My Second Net Worth Overshare
Caption: Anyone want to fund my visit back to Capri? Sigh.
I love a slow summer morning: the early sunrise, chatter from the birds, the distant sound of lawnmowers, but most importantly, time to peacefully start the day before work. It wouldn't be possible during the week without a quick ten minute commute, and for that, I am immensely grateful.
I've made a ton of progress since my first net worth overshare. Part of that can be attributed to discipline, but most of my growth is due to my neighborhood absolutely blowing up. Homes have been selling before they hit the market for over their asking prices.
If you're curious, I've written about my ‘hood a few times recently: overzealous developers offering cash to tear down smaller homes, an idea to make money renting an Airstream trailer in my backyard, and a plan to renovate my basement to rent on Airbnb.
Ready for the numbers? Here they are, folks:
Notes:
– I've dropped my cash even further. When I reached a certain point with my savings, I started to feel like holding on to excessive amounts of cash was unneccessary.
Even a high interest savings account earns barely anything (less than 1%) and if you consider the rate of inflation, you're actually losing money. I still think an emergency fund is essential, but I'm no longer interested in holding large amounts of cash in a savings account.
– As I previously mentioned, I made the maximum Roth IRA contribution ($5,500) within the first week of January. So far, the index funds in my Roth IRA (VTSAX and VTIAX) have earned a totally of $502.51 this year and that's non-taxable!
– I've taken the leap into purchasing individual stocks! I've written about my adventures in dividend investing here and here. I've added Coca-Cola (KO), Kinder Morgan, Inc. (KMI), and General Electric (GE) to my portfolio.
– Thanks to everyone's impassioned pleas to cancel my home warranty, I can proudly say that I'll now be $55 richer per month! I may decide to allocate that extra money toward fitness expenses, though.
Readers: How has your net worth changed over the second quarter of 2014? What are your net worth goals for the second half of the year?
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Discussions — 40 Responses
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Thanks for sharing this! Great move to hold onto less cash. I had a hard time when we stopped keeping so much liquid–I think I wanted it as a safety blanket. But, you’re completely right that it’s doing nothing for you!
It’s definitely a personal choice. Keeping less cash isn’t right for everyone. Thanks for stopping by!
It’s crazy how much home prices have gone up here in Nashville, isn’t it? Any plans on selling anytime soon? And great job with the numbers! I’m with you- I was holding onto way too much cash, and I didn’t have a great reason for doing so, so you’re not alone 🙂
Amazing, huh? I’m going to hold onto the house for a while. My mortgage is actually a lot cheaper than renting right now. And I love the location!
Addison,
Thanks for over-sharing with us. You’re showing some good progress with investments. Happy times in the market. Glad to hear you ditched the home warranty. Those are the worst.. The fine print always limits coverage and the cost isn’t worth it from my experience.
-RBD
Agreed, RBD. So glad you guys helped me see the light! 🙂
Congrats on such a kick-ass increase! You just moved up like 6 spots on our Net Worth Tracker, haha…
Take a look 🙂
http://rockstarfinance.com/blogger-net-worths/
Wow, I can’t believe I’m actually getting close to the middle! Fingers crossed that my home value keeps moving up 🙂
I agree that not holding so much cash in a regular savings account is a good thing. That’s a serious jump in net worth; great way to end the second quarter!
Thanks, Kassandra. Thanks again for the help with sharing my posts! 🙂
Sounds like your house is proving to be an awesome investment! Did you have any idea that the values in your area would go up so much when you bought?
I bought a home in a “transitioning area”, so I expected to build equity quickly, but not this fast. Part of it is due to Nashville’s overall popularity and people wanting to move closer to downtown.
Lookin good. net worth going up and debts going down. Was wondering about zillow, do u think their valuations are pretty accurate?
Good Day and Grind On!
Great questions, Asset-Grinder! I suppose I wouldn’t know for sure without selling my house. Thanks for commenting.
Addison!
