balance so we'll have our work cut out for us.  However, for the time being conserving extra cash is going to take precedence since we have a new baby on the way coming in April!

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 February we have 27.4% equity in our house based on our purchase price from 2013.  However, according to Zillow our house has increased in value around $29.9k 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 36.2%.

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 February 2019
In order to give you a general idea of the breakdown of my net worth I include 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 and deeply discounted (they don't really move the needle at all but I have them in my spreadsheet because I was bored).  
net worth | balance sheet | equity | financial independence | assets | liabilities
Net Worth Breakdown - Februuary 2019

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 February our debt to equity ratio is 34% and our debt to total capitalization is 25%.  Not bad, but I can't wait to get that debt down to ZERO!
capital structure | personal finance | net worth | equity | debt
Capital Structure - February 2019

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How did your net worth fare during February?   

Please share your thoughts below!


  1. Thats a solid jump in NW. Congrats JC and keep up the great work.


    1. R2R,

      February was a nice continuation of the net worth rebound, of course the market recovery sure did help out. What I'm really excited about is the positive cash flow that we were able to manage during the month. If we can keep anything close to that going forward then our non-mortgage debt will be gone in no time and we can really get back to moving forward with our investment plans.

      All the best.


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