January Update – Net Worth + 5.9%

As the month closes out I wanted to get back into the habit of posting an update for the month that show’s how we’ve done this month and that 5.9% increase is encouraging even if it is a little deceiving.

Why deceiving you ask? Our net worth numbers are a bit deflated because of the property values that we have in there; our primary residence was purchased at a great price and we completed a lot of renos which were done mostly on credit. Hence the real property value would be much higher and the actual dollar increase would be a much smaller percentage of what I think is a more realistic net worth.

If I’ve confused you it might be because on my net worth statement I use the sale price of our properties rather than market value. I do this because that is the value of the asset that the bank has.

Now onto the rest of the monthly update – it really isn’t as exciting as the 5.9% but we are starting to get on top of the finances. We’ve started making small adjustments in our spending and likely this weekend we’ll sit down and update our actual expenses to make sure that we’re actually are spending less than we make (It’ll be close).

Our investments remained flat like they have over the past couple years; after we get our spending and debt under control we’ll have to re-evaluate where our investments are because they’re not producing much.

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