December 2006 Review – Net Worth +3.7%, Debts -1.5%, Assets +0.4%

I sat down for my monthly financial review recently to see what sort of progress I’d made in the last month. 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. Let’s break it down.

Assets My assets increased in value by only 0.4% this month. The biggest reason for this was that I expended a large amount paying off my truck loan, knocking off almost a year’s worth of payments at once. I also purchased a new laptop. I was almost surprised to find that my asset values had actually increased for the month, as I expected a slight drop for the month. I attribute the gain to a good month for my retirement plans.

Debts My debts overall went down by 1.5% this month. Why not more, with my truck loan being paid off? Christmas spending was the culprit, as I put my Christmas gift purchases on a credit card to earn bonus points and I’m taking advantage of my ongoing interest-free period on the card to not pay it off all at once. Next month, I’m going to whack away a large piece of that balance, so my debt reduction should be nice next month.

Net Worth With my assets going up and my debts going down, my net worth took a nice 3.7% bump again this month. That felt really, really good, considering I purchased a new laptop (which I’m not counting as an asset, so the cost is a loss) during the month and also purchased lots of Christmas gifts.

Last Month’s Goals (see last month’s review)
1. An asset increase of 0.5% I just barely missed this goal. The reason? Core 2 Duo and 2 GB of RAM in my laptop. I look at it as an investment to extend the life of the machine.
2. A debt reduction of 1.5% I made this goal!

Now that Christmas, a laptop purchase, and the paying off of my truck loan are out of the way, January should be a good month. Let’s put the bar up high, shall we?

This Month’s Goals
1. An asset increase of 1.5% I managed 0.4% while dumping out several months of truck payments at once. How can I do without dumping out those payments?
2. A debt reduction of 3% That credit card balance is going away, or at least getting tiny, next month

If you enjoyed reading this, sign up for free updates!

Loading Disqus Comments ...
Loading Facebook Comments ...
  1. MidnightUT says:

    Hey Trent,

    I’ve got a quick question about calculating % change in net worth. Am I correct in assuming the formula is (NewAmount – OldAmount)/OldAmount?

    Also I’m assuming that each of your reports is the percent change from one month to the next correct? I plan on calculating this each month, but also calculating percent change since the start of the year, which isn’t going to be as fun to watch but I am still interested in keeping track of.


Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

Become a subscriber of The Simple Dollar and get a free copy of Trent's e-book today plus exclusive updates.