Net Worth Update - July 2020

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

The stonk market continued higher once again in July.  I can honestly say that I didn't see anything like this kind of rebound coming back in March...or April...or May.  The S&P 500 added another 5.5% for the month and of course my net worth moved right along with it since the majority of my net worth is invested in tradeable securities.

During July my net worth increased $42,855.82.  

Total Assets: $876,305.44
Liquid Assets: $327,315.21
Total Liabilities: -$164,725.23
Net Worth: $711,580.21

For July my net worth increased 6.4%.

Despite the market rebound since bottoming in March our net worth hadn't crossed the previous month end high reached in December 2019 until finally doing so last month.  We're now up 2.5% YTD with hopefully bigger and better things coming the rest of 2020.

We crossed some pretty big milestones on the balance sheet during July.  
(1) Net worth is now at an all-time high for us, and
(2) Net worth crossed over into $700k

Realistically the next major milestone that we can cross would be getting our total assets up to $900k which is pretty mind boggling when I think back on it.  I don't have the total asset value from my very first net worth tracking; but in July 2010 my net worth was -$1.7k.  To say I'm shocked would be an understatement.

Our main goal for 2020 continues to be ridding ourselves of the one non-mortgage debt, the loan on my car, that we carry.  We're making good progress and paid an extra $2,000 on it during July.  I'm still not 100% sold on needing to focus all of our disposable income to debt reduction but do still want to pay it off on a very accelerated timeline.  At the end of July the remaining balance on the loan is $11.2k.

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 July we have 29.7% equity in our house based on our purchase price from 2013.  According to Zillow our house has increased in value around $65k 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 45.0%.

Combined our monthly debt reduction between the mortgage and house was $2.7k.  Not bad for one month!

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

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

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 23% and our debt to total capitalization is 19%.  Not bad, but I can't wait to get that debt down to ZERO!
capital structure | personal finance | net worth | equity | debt

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How has your net worth fared throughout the craziness of 2020?  

Please share your thoughts below!


  1. Not that different from you, I'm seeing large gains driven by the stock market recovery, esp. since I had cash sitting on the sidelines to take advantage of the downturn.

    I really like your longitudinal charts. My best data tracks back to 2010 too. We were sitting at a net worth of $191k back then.

    If your next push is to $900k, it took us about 400 days to go from $700k to $900k. Of course, you are you and these are different times, but if it helps to have some sort of proxy, there you go.

    Best of luck!

    1. Slug,

      The stock market recovery has definitely helped to push our net worth back higher. I hope to be able to see $900k in assets which at the rate the market is moving that will be rather soon.

      I have a feeling $700k to $900k on net worth is going to take longer than 400 days of course that's based on my feeling that the markets are due to drop. Hopefully they don't, but that's what I think. I'm still investing away though because I have no idea if that will or won't happen.

      Thanks for stopping by!


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