Net Worth Update (+3.1%)

Click here to see my current net worth.  Overall, an increase in net worth of $36,129 since my last update early November.

The major drivers of the increase were:

  • Investment gains in the market
  • Debt continuing to trend downward

For a moment, I thought this was going to be a sub par month, but the markets picked up during the second half of the month which helped secure gains in my investment portfolio.

You will also notice that I’ve continued to pay down a significant chunk in the mortgage category.  This is because I am paying down the mortgage on a rental with a 5.25% interest rate.  Because I cannot take full advantage of the tax deductions that come with rental property, this is the best strategy for me since we have some excess cash to invest.

I continue to keep our real estate portfolio flat and have adjusted our car values to reflect current Kelly Blue Book values.   As a reminder, our goal for our end of 2012 net worth is around $1.3 million.  We have one month left and at our current pace, we may not get there.


  1. Ours mirrored yours this month quite a bit. Overall gain was 3.2%, with more of that gain coming from decreasing liabilities than from increasing asset values. Although, our overall net worth is quite a bit lower than yours – but we’re working on it! =)

  2. Good job on the NW increase!

    “This is because I am paying down the mortgage on a rental with a 5.25% interest rate.”

    I’m curious why you haven’t refinanced the rental property. Is it close enough to being paid off that it’s not worth the refi?

    • Investment properties typically carry a higher interest rate than a residential mortgage. That said, i could probably get a lower rate, but since we’re close to paying it off, we would lose out on the closing costs.

      • Yeah, right now if you have at least 25% equity in a rental property you should be able to get about 4%. Not as nice as the low 3% range for a primary residence, but still a great rate. But, if the mortgage is almost paid off, it’s a moot point anyway.

  3. I am not sure where to write this but this seems as good a place as any. I tend to look at life with the view that there is a lot more chaos at play and that the business of organization is just that – business. I have no idea what my net worth is. If I sold my property probably about $100000 in equity. I figure I’m not struggling in life too much. ‘Could do better if he just applied himself’ as my teachers would invariably say to my parents. I currently don’t live in my property, I live with my partner in a foreign country – I am from the UK but living in Sweden. I got lucky with the recession essentially. My mortgage is tied to the bank of England base rate for the lifetime of the agreement. When I took it about 5 years ago it was an ok deal. I was paying 0.49% on top of 3.5% (B of E base) then sub-prime, crash, global depression happened and the Bank of England base rate dipped sharply to 0.5%. Its been that way for 4 years and is likely to stay that way for another 3 years at least. So essentially for at least 7 years of my mortgage I will be paying 0.99% interest. Now thats got to be a good deal in anyone’s book. I had been working in a job I hated for a few years although the money was good so, bizarrely to some, mid recession, I handed my notice in, rented my property out – which at 0.99% on a fairly small capital gives me a small income and pays the mortgage. I did some traveling and ended up in Sweden where i met a wonderful women who provides the modest roof over our heads. My rather rambling point is that I think it is very hard to pin down what will make you money. I got lucky with the recession and I my net worth increases about $10k every year without me moving a muscle. I’m not showboating, I just think that life can be a bit random and however much we try to control things, much of it is out of our hands.

    As an addendum, I worked for a stock listed company and they had share incentives – which i bought in to for a while and then sold because I really didn’t want that further financial tie to a company I didn’t like. Everyone said ‘you should do, its free money’. Well everyone knows there is no such thing as a free lunch. Soon after I left a large deal fell through for the company and the share price went from 2 to 0.3 and they we’re bought out. All those people giving a part of their salary away for something that is essentially as stable as a pack of cards.

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