Net Worth Snapshot Jul 2018

  • I expected July to be a bad month because I had to take out a significant amount of money from my emergency fund. However, market had a good run earlier in the month which made up for the expense.
  • Other than the withdrawal from the emergency fund, a relatively quiet month with not much change overall.

I do have a lot of cash lying around. Most is earmarked for emergency fund, next year’s educational expense, etc. Most of cash is sitting in online savings accounts which are at around 1.75-1.85% annually. Any comments or advice about the current breakdown of my assets would be appreciated. Right now, cash/investment/home equity almost equally shares my net worth.

 

Catching Up with History

I have been keeping track of my household’s net worth on a spreadsheet for some time now. Before using a spreadsheet, I used Mint to keep track of my net worth, but after a friend of mine convinced me of the danger of keeping all my financial accounts in one location, I switched to manually updating the spreadsheet. It is more cumbersome to manually update the numbers, and I get lazy at times, but I found it helpful to force myself to mentally keep track of my net worth.

Above is the history of my net worth over the years with my current target of $1M at the top. I started to keep track of my net worth a bit after getting married. I only had a few years of experience back then and hadn’t accumulated much wealth. Below are some highlights since I started tracking.

  • My net worth has been increasing in a linear fashion, mostly due to year-end cash bonuses from my employer. I live in one of the priciest cities in the US and it’s been difficult to save up with only my base salary. It’s been even more difficult after the birth of my child.
  • I purchased my primary residence in the second half of 2014. The green line¬†shows the equity I have built with my home. It is probably an underestimate as home prices have risen in the area since the purchase. I have only partially incorporated the rise in home price.
  • Blue line shows the sum of my brokerage accounts and 401(k). I’m mostly invested in index funds.

I’m already halfway to my target! However, there are some headwinds lying ahead. Expenses keep increasing as family grows (nannies, schools, etc.). My year-end bonuses are not guaranteed. I may change my career to a less lucrative field. The market is around its historical high.

Hopefully the trend will continue, and I’ll be able to adjust my target to a higher number in a few years. I will share monthly snapshots of my net worth starting with July 2018.

Follow my journey to $1 million and beyond!