3rd Quarter Net Worth Increase [+$19,096]
My Net Worth Report for the 3rd Quarter of 2017
I've hit another high increase of quarterly net worth! Trumpets and horns (plus balloons falling from the ceiling)
You know what an important thing to be doing is if you want to increase your net worth? Track the damn thing!
Seriously, watching those numbers will motivate you to have them ever increasing. It's just like playing a video game and your net worth is the score. You want to perform as best as you can so you can add your initials to the top ten.
I am so glad that I broke free from a monetary coma three years ago and got down to business. My salary hasn't increased all that much, but now every dollar has a job to do. The majority of them go to work FOR me making more money babies.
You can change your relationship with money. You can be the master of it, instead of it lording over you. Read. Learn. The knowledge is out there.
Once you gain the knowledge, you change your mindset. You change your mindset, you change your life.
It happened to me. Let me show you in numbers.
CASH
Starting $13,593 Ending $15,277 [+1,684]
I like to have around $10,000 in liquid cash, spread between my different checking and emergency fund accounts. This quarter I quickly opened up an account at CIT Bank to grab a 1.35% interest rate on my emergency fund. This sure beats my .75% I was getting at Capital One!
Not that I am going to get rich off it, but it negates a pretty good chunk of inflation. This whole journey towards financial independence is just about maximizing the efficiency of your money. Grabbing a larger interest rate is a VERY easy way to do it.
I’m building up a bit of a cash surplus so that I can drop $5,500 in my IRA the first business day of 2018.
INVESTMENTS
Starting $72,781 Ending $81,897 [+9,116]
Through my work retirement plan, I invest approximately $1,000 per month into index funds. The rest is additions to my brokerage accounts. I have two, my main one is Robinhood but I often find companies that Robinhood do not trade. To invest in those companies I have another brokerage, but it costs a commission. Not Robinhood though! That’s why I prefer to do all my trades with them.
If Robinhood interests you, sign up using this link to get a free share of stock (I will too). Even a share of Apple or Facebook is possible, worth over $150.
This quarter my star investments were STRL [+36%] and two junior lithium companies – OROCF [+58%] and GALXF [+96%].
Oh, and that spike down? That was a glitch in Motif Investing on July 4th.
MORTGAGE
Starting $62,577 Ending $61,526 [+1,051]
This is the only thing I pay interest on (credit cards are paid in full each month), to the tune of about $175 per month. Still, I would rather that amount be zero. But I see the benefit of investing for growth higher than the mortgage interest rate.
So I pay a little extra on the mortgage and invest the lions share. I’ve always been the type of person to compromise between two different ways.
A small mortgage (and corresponding payment) allows more flexibility in life. Not as much as say living in an RV, just more. I could basically do any job and earn enough to live. I have low overhead.
ASSETS
Starting $186,707 Ending $192,448 [+5,741]
Three cars and a house fall under this asset category. I know some people will rail that a house is a poor investment, but not me! I love it because I researched and bought smartly.
I know Zillow is not exactly accurate, but I purchased my house 3 years ago for less than $100K and now it is at $175K. You can subtract $12K for renovations, but that is still a very good return. Plus, it is all tax-free if we choose to sell since we have lived in it for over 2 years.
All together this comes out to a net worth of $227,556!
A TOTAL QUARTERLY INCREASE OF $19,096!
This may or may not seem impressive to you, but let me put this into perspective. During the 3rd quarter, I earned a GROSS total (before taxes and deductions) of $16,598.03 from my job. My wife is a stay at home mom, and I have two kids.
I think I am doing very well.
You might ask how can a person increase their net worth more than the total amount of money they earned? Well, that is the beauty of investing. You get your money working for you. I also work hard for my money by doing a few different side-hustles.
The final piece is to live way below your means, change your mindset from just that money buys things to money is time. You'll find that buying things don't interest you as much.
That’s really all there is to it.
THE BIG PICTURE
I started the year with a net worth of $173,276. So far this year it comes out to a net worth increase of 31.3%! And there are still three more months to go.
From just the second quarter of this year, my net worth is up 9.2%.
I am not special. I just changed my money mindset and now look where I am.
On the first of January, 2015 I had a net worth of $81,249. That is what I accumulated over 33 years of life.
In less than 3 years I have increased that to $227,556 – or a gain of 180%
So 33 years = $81,249
Changed my money mindset.
The next 3 years = $146,307
If I can do it, so can you. Heck, you probably can be doing better than me.
What are you waiting for?
(Crypto is not counted towards my net worth)
Thank you for sharing this information and some of your investment strategy. Personally i am a smaller fish that is fins deep in gold, silver and cryptos...
Your post provided a very accurate, and detailed approach which I appreciate -- being able to see it really helps.
Keep on killing it man! but add a little bitcoin too.
🤘😎
upvoted & resteemed
I'm perfectly fine being open about my finances. I post about my monthly side hustles (which all profits get invested).
If you want to increase your wealth - TRACK IT. Check it every few days or so to keep it on your mind. Make it a game to always have a higher score than last month. You will see it increase much faster than before.
Great advice! It's like actually writing down your goals in ink!
I do the same thing like Getonthetrain, I post it in on my blog! But I am not going to link to that, not gonna be an asshole.
However, I am writing that because he is right, it makes you work harder & earn more.
Ran across this via @thedamus' resteem. I find it interesting that you don't count crypto towards your net worth. What's you logic behind that? Play money? Lotto ticket? Unless you haven't sold any, if it's taxable it's income I personally count.
I'm on an entirely different path to financial independence by quitting my corporate job 2.5 years ago at a big bad bank to work for myself, so the income dipped, but the freedom and crypto went way up. Some of my recent posts can give you a little insight on a radically different model, but I track every penny made and spent to make sure I know where I was, am now, and am heading.
I don't disclose any asset holdings beyond real estate and cars. IE, I only discuss known assets in a database. Privacy for the rest, if any.
Hey good for you! I have a few more months in my 9-5 before I can call it quits. Then I will see how I can do by my own way.
I'm a big thrifting reseller as well, I post somewhat about it in my monthly side hustle updates.
Inspiration right there. Glad to have found people that take financial mastery seriously!
Assets growing, liabilities shrinking - that is how we do it my friend. Nice work!
My story is of the same light, 2011 I had no assets and was 10K in debt. Come 2014 I had no debt (except mtg. on rental prop) and an actual net worth! It has kept growing the past few years. Money mindset indeed! :-)
People don't realize that it is all in your head. That is how you cure debt. Most people focus on the symptoms and try to fight it there. Nope, you gotta cure your mindset towards money first - then the money just flows up from there.
Rich people: Find the right information and use that information as good as possible.
Poor people: "I don't read books".
hehe that was something really different :D
Fantastic post!
You got if figured out. Just a matter of time, discipline and focus till you reach your goal of financial independence.