Bust out the stache wax! It's time to start prepping for the first annual (I think) Net Wealth November. The winner gets bragging rights until next November.
The challenge is simple...who can increase their net wealth by the largest percentage during the month of November (hint: it's not gonna be me). So it doesn't matter how big or little your stache currently is, it is strictly percent change in your net wealth. For those mathletes out there that's (1 Dec NW - 1 Nov NW) / 1 Nov NW x 100.
Standard definitions of net wealth, assets, and debt apply...that means your 0% interest credit card balance DOES count (debt is debt and no hiding it!).
For those that need examples:
Stache 1 - If on 1 Nov I have $1K to my name and I have $0 in debt, then my net wealth is $1K. Then on 1 Dec I have a total of $2K in the bank and still $0 in debt then my net wealth is now $2K. So for this challenge: ($2K - $1K) / $1K x 100 = 100% increase in your net wealth
Stache 2 - If on 1 Nov I have a fat stache of $1M in the bank, a house worth $250K, and a car worth $12K but I owe $200K on my house, $10K on my car, $2K in student loans, and $8K in credit card debt, then my net wealth is $1.042M (NICE!). But then in the month of Nov I only manage to lower my mortgage principal to $199K, my car loan to $11.5K, and my cc debt to $6K while my stache earned $10K, then my new net wealth is now $1.0535M. For this challenge: ($1.0535M - $1.042M) / $1.042M x 100 = 1.1% increase in net wealth.
Obviously stache #2 is much bigger than stache #1, but stache #1 grew by a much larger % so they win.
If you're down, post your NW on or about 1 Nov and then post again with your final numbers on or about 1 Dec.
Of course all of this in prep for Money Mustache March! which will be % increase in monthly savings rate...I know you're excited.
Let the savings begin!