What Is My Net Worth? – August 2020

net worth

Best August for S&P 500 returns in 34 years! 6.5% gain in my retirement account in 1 month which my net worth loved! The S&P was up 6.6% so pretty close to being right on.

Will this continue? Of course not. Am I enjoying the sight of crazy returns? Yup!

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 trouble 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.

What Is My Net Worth 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

Assets

Cash/Investments: My cash position increased by about $300. Between my savings and investment account (really just a money market fund) I have about 5-6 months expenses saved up. Even though my emergency fund is nearly fully funded I still continue to put around $2-300 a month into it.

Retirement: WTF is up with this market!? This is where the majority of my month over month growth came from. One day I’ll share my asset allocation but It’s mostly invested in index funds.

I did end up investing let’s say 10-15% of the portfolio in individual stocks in April. These included Microsoft, Moderna, Amazon, Tesla, Estee Lauder, MGM, and Southwest Airlines. These are some of the high flyers in the market right now so they’ve done well so far.

Prices compared to earnings are currently out of whack in my opinion and I just can’t see this upward trend to last. I would expect a correction coming, especially come November, depending on certain outcomes.

Real Estate: No changes here and really won’t be month to month. This includes my primary home and an investment condo.

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 a 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. We love it and hope it improved the value of our home.

We did finance a portion and yes…it’s on a credit card. The rate is 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.

On average I’m paying $500 a month on this and hope to pay a big chunk come December…bonus 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 advocate paying it off tomorrow, in most cases. It will be a focus in 4-5 years once some other debt is paid.

Student Loans: I AM OFFICIALLY AN MBA GRADUATE!!

Now the realization of paying off my student loans is settling in. I’ll be paying these down aggressively starting in January. I also hope to pay large chunks come bonus time each year.

The goal is to have these paid to $0 in 5 years.

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

Summary

The Good: My retirement assets grew by 6.5%…which is crazy but I’ll appreciate it for now. It certainly helps with attaining my 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. This will be my constant message here…

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