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Welcome to my net worth update for March 2019!

After treading water the final four months of 2018, we started the new year off with a bang. We finished Q1 up $20k from where we started the year. It reminds me of a stock consolidation pattern where the uptrend needs to take a pause before breaking out to new highs.

March ended up as the best month so far in this all around positive year. According to my records, it’s actually the second best month we’ve EVER had (in terms of dollars).

Monthly Budget Summary

I started including this simple monthly budget breakdown in my January net worth report as these are the most important numbers I pay attention to every month. The table clearly shows how much money we’re actually making (net income) and where that money is going.

It eliminates the noise of markets going up and down and focuses on the elements under our control. In the business of YOU, this table breaks everything down to two simple questions:

  • Are you profitable?
  • How profitable are you?

For the previous 6 months, our total revenues averaged $9,600. Needless to say, everything is a lot easier when you make more money. Mrs. Budget Boy received a nice annual bonus as well as the calendar month fell such that she got a third paycheck.

Our average savings rate for the past year has been 25%, so hitting 45% means it was a very profitable month.

Net Worth Update March 2019

Savings (+$3,807.08)

On the net income breakdown above, we had close to $1,200 left over after debt repayment and retirement contributions. This naturally goes into our bank accounts / savings. We also collected more money for group items that we paid on our credit cards.

Retirement (+$1,684.70)

This number is a little surprising since our retirement contributions for the month are actually about $50 higher than this reported increase. This isn’t an exact science, however, and is largely dependent on when I check the market value on the front and back end. Either way, market gains were negligible.

Rental Property (No Change)

No change in the value of the rental property. It’s probably overstated as the market seems to have taken a dip. The big thing is that March marked the 6th consecutive month of vacancy. The good news is that new tenants are finally moving in during April so the bleeding will finally stop.

Car (-$231.00)

With the depreciation for March, our one car is now depreciating in 2019 at a rate faster than 2018. Total depreciation for 2018 was $1,688 (or $422 per quarter). The depreciation for Q1 2019 sits at $526, which would be about $35 higher per month. We certainly haven’t been driving the vehicle more. In fact, I think it’s been less. It’ll be interesting to see if this normalizes going forward, especially since I lowered our monthly budget amount for depreciation at the start of the year.

Accounts Receivable (-$62.26)

No significant change here.

Mortgage (-$561.29)

I’m simply making the standard mortgage payment on the rental property. Since I hit 78% LTV and terminated PMI, I haven’t added a single dollar of principal. Instead, all the money has been going to paying down the student loans.

Student Loans (-$3,598.99)

With a very strong month in terms of net income, I applied a good portion of that extra money to student loans. Mrs. Budget Boy says I’m boring for using all that money to pay down her student loans, but hey we did also go to the most expensive dinner we’ve been to in years that day to celebrate. A little bit of lifestyle inflation can be enjoyable, but at the same time I like to keep it under 10% of the additional take-home pay.

Car Loan (-$313.13)

After taking into account depreciation, our vehicle gained only $82.13 in equity. Again, it’s not really equity since the car is underwater. After the student loans are paid off in a few months, this will be the next target.

Credit Cards Payable (+$5,326.48)

At first glance, this may seem like an exorbitant increase in our credit cards. And rightly so. This big increase is due to paying for a whole bunch of group expenses for a bachelorette party. Mrs. Budget Boy collected the money upfront so we’ve been holding extra cash which will be used to pay the higher than normal credit card bills.

Accounts Payable (-$3,227.13)

When we collected the money upfront, I created a Liability account to record exactly how much we were holding in this Bachelorette Fund. As items were paid for with our credit cards, this liability account was debited until it was exhausted. These are all simply accounting moves with nothing actually counting as a revenue or expense. Well, except Mrs. Budget’s portion of the expenses. Of course, by doing this we’re racking up credit card points!

Bottom Line

In the month of March, our assets increased by $5,198.52 and our liabilities decreased by $2,374.08. Together, that’s a total net worth increase of $7,572.60. In terms of percent, that’s a 5.07% increase.

Our March net worth marks an all-time high of $156,788.35, which marks the third consecutive month of hitting an all-time high. This month’s gain was income-driven, not market driven. Although April involves paying taxes, we’re looking to keep this upward momentum going.

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