Well folks, I was out of town for my usually monthly net worth update, but I decided to do a little more digging for my last update of the year. My year end net worth was $98,081, an increase of $66,322 over the prior year end. My 209% increase was driven by two major factors that need to be explained.
First, I took control of an account my parents had for me for college. I never needed the account, as I had a full ride to undergrad and paid my way through grad school. Because it was not a restricted account, I had my Dad keep it as a “secret down payment” account for my first home purchase. Second, when I bought my home I pushed a hard bargain to get a fair price. The price was so good, that it was far below the standard (easy) home valuation method today, which is Zillow. The instant home equity increase was substantial, but the price has leveled and I decided to lock it in for consistency going forward.
At the end of the day, though, things seem pretty good. I am building my emergency fund back up to $5,000 before I start rebuilding my stock portfolio and I am on track to have that done by the end of 2012, if not sooner. I am also accelerating my payments on my student loan. I have $6,658 to go and I am all paid off. I am also trying to get that done by the end of the year.
To help pay for this, I am using two strategies. First, I am budgeting and spending less than I earn. Second, I finished paying into my flex spend account for my eye surgery. That is giving me an effective $200 per month raise. Add that to my tight budgeting and I should be all set.
Here are the numbers for December:
| Assets | $ Diff | % Diff | |
| Cash | $4,121 | $1,612 | 64.25 % |
| Stocks | $516 | $41 | 8.63 % |
| Bonds | $0 | $0 | – |
| Annuities | $0 | $0 | – |
| Retirement | $20,772 | $587 | 2.91 % |
| Home | $167,600 | $0 | 0.00 % |
| Other Real Estate | $0 | $0 | – |
| Cars | $14,528 | $0 | 0.00 % |
| Personal Property | $0 | $0 | – |
| Other | $335 | $7 | 2.13 % |
| Total Assets | $207,872 | $2,247 | 1.09 % |
| Debts | $ Diff | % Diff | |
| Home Mortgage(s) | $102,554 | ($143) | -0.14 % |
| Other Mortgage(s) | $0 | $0 | – |
| Student Loans | $6,658 | ($442) | -6.23 % |
| Credit Card | $579 | ($529) | -47.74 % |
| Car Loans | $0 | $0 | – |
| Other | $0 | $0 | – |
| Total Debts | $109,791 | ($1,114) | -1.00 % |
| Net Worth | $98,081 | $3,361 | 3.55 % |
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Woah 200% amazing results!
Thanks. I try to kick butt where I can.
Nice update. Once you get that debt paid off, you will have a lot more to spend each month!
My minimum on the student loan is $93 per month, so not too bad. Once it is paid off, the mortgage is next.
That’s not bad then. But yes, ever extra bit helps.
Agree 100%. I will be happy to see that go away.
Amazing work! Does your lack of liquidity of worry you? or do you do it because it DRIVES YOU
I am trying to build my savings account back to $5000 for “what if” scenarios. Once I have that cushion, I will throw extra savings into my stock account. I have huge credit limits, so I am not too worried about needing cash in a hurry. I always have enough saved up somewhere to pay off the credit card bill in full at the end of the month.
Congratulations on the large increase and having so much equity in your home. I think 2012 will be even better for you. I’m about where you were a year ago, but I don’t foresee a 200% increase.
Just stick to your guns and do the right thing (even when it is difficult) and you can see big growth too!
Congrats on buying a home in 2011! I’m terribly jealous. Hoping to have a home of my own in 2012.
Don’t hope, plan to make it happen. Action is the only way to make your dreams come true.