This is the 22nd update in my net worth series. I’m documenting my path towards reaching two goals:
- $30,000 in annual passive income by 2025
- $1 million net worth by 2027
If you’re interested in real-time updates on the numbers, you can check out my net worth tracker. I update it on the 1st of every month.
Big Law Update
This last month was all about big law.
I’ve had a lot of matters to work on last week. Things have really picked up and I have a lot of hours to put in for this job. While I am compensated very well for it, it is very taxing at times.
I’ve been working full-time as a commercial real estate associate for 5 months now.
I’m getting more comfortable building my skills as an attorney, but that also opens up more responsibilities.
I’ve had a number of days this past month where I was working 10 to 12 hours a day. While this isn’t super common, things have definitely been picking up lately.
We’re also coming into the office a lot more, which is a double edged sword. I’m having to devote some hours to commuting, but I do have a lot more opportunity to learn from experienced team members.
Plus the office is pretty cool – I get to work on the 80th floor overlooking the whole city of Chicago!
Anyways, let’s get into this month’s numbers.
November 2021 Net Worth Numbers
As a reminder, my net worth last month was at $87,813.85.
Assets – November 2021
I’ve adjusted some of the accounting here, especially when it comes to my “Cash” balance.
The cash originally had a lot of reserves for my Chicago properties. I have deducted that from my cash balance, treating it as though the money is gone. I do still have reserves for all of my properties, but for now, it looks like my cash is a lot lower than it was before.
The cash pile that I’m left with is really my investable cash, rather than my property reserves.
On the plus side, when any issues arise with my properties, the money will come out of my reserves and won’t impact my net worth.
Additionally, I’ve bumped up the value of the Indianapolis property which is worth around $115,000 at this point. In any case, that will offset some of the cash pile paper losses.
I’m going to focus on putting more money towards my stock account while I hunt for another real estate deal.
When things simmer down with work, I’ll be able to start making offers more aggresively. In the meantime, I’m just focusing on building up my stock portfolio.
My cryptocurrency holdings have surged quite a bit in the past month. Although I have a fairly small position, it’s been a wild ride. I expect it to remain wild for the future.
In total, this leaves our assets at $722,020.33.
Liabilities – November 2021
Last month, I paid off the remainder of the outstanding margin that I used to finance the down payment for my primary residence.
I’m focusing now on paying down the HELOC, since that is variable rate interest and it’s revolving. This balance got to around $70,000 due to the basement flood, so we’ll be working to pay it down.
When interest payments resume on student loans, we’ll definitely re-evaluate how we want to be paying down our debts. Thanks to the current interest freeze, it’s still not a priority for us right now.
Our liabilities this month are $624,079.42.
My Net Worth – November 2021
All in all, that leaves us with $97,940.91 in net worth.
That’s a net gain of $10,127.06 from the previous month.
That leaves our debt ratio at 86.44%.
And our passive income remains at $950 per month.
Overall it was a very strong month – especially considering that the past two months have been pretty rocky.
We’re finally back on track and making some positive steps towards our net worth goals.
Like I mentioned, I’m focusing on putting more money towards my stock portfolio (for now). I can always re-leverage those stocks by using a margin loan, like I did for my primary residence. But I have to be careful with that since the market is so unpredictable, particularly in the short run.
Additionally, I’m still in the position that, if I come across a deal I really like, I’ll commit more towards real estate.
Otherwise, I’m happy to be back on the path of progress. We’ll see what happens in the next month.
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