Net Worth Update for 10/01/14
It has been a couple months since my last update so I’m due for one.
I’m still a chicken…
Since the last update on August 1st, my net worth has increased by only $4,096.56. The primary reason for the slow growth is two-fold. First, I still have a large chunk of cash ($361k) sitting uninvested. Dumb, but true. I cannot get myself to pull the trigger and invest with the market running so high.
I might be shooting myself in the foot. I’m certainly going against conventional wisdom, which says you should invest regularly and things will work out in the end. BUT I JUST CAN’T DO IT! I’ve lived long enough to know that what goes up must come down. While I might be losing some growth in the short-term, I won’t kick myself when the bottom drops out (and I believe it will). I’ll just sit and wait for a sale, thank you very much.
10/15/14 UPDATE: I just invested $60k of the money sitting in cash. $10k went into Vanguard’s STAR Fund (VGSTX) and another $50k went into the Vanguard Health Care Fund Admiral Shares (VGHAX). Cross your fingers!
The second reason things aren’t growing very fast is that I’m living off savings right now while care-taking Mom and working on building income streams (see my Income Lab series). The cash reserve isn’t included in my net worth calculation because I knew there was a good chance it would be spent. That foots with my Future Capital Expense savings strategy.
As for the income I have generated, that is in my business account and I haven’t taken any draws yet. I don’t include my business account in my net worth calculations because I’m reinvesting any income back into the business. Once I begin to see some notable income, I’ll include the sources so you can see how that’s shaping up.
Posts and Worksheets to Help You Calc Your Net Worth!
- The Holy Grail of Personal Finance Numbers: Your Net Worth
- My Crazy Method of Determining Property Value for Net Worth Calculations (includes a video)
- Ree’s Net Worth Reveal (includes a video)
- Reduce Financial Emergencies With One Simple Strategy (This describes “Future Capital Expenses”)
- Net Worth Tracking Template (send me an email if you want a blank copy of the file I use in Numbers for Mac)
Want to Share Your Goals and/or Progress?
I’d love to hear from you. Do you have net worth goals? What are they and how are you progressing? Is your method of tracking different from mine? If so, what tips can you provide to help others? Please leave your thoughts in a comment below.
As always, I appreciate your comments and support ~