Tuesday, September 18, 2018

August 2018 Net Worth Update - up to $854k

August was another great month for the DIY$ household net worth. We didn’t do anything out of the ordinary, but thanks for a continued strong market and disciplined mortgage payoff, our net worth increased by $18k to $853,952


Our cash balance crept up as I figured it would since we didn’t have any trips or large bills pop up in the month. With kids back in school, it should be easier to keep boosting our cash balance for the rest of the year since we don’t travel as much during the school year. 


Our investment balances went up in-line with the markets since we are invested primarily in index funds that track the market. One big change that I did make in August though, was to switch some of our investments into some of the new Fidelity 0% expense ratio index funds. 

We were already in index funds tracking that had very low expense ratios, but every 0.01% we save is $10 per $100k per year. We now have nearly $200k shifted from IVV with an expense ratio of 0.07% to the zero cost index funds and will continue to move over more in the coming months. That amounts to around $140/year in lower expenses for practically the same investment.  

The only reason we haven’t switched 100% immediately is since that we are mostly in ETF’s and since I can’t time the sell and the buy exactly at the same time/price I do it when I can watch the market at the close and sell the ETF when the last part of the trading day is not very volatile since mutual funds can only be bought at the market closing price.


Have I mentioned before how much I hate having a mortgage? Not so bad to sell our house and live somewhere significantly smaller/cheaper, but certainly enough that I am ok making significant extra principal payments each month instead of using that cash for other things I might want to buy.

We're on track this year to pay down our mortgage by nearly $45k and should have it completely paid off in about 3 years. Some months are harder than others to pay as much extra as we do, but we also make a conscious effort to not allow this aggressive goal to limit our ability to live life. We travel quite frequently and try to introduce our kids to the world. Our home is much larger than the one either of us grew up in, and none of our kids have to share a bedroom. We have a great life but still, make plenty of trade-offs. Many things we currently forego are only on hold until our house paid off.

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