Starting Net Worth: $128,589
As the new year began, Natasha and I decided it was time to establish a fresh financial goal for 2025. In 2023 our goal was to purchase our first home, and in 2024 we focused on buying a single family home while turning our first home into a rental property. With those milestones behind us, our priority for 2025 became paying down our debt. More specifically, we chose to focus on eliminating Natasha’s car loan. This loan carried the highest interest rate of any of our debt at 7 percent, and it also had the highest monthly payment outside of our mortgage. Paying it off would not only reduce the amount of interest we were losing to debt each month but would also free up a meaningful amount of cash flow we could redirect toward future goals.
The stock market provided a helpful tailwind in January as well. After declining in December, it rebounded quickly, and our investment accounts grew through both market performance and continued contributions. This growth pushed our total investment portfolio above $100,000 for the first time, which was a major milestone for us.
We also made an important change in how we track our finances. Previously, our net worth calculations included the full value and mortgage of our rental property. We decided it made more sense to separate our personal finances from the rental property details. As a result, we now track only the equity we hold in the rental property, and this equity is reflected within the property section of our net worth tracker. This adjustment gives us a clearer picture of our personal financial progress while still acknowledging the long-term value of the rental.
Overall, the start of 2025 was a reminder of how helpful it can be to set clear financial priorities and make adjustments that bring more clarity to your financial life.
Ending Net Worth: $135,664
None of the above information is a recommendation. This blog is purely intended as commentary on things that have happened along our financial journey.