Tuesday, September 17, 2019

August 2019 Net Worth Update

Another new month brings another new all-time high net worth for the DIY$ household. We continue to march towards $1M mark and a paid off house, closing the month with a net worth of $960,099. 



CASH

As expected, our cash balance bumped up a bit in August. Hovering between $20-25k is our sweet spot for now. There are times when I feel it should be higher since we do spend a lot, but if we really had to live on a shoestring budget this could easily last us three months and probably as long as six months. Once we pay off the house, this amount will definitely be adequate.

I also got a raise that goes into effect in October, but we've already allocated the increase to go towards our mortgage for the next few months, so it shouldn't really impact our cash balance.


INVESTMENTS

We haven't made any changes to our investment holdings or strategy. Since the market was down, so were our accounts. Our year-to-date returns are still quite good, but even in a bull market it's good for the market to take a breather every once in a while.  

HOUSE/MORTGAGE

We're back to making extra large mortgage payments and were able to knock another $3,300 off our balance. After this month, we're now targeting complete mortgage payoff in 6 more months. If you're doing the math, 6 * $3,300 is much less than $40k, so clearly this plan does assume that the rest will come from my annual bonus.

Our home value also popped up a bit this month. One thing that I'm sure helps is that homes in our neighborhood are now consistently selling for over $500k, with several close to $600k. Our neighborhood is mid-range priced for the area and homes still are moving pretty quickly. Less expensive neighborhoods are still very much in a sellers market, but the more expensive neighborhoods nearby with homes priced between $800K and $2M have been selling a lot slower. 


We had very few home related expenses in August, but that's only because we did a lot of work ourselves with tools or materials that we already had. This month that meant breaking out the pressure washer and cleaning off the driveway. Living in a heavily wooded area contributes to needing to this every so often and it takes 10-12 hours to do it right. I'm not sure how much it would cost if we hired it out but it's a very simple and satisfying job. 


I haven't kept track of all the money we've saved by doing work ourselves, but it would easily add up to tens of thousands of dollars over the past six years in this house. 


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