December Net Worth = Early Holiday Gift

After a small decline in net worth in November, I’ve made a very strong comeback in December … thanks to stronger stock market returns and a decision to pay off almost half of my college debt.

On to the numbers …

My overall net worth as of December 4th is $53,183. In sum, it marks a $2,444 (4.82 percent) increase from November.

For the purpose of this post, I’m going to split up my assessment into five different areas: cash, stocks, retirement, stalwarts, and college loans. The percentages and amounts are coming from the calculations in my NetworthIQ profile.

Cash:

Overall, this went down quite a bit. How much? A cool $16,696.

The vast majority of that “loss” was due to my paying off all of my private loans, which came to a little more than $16,500. I’m still saving toward my goals and maintaining a viable cushion in my checking and savings accounts. At the end of December, I will pull the money in my certificate of deposit into my money market savings account.  The interest rates continue to drop on the CD, making it almost useless to keep it tied up for at least three months at a time … for now.

Stock:

Unlike the end of October when the stock market took a sizable dip, this past month was strong. I realized an 8.07 percent increase in my shares of stock, approximately $1,923. I’m a little concerned, still, that it is almost all in one stock. Especially now that my cash is significantly lower, I may decide to pull a portion of my stock into a money market account. I want to make sure I have a balanced portfolio, and while I’m young and it’s OK to be aggressive with stocks (I have more time to make up for any losses), I don’t want to be caught with my pants down if the economy tanks again. The only thing that’s holding me back at this time (besides lack of research) is the fact that these stocks have risen almost 20 percent since the same time last year.

Retirement:

My retirement accounts — the Roth IRA and company-sponsored 401(k) — continued their rises in November, altogether gaining $431 (5.32 percent). My plan is to continue as is — regular contributions to the 401(k) and a yearly contribution (smaller than $5,000, though) to my Roth IRA in the next week or so.

Stalwarts:

The life insurance and bonds remain as is.

Loans:

I finally paid off my private student loans. Now I only have one throat to choke, and a smaller payment stretched out over 30 years. I plan to accelerate this by paying extra principle in the coming months, but I’m so happy that it is below $20,000 now. I look forward to this statistic continuing to drop — quickly — as time goes on.

Overall:

I’m still progressing toward my goals. My net worth increased, thanks to the stock market performing well. More importantly, though, I’ve chopped my loans almost in half. Further reducing this will only help me not only increase my net worth, but open up other opportunities.

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2 Comments

Filed under Commentary, Motivation, Philosophy

2 responses to “December Net Worth = Early Holiday Gift

  1. Pingback: Tweets that mention December Net Worth = Early Holiday Gift « Living With Common Cents -- Topsy.com

  2. Ann

    Congratulations! Your discipline and common sense are paying big dividends.

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