We were fortunate enough to achieve another milestone to close out Q1 of 2019. After reaching a net worth of $200k (again – the first time was in November 2018) in January, we were actually able to cross the $300k threshold at the close of March.
It was a relatively uneventful month aside from the sure and steady progress. Unlike January and February, there were no bonus checks or once-a-year employer contributions to any accounts. Simply our paychecks and a modest gain in the stock market. The end result was that we decreased our student loan debt, increased our savings account intended for debt payoff, and increased our investment account balances. A boost in all three makes for a good month for us.
The end result is that our net worth improved by $20k in March, increasing from $286,015 to:
$306,530
Year to date: +$121,405
Last 12 months: +$257,037
Three months into the new year we’ve seen our net worth increase by $121k. It was an incredible first quarter to the year, and one I doubt we’ll see repeating any time soon. It was the perfect storm of market recovery combined along with one-time employer payouts (2018 bonus, retirement contributions, vesting company stock) described previously in the January and February reports. While we didn’t see much of that in March, aside from continued gains in the market, we still managed to improve our bottom line by more than $20k in the last month.
In addition, another interesting milestone is that since last March we’ve improved our net worth by more than $250k. After getting close a few times, this is the first time we’ve surpassed this $250k year-over-year threshold.
Liabilities
We had another predictable month on the debt reduction front in March. As was done in January and February, we allocated a $5k principal payment above and beyond our minimum payment and set aside any and all “extra” money we had left at the end of the month in our savings account.
This makes the third month into our new plan with the end goal of making a lump-sum payment at the end of 2019 to pay off our remaining student loan balance should all the proverbial stars align.
With that, in March we paid down our remaining loan balance by $8,599 in March, decreasing our remaining balance from $145,063 to:
$136,464
Year to Date: +$25,724
Last 12 Months: +158,648
After the first quarter of 2019, we’ve paid down just over $25k of our starting balance of $162k entering 2019. That’s obviously not on track to be paid off by the end of the year, but we’re actively setting aside extra cash in a savings account earmarked for paying down the remaining debt balance. As a reminder, we decided to do this to afford us some flexibility should there be an unexpected event that comes up. We’re obviously not hoping for something to derail our plans, but we want to have some money set aside should the expected happen.
Assets
We saw account balances modestly increase across the board in March. We made our standard contributions to our retirements and health savings account. The market helped with the rest. We were also able to contribute an extra $2k to our savings account. This, again, is the money intended for debt payoff. This is well below our monthly goal of $5k. Thankfully we made up much of this difference in January and February.
Regardless of that shortcoming, we still made out ahead in March with our net assets nearly increasing $12k, increasing from $431,078 to:
$442,994
Year to Date: +$95,681
Last 12 Months: +$98,389
Last month was our first above $400k in assets, so it’s nice to see that number climb even further in March. Over the past three months, our asset balance has increased just over $95k, not too far off from the $98k that we’ve seen our accounts grow by since the close of last March.
Additional Thoughts
Rather than recapping more numbers, I’d like to take this as opportunity to talk about why we post these updates. It’s not meant to boast about our progress or compare to anyone else. First and foremost, these updates are for us.
They help us.
They were particularly important during our slog out of debt and a negative net worth. Believe it or not, it can be a bit disheartening when your net worth is hundreds of thousands below zero. We were there not that long ago. Two years ago our net worth was right around -$100k. Three years ago it was -$244k. Realizing your net worth is -$100k isn’t much fun, but when considering that it was six figures lower the year before, it provides some perspective on where you’ve been and perhaps where you’re heading.
Your net worth is simply a snapshot where you are at a given moment in time. It doesn’t tell you where you’re going or where you’ve been. It tells you where you are. Looking at this number over time, however, can provide an indication where you’re heading.
In the end, making progress is what’s most important. It doesn’t matter if it’s faster or slower than the person next to you. Focus on your journey and goals and encourage others with theirs. Celebrate in their victories and consider doing the same for your own.
That’s quite a steep ascent! Great progress so far this year, even considering the one-time deposits.
Your “why” is exactly the right reason. I think most of us post these updates for ourselves. I like to go back and read what I was writing a year ago, to see my progress and to see my mindset at the time.
Thanks Adam.
Yes, I like to do the same. It’s funny how quickly I can forget how recently we were still in a massive hole.
Even though I’m writing them mostly for us, I’m hopeful that someone can see it and get some sense of comfort that things can get better. Throw out the values on the x and y axis and just look at the trend. No matter where you’re starting from, take steps now so you see progress moving forward!
Thanks for stopping by!
DA,
Just found your blog as I was updating my monthly numbers :). Great story and glad to see you’re doing so well. Steady consistent progress is amazing, isn’t it?
Do you track your savings rate?
This is something I have started doing more recently because I have a goal of hitting 50%, current at 43%. It’s not a number that changes insanely month to month, but as I see trends of retaining excess money, I can bump up automatic contributions and see my SR increase. Maybe its one of those things that it’s only beneficial if you have a SR goal you’re shooting towards.
Anyway, keep it up!
Hi Kyle,
Thanks for the kind words. Yes, I do track our savings rate in a few forms. Ours varies quite a bit as my wife’s pay isn’t set. Our recurring expenses are relatively stable, but income can vary by multiples of four figures on a monthly basis.
Your plan to be mindful of your “excess money” and how it increases and updating your automatic savings/investments accordingly is great. I agree it’s always good to have goals to keep you motivated.
Keep up the good progress yourself. Thanks for stopping by and for reading!