I’m pretty pissed at myself as I start to write this post. How the hell did another month go by without accomplishing any part of my 2023 goal of getting control over my cash flow?
Thoughts before Calculating: I am pretty sure this is going to be a bad month. Spending/Savings/Cash flow is just not under control yet. Should be a bit better going forward as I figured out I wasn’t receiving my law income for the past 5 months.
Last month I wrote,
Regardless of whether I am up or down I am disappointed in myself thus far. I gave myself a pretty easy 2023 goal and objective with regard to my automatic savings, spending and debt repayment and I have yet to even start the project.
Fuck. It hurts to read those words – 28 days later. But I guess that’s why I blog, to remind myself of ways I can improve.
Calculating my Net Worth
My Family’s Assets
While I have a number of asset categories, I don’t think they are particularly complicated.
- Cash Equivalents – Back in November or December I took the proactive step to re-set up my automatic savings to my pure liquid accounts. I don’t have a particular number in my head just yet, but I know as I write this I do not have a large enough emergency fund. I will circle back in a few weeks after I discuss my automatic savings to define when enough is enough when it comes to cash.
- My Trading Account – This one account is both where I invest in my dividend growth companies and risky speculative option trades. Easily my favorite asset, despite not being the biggest (by a long shot) – this also currently provides me the most stress. Currently, I am holding 200 shares of MMM and 200 Shares of INTC on margin, selling covered calls waiting to liquidate at cost basis (or hopefully higher)
- My 401(k) – My 401(k) has some terrible investment options that have ridiculous fees, but since I am getting a match at work I fund it to a little bit above the match. This has been hurt the most, probably because it is completely correlated with the market and is my largest non-real estate holding. Last month I wrote, “despite 18 months of contributions my balance is back to 2020 levels! I don’t mind this one as much since I can’t touch it for 19 more years at a minimum.” Well now I am back to 2022 levels.
- My Traditional IRA – Just some companies that have caught my attention at some point or another.
- The Wife’s Roth IRA – Again, some companies that have caught my attention at some point or another.
- 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 The Wife just let me know last week that business is a bit slow so this is going on pause for 6 months to a year.
- Crypto Currency – This account was basically started for FOMO purposes. It is a shitty reason, but it is mine nonetheless. Looks like I am back to about even with the account, but I stopped the automatic deposits and plan on largely ignoring it for now.
- 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, but as I sit here in March 2023 I have a loan against it and am aggressively paying it back.
- 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 accidentally deleted my gold amounts a few months back. 4 months ago I wrote, “while I believe I have the right number I need to audit my “vast” reserves” well I didn’t so should do that sometime soon…I have continued to fail myself here.
- 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 clubs in my net worth.
My Family’s Debt
- Law School Debt – Refinanced a few months back at 2.6%, probably going to ignore the account for a while. While it would be nice to finish these off I haven’t done so to date.
- Mortgage and Home Debt – I have a mortgage on each home and a home equity line of credit on the rental property.
- Revolving Credit Card Debt –
ZeroIt’s fucking back and likely will be back for a good amount of time.
My Net Worth Change
- Month over Month my family’s net worth was down 1.4%
- Year to Date we are still up around 3.5%.
Just as I thought, the debt is frustratingly up, and to pile on the shittiness, I haven’t started my cash flow project.