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 increased in value 2.5% this month. I bought into the Vanguard 500 on the downside of the big drop in the stock market at the start of the month and this rebounded a little, resulting in a lot of the growth here.
Debts My debts dropped 3.4% this month. I set a goal of 5% debt reduction this month which I didn’t quite reach, mostly because I took some money and bought stocks with it instead, as mentioned above. Aside from that, this was a pretty good month for paying down debt.
Net Worth With my assets going up and my debts going down, it was a good month for my net worth (assets minus debts). A 10.6% increase is very, very nice for the month, my highest growth month in quite a while. Where did this growth come from? The biggest thing, in my opinion, is learning how to continually live more frugally.
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 2.5%. However, I intended this month to be one to focus on debt reduction, so…
2. A debt reduction of 5% The month was actually a disappointment, with only a 3.4% reduction in my debt. Next month, I can do better.
I didn’t meet both goals this past month, but I believe I could have met the debt goal with better focus. So I’m going to repeat the goals again for the coming month.
This Month’s Goals
1. An asset increase of 1.5% I simply want to maintain my rate of asset growth because I’m setting a big target for the debt…
2. A debt reduction of 5% As my debt gets closer and closer to zero, it becomes easier to hit monthly rates. But 5% is still a pretty big chunk for a single month, as I learned this month. However, the raw dollar amount to hit this goal is lower than last time, so let’s see if I can do it.