Our net worth closed the year of 2014 in a high note, climbing a whopping $68K in December. For the full year, we added over $322K to our bottom line, the largest of any year in our history. In fact, we recorded 5-figure monthly improvement in 10 of the 12 months in 2014, including nine back-to-back months between Q2 and Q4 of 2014.
Our household balance sheet, along with monthly, year-to-date, and trailing 12 months comparison, are shown below:
Two main factors contributed to our sizable monthly gain. First, our Chinese-based portfolio continued to ride on a strong stock market in China, and added $56K to our coffer. The momentum of the Chinese stock market in November and December, the best in over seven years, is obviously hard to repeat. Acting on precaution, we converting most of our stocks to cash, only keeping less than $60K by end of the year.
Second, we booked a year-end $20K increase of our house value, the same amount we booked in December 2013. This reflected a small fraction of our house's appreciation in 2014 -- the Case-Shiller index indicated 6.2% YoY increase between October 2013 and October 2014 (the latest data available), and 16.7% increase since January 2013, when we closed on our house.
On the downside, the CNY/USD exchange ratio retreated to the lowest level since July, and erased $9,500 when we report our assets and liabilities in USD.
For the full year, our net worth growth of over $320K is composed of the following:
$87K from savings of job income
$30K from investment income in USD-based portfolio
$195K from investment income in CNY-based portfolio
$20K from house appreciation
$17K from one-time income, including gifts from parents and 2013 tax refund
($25K) from FX impact of unfavorable CNY/USD exchange rate
Since this is year end, a couple of additional charts on yearly comparison.
First, take a look at our net worth at year-end, starting from 2003.
Also, comparison of annual changes:
How's your 2014? Did 2014 treat you well?