Net Worth Update - July 2019

Net Worth | Balance Sheet | Equity | Financial Independence
July 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.

June saw the S&P 500 climb another 1.3% continuing the climb after the drop in May.  It makes it more difficult for value/dividend growth investors, but the by-product is that my net worth certainly likes it.  And the $400+ of dividends helped out as well.

During July my net worth increased $13,222.13.

Total Assets: $802,577.46
Liquid Assets: $305,840.95
Total Liabilities: -$181,257.11
Net Worth: $621,320.35

During July my net worth rose 2.2% and is up 21.9% YTD.  Compared to June 2018 my net worth has seen a rise of $48k+.

Our main goal for 2019 continues to be reducing our non-mortgage debt.  As of the end of July we have just over $24.1k non-mortgage debt so we'll have our work cut out for us.  We ended up making $1,700 in additional debt payments in July to help kickstart the debt reduction plan.

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 July we have 28.1% equity in our house based on our purchase price from 2013.  However, according to Zillow our house has increased in value around $42.8k 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 40.0%.

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 July 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 - July 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 July our debt to equity ratio is 29% and our debt to total capitalization is 23%.  Not bad, but I can't wait to get that debt down to ZERO!
capital structure | personal finance | net worth | equity | debt
Capital Structure - July 2019
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How did your net worth fare during July?  Are you continuing to make progress to kick off the second half of 2019?

Please share your thoughts below!


  1. Look at that upward trending line! What's the non-mortgage debt in? Student loans or CCs? What interest rate?

    1. Evan,

      Neither. It's the note on our vehicles. One is 1.9% the other is 2.9%. Based on the interest rate we're probably better off not paying extra, but emotionally I want to be done with that debt and free up that cash flow each month. Once the smaller one is gone we'll pay extra on mine, but not extremely aggressive probably somewhere in the neighborhood of an extra 1-1.5 payments each month with the rest of our cash flow going to cash savings and then our investment accounts.


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