Monday, August 10, 2020

July 2020 Net Worth Update - another all-time high

Even as the global pandemic continues to rage, our net worth continues to climb. We ended July at a new all time high, crossing over $1.1M to end at $1,117,400.


CASH

Our cash balance dipped a bit as we made our semi-annual car insurance payment, had some car repairs/maintenance, and new windows for the bathroom remodel that is still ongoing but nearing completion. August will also be an expensive month but we should be able to get up to $40k in the not-too-distant future. Above $40k we will likely add more to our taxable investment accounts.

We generally don't keep much cash on hand, but I did withdraw some cash early in the pandemic to have on hand in case there were a shortage. I hadn't been counting that cash in these totals and had honestly forgotten about it until I found it while cleaning out my closet. In July however, I spent this cash (and a bit more) on a bicycle. This is something that I've been wanting for a while now, but for years has always been a 'not until after we pay off the house' type of purchase. Of course, as soon as we pay off the house a global pandemic hits that causes a lot of people to spend a lot of time at home. Nationwide it seems like everyone wanted to buy a bike all at the same time so it has been hard to even find anything besides the most expensive models. I finally found one that I like a lot and now have been biking most days when I previously would have gone on walks.

INVESTMENTS

Our investment accounts are about as boring as it gets. The bulk of our portfolio is in index funds, and we don't plan to touch it for 10+ years. The part that I am excited about though is watching the taxable account balance creep up. We might use some of this within 10 years, but don't have any real plans so we'll keep it invested and be comfortable with any downside risk we may have. 

Our next big milestone is to get our Liquid Net Worth to be $1M. This will take a few more years but we're well on the way. Now without a mortgage we're able to invest even quicker than before when we were only doing enough to get the company match on my 401k.

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