July 2020 – My Net Worth Report

This site may contain links to affiliate websites, and we receive an affiliate commission for any purchases made by you on the affiliate website using such links.  Please see our Disclosure Policy for full details.  Thank you for your support!

Net Worth

I love reading financial bloggers income and net worth reports (budgets are sexy and Gen Y are some of my favorites). They reveal so much about the writer and for me, provides loads of inspiration. It’s amazing to see recaps where they compile years of tracking and you can clearly see the growth in their net worth.

Why Reveal My Net Worth?

  1. Inspiration – If I can achieve my goals, which are attainable, in front of an audience, I hope it drives others to set and achieve their own financial goals.
  2. Accountability – Sure, I’ve been in banking for 15 years and help high net worth clients with their financial needs. But even I tend to spend more than I should and have troubles sticking to a budget. Budgets are hard…so I’m laying it all out here in an attempt to shame myself any month I fail. Well, maybe not every month I fail as I know there will be many.
  3. Comedy – hoping there won’t be too many laughs at my expense.

My 5 Year Goal

My Net Worth Goal

Why set a 5 year goal?

Retirement is too far away and next week I’ll be heading to the liquor store (which means I’ll spend too much next week).

I like 5 years as it gives me time to commit, adjust, recommit, readjust and hopefully get in a habit so I can achieve my goal!

My current net worth is $266,000. My goal in 5 years is $700,000.

This involves aggressively paying down my student debt. Continuing to fund retirement accounts and soon get to maxing them out (close but not quite there). Paying off my car loan and NOT buying a new one.

And most importantly NOT SPENDING MORE THAN I MAKE!

The Numbers

My Net Worth

Assets

Cash: It’s so important to have 3-6+ months of cash set aside for emergencies. I’ll preach it all the time on this site.

Do I have enough in cash? NO! But the investments are essentially in cash right now so I’m not that far off.

Investments: As I mentioned it’s mostly cash. The goal is to add to investments as these are mid-term funds (cash = short/retirement = long).

Retirement: This is my biggest chunk of change and will continue to be. Yes, I do have a Roth and traditional IRA. Yes, I also have a current 401k. I do need to focus on shifting more to my Roth so I have a nice mix of taxable/non taxable income for retirement.

A big goal will be to increase non-retirement assets over the next 10-15 years.

Real Estate: I have my primary residence and a condo. The condo I purchased at 21, lived there for almost 10 years and now rent to a family member.

I purchased that in 2008…so it’s still under water.

Car: It’s only added to counter the loan.

529 Plan: I have funds in a 529 plan for my daughter. I don’t believe these should be included in net worth statements as they are funds earmarked for her college.

Liabilities

Credit Card: I pay most credit cards off every month. This $1000 was to replace a TV and is sitting at 0% rate. I like free money and always pay it off before the promotional rate expires.

Patio: In 2019 we tore out an old deck and had a paver patio put in.

I LOVE IT!

It was a mess before and now we can enjoy our backyard and more importantly, my daughter can enjoy our backyard.

We did finance a portion and yes…it’s on a credit card. It’s 0% and will be paid off before that expires.

It’s risky and is spending money before it’s earned. I wouldn’t promote doing this but works for me.

As I’ve mentioned before, I am not a FIRE candidate. I DO NOT want to sacrifice good times and pleasures for the next 10 years to retire. I like working and while retiring way early sounds great, can’t commit to that painfully frugal lifestyle at this time.

Mortgages: I have a mortgage on both properties. Not much else to say here.

It’s cheap debt and you’ll learn that I’m not one of those who advocates paying it off tomorrow, in most cases. It will be a focus in 4-5 years once other debt is paid.

Student Loans: UUUUGGGHHHHHH this sucks. I finished my MBA THIS WEEK!!! Woohooooooooo!!!!

Now…it’s time to pay for it.

I did pay roughly $20k out of pocket. I will be paying monthly of course, but the goal is to have this paid off in 5 years.

The plan is to do this with my bonus each year. Fingers crossed I do well, my company does well, and I can achieve this goal.

Car Loan: Yup, shouldn’t have this but as I’ve said, I do not live that perfect frugal lifestyle.

Summary

The Good: I have decent retirement assets but am short of the target liquid assets based on my age.

The Bad: I have credit card debt that I used to finance our patio. We are paying 0% interest, but it’s a riskier strategy that I wouldn’t suggest.

The Ugly: F’ing student loan debt.

Paul W

Hello! I'm Paul, finance expert and founder of The Income Finder. With over 15 years experience in the finance industry, a bachelors from Benedictine University and MBA from DePaul, I'm well qualified and ready to share great insight and tips on money management. Read More

This Post Has 2 Comments

  1. Impersonal Finances

    Love a good net worth report! Student loans are almost unavoidable these days. What kind of a car are you driving? You could always consider downgrading vehicles to help pay off some other debt! Enjoyed the peak behind the curtain!

    1. Paul W

      Glad you enjoyed and hopefully were satisfied (curtains/drapes match). It’s a Ford Explorer and you make a valid point, but while I am all for attaining my goal I also have carved out enough to enjoy life. Plus, it was a loaner with low mileage from the dealership and they were giving great deals shortly after the pandemic hit. Thanks for stopping by!

Comments are closed.