Net Worth Update - February 2021

Net Worth | Balance Sheet | Equity | Financial Independence
Net Worth Update - February 2021

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.

During February the S&P 500 continued climbing adding on another 2.6% for the month.  With the majority of our net worth tied up in the markets it shouldn't be a surprise to see that our net worth climbed as well.  We even crossed a huge milestone during the month!

During February my net worth increased $28,391.68.  

Total Assets: $1,005,928.26
Liquid Assets: $402,362.48
Total Liabilities: -$151,390.84
Net Worth: $854,537.41

That's right we hit the double comma club at least on the asset side!  Our net worth is still behind due to the mortgage on our house, but I'm still incredibly shocked to actually set that our assets crossed into the million level.  

During February my net worth climbed 3.4% and has risen 2.8% YTD.

Our main goal for 2021 was to rid ourselves of the one non-mortgage debt, the loan on my car, that we carried.  As of the end of February that debt is officially paid off after making $2,500 in extra payments during the month.  It feels good to have that debt finally gone and to free up cash flow each month for more productive purposes.

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 February we have 30.7% equity in our house based on our purchase price from 2013.  According to Zillow our house has increased in value around $67.1k 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 50.0%.

Combined our monthly debt reduction between the mortgage and house was $2.8k and best of all that car payment is over and done with.

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 February our debt to equity ratio is 18% and our debt to total capitalization is 15%.  Not bad, but I can't wait to get that debt down to ZERO!
capital structure | personal finance | net worth | equity | debt

Make sure you sign up to receive new posts to your email so you don't miss anything.  And be sure to follow me on Twitter@JC_PIP to get up to the minute news of new purchases for my portfolio.  If you prefer Pinterest or Facebook I'm on there too!

Do you have any debt that you're looking to pay off or just continue building up your assets?  Have you reached any milestones recently?

Please share your thoughts below!