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|
|Other Real Estate||$0||$0||–|
|Total Assets||$207,872||$2,247||1.09 %|
|Debts||$ Diff||% Diff|
|Home Mortgage(s)||$102,554||($143)||-0.14 %|
|Student Loans||$6,658||($442)||-6.23 %|
|Credit Card||$579||($529)||-47.74 %|
|Total Debts||$109,791||($1,114)||-1.00 %|
|Net Worth||$98,081||$3,361||3.55 %|