The Investment Road to Freedom

February 17th, 2012 at 5:29 pm

Net Worth – A look at where I stand

Never really considered my net worth before this journey started, probably because I did not want to document how far I had to go to feel like I was financially healthy. When you put pen to paper and list your assets and liabilities it can be a real eye opener.

 

ASSETSAMOUNTDEBTAMOUNT
ASSETSAMOUNTDEBTAMOUNT
401K$1725Mortgage $173324
IRA$930Credit Cards$1731
Brokerage$980Car Loan$4355
Other Investments$2147
Value of Primary Residence $168000
Emergency Fund$444
NET WORTH -$8,164

 

So the above table does not paint a good picture but the future is promising. Before 2012 is all said and done I am confident that this number will go from a negative figure to a positive figure. Breaking down the table reveals further details.

401K

Considering this will my first year of receiving a matched contribution from my employer I expect this account to grow rapidly over the course of 2012.

IRA

I’m hoping to put $416 into this account for February. Currently at $175

Brokerage

The amount I put in this account really depends on how much is left after funding the IRA and paying down debt. I am aiming for a minimum of $150 a month. Currently at $110 for February.

Other Investments

My biggest investment fund though I quickly expect it to be overtaken by my other accounts in the not to distance future.

Value of Primary Residence

We purchased the house back in May for $180k. Checked the value today for the first time on Zillow. Was a little surprised but ultimately not concerned at this point.

Emergency Fund

This fund was really depleted when we purchased the house. Unlike the drop in value of our home I am concerned about this. I will continue to add to this each month.

Other Savings

I did not include other saving in the above table like the Wife’s birthday fund, Christmas fund, etc

Mortgage

Currently our mortgage payment is $1285 a month. For the last payment only $223 went to the principal. I make an overpayment each month even if it is $20.

Credit Cards

Went my whole life without credit card debt until we purchased the house. The amount is not to high but I don’t want it to climb any higher. This will be paid of this year.

Car Loan

My payments are $185 but I am aggressively paying this down. Last month I paid $300 and this month I paid $320.

 

So there we have it. Net Worth stands at a not very impressive -$8,164 (sad face). I am going to publish an article every 15th of the month regarding my net worth. For March I expect a big improvement. Hope you enjoy following me on my Investment Road to Freedom!

 

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9
  • jlcollinsnh
    6:19 pm on February 17th, 2012 1

    The important thing is you are on you way. Journey of 1000 steps and all that.

  • investmentroadtofreedom.com
    7:55 pm on February 17th, 2012 2

    Thanks Jim. I can already feel the momentum building.

  • Dividend Mantra
    8:07 pm on February 18th, 2012 3

    Don’t worry man, you gotta start somewhere. It’s great that you’re putting this down on paper and it’s opening your eyes. When I started in early 2010, my net worth was NEGATIVE $17,000. You’re better off than I was.

    Keep going. :)

  • investmentroadtofreedom.com
    7:57 am on February 19th, 2012 4

    Thanks DM. I expect to be in the black pretty soon.

  • The Stoic
    8:34 pm on February 18th, 2012 5

    I second DM. Congrats on writing it down and sharing. Your focus will be much more intense now. Remember that your networth is merely a snap shot in time. It’s dynamic and will constantly change as you cut your expenses, pay down debt and increase your savings. Like DM I also had a NEGATIVE networth of over 20k when I first started.

  • investmentroadtofreedom.com
    8:01 am on February 19th, 2012 6

    Thanks The Stoic. When I look back at the end of the year I will probably be amazed how much transformation has taken place in regards to my net worth.

  • Miljon2020
    4:44 am on March 9th, 2012 7

    Just found your site. Keep it up!
    We are in about the same position (except i don’t have a house like you).

    Adding investments each month as well as paying of debt will have a huge impact on both our lives. (If you’re interested in my numbers just divide it by 7, that will give you a roughly accurate picture)

  • $25000 Dividends
    3:01 pm on March 12th, 2012 8

    Thanks for reading my site.

    I hope we can both follow each other’s road to freedom.

    Keep at it! Seriously when you are first starting out your savings rate rolls very slowly but after awhile it really picks up momentum. For me, as of 2010, I was in negative territory. By 2011, I began to increase my networth although it felt slow most of the year. However, now I’m at about 35K and hope to get it up to 45-50 by year end. I am starting to see progress.

    I honestly think i’m addicted to saving and it’s empowering. Good luck!

  • investmentroadtofreedom.com
    3:15 pm on March 12th, 2012 9

    Thanks for stopping by. I believe once I get out of this negative territory then I will start to feel more and more like I can do this.

    To go from negative to 35k in a short period of time is very impressive. I look forward to following your journey. I like the way you have mapped out your goals all the way through to 2026