December 2019 net worth update

december 2019 net worth update

I can’t believe it’s already time for the December 2019 net worth update! My last net worth update was back in August 2019.

I have made some good progress on my investments and savings but I’ve learned and accepted that market conditions will derail some of my progress.

August 2019 net worth recap

My first net worth update was back in May 2019.

Here are my net worth numbers at the end of August 2019.

  • Total assets: $416,505
  • Total debts: $156,000
  • Net Worth: $260,505

December 2019 net worth update

Here are the same numbers at the end of December 2019.

  • Total assets: $407,706
  • Total debts: $145,897
  • Net Worth: $261,809

Breaking down the numbers

It’s been over three months since I last looked at my net worth and things haven’t changed much on the surface. But under the hood, there are some significant changes.

The main culprit that decreased my assets significantly is my home value. The value of my home depreciated from $245,856 to around $216,000 at the end of December 2019.

I am very proud of the progress I made with my retirement savings, however.

My total investments improved from $116,431 to $136,000! This included a maxed out 401 (k) of $19,000, and my first back door Roth IRA amount of $6,000. I also decided to open a Fundrise account for a test drive. This is my first exposure to real estate and so far so good.

My initial investment of $500 has grown to $503,09 since November 2019. I will eventually put in another $500 to make it $1,000 total so that I can customize my Fundrise portfolio.

Pending goals for the year 2020

I am slowly building up my emergency fund and am looking forward to having at least 3 to 6 months of expenses saved up.

I am also putting aside some money to cover a planned Hawaii trip, a trip that I promised my wife since we got married back in 2011.

I opened my first backdoor Roth IRA in November 2019 and is looking forward to contributing the maximum of $6,000 for 2020.

I am continuing to tackle my mortgage and have $136,000 remaining at the time of this writing.

Another item I am working on is to fund my taxable brokerage account. I need to save up $3,000 to buy VTSAX since that’s the minimum amount for this fund. I plan on using dollar-cost averaging thereafter to buy more of VTSAX or the Vanguard total market index fund.

Lastly, with my Roth IRA account, I am continuing with my effort to create the three-fund portfolio.

So far, I’ve bought VTIAX, the Vanguard Total International Index fund.

Other thoughts

Americans are saddled with credit card debts. I too once owed around $30,000 in credit card debts. I am glad I climbed out of that hole!

What does net worth have anything to do with credit card debts? According to an MSN Money article, 46% of U.S. adults with a net worth of at least $100,000 are more likely to have credit card debt.

Check out the chart below from Bankrate.

According to data from a Bankrate survey, 57% of those with a net worth between $100,000 and $199,999 carry credit card debt.

The most common culprits to blame are lifestyle creep or lifestyle inflation, better access to credit and lack of liquid funds. It’s understandable since the bulk of assets for people in this category is their primary home and other assets such as cars.

You can check out the chart above to see the most common reasons why Americans carry credit debt.

Surprisingly, debt begins to decrease as net worth rises. 46% of those with a net worth between $200,000 and $1 million have credit card debt.

Compared to those with a net worth of over $1 million are the least likely to have credit card debt.

It’s hard to refrain yourself and not to give into to lifestyle creep, who wouldn’t want a nicer car, bigger house and that dream vacation that you’ve always wanted?

If financial freedom is what you’re after then it’s best to look at the bigger picture. Instant gratification now will derail you from your ultimate goal.

If you’re able to live below your means, save and invest appropriately then your future self will thank your current self!

Final Thoughts

I can’t believe it’s been seven months since I started this blog. I crossed the milestone of 6 months of blogging. I have that most bloggers tend to quit at this benchmark.

I admit that I have been slowing down a bit. Life does get busy especially when you’ve got a family, kids while holding down a full-time job.

I am glad I didn’t give up and wanting to push on with this hobby. I earn money from this blog primarily from Adsense. A lot of experienced this, earning money from Adsense from blogging is very minimal.

I earn some money through affiliate marketing but it’s been less than $10, the threshold to get paid from Amazon.

I am happy to report that I did receive payment from Google in December 2019. I didn’t get the payment because of money earned from blogging but a combination of money earned from this blog plus my wife’s Youtube channel.

I used the same Adsense account for both this blog and her Youtube channel. After six months, I’d have to admit that Youtube’s earnings have eclipsed that of the earnings from this blog.

I wish everyone a prosperous and successful 2020!