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 and debts and make sure that they are consistently heading in the right direction. Let’s break it down.
Assets My assets increased in value by 3.9% this month. This was an excellent month for income for me, as a consulting project payment came in and I began to enjoy a bit of reward for the work I put into The Simple Dollar. This month was much stronger than expected in terms of asset accumulation.
Debts My debts overall went down by only 0.1% this month. Why? I traveled to San Diego for a week on a trip that I financed myself but that I was expecting reimbursement for, a reimbursement that I am still waiting on. Even with dumping a rather large amount onto my credit card, I still managed to reduce my overall debt, and next month will see a pretty solid drop in this number when my reimbursement comes in.
Net Worth With my assets going up quite a bit and my debts going down, my net worth took a nice 10.8% bump this month (net worth being my assets minus my debts, of course). I would love to be able to keep up such a number, but I simply don’t anticipate such growth continuing on a regular basis. What’s nice, though, is that every month that my assets go up and my debts go down, the ol’ net worth jumps very nicely.
Last Month’s Goals (see last month’s review)
1. An asset increase of 1.5% I blew this away with an increase of 3.9% in assets, thanks to a few unexpected things and a good month for my retirement accounts.
2. A debt reduction of 3% I didn’t meet this goal, however; I believe I would have met it had I been reimbursed for my travel. Let’s hope that happens soon.
Since I can theoretically expect a healthy drop in debt next month, let’s set some interesting goals for the coming month.
This Month’s Goals
1. An asset increase of 1.5% I don’t expect another asset bump like last month, but I also don’t expect to earn nothing, either.
2. A debt reduction of 3% I’ll get a travel reimbursement which will help this number greatly.