Sunday, August 7, 2016

Net Worth Report (August 2016 Update)



Originally, I was only planning to provide annual Net Worth updates.  However, since I am now part of an active list of bloggers who provide their net worth on Rockstar Finance's page - The Ultimate List of Blogger Net Worth, I have decided to start providing quarterly updates.  Providing quarterly updates will allow us to keep our readers more updated with our overall progress towards Financial Independence. It will also allow us to stay accurate and current on the Rockstar Finance's Ultimate List of Blogger Net Worth. ;)

As of August 1, 2016, our family net worth is as follows:

Retirement Savings:                      $ 438,284
P2P Lending Accounts:                   $  17,882
Dividend Stock Accounts (DSA):     $  77,950
DSA - Surplus Cash:                      $  19,430
College Savings Accounts:              $  59,972
Cash and Savings:                         $  68,542

GRAND TOTAL
$682,060
(Increase of $44,796 since January 2016)

Although we do not count it as part of our Net Worth,
it is still nice to know that our Home Equity is:
$502,948*
(Increase of $51,541 since January 2016)

Although we don't consider our home equity as part of our Net Worth, we understand that some people do.  So for those who include home equity in their Net Worth, our family's net worth would be considered: $1,185,008 (Increase of $96,076 since January 2016).  It's a pretty awesome figure when you include the home equity but until we can accumulate 7 figures without our home equity, I refuse to consider myself a millionaire. 

* Although others do consider home equity, and even cars, collections, etc. as part of their net worth, it is our opinion that since these items are not very liquid and the value of these items is highly dependent on what others are willing to pay for them (at the present time), we have decided not to consider these type of assets as part of our family's recognized net worth.

13 comments:

  1. AFFG, what an inspiration! Over $1M with equity!! That is great. Just shows the power of diligence and frugal living! I also wanted to comment on your P2P #, just curious are you increasing that account or decreasing lately? I'm decreasing, mostly to pay off debt, but I've also heard the risk apparently is getting higher. Know LC's IPO has been a disaster. Thanks,

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    1. Thanks PID. It's nice to know we are millionaires if we sold our house but I won't consider myself a millionaire until I am one without selling the house. :)

      Regarding P2P, the accounts has been growing slowly because we don't select many high risk notes. The problem is quality notes are increasing harder to find (especially on Lending Club). As a result, we are sitting on a lot of cash in these accounts and actually considering moving some of it to put it to better use.

      Thanks for stopping by and commenting. AFFJ

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  2. Nice job AFFJ. Your 2016 increase is impressive.

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    1. Thanks IH...it certainly nice to see the market doing well again. But the long term investor in me is wishing we had the deals we had earlier this year during the dips! haha

      Regards. AFFJ

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  3. Great progress AFFJ -- a millionaire when including equity! NICE!

    So, I respect your approach of not counting equity, especially the kind that could be inflated due to the changing real estate conditions. However, I would seriously consider accounting for equity in principal, which you're slowly building up over time as you pay off your mortgage.

    (I would argue your retirement accounts are not really liquid, either, until retirement age -- but that's another matter).

    It is great to see some bloggers share this kind of information publicly. Lots of learning here!

    Cheers
    FerdiS, DivGro

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  4. thanks FerdiS. Please don't get me wrong, it is certainly nice to know that we are millionaire with equity included. Our reasoning for not including it is because we figure we will always need a place to live. Unless we downsized or otherwise rented in retirement. The equity we have in our house isn't liquid.

    I agree with you that retirement accounts are not really liquid. I guess our view of net worth is simply accounts that will have value to us and our neat egg for retirement. In our minds, we still have a ways to go. :)

    Thanks for visiting. Best wishes my friend. AFFJ

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    1. Hi AFFJ,

      Have you considered doing a cash-out refi? This is an incredible way to take advantage of so many RE benefits and lock in cash, transfer risk back to the bank, take advantage of low rates, of inflation, etc. I know folks who 'refi-till you die' and use it to create massive RE portfolios. Just an idea!

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    2. Thanks for the idea. I know people do refi to take out cash and invest, and in this low interest rate environment, it's probably favorable to do so. But my wife and I are somewhat conservative in our approach and prefer the sound sleep associated with having a paid for home over a larger portfolio that may be wiped out in a catastrophic event. Everyone is different but cash out refi is something I don't think I can sell my wife on. ;)

      Best wishes. AFFJ

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  5. Your well on your way and I hope to be there soon AFFJ. I agree with you and don't include my house or other assets in my net worth. What someone might pay for something is no guarantee. Glad to see your August was in the green.
    Cheers,
    DFG

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    1. Thanks DFG. We are surely seeing progress but know we still have a ways to go. Our mortgage balance is still way to high for me to feel comfortable enough to retire.

      Keep saving and investing as much as you can and you will be where you want to sooner than you think. Thanks for visiting and commenting. AFFJ

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  6. Hi AFFJ,

    Increase of $96,076 since January 2016 - congrats! I am wondering how much of it is investment income and how much is contribution? House is +10% since the begining of the year but this is mainly due to debt reduction or are prices going up so rapidly?

    Best regards,
    DividendTIME

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  7. Sorry, didn't notice last post Mortgage Balance (UPDATE) - AUGUST 2016 :)

    Now I see :)

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  8. Nice good job on hitting your 1m+ net worth. Just curious are you still adding more money to your lending club since all of the turmoil going on with lending club. I stop contributing to it and just use whatever interest I get to buy more notes. Seem like it's not getting a good return like I expected.

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