I wish I could say that I ended 2022 by completing all the goals I had on my list, but to be frank, I’m not even sure I had made goals for the year. Either way, I definitely know that I didn’t achieve my ongoing goal of tamping down debt as aggressively as I had wanted, but that’s mainly because (1) I ended up purchasing a rehab project, (2) my partner traded in their car for something newer and more practical, and (3) we were paying a good of a friend’s rent for the entire year. So, here’s a quick review of my 2022 finances, plus the goals I’d like to achieve in 2023.
41% Increase in Net Worth for 2022
I don’t have a complete picture of our 2022 finances since I didn’t start tracking our net worth until March, but keeping that in mind, here’s how the year started and ended:
March 2022
Assets $165,740 – Liabilities $134,671 = Total Net Worth $31,069
December 2022
Assets $213,732 – Liabilities $169,854 = Total Net Worth $43,878
It doesn’t look like it on paper, but that amounts to a surprising 41% increase in Net Worth. $12,000 doesn’t sound like a lot, but I guess it’s better than nothing! A win is a win, and I’m still kind of early on in my FIRE journey, I suppose, so I won’t complain.
Less Debt = More Money in the Bank!
As of December, we not only managed to finally pay off my partner’s student loan, but the lease for their old apartment out of state is up, which we’ve been “subsidizing” in order to allow an old roommate/friend to stay. Between the two of these things, we’ll free up an extra $1200-$1500 per month which we’ll be able to reallocate towards paying down outstanding debt more aggressively.
New Car
Not much to say for this one. Partner decided to trade in their ’17 Civic for a ’23 Forester, primarily due to the fact than an SUV makes much more sense during snowy Midwest winters, plus the fact that they (we) preferred being higher off the ground. Definitely a nice upgrade, although I’m not crazy about the extra $220/month in payments. Oh well. Win some, lose some.
Acquired a 2nd Rental Property… Currently in Rehab
I finally pulled the trigger on buying my second rental property. Unfortunately, it needed a complete rehab to get it up to par and to maximize rents, so I had the place gutted and it’s currently still going through renovations. Hopefully it’ll be done within the next two months, at which point I plan to cash out refinance it and get most of my money back.
This project definitely set my net worth behind a bit, especially considering I’m not including the current estimate value of the property while it undergoes updates — I’m only considering what I paid for it until it’s completed and gets an appraisal.
Now, time to move on!
Goals for 2023
As much as I want to make a nice long list of things to achieve for 2023, I think it’s best I keep it short and simple:
- Acquire 3rd rental property
- Finish rehab renovations and have three rental properties listed on the market
- Pay down ~25% ($14k) of outstanding personal credit card & HELOC debt ($56k)
The last one is going to be the toughest to achieve while simultaneously trying to purchase and renovate a 3rd property, but call me crazy for thinking that it’s doable. In fact, I’ve already got an idea on which property I’d like to be my 3rd… I’m just trying to scrape up the funds to grab it!
Oh, I also hope to post more regular updates. In fact, I actually just made a Twitter account where I’ll be posting minor updates, thoughts, and other nonsense… basically things that aren’t really worthy of a full post, like this. You can find me on Twitter @NeuroticFinance.
Here’s to a successful 2023!
Alex
Neurotic Finance 