October 2017 Net Worth Update: $488,136 (+$10,951)

Thanks for stopping by to check out my latest net worth report!

Well, it’s been a good month, I’d say. Up over $10,000 and not due to some major jump in crypto or a Zillow zestimate fluke. Just a combination of diligent retirement contribution, savings, and stock market growth doing the rest.

Hey real quick – I’d like to thank The Dad Wallet for sponsoring this post! He’s a fellow geek who has a passion for family and finance. He and his wife work with Destiny Rescue, which is committed to rescuing children trapped in the sex trade. He’s doing a side hustle series over on his site, so go check him out and learn about more ways to make some side cash.

Assets & Liabilities – Last Three Months

Here’s a quick look at my assets and liabilities over the past few months. The MTD +/- column shows change since the prior month.

 

The REALLY High Points

Over the last three months, our net worth has increased by $45,591 (+10.30%).

One year ago, our net worth was $365,565.

So that’s a 12-month increase of $122,571 (+33.53%)!!

This brings our monthly average growth UP from $9,937 to $10,038 for 2017.

Three years ago, we had just paid off our last debt, and we were at roughly $234,000 in net worth. And three years before that, I was just starting my debt payoff journey with over $120,000 in debt (I added more debt along the way).

It doesn’t happen overnight. So if you’re sitting there wishing your situation was different, stop. I battled (and still battle) with the same issue, and it’s a waste of time. Significant success doesn’t happen overnight.

We have to keep telling ourselves that.

Even in my current situation, there are times where I’ll compare myself to some millionaire or some entrepreneur who’s successfully doing something I aspire to do. There’ll always be that natural tendency to compare. But there’ll always be someone who is more successful than us.

Give yourself some credit for what you’ve accomplished so far, and stick to your plan. You WILL get there in time. So will we!

Oh yeah. We’re still on-track for HALF-MILLIONAIRE! status in 2017!!

Dwight shall lead the way to $500,000.

Checking Accounts

In addition to our normal pay of approximately $6,100, we generated $1,275 in flexible and passive income in October! I’m putting out monthly reports on this topic so make sure to check those out. It’s all part of the plan to quit my job in 2019.

Our checking accounts have been trending upward, which is expected. We have certain “envelope” accounts where we save for one-time, yearly expenses like these:

  • Termite bond renewal
  • Pest control visits
  • Car repairs
  • Property taxes (auto and home)
  • Income taxes (withheld from side hustle income)
  • Home-owners association dues
  • Gifts (mostly Christmas/birthdays)

Note: We always pay our credit card bill in full each month. We were using Mint.com to track our budget, but I’m tired of the buggy website and mobile app. So I’m trying YNAB instead. I don’t have high hopes. 🙁

https://twitter.com/debtfreegeek/status/927303146073939968

Health Savings Account

Up over $800 since August!

This is a pre-tax account designed specifically for health care expenses. We contribute the maximum allowable $6,750.

Thanks to my employer for contributing $900, we only have to send in $5,850, or $487.50 per month.

Our goal is to grow our HSA to match the size of our healthcare plan’s out-of-pocket maximum: $13,000. So, we’re 53% complete on that goal!

Something I’m considering is investing my HSA into an index fund of some sort. If you have any suggestions on this, let me know.

Coverdell ESA

This is an education savings account for our oldest daughter who just turned 4! ESAs are great because the savings and growth are completely tax-free as long as they are used for qualified education expenses.

We’re putting away the standard ESA max amount of $2,000 spread over 12 months.

Up almost a grand over the last three months. It’s nice to see our account’s growth out-pacing our own contributions. Stinks that we have to save for an investment into such a broken education system. 🙁

  • Contributions: $166.66
  • Gain/Loss: $218.65 (+2.47%)

Brokerage Accounts

The brokerage accounts break down into three main accounts.

  • Real Estate Savings: $53,963
  • Emergency Fund: $13,265
  • Car Fund: $1,025

I stopped putting money into the Real Estate Savings brokerage account because we’ve started putting offers in on properties, and I can’t risk losing the money. So I started a Real Estate checking account and have been saving money there.

I contribute $150 per month to the Car Fund. I’m sure you can guess what the purpose of this fund is, but you might be interested to read about how I always pay cash for cars. You might also find my Winning With Cars Strategy Guide useful.

You read that right! My Emergency Fund is in the stock market. The cool thing is that it started at $12,000. Hey – at least I didn’t buy bitcoin with it. Doh. Maybe I should have. ^_^

I put my e-fund into an S&P index fund on March 10th. On that day, bitcoin was trading at $1,180. If I had put my e-fund into bitcoin that day, it’d be worth $79,159.

With that…let’s move on to #crypto… -.-

Crypto Accounts

  • Cash Invested in October: $0
  • Cash Invested YTD: $24,304.60
  • Gain/Loss YTD: $8,701.88 (+35.80%)

About $2600 of this is just fiat (USD) money until I see an opportunity. Think of it as an “opportunity stash”. When there’s a dip in a currency I like, I’ll buy it.

As I’ve said in prior posts, this will be the most volatile category. So, if you’re dabbling in cryptocurrencies, get used to it.

I invested in a new cryptocurrency which is highly speculative, but could turn into a monster in China: NEO…maybe to the $100-200 price range.

As I always say, I’m not trying to convince anyone to get into cryptocurrency.

Personally, I waited until I was out of debt before getting involved.

I’m sharing my experiences, and I’m happily answering questions for those of you who have contacted me directly. That said, if you’re interested, you might find my current project helpful.

Would you like to learn more about the basics of securely investing in cryptocurrency?

I’m developing a guide called “Cryptocurrency for Beginners” which will be a compilation of everything I’ve learned during my crypto investment journey. If you’re interested in grabbing a copy when it’s ready, please sign up below, and I’ll email you:

Everything you need to start investing in cryptocurrency, all in one place.

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Retirement Accounts

Contributing solely to our traditional 401k has been great for growth.

We’re contributing more to retirement than before, and we also have extra cash leftover for other investments. Initially, I was going to invest all of the extra into real estate, but it ended up being about $440 so I’m putting $200 extra to real estate, and the other $240 will go into crypto each month.

  • Contributions: $3,124.34 (includes employer match)
  • Gain/Loss: $3,819.74 (+1.94%)

If you are interested in a neat net worth tracking tool, give Personal Capital a try. It’s a super neat tool!

I still like to use spreadsheets, but Personal Capital gives me a quick and dirty dashboard with cool reports. The history is nice as well, much easier to tweak dates and see graphs change.

Property

Home – Holding pretty steady at just under $130,000. I bought the home for $107K in 2011. If we sold it right now, we’d net just over $15,000 in profit, which is not that stellar.

Cars – The only asset I own that is guaranteed to go down in value. No surprise there! I truly believe that not overspending on cars has been key to my success. If you’d like to see exactly what I do to keep cars from ruining my finances, again you might want to check out these posts:

Personal Property – We haven’t added anything significant to our valuables. This is basically an estimate of the cash we’d net if we opened our home and sold the large pieces in it, and with fairly conservative estimates.

I’d actually like to see this number go down over time, as we learn to spend even less money on stuff. You can read more on my thoughts here:

Change in Liabilities

Credit Cards – Nothing new to report here. We put our monthly expenses on our credit cards to get the points for travel, and we pay our balance off each month.

I believe in tackling personal debt, but I’m OK with credit cards if you pay them off each month. You can read a bit about my philosophy on credit cards here:

Are these helpful?

What do you like about seeing net worth posts? Do you find them helpful? Is there any more detail you’d like me to include?

I’d love to hear about your net worth update as well!

 

 

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