It’s time for that monthly financial review again, where I make sure I’m keeping up with my short-term financial goals. I generally break things down by evaluating my assets, my debts, and then my net worth, and then using these numbers, I attempt to set goals for the coming month. This is a useful exercise for everyone to do, simply so they can keep tabs on their overall assets and debts and make sure that they are consistently heading in the right direction. Let’s break it down.
Assets My assets went up 2.2%, which exceeded my goal by a significant amount. This was mostly due to a very nice month on the stock market.
Debts My debts went down 2.3%, which wasn’t as much as I wanted. I did not waste money this month, however; I had almost $1,000 in income tax that needed to be paid. If it had not been for this payment, I would have come extremely close to reaching my target of 5% debt reduction.
Net Worth With my assets going up and debts going down, it was another good month for my net worth. A 7.6% increase in my net worth was quite nice, growth that I mostly attribute to a steady hand with paying off debt and a solid month on the stock market.
Last Month’s Goals (see last month’s review)
1. An asset increase of 1.5% I beat this goal with an asset increase of 2.2%, which felt really good considering I had a large income tax payment to make.
2. A debt reduction of 5% I didn’t make this goal this month, unfortunately, mostly because of the tax payment.
I didn’t meet both goals this past month, but I believe I could have met the debt goal without that income tax bill. Now, I want to focus on building up liquid capital for the upcoming house purchase.
This Month’s Goals
1. An asset increase of 5% My wife and I are focusing on making this month frugal and instead of focusing on student loan payments, we’re going to pay the minimum and hold on to our cash until we buy the house.
2. A debt reduction of 0.5% Minimum payments made on time and no credit card debt should make this goal reachable.