Net Worth Update - June 2019

June 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.

May flowers bring June roaring markets?!?!?  After May's 6.6% decline for the S&P 500 June answered back mightily with the S&P 500 climbing 6.9%.  While this makes it difficult for value investors such as myself, my net worth sure liked it since the majority of it is tied to the direction of the markets.  Of course the nearly $1,400 in dividends helped out too!

During June my net worth increased $37,430.04.

Total Assets: $791,805.17
Liquid Assets: $302,440.41
Total Liabilities: -$183,706.94
Net Worth: $608,098.22

During June my net worth rose 6.6% and is up 19.3% YTD.  Compared to June 2018 my net worth has seen a rise of $50k+.




Our main goal for 2019 continues to be reducing our non-mortgage debt.  As of the end of June we have just over $26.3k non-mortgage debt so we'll have our work cut out for us.  While it was hard to leave and head back to work, the good thing is that it's going to allow us to start making progress once again on our debt reduction goals and eventually lead us back to regular investing.

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 June we have 28.0% equity in our house based on our purchase price from 2013.  However, according to Zillow our house has increased in value around $39.1k 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 jumps to 38.9%.

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 June 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 Breakdown - June 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.  At the end of June our debt to equity ratio is 30% and our debt to total capitalization is 23%.  Not bad, but I can't wait to get that debt down to ZERO!

Capital Structure - June 2019

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How did your net worth fare during June's market rebound?  

Please share your thoughts below!