This month was another big month where we saw our net worth increase by nearly 10%. Not only did the market trend further upwards but the banks soared even further causing my investment portfolio to increase by 24%. Savings had an increase of 76% mostly from my tax return. I had a return of $8k and it will only sit in the savings account until after the wedding where it will be applied against our mortgage. Aside from that we continue to horde cash in our savings accounts that aren’t tracked in our net worth. We are using this money as a buffer for any wedding expenses that come up. On top of that we have already spent around $5k on the honeymoon which I can’t wait to go on. Come August we’ll see a big leap in our net worth once we can finally put those cash reserves into our savings.
Savings: We currently maintain $4500 in our personal checking accounts so we don’t have to pay any banking fees. The rest in our accounts is being set aside for an emergency fund which we hope will reach $30k.
Mortgage: There is debate on how one should include their home in their net worth. Some people try and track the present value of their mortgage and others prefer to use their purchase price and leave it at that. I’m in the latter camp. I feel tracking the value of your home on a month to month basis isn’t worth while. We have no intention of selling since we need a place to live and it takes away from true net worth growth of saving and investing properly.
Line of Credit: This is a line of credit that I took out to invest in the market. This will remain the same as I will continue to only pay the interest since I’m claiming it on my taxes. I will eventually pay down the loan I just haven’t decided on when.
Vehicle: We are currently leasing our vehicle. This is preexisting to my fiance and I meeting. Our intention is to ultimately purchase the car once the lease expires. We won’t be tracking its value as it is a depreciating asset and serves no purpose in helping us achieve our goals. It’s benefit comes in the way of us running this car for as long as possible allowing us to save and invest more.
How is your net worth doing after the upswing in the market in march ?
-mfd-
{ 3 comments… read them below or add one }
Good looking balance sheet and nice progress. I am featuring you on my net worth coast to coast post.
Thanks a lot MG.
First time I remember visiting your blog, and I like the idea of your own personal balance sheet. I haven’t done that myself, but it is a great way to learn about reading corporate balance sheets.
Oh wait, I think I have been here once. Did I noticed a typo in the blog title when I was here last time? Fidependence?