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Net Worth Changes Month-to-Month

The Power Of Your Income, Don’t Take It For Granted

It’s not what you earn it’s what you keep. I have earned a ton of money over the years and have spent the majority of it… though I’m reversing that trend (for a while) until I reach a comfortable point in my financial health.

Some are hesitant to start investing either because they don’t know how to get started or because they fear losing their money. When it comes to Wall Street investments there is no such thing as loss unless you sell your investments and end up with less money than what you put in.

If I look at my investment account balances and they are down by $7,500 it means nothing to me. If I decided to sell my investments then I would realize that loss and lock it in.

The opposite holds true as well. If my investments go up and I don’t capitalize on the increased value then it means nothing. Thankfully my investment strategy is to only realize gains and not losses. Think that’s an obvious statement? Think again, the majority of DIY investors have and will continue to sell low and buy high.

Here is why I encourage docs to invest their money, whether it’s in mutual funds, options trading, dividend portfolios or real estate. I tallied up my income ever since beginning of the year, total of 6 months, and I tallied up my losses and gains.

Since I post all my income here on this site lemme show you what’s been going on.

Income (take-home)
January – $20,235
February – $20,831
March – $22,302
April – $19,076
May – $17,774
June – $19,686

Expenses
January – $3,051
February – $3,740
March – $3,705
April – $3,296
May – $3,065
June – $2,204

Net Worth Changes (from month to month)
January – ($7,513)
February – $18,825
March – $46,456
April – $17,525
May – $14,656
June – $21,066

Let’s ignore the math for a moment… look at the above numbers, it still blows my mind that a doc can clear nearly $20k a month. What a privilege, what fortune.

To tally it up, I took home $119,904 in those 6 months. I spent $19,061 in that same amount time. As far as my investments, I am up $111,015. The fact that I made $120k and spent $20k but ended up with $110k should be a valid enough reason to invest… I think.

In 1.5 years, 1/2015 until 6/2016, my net worth has increased by $299,320. I don’t have any circumstance that’s unique to me compared to most of you reading this, which means this is easily dubplicable. I’m a physician making a full-time income working at one of the lowest paid positions in medicine with no other source of income.

That $300k increase in net worth includes a paid off condo which I purchased 12/2015… right around the time I sent in my last student loan payment. Don’t tell yourself that your circumstance is different, that you have a family with kids or that you aren’t able to agree with your partner on the direction of your financial plan. I agree that each household will have to come up with their own financial plan… but look at what’s possible.

I am listing my numbers because there is no way anyone else could have convinced me that it’s possible to stash away $300k in 1.5 years with an annual gross salary of <$250k. But it is and if you have certain goals in life that are dependent on your finances then start working towards it.

People with experience and $ say that the first $100k is that hardest, the next $100k comes easy. They will also tell you that the first $1mill is the hardest, the next $1mill comes easy. I believe that now.

I achieved a savings rate of 84% and I live a wonderful, rich life. I get to climb at one of the fanciest rock-climbing gyms, taste some of the best foods in Portland Oregon, have amazing drinks from craft breweries, take gorgeous walks through beautiful parks along creeks and rivers, hang out with caring/loving friends and live in a cozy/spacious condo with top of the line furnishings.

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