Thoughts before Calculating: So, financially, I did a good thing and a bad thing this month. I finally paid off the last of my law school loans. Was it the smartest of financial moves? probably not since they were at a low fixed interest but given my goals this year of clearing up monthly drainage I was excited that for a few thousand dollars I could clear up that tiny drain.
Now, the bad, I bought a boat.
![](https://accumulatingassets.com/wp-content/uploads/2024/07/PXL_20240614_010528091-1024x771.jpg)
I have been obsessed with the idea of buying a boat for the past few years, and especially so, in the past few months. After a shit ton of research (and The Wife’s blessing) I pulled the trigger. I bought it on pure debt but the way I structured it I am not going to count it in my net worth statement as it is simply a new bill that is likely never-ending (i.e. when it is paid off it will probably be time for a new one, or in the worst case scenario, if it depreciates faster than the loan when I get rid of it I will simply capitalize the debt into my net worth).
With all that said, I should be down because of ancillary spending on the boat and our week long trip to San Diego.
Calculating my Net Worth
My Family’s Assets
While I have several asset categories, I don’t think they are particularly complicated.
- Cash Equivalents – A few months ago I calculated how much cash I would like to have on hand, and I am woefully short of that. This is going to be a massive grind to get me to my desired number, but I am up for it!
- My Trading Account – This one account is both where I invest in my dividend growth companies and risky speculative option trades. Early this year I decided how I am going to handle the account in 2024, which I then updated recently.
- My 401(k) – My 401(k) has some terrible investment options that have ridiculous fees, but I get a match so I have to participate. I recently increased my contributions, and I am hoping to do so one more time before the end of the year.
- My Traditional IRA – Just some companies that have caught my attention at some point or another.
I wrote last month, “I think in Q1 I’d like to take a more intentional approach to this account.” I failed in Q1, but I won’t fail in Q2.I reviewed and updated the account. - The Wife’s Roth IRA – Again, some companies that have caught my attention at some point or another.
I wrote last month, “I think in Q1 I’d like to take a more intentional approach to this account.” I failed in Q1, but I won’t fail in Q2.I reviewed and updated the account. - The Wife’s SEP IRA – The Wife was talking to my father in law a few years back who told her that she should have a SEP IRA, and since she is funding it with business proceeds, I was not going to argue. We were contributing $100/week to the account, but that has stopped since her business is really on the decline.
- Crypto Currency – This account was basically started for FOMO purposes. It is a shitty reason, but it is mine nonetheless. I don’t pay much attention to the crypto market and will probably continue to ignore the account.
- Life Insurance Cash Surrender Value – As described I own a number of permanent, cash value whole life insurance policies. Since the cash is accessible I include it in my net worth statement. This money is also accessible via a loan against the cash value. I have plenty of posts about paying it back and then pulling it back out and then paying it back. I don’t think I will start aggressively paying this one back until mid 2025, but we’ll see.
- Physical Gold – A few years back I decided to start buying physical gold, I am hoping one day to be that crazy guy with a stack of gold I can swim through. I’d like to pick up my small purchases this month.
- My Rental Property – Every month I update a spreadsheet I keep for the minority owners of my rental property.
- My Main Residence – My Family’s home.
Currently, I do not include my investment club in my net worth.
My Family’s Debt
- Law School Debt –
Refinanced this to 2.6%, a year or so ago. I am aggressively paying this down this year (9% in January, another 10% in Feb and 9% in March) so I can clear out some more cash flow.Finally paid off. - Mortgage and Home Debt – I have a mortgage on each home.
- Consumer Credit Card Debt –
I keep going from zero to a shit ton and it is killing me. I am hoping to get rid of most of it, if not all of it in 2024 and get it entirely under control.I killed the 0% credit cards in March (helping out operation C.R.E.A.M), but my Amex got away from me so I put all of it on a 7% fixed and it will now need to be eliminated, aggressively, now that the law school debt has been retired.
My Net Worth Change
- Month over Month my family’s net worth increased .59%
- Year to date my family’s net worth increased by 15%
For shits and giggles, if I included the entire debt load of the boat, without adding the underlying asset, I would have decreased the net worth by about 6%. I wish I didn’t do that second calculation, but I had to know!