Saturday, July 2, 2016

Our "Net Worth" - an Update

About a year and a half ago we posted an entry about our "net worth", ( http://owlsandcuckoos.blogspot.com/2015/02/our-net-worth.html ).  Rather than write another blah post about our meager online "earnings", (earnings?  hah!!), for the month, I figured now would be a good time to update those old figures.

1. Assets:  $640,000.00

I wish we could take credit for socking away an additional $40,000 in 18 months, but the truth is that our increase here is mostly due to the performance of our investments, and less cautious accounting on my part when determining account value.  But that's okay; and extra $40,000 is great regardless of its origin.

2. Liabilities:  $140,000.00

Well phooey!  I was hoping we had paid off more on the condo, (still owe about $47,000), and the car, (still owe about $10,000), but those debts are still huge.  And of course the never ending revolving consumer debt continues to hobble us, which wasn't helped in the least by BOTH of our boys, (Kuya and Dodong), being rushed to the emergency room recently.  But you know, it just costs money to live.  All things considered, I don't think we're doing too bad considering that we're supporting five of us.


$640,000  -  $140,000  =   $500,000, which is our net worth.  Half a million!  Woo hoo!!


Unfortunately, all the comments from our prior net worth post still apply.

1.  We are spending more money than we are earring.  We still cash in non-IRA savings to help pay the bills.  (Just yesterday Old Grump cashed in $2,400 to help cover a bloated Amex card bill.)

2.  The increase in our net worth seemingly occurs DESPITE our behavior, due to interest and dividends, I suppose.

This is a financially reckless way to live, as sooner or later the market will crash again, and then our redemptions will harm our principal, (or is it "principle"  -  stupid English language!), balance.


Live frugally, and may your pennies become dimes, and your dimes become dollars!


P.S.  -  I forgot to include a link to the net worth page!  Here it is:  http://rockstarfinance.com/blogger-net-worths/ .

No comments:

Post a Comment