Nice job!! I am extremely impressed with the newly funded investment portfolio which will start pumping dividend income for you. Are you set to DRIP on those? I’m jealous about your RE market – ours in Cleveland hasn’t had quite the appreciation other locations have had. I am excited for you to keep the account pumping for stocks – you’re almost at $25K, keep the research hat on and find the fundamentally sound, dividend paying, dividend increasing stocks. Looking forward to more progress!
-Lanny, one of the diplomats
Thanks so much for the encouragement! Yes, I am set to DRIP on these individual stocks. Looking forward to the payouts!
Smooth, I like it!
Nice jump in net worth!! I wish I could feel more comfortable having less cash on hand. I have around 11k in cash in various savings buckets, but I worry about being a freelancer and the shit hitting the fan. 🙂 My next goal is to roll over an old 410k to an ira. Something I’ve been putting off. And keeping better track of whether my net worth is going up or down. I pay attention more to savings accounts, but not investment accounts. My bad!
Totally understandable, Tonya! It sounds like you’re doing what’s best for you.
Wow! Great job. It looks like you’re almost at your 2014 goal and you still have 6 months to go. I’m impressed.
Thanks, Bee! Let’s hope my home value stays up! 🙂
[…] Quarter Two: My Second Net Worth Overshare By Cashville Skyline Cashville Skyville’s net worth jumped by almost by +52K this quarter which is awesome. He also started his adventures in DI and bought KO, KMI and GE, which I also own in Portfolios. He already maxed out Roth IRA by contributing $5500 in Jan, which eventually will be my goal as well. […]
Thanks for sharing your most recent net worth update. I know all too well the picture you describe with developers buying then tearing down smaller older homes and building “monster houses” in place. The mania in many neighborhoods across the USA is reminiscent of the pre-house bubble in 2006/7. Let’s see what happens. Congrats on your fist dividend stock purchases as well.
Thanks, DivHut! I’m nervous about the bubble in my neighborhood bursting at some point, but it seems to be continuing to move up at the moment.
Addison,
Thanks for sharing! I find sharing like this just increases the motivational factor to keep plugging away.
That home value increase is really kicking some major butt for you. And great job with the investments. Keep it up!!
Best regards.
Thanks, Jason! I love sharing the details with everyone and holding myself accountable to financial goals.
Nice work, Addison! It takes a lot to share these personal details and I admire you for that. Keep it up and good luck reaching your yearly goal!
Thanks for the kind words, Natalie! I really appreciate the encouragement.
You instantly inspire me to max out my Roth IRA at 10pm on a weeknight. I’ve been slacking!
It’s a brand new month, Meri. There’s no better time than now! 🙂
Addison,
Looks like you are making great progress – keep up the good work.
One thing I noticed is that you are not putting new $$$ into a 401(k). Why is that? Maybe I missed it, but if your company offers matching, you are crazy not to take advantage!
I was in the same boat as you a couple of years ago. I had a private investment account and was not maxing out my 401(k). When I ran the numbers, I almost wanted to cry. You come out so much further ahead if you take the company match with the 401(k) that it isn’t even funny!
Thanks for the tip, Derek! Unfortunately, my company doesn’t even offer a 401(k). If they did, I would absolutely take advantage of it (assuming the funds weren’t too expensive).
Addison,
That’s too bad that your company does not offer this. Glad you’re already aware of the tremendous value they bring to your retirement planning if available.
Great work on the VTSAX and VTIAX. I have both and also have VWIUX for my bond portion in taxable.(VBTLX in tax sheltered Roth)
My simple 3 fund portfolio has allowed me to sleep better. My asset allocation is set.
I like the idea of just holding on to your house. 1 or 2 yeas from now you might be an offer you can’ refuse. Our house is worth about $335k. If someone came up and offered my $400k I’d hand them the keys.
Thanks, Wade! I’ll probably add the bond at some point, but I think I’m too young for it now. I agree regarding the house! It seems like it’s only going to keep increasing in value as Nashville’s population grows.
Wooo! That’s quite the increase – nice job 🙂
My net worth has gone up quite a bit over the past few months. It’s always trending upwards, so that’s good.
Thanks, Alicia! It’s always great to see movement in the right direction.
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