Another month is in the books. They always seem to go a bit faster towards the end of the year as there is Santa to visit, decorations to put up inside, and a roof to scale to put up Christmas lights. My net worth in November increased its slow track up.
New metric this month: Direct Savings!
Based on my recent conclusions that maybe net worth isn’t all its cracked up to be, I’ve decided to add a section that shows the direct actions I took (i.e. save or pay down principal on debt) to increase my net worth. While net worth is a nice, hopefully increasing number, my savings/principal pay down are items that I have direct control over. My net worth includes big percentages (for now) of items that fluctuate over time like the stock market and my home value.
Net worth update
As a quick reminder I started adulthood 70k in debt. Through some hard work, discipline and some luck I was fortunate to add 250k to my net worth over the course of 7 years. I’ve learned it really is the small things that add up to something huge over time.
My net worth in November of 2018 looked like this:
Direct Savings/Debt pay down
Its great to see things trending in the right direction. The more important this number, which I hadn’t every really calculated before, was my direct savings/principal pay down. Again, I have CONTROL over this.
I’m not going to lie this number was bigger than I thought. The principal pay down section includes 2 student loans, an auto loan and my mortgage. I didn’t include the interest portion of those loans.
Interest payments are huge!
During this calculation I did realize the amount I’m paying in interest in month for my debt. It amounted to over $400! The vast majority of that was via my mortgage but it is still a staggering amount. Thats like a really nice car payment a month!
Overall, this month was a good one. I started tracking a new metric and made some progress on my net worth.
In the back of my mind I’m regularly thinking about the next crash and what that will look like. How long will it last? With such large crashes in 2000 & 2008 it seems unlikely that this next one would be in the 50% ball park. What do I know though? Literally nothing. Its just something that seems to be in the news a lot so makes its way into my thoughts.