The last net worth update I made was for the second quarter of 2016, after which I deliberately did not do any more net worth updates because I wanted to focus on slaying my consumer debts. Also, computing my net worth was starting to frustrate me as my net worth kept on going down due to my debt reduction efforts (read: I was selling assets or taking out loans to pay existing debts).
But now that my consumer debts are under control and on their way to Deathville, I was ready to face the music and spent the last few days of 2017 calculating my net worth. Just as I suspected, my net worth went way down from 2016. Here are the reasons why my net worth went south:
- Stocks were sold to pay off debts
- Emergency funds were spent to help out family members
- I took out 3 new insurance policies (2 of those were from my sister, who was then a new insurance agent with Philam). What I paid for the policies could have been funneled towards debt payment.
- I did not include the value of my 11 year old car in computing my assets
- I included outstanding credit card balances that I wasn’t able to pay in full
But it’s a new year and that means everybody gets a fresh start, yours truly included. So let’s get to it with this fresh start business. Here is how my assets currently stand:
In my next quarterly report, I expect my liabilities to go down because my credit card and personal loans will be almost fully paid by then, same with my credit card balances. Let’s make sure that savings will no longer be zero too. Ok, the battle plan has been laid out. Check in again after 3 months to see if I’ll be doing a victory dance or will be eating my hat in shame.