February 2020 Net-Worth Update: My Net-worth Decreased

my Net-worth decreased

The last time I rode a roller-coaster I was 21 years old, dumb, and definitely NOT sober. Today, I’m a little older, smarter, sober, but on a different roller-coaster called the coronavirus (A.K.A COVID-19) pandemic. COVID-19 has taken the World for a wild ride and I don’t see anyone getting off anytime soon.

Like many people around the globe, I’m on “lock down” , practicing social distancing, and waiting for life to return to normal.

I’m not sure when this situation is going to get better, but now more than ever I think it’s important to keep track of my money.
So here it it my Net-worth Update for February 2020 (I know… I’m late).

Assets

Investment Accounts

The total balance on my investment accounts is $10,980 in February.
That’s $764 lower than January 2020. This total included my $100 monthly contribution and whatever dividends that were paid out for the month.
For the new readers, I have three types of investment accounts; a traditional IRA, Roth IRA, and a brokerage account.
I contribute the majority of my money to the Roth IRA, because of the long-term tax free growth. Vanguard typically has the lowest fees, therefore my three accounts are held there.

Cash

In February 2020 I had a total of $2,356 dollars in cash savings. That’s $219 dollars less than January 2020.
I’m a little concerned by this balance considering the current state of the world.
My plan is to increase my cash reserves for the remainder of the month of March, at least until this crisis is over.

Debt

Student Loans

My student loan balance is $10,457.
It’s $209 less than January 2020. My balance decreased only because I made the monthly minimum payment of $250.
When I started my journey to financial independence (FI), I was aggressive with paying off my student loans.
Paying off my loans has become less of a priority overtime, mainly because I got anxious about missing out on the growth of the stock market. This is typical “FOMO” [Fear Of Missing Out]. Fortunately, as the stock market continues to offer shares at a discount, I don’t regret this decision.
I have two loans remaining; the first with a balance of $10,287, and the second with a balance of $169. My lower balance will be paid off in the next few months, which will free more money to contribute to the larger loan. Both loans have a 6.210% interest rate.

Credit Cards

My goal for 2020 is to not pay a dime in credit card interest. I accomplished that in February! My credit card balances were payed off in November 2019 and I intend on keeping them that way.

Net-Worth

My Networth decreased!

This is the first time since the inception of this blog that my Net-worth decreased.

It fell by $778.
I’ve had steady growth that mirrored the stock market until now.
Unfortunately, since a large percentage of my Net-worth is invested in the stock market when it tanks my net-worth continues to mirror it by tanking too.
I’m not too concerned that my Net-worth decreased because of the market fall. I’m long-term investing (10+ years), and I have faith that the World economy will return to normal sometime in the future.

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