At the beginning of each quarter throughout this journey, I share my personal financial statement. It displays my net worth. This quarter, I’m running behind schedule. Sorry.
As I mentioned in my first Net Worth Statement, I have just begun tracking my net worth through this journey.
I’m sooooooooo looking forward to the day that I have a zero net worth!
Some notes:
- The checking accounts amount includes some funds I’ve reserved for sinking funds. A significant portion of it is reserved for the HOA special assessment I am obligated to pay. Though the HOA special assessment was due (and I paid it) in February, the roofing project that necessitated the assessment hasn’t started due to the COVID-19 pandemic. Since the project is on hold indefinitely, the HOA Board was willing to refund half of the special assessment back to owners until the project is set to start.
- The savings accounts amount is, basically, my “baby emergency fund” (a la Dave Ramsey’s Total Money Makeover), which is accruing interest. This will be changing soon. COVID has confirmed for me that the $1,000 baby emergency fund is not sufficient – even in the short term.
- The real estate market value figure reflects the value of my property, according to Zillow.
- I do have life insurance (even though I’m single and do not have children), but it is a term policy, not one with any cash value.
Though my net worth is negative and will likely be so in the near future, I’m going through this exercise for the practice – to develop the habit of consistently being on top of my full financial situation.
Here are some significant differences between my net worth for Q1 2020 and my net worth for this quarter.
- My net worth decreased from -$63,366 to -$74,472.
- My total liabilities decreased by $6,134.
- My checking account balance went up by $2,840.
- According to Zillow, the value of my condo decreased even further by $20,798.
- Even though my total liabilities went down, the substantial decrease in the value of my condo negated all of any gains I made in my debt paydown.
The median net worth for my age (43) is $59,800. Obviously, I’m far below where I should be. But, that’s the point of this blog, right? I’m in a terrible financial space, totally not where I want to be, but now doing what I need to do to fix it. I’ve committed to being on this journey and, as Jim Rohn says, I’m going to continue to try . . . until.
If you’re interested in the median for you age range, see below.
- Age 35 or younger: $11,100
- Age 35-44: $59,800
- Age 45-54: $124,200
- Age 55-64: $187,300
- Age 65-74: $224,100
- Age 75 or older: $264,800
I’m showing the median net worth because the mean net worth figures are much higher, since they are skewed by the net worth amounts of the uber wealthy (i.e., the billionaires). We know I’ve got some catching up to do.
Where do you find yourself, considering the median figures above? How far ahead or behind are you?
