Net Worth Update #25 – November 2018


3 min read

At the start of each month I share my net worth.

I have always found it motivational and just plain interesting to follow along with a blogger’s net worth journey, so I hope readers find value in following mine. I shared my first net worth update back in November 2016 and have been sharing monthly updates ever since.

Here are my numbers for November 2018:

Money Market Funds
Savings Account $8,822  (-$8,994)
Checking Account $740   (-$1,527)
Total Money Market $9,562  (-$10,521)
   
Tax Advantaged Accounts
Traditional IRA $3,620  (-$277)
Roth IRA $4,649  (-$352)
401(k) $31,326 (-$2,632)
Total Tax Advantaged $39,595  (-$3,261)
   
Non-Tax Advantaged Accounts
Brokerage Account $60,422  (+$12,238)
Cryptocurrencies $1,141    (-$160)
Republic Private Investment $550         (+$0)
Total Non-Tax Advantaged $62,113   (+$12,078)
   
Net Worth $111,270 (-$704)

Progress

Here’s a look at my net worth progression since I started personally tracking it back in August of 2016:


Recap

From October to November my net worth decreased by $704, which is the first month that I’ve experienced a net worth drop since I started tracking it over two years ago.

The reason for the drop is pretty obvious: most of my portfolio is invested in stock index funds and the stock market completely flopped this past month:

Despite the terrible stock market performance, I’m not too disappointed because I experienced one of my highest income months ever in October, which helped offset the market drop.

Although I track my net worth, I’m more concerned with tracking my savings rate each month since that metric is entirely within my control.

As I mentioned in a post earlier this week, my net worth can fluctuate quite a bit from month to month since most of my savings are invested in equities. And since I can’t control how the market performs, it’s possible for me to have a fantastic month of earning and saving, yet still experience a net worth drop like I did this month.

It’s perfectly normal for the market to dip from time to time, which is why I’m not panicking and selling out of my stocks now or any time soon. In fact, I plunged over $10,000 into more shares of VTI (Vanguard total stock market ETF) over the past few weeks, which is why my brokerage account balance actually increased significantly this month.

I also own around $10,000 of VDC (Vanguard Consumer Staples ETF), my favorite market sector, which actually increased this past month, so my brokerage account didn’t get completely slaughtered by stock market losses.

I also like to keep things in perspective. Even though my net worth was flat this month, I’ve still experienced significant growth over the past two years:

November 2016 net worth: $9k

November 2017 net worth: $60k

November 2018 net worth: $111k

Looking Forward

Looking forward, my financial strategy is dead simple: continue to earn income from my 9-5 job, dividends, and blogging, then funnel at least 60% of those earnings into the stock market or my savings account. Nothing too fancy.

That’s all for this month’s update, thanks for reading 🙂


My favorite free financial tool I’ve been using since 2015 to manage my net worth is Personal Capital. Each month I use their free Investment Checkup tool and Retirement Planner to track my investments and ensure that I’m on the fast track to financial freedom.


Full Disclosure: Nothing on this site should ever be considered to be advice, research or an invitation to buy or sell any securities, please see my Terms & Conditions page for a full disclaimer.

6 Replies to “Net Worth Update #25 – November 2018”

  1. Being a stats man I am sure you have realised the November YOY increase was the same ($51K) for two years!!!

    November 2016 net worth: $9k

    November 2017 net worth: $60k

    November 2018 net worth: $111k

  2. Hey Zack,
    First time commenting here, but I’ve been reading for a while! One thing that I think makes sense for long-term, mostly passive investors is to think in terms of number of shares, rather than market value. The index investment strategy basically rests on the assumption that indexes will rise in the long term, so we already “know” that our shares will be worth more in the future than they are now (if we didn’t think this, we wouldn’t invest in indexes!). Thus, what really matters is *how many* of these shares we will own at their higher future-price, not their price today. That’s were we get the whole notion of stocks being “on sale,” and why it was most likely a great move to plow the 10k into VTI this month. I did a similar thing, upping my buying to the extent I had room to do so. In doing so we bought more shares for less, multiplying our return on their future, higher price.

    Since I know you like visualization, I’d love to see a graph representing the growth of your portfolio in terms of shares (or units of crypto, etc.) over time. I suspect from that perspective this past month was one of your best ever!

    1. Hey Istorik,

      I really love this point you made – to think in terms of number of shares rather than market value. I may even write a new blog post about this idea. And I think you’re correct, in terms of shares accumulated, this may have been one of my best months yet!

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