It’s been 30 months since we set a goal to pay off the mortgage (on our condo) and to have a net worth of at least $1M by 2020. This is the 30th update on the progress of the goal. If you’re wondering why we set this goal, click here.
We have another first this month.
Last month was the first time our net worth doubled since I started this blog.
This month, we experienced our first decrease in monthly net worth. Here’s why.
I hold a portion of our investments in a very volatile stock (TSLA), and it had one of it’s worst weeks after having one of it’s best weeks.
I am still long TSLA.
I understand it is extremely risky. It has a lot of debt, has never posted an annual profit, and has what many consider an unstable CEO.
It is currently the most heavily shorted stock.
But I am optimistic about it’s long-term potential.
Enough about that.
Here’s this month’s update:
Net worth calculation:
Total Assets: $1,119,335.37
Condo (Rental property): $330,000
Primary residence: $520,000
Cash on hand: $21,200.04
Investments (including retirement): $248,135.33
Total Liabilities: $491,180.86
Mortgage on Condo (Rental property): $115,000.94
Mortgage on Primary Residence: $376,179.92
Net worth = $1,119,335.37 – $491,180.86 = $628,154.51
100% of our debt is mortgage debt at 3.25% interest; the condo is on a 7/1 ARM (starts adjusting in 2022) and our primary residence is on a 30-yr fixed.
Net worth progress:
Tracking your net worth is a good way to assess your financial health and see how you’re doing each month. I use Personal Capital to help me track my net worth. I highly recommend it.
Net worth = assets – liabilities, or everything we own minus everything we owe. I’m not including our cars here, which are both paid off, to keep the calculation a little simpler. I am including an estimate of home equity.
I am using my knowledge as a realtor to provide estimates of value for our real estate.
Our net worth decreased this month by $4,052.33 to $628,154.51, mainly due to holding a volatile stock (see above).
| Date | Home equity | Investments | Cash | Net Worth |
| 2/19/2016 | $140,695 | $149,076 | $21,813 | $311,584 |
| 3/19/2016 | $145,519 | $164,791 | $23,512 | $333,822 |
| 4/18/2016 | $150,007 | $171,697 | $17,457 | $339,161 |
| 5/17/2016 | $153,000 | $171,305 | $21,672 | $345,978 |
| 6/20/2016 | $160,100 | $174,881 | $23,094 | $358,075 |
| 7/19/2016 | $162,000 | $185,621 | $27,689 | $375,311 |
| 8/22/2016 | $163,000 | $192,479 | $24,437 | $379,916 |
| 9/20/2016 | $261,403 | $144,694 | $3,657 | $409,754 |
| 10/27/2016 | $261,806 | $151,425 | $5,735 | $418,966 |
| 11/21/2016 | $262,855 | $155,877 | $10,364 | $429,096 |
| 12/19/2016 | $264,290 | $162,281 | $11,432 | $438,004 |
| 1/19/2017 | $285,534 | $172,862 | $8,751 | $467,147 |
| 2/17/2017 | $286,865 | $178,666 | $12,980 | $478,511 |
| 3/17/2017 | $286,718 | $181,893 | $18,413 | $487,023 |
| 4/19/2017 | $290,196 | $184,580 | $16,472 | $491,247 |
| 5/15/2017 | $290,941 | $189,092 | $11,453 | $491,487 |
| 6/19/2017 | $293,950 | $187,627 | $21,135 | $502,712 |
| 7/17/2017 | $301,391 | $196,288 | $19,292 | $516,971 |
| 8/17/2017 | $312,523 | $195,913 | $21,981 | $530,417 |
| 9/19/2017 | $320,769 | $200,956 | $16,914 | $538,639 |
| 10/19/2017 | $326,848 | $204,144 | $10,283 | $541,275 |
| 11/20/2017 | $328,010 | $210,841 | $11,490 | $550,340 |
| 12/19/2017 | $334,171 | $213,215 | $8,695 | $556,081 |
| 1/18/2018 | $335,335 | $216,656 | $8,074 | $560,064 |
| 2/20/2018 | $336,502 | $218,847 | $12,813 | $568,162 |
| 3/20/2018 | $337,672 | $223,416 | $16,135 | $577,223 |
| 4/19/2018 | $339,365 | $229,208 | $26,035 | $594,608 |
| 5/16/2018 | $346,063 | $235,332 | $22,790 | $604,185 |
| 6/19/2018 | $349,393 | $247,582 | $24,915 | $621,889 |
| 7/19/2018 | $355,604 | $251,277 | $25,325 | $632,207 |
| 8/20/2018 | $358,819 | $248,135 | $21,200 | $628,155 |
This month, we reduced the principal by $2,510 to $115,000.94.
| Date | Months left | Intermediate goal | Actual balance | Principal reduction |
| 2/19/2016 | 58 | $179,304 | $179,304 | – |
| 3/19/2016 | 57 | $176,700 | $174,481 | $4,823 |
| 4/18/2016 | 56 | $173,600 | $169,993 | $4,488 |
| 5/17/2016 | 55 | $170,500 | $167,000 | $2,993 |
| 6/20/2016 | 54 | $167,400 | $159,900 | $7,100 |
| 7/19/2016 | 53 | $164,300 | $158,000 | $1,900 |
| 8/22/2016 | 52 | $161,200 | $157,000 | $1,000 |
| 9/20/2016 | 51 | $158,100 | $156,597 | $403 |
| 10/27/2016 | 50 | $155,000 | $156,194 | $404 |
| 11/21/2016 | 49 | $151,900 | $155,789 | $405 |
| 12/19/2016 | 48 | $148,800 | $155,000 | $789 |
| 1/19/2017 | 47 | $145,700 | $154,000 | $1,000 |
| 2/17/2017 | 46 | $142,600 | $153,589 | $411 |
| 3/17/2017 | 45 | $139,500 | $152,178 | $1,411 |
| 4/19/2017 | 44 | $136,400 | $145,746 | $6,432 |
| 5/15/2017 | 43 | $133,300 | $143,909 | $1,837 |
| 6/19/2017 | 42 | $130,200 | $143,471 | $438 |
| 7/17/2017 | 41 | $127,100 | $142,472 | $999 |
| 8/21/2017 | 40 | $124,000 | $137,000 | $5,472 |
| 9/19/2017 | 39 | $120,900 | $129,416 | $7,584 |
| 10/19/2017 | 38 | $117,800 | $124,000 | $5,416 |
| 11/20/2017 | 37 | $114,700 | $123,504 | $496 |
| 12/19/2017 | 36 | $111,600 | $123,010 | $494 |
| 1/19/2018 | 35 | $108,500 | $122,516 | $494 |
| 2/19/2018 | 34 | $105,400 | $122,020 | $496 |
| 3/20/2018 | 33 | $102,300 | $121,523 | $497 |
| 4/19/2018 | 32 | $99,200 | $120,524 | $999 |
| 5/16/2018 | 31 | $96,100 | $119,523 | $1,001 |
| 6/19/2018 | 30 | $93,000 | $118,019 | $1,504 |
| 7/19/2018 | 29 | $89,900 | $117,510 | $508 |
| 8/20/2018 | 28 | $86,800 | $115,001 | $2,510 |
Photo source: Pixabay