Net Worth Update - January 2021 | +$20,000 in One Month!

 Net Worth Update - January 2021 | +$20,000 in One Month!

Things are looking up these days in our pursuit of a $1M net worth. While we’re obviously riding the high tides of the stock market and real estate market reaching record highs, it is great to be able to benefit from multiple streams of “capital growth” due to our exposure to multiple markets. We’re also seeing the effects of compounding quite nicely in our holdings. After hearing people talk about the “magic of compounding” our entire lives, it is great to actually live it for ourselves for a change. 

Here were the most impactful changes this month:

Real Estate: +$8,728

Our investment property’s valuation rose quite well given the crazy demand for properties in Worcester, MA. This is a blessing and a curse, though, as we are hoping to buy more properties in that market and the prices just keep rising! Still, its great to see our equity going up so well on an investment.

Stocks: +$6,112

After a very slow December, our stock portfolio had some great growth over the first two weeks of January. This stock portfolio is where we keep our funds as we wait to buy our next investment property. While we fully understand the risks in such strategy, and that this flies in the face of conventional wisdom about funds being earmarked for certain purposes not being invested, we are very happy with the results since we just started these positions in mid-October. We are up almost $31K, or 34% in about 3 months!

 

Retirement Accounts: +$4,859

We have about $76,000 in a 403(b) and IRA, and those accounts grew nicely since the last net worth update from mid-December. All told, these increases helped us grow our net worth number by nearly $20,000 this month!

We’ll continue updating this metric monthly as we work our way towards the $1M net worth goal. For now, we’re happy to be 35% of the way there, which is more than ⅓ of the way. More work to do!