Tuesday, June 4, 2019

Gremlin's Asset Review - 2019

Bookkeeping Gremlin here to discuss my net-worth.  I first made this type of post two years ago, because its my birth month so I might as well see how current me compares to newborn me (financially).  This is something I like to do on annual basis to help me gauge what kind of progress we are making towards financial independence.  This report is a substantial improvement over last year's.  A big part of the reason is my wife returned to work at the end of last year, which is amazing as my kid is now heading towards being 2 years old this fall.


Debt sucks, period.  Most people accept debt as normal and expected, but that is crap.  Still, I have debt though, and am working on crushing it.  So here goes:

Car #1* (my car): $7,198 (maturity: 6/2021, $250 / mo.) interest = 1.9% ($2831 reduction from last year) - Eliminated this year.
Car #2 (her car): $7,054 (maturity: 10/2020, $475 / mo.) interest = 1.5% ($5900 reduction from last year)
Mortgage: $323,387 ($2150 / month, 30 year, 4% interest)
Family Cash: $30,000 - a family obligation 0%, no timetable (help received purchasing our house)
Revolving debt / credit cards: No balances carried or maintained, used as debit cards with credit points.
Total debt: $360,440 (a reduction of $19,198)

Currently, we are paying extra on the remaining car, and I pay a little extra on my car and our house.  I count our house and cars exclusively as debts.


Last year our total income was approximately around $95k before taxes...

Expected income (2019):
My main job: $85,000 (6% increase over 2019)
Wife: $43,000
My side gigs: $1000
Total: $129,000

This his the biggest improvement found in the report.  The extra income over last year has allowed me to snuff out debt and aggressively add assets.


This is the fun part.  Current assets that are to be considered are my taxable investments, Roth IRA, IRA, 401K, and other retirement savings.  Cash, Health Savings Accounts, and college savings plans are not counted.  This allows me to shield some liquidity and immediately useful assets.  Assets including cash in investment accounts:

Taxable Invested Assets: $52,794
Roth IRA: $21,274
Traditional IRA: $37,292
401K: $31,208
Wife's Retirement / Pension: $18,679
Total = $163,031 ($29,989 total growth)

2015 = $47,000
2016 = $87,000
2017 = $126,206
2018 = $135,319
2019 = $163,031

Total Net Worth = (-$197,409) [$49,187 improvement]


2018 Past Goals:
1 - Begin retiring some of my family debt. - Plan in motion to begin this later 2019, met.
2 - Eliminate a car payment.  Met.
3 - Networth approaching or above $-230k.  Met.

2019 New Goals:
1 - Eliminate 2nd car payment.
2 - Increase mortgage payment.


My primary goal is to achieve financial independence.  It might not seem obvious, but in 5 years I believe these numbers will be drastically different in a great way.  Here is to another year of crushing it (and any past financial mistakes).

- How is your net-worth coming along?
- Gremlin

No comments:

Post a Comment