Comments on: Net Worth Update – June 2007

By: 2million

2million — Mon, 25 Jun 2007 01:47:59 +0000

Good luck with the wedding!

By: Joseph Sangl

Joseph Sangl — Tue, 19 Jun 2007 13:46:31 +0000

CONGRATULATIONS!!! Any estimation of when you will reach the other 100,000 landmarks on your way to financial freedom?

By: Lazy Man

Lazy Man — Tue, 19 Jun 2007 04:53:04 +0000

David: Exactly. It’s way too much work to try to factor in that liability now. This is why I’m not celebrating now. I use very soft accounting measures which may be off as much as 10K or more depending on the rules you want to apply. Relatively it’s pretty close to accurate.

By: Danny at Money Socket

Danny at Money Socket — Tue, 19 Jun 2007 04:41:32 +0000

Congratulations! You’re going to hit the 200k mark soon.

By: David

David — Tue, 19 Jun 2007 04:11:18 +0000

Watch your accounting. Adding a prepayment of July rent from your new tenant directly to your net worth ignores the fact that you took a corresponding liability at the same time, the obligation to provide that person with housing in July (i.e. to pay your july rental property morgage).

In the end your net worth may or may not have gone up as a result of having a tenant, but it certainly wouldn’t have gone up by the same amount as the rental payment. If your rental property is operating at a significant cash outflow, your net worth could have gone down.

By: Sun

Sun — Tue, 19 Jun 2007 00:16:04 +0000

Given the market performance so far this month, $200K should be reached by next time you update your numbers.