Q's May 2007 Net Worth Report

We're almost halfway through the year - WOW, where is the year going? - and we've seen a very robust stock market. This rising tide has certainly lifted our boat. I've been at my job for a year now, and it pays less than my previous job (by choice, I get to spend alot more time with my family). And my wife is now 2 days a week, so she's earning 40% of what she used to. We therefore are not able to pump as much into savings, or pay down our Home Equity Line of Credit, as fast as we used to.

Still, our net worth continues to climb. We started off the year with $187,000, and with my goal of increasing our net worth by 20%, that left us with a year-end goal of $224,400. Here's where we are at the end of May:

Net worth, excluding primary residence, cars, and all other possessions: $212,700, up $5,548, or up almost 2.7% for the month. So far for the year, we've seen a $25,275 increase in our net worth, or almost a 13.5% increase. We're well over halfway to our goal with 7 months of the year remaining.

What worked this month:
1. Our investments. Most of my small caps are performing great, including BWLD and CTRP. I'm very excited to see where this portfolio is going to stand in a few years. I started investing in small caps one year ago this month, and I have doubled the return of the S&P 500. I don't think I can expect that kind of performance each and every year, but we've been very blessed with how well it's gone this year.

2. The apartment building. I believe I have the troublesome tenant situation under control. I deposited both his May and June rent checks last Saturday, and I have not had either of them bounce yet. He assured me the money would be in his account, and it appears he was a man of his word. Also, no vacancies and the place is looking great. I do have one tenant that may be moving out due to her father's health (long story), but she is still in the apartment. She is the only tenant out of the four that hasn't paid for June, but she usually pays by the 3rd or 4th. She is wonderful and has never been a problem.

What did NOT work this month:
1. Saving money. We just had alot of things to buy this month, with baby #2 coming in two weeks, etc. Actually, it's last month's purchases that are showing up on this month's Discover bill ($1,500). Usually my last paycheck of the month can be almost fully saved and invested, but not this month. Last night I was only able to use $300 of my paycheck to pay down our Home Equity Line of Credit (which effectively increases the equity we have in the lakehouse).


Note: My $212,700 net worth does not include the equity we have in our primary residence, nor our cars, jewelry, or personal belongings. If included, these additional items would bring our total net worth to $364,400. I pay much more attention to the $212,700 number, so that's the one I'll usually refer to.