D€bt & Cupcake$

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September Net-Worth Update

September Net-Worth Update

Woo, August was a great month!  We hit a few milestones and our net-worth continued to grow.  Nothing to complain about there!  Time to recap!

Net-Worth Tracking

I wish I knew about Personal Capital when we first started our debt-free journey back in 2014.  I’d love to see that graph, and it honestly would have helped motivate me a ton back then.  Paying off debt can be a tedious process…

Paying off debt and watching your net-worth is addicting and a hell of a way to stay motivated!

Back then I was tracking our net-worth manually via an excel spreadsheet.  It was nice but, Personal Capital is freaking amazing.

It automatically updates and it’s super easy to navigate.  The icing on the cake would be the great visual references about your personal finances.

-September-

As of today our net-worth is $190,305.  That’s +$13,421 growth from August 1st.  Not too shabby!

Back in December, 2017 our net-worth had not yet cracked $100,000.  After we paid off the last of our $109,000 of consumer debt, it seems our net-worth has been super-charged!!

-The Investments Run Down-

  • 401k: $101,766.97

Our company works with Wells Fargo.  Honestly, it could be worse but, it could be A LOT better!  My wife and I are investing a total of 9% of our income (6% + 3% company match).  If we had better options, I would invest more but, the fees are a bit high.  Some are over 1%!

  • Vanguard:  $3,492.85

Ooohhh shit.  Don’t look now, we are investors!  Well… investors outside of our 401k!  We fully funded our emergency fund back in August and are now directing all cash to Vanguard.

Each month we should be able to invest $5,000 to $5,200, and I’m hoping to push another $20,000 into the account by the end of 2018.

Once our balance hits $10,000 I will jump right into the Total Market fund.  Boring?  Yes.  Do I care?  No.  I should be at this point by mid-October, assuming all goes as planned(ish).

-Real Estate-

  • Equity:  $58,669.35

Keep your shirt on, this isn’t sexy rental property real estate.  It’s the equity we have in our home.

After paying off our debt we had planned to try and pay off our mortgage quickly but, we have since decided to let the mortgage ride and direct all cash toward investments.

A 4.25% interest rate isn’t very high and I’m hopeful that we’ll get more than that out of the market.  If we spend 3-4 years paying off the mortgage, we are only really getting 4.25% on that money.

Click to read exactly why we aren’t paying off the mortgage ASAP

I hope we can do better.

-Liquid Cash-

  • Cash:  $26,376.13

This one fluctuates a bit but, that’s typically the amount of cash have on hand each month.  Most is just sitting idle in a savings account waiting for a rainy day.

Not sure if I should keep it in a savings account, or invest some of it?  I go back and forth on this a lot.

We do have access to a decent chunk of credit with the bank.  So I have access to money quickly if I needed it but, something about using credit makes my eye twitch.  Eh, not sure about this one yet.

I’ll revisit this each month…

Finally, I don’t count our two vehicles into our net-worth. I’m 100% sure I could get at least $15,000 for both of our rides but, they depreciate so fast…

Also, I don’t feel like having to Kelly Blue Book them constantly to add the value up…

70% practical, 30% lazy…  (Shrug)

Grand Total:  $190,305.30

See you in October!!

 

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1 Comment

  1. Congrats on the big jump in your net worth month over month! I know that always feels good to see. Not all months will be positive, however the goal is to have more positives than negatives.

    Regarding your financial priorities, sometimes paying off a mortgage fast doesn’t make as much since as investing. 4.25% is a low-cost mortgage and also comes with tax benefits, so the effective rate is actually less once you factor in the interest deduction. Personally, I’ve got a 4.5% rate on my rental property’s mortgage and find it hard to justify trying to pay it off early while better options exist. I’m not burdened by the monthly payment as the rent more than covers it.

    Right now, we’re prioritizing maxing out our retirement accounts and saving for a down payment on a house a couple of years down the road.

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