Net Worth Update - April 2020

Net Worth | Balance Sheet | Equity | Financial Independence
Net Worth Update - April 2020

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.

Bear market rally?  Bull trap?  Or the start of something else?  I have no idea, but I do know that the bleeding in the markets stopped during April as the S&P 500 gained a whopping 12.7% during the month.  With a large amount of my assets invested in publicly traded securities my net worth moves with the markets.  April was a welcomed reprieve from the bloodletting of February and March, but time will tell how everything plays out.

During April my net worth increased $60,679.48.

Total Assets: $802,949.06
Liquid Assets: $298,710.02
Total Liabilities: -$169,874.79
Net Worth: $633,074.28

For the time being my net worth has ended the brutal streak to start 2020 that saw my net worth decline by over 17%.  The market rally in April really helped out although I wouldn't have minded seeing some of the better value opportunities stick around longer than they did.

For April my net worth increased 10.6% 

Our goal for 2020 hasn't changed too much despite the craziness in the markets.  The only thing would be prioritizing a bit more towards cash as opposed to debt reduction at this time especially since my job in the O&G industry is in a very precarious situation.  That doesn't mean we're going to stop investing, but excess cash each month would best be served as a cash buffer at this time.

We're slowing down the debt reduction process although we are still paying more than the minimum and making extra payments to get rid of the one consumer debt that we have: the loan on my car.  After April's payment that debt is down to $15.4k.

At this time I don't believe it makes 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 outside of the car loans.  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 April we have 29.3% equity in our house based on our purchase price from 2013.  According to Zillow our house has increased in value around $61k 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 44.7%.

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 April 2020

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 - April 2020

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 April our debt to equity ratio is 27% and our debt to total capitalization is 21%.  Not bad, but I can't wait to get that debt down to ZERO!
capital structure | personal finance | net worth | equity | debt
Personal Capital Structure - April 2020

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Did your net worth have a nice rebound in April?  

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