Net Worth is Up Over 18 Percent

I had to prepare a personal financial statement again for the bank that holds the loan on the commercial building that I own with a partner.  Actually the bank owns it, and we are simply making payments to eventually acquire full ownership.  I am not sure why they are wanting the information so soon since I completed this exercise at the end of May.  Although I suppose it could have actually been for a different bank at the time since I have had several requests for the information from various banks for various reasons.

This is the only time that I bother to go through this exercise since it takes a few hours to get all the information together.  That is time that I would rather be spending doing something else.  But the good news is that from May 28, 2012 to September 2, 2012, my net worth increased by 18.5%.  I was really rather shocked since it had only been a little over three months.  The previous increase had been 28% over 6 months which I thought might have been an anomaly so I was only expecting maybe 6% at best.

Looking At the Numbers

When I look at the numbers, I realize that the increase in net worth has come from two primary reasons.

First, my total retirement account assets have increased.  I have continued to save the maximum even though cash flow can be tight at times.  I have always believed in paying myself first even though I have trouble doing that with net income at this point.  I also receive a match so there is no way I would be passing up free money.

Second, I have been contributing more to the commercial loan than my partner so I now own a greater percentage of the commercial building and have been benefiting from the decreased mortgage balance on that and a few rental properties.  I now have more equity in the real estate than I did in May so each payment that is made will simply continue to increase my net worth.

While it is nice to see net worth increasing, it does little to help the monthly cash flow and will not pay off any major debts that are coming due.  Unfortunately, I will have to make some tough choices in the months ahead.  I suspect that things will be getting better, but it may take to the end of 2013 before I see some major results.

At least it is good to see things headed in the right direction.  I have a plan and a suspicion that the plan may just work.

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