Net Worth: $623,097

Account 2015 2016 Change
Cash $10,082 $42,845 $32,763
Investment $664,979 $941,248 $276,269
Debt ($174,841) ($360,996) $186,156
Total $500,220 $623,097 $122,876

My net worth has increased by $122,876 which is $30,706 more than expected. That is mostly driven by additional income from salary.

Income Statement

Income 2016 Forecast 2016 Actual 2017 Forecast
Salary $205,000 $244,718 $270,000
Investment $70,000 $57,558 $100,000
Total Income $275,000 $302,276 $370,000
Expenses
Rent $27,000 $31,510 $41,940
Food + Gas + Utilities $15,000 $15,000 $15,000
Miscellaneous Expenses $12,000 $12,000 $12,000
Total Expenses $54,000 $58,510 $68,940

Salary was $39,718 more and investment income was $12,442 less than forecasted. Lower investment return was due to a large loss from Lending Club ($3,982 loss vs. $5,000 gain) and lower return from DLIF (10.89% actual vs. 12% forecast). Over the next few years, my salary will remain same while passive income will increase significantly. My portfolio splits 90/10 between the DLIF and REI. The expected ROI on DLIF is 10% and REI is 20%. Tax on the passive income comes 1 year delay. I plan to do credit card balance transfers every year.

Net Worth Growth YOY

Year Age Net Worth $ Change % Change
2010 31 $30,504 $12,982 74.10%
2011 32 $75,188 $44,684 146.49%
2012 33 $104,839 $29,651 39.44%
2013 34 $186,722 $81,884 78.10%
2014 35 $310,464 $123,741 66.27%
2015 36 $500,220 $189,756 61.12%
2016 37 $623,097 $122,876 24.56%
2017 38 $780,000
2018 39 $950,000
2019 40 $1,130,000
2020 41 $1,320,000

My net worth growth accelerated as I focused on building passive income streams over the past few years. I will become a millionaire in 2019 if everything goes well.

Commentary

REI may not be included in 2017 investment portfolio. It does not perform well in a rising interest rate environment. I will pay more attention to the interest rate and real estate market to decide whether to allocate excess cash flow to real estate loans or alternative asset-based loans.