Net Worth – March 2008 March 30, 2008Posted by pf in Net Worth Update.
Tags: average net worth, CD, certificate of deposit, Credit Card, debt, march, net worth, Retirement, stock market, what should my net worth be
One year ago, I posted my very first net worth update. At that time, my net worth was $515,583. As I post the update for this month, I am currently at $577,487. In that time period, I have improved my net worth by just over 12%. While not a “lights out” gain, I think it’s very solid and would count myself very fortunate if I were able to sustain it throughout my lifetime.
As I look at the past year, I noticed that I increased my assets by about 8%, while barely showing any progress on reducing my overall liabilities in terms absolute dollars ($244,634 in 2007 vs. 244,009 in 2008). I would like to see this a bit higher, but would not expect huge gains as:
- Almost 95% of my overall liability is mortgage debt and will only be drawn down gradually over the course of a year (I’m not trying to accelerate the payoff)
- I do participate in some credit arbitrage (have significantly increased my credit card balance versus a year ago)
However, the ratio of my debt to assets has been reduced by 2% (32% to 30%). This is a difference of about $16,500 (ie – I would have that much more debt if I maintained the same ratio as in 2007). All in all, I think I’m moving in the right direction. Of course, the last year is just a small data point in time.
Anyway, let’s get to this month’s update. As you can see, we had a nice little gain in March. As I mentioned in the February update, this was somewhat expected as tax returns, work bonus, and tax rebates start making their appearance in the results. Otherwise, March was a fairly quiet month. Here’s the breakdown:
NET WORTH FOR MARCH
|2 Mo Ago
Jan – 07
|Last Month Feb – 08||This Month Mar – 08||Monthly Change||Monthly Change %|
|Other Real Estate||130,000||130,000||130,000||0||0.00%|
- Fed continued to cut rates. I already made preparations for such events a few months ago and have a large stake of cash sitting in CDs making 5+%
- Tax refund, work bonus, and tax rebate starting to show up – welcome boost to net worth
- Stock market volatility continues
- Made a 2008 Roth IRA contribution of $2500
- Credit card arbitrage in full swing – balances going up
- Hold the line on expenses
- Stream line payment of expenses (too much moving around of funds and inadvertently getting hit with some late fees)
- Spring finally arrives?