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 someone’s net worth journey, which is why I hope people can find some value in following along with my own journey. I shared my first net worth update back in November 2016 and have been sharing monthly updates ever since.
Here are my numbers for December 2017:
|Money Market Funds|
|Savings Account||$6,642 (+$1,920)|
|Checking Account||$1,400 (+$105)|
|Total Money Market||$8,042 (+$2,025)|
|Tax Advantaged Accounts|
|Traditional IRA||$3,850 (+$12)|
|Roth IRA||$4,709 (+$27)|
|Total Tax Advantaged||$30,642 (+$3,720)|
|Non-Tax Advantaged Accounts|
|Brokerage Account||$29,885 (+$2,603)|
|Total Non-Tax Advantaged||$29,885 (+$2,603)|
|Net Worth||$68,569 (+$8,348)|
Here’s a look at my net worth progression since I started personally tracking it back in August of 2016:
From November to December my net worth increased by $8,348, making this my biggest net worth jump ever in one month. As I mentioned in my November Income & Expenses Update, I received an extra paycheck along with some extra hours in November which explains most of the net worth increase.
Higher Income is Fueling my Net Worth Increase
As I’ve explained in multiple posts before, the secret to increasing net worth quickly when you’re young is through increasing income. My focus over the last year has been to raise my income as much as possible while keeping my expenses fairly low.
This time last year my typical monthly income was:
- Day job: $3,000
Currently my typical monthly income looks like:
- Day job: $4,500
- Blog Income: $300 – $700
- Dividend Income: $100
Through increasing my monthly income by over 50% and maintaining a low level of spending, the natural result is wealth accumulation. Living like a college student while earning a healthy salary is a straightforward path to wealth.
Some Thoughts on the Stock Market
The stock market has also been riding an impressive wave lately, which has helped most of my investments surge even higher in value.
The stock market in general has been a hot topic of conversation lately. Do I think it’s overvalued? Definitely. But does that mean we have an imminent crash coming? Not necessarily.
This bull market could go on for several more years. There could also be a correction within the next few months. It’s impossible to know.
I remember back in 2011, 2013, and 2015 when plenty of people were claiming prices could never go higher. Well, here we are at all time-highs.
For people near the beginning of their net worth journey who are focused on wealth accumulation, it actually doesn’t matter what the market is doing right now. The most important thing young people can do is grow the gap between income and expenses, build up their savings and acquire marketable skills. If you do those things, financial success is nearly unavoidable.
Just remember: you can’t control the market, but you can control your savings rate.
2017 has been a massive year for me, both in terms of financial and personal growth. My net worth has grown over $50,000 this year, my blog has been featured in some massive news syndicates, and I have learned many valuable lessons in philosophy, psychology, and work ethic.
Looking forward, I expect 2018 to be a year of even greater growth. With my current level of savings I should break the $100k net worth mark by next summer. My dividend income should continue to grow, and my blog will continue to be a place where I can share my thoughts on all things finance and my own personal journey.
To everyone that has been following my financial journey up to this point, thank you and I hope you keep checking in each month. If you have any questions for me or want to discuss your own financial journey feel free to shoot me an email at firstname.lastname@example.org.
That’s all for this month’s net worth update, thanks for reading 🙂
My favorite free financial tool I use is Personal Capital. I use it to track my net worth, manage my spending, and keep an eye on my monthly cash flow. It only takes a few minutes to set up and it makes tracking your finances simple and easy. I recommend trying it out.
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