Net Worth Update – February 2014

Another month in 2014 is coming to an end. I’ve got to say, I’m super excited about my financial progress so far this year:

Net Worth as of February 28, 2014
Net Worth as of February 28, 2014

In one month I’ve managed to grow my net worth by $4,800. Wow! Granted, a big chunk of that was due to my tax refund. But even without the refund, I doubled my growth from last month. Things are rolling right along this year! February being a short month, my mortgage payment hasn’t processed yet, which is why there is no change there. My employer’s monthly contribution hasn’t posted to my 401k either.

My goal for 2014 is to grow my net worth by $10,000. I ended 2013 with a net worth of $1,216. Which means I’ve managed to grow my net worth by $5,927. In just two months I’m already 59% towards my goal!

As I pointed out last month, I expect this year to be a bumpy ride. I’ll be spending down a chunk of my liquid assets as I prepare the house to go on the market. There are a lot of unknowns when it comes to the house. I’m doing my best to prepare for a quick and easy sell. I’m hoping for the best, but preparing for a big fall in my net worth. But the amount of growth I’m seeing is giving me hope that I can still recover and make my goal.

– Cindy W.

Comments

  1. If your house is in good condition had you thought about renting it out as a slow way to build some wealth and have some tax benefits too? I wouldn’t advise seeking out a property to buy and rent out, but since you already own it, it might be an option and then you don’t incur the costs of selling it. I’m guessing your total payment is $300, and maybe can rent for more than $400? Using a property management company will take away much of the risk and headache, they will generally charge 8-10%.

    1. At this point, renting it out is Plan B. With all the work I’ve put into it, the house is in pretty good shape. The remaining work would need to be done whether it was sold or rented, so that’s a wash. My mortgage is right under $400 (due to bad credit and no down payment). That amount also includes property taxes and homeowners insurance (which would go up if I rented the house out). Between maintenance, vacancies, etc., it might break even. Emphasis on might there.

      All the information I’ve gathered suggests I can sell it for more than the $45,000 I’m valuing it at on my net worth. How much? I won’t know for sure until I talk to a Realtor, but I think at the very least I can cover the mortgage, selling costs, and maybe even walk away with some cash. To me, that’s worth more than the headache of dealing with renting it out.

Leave a Reply

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