Financial Update – January 2016

MichaelInvestment, Misc, Net Worth8 Comments

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Financial Update – January 2016 (Net Worth & Cash Flow Snapshot)

First month 2016 is officially closed!  Below you’ll find a snapshot of January’s financials – including my net worth and cash flow snapshots.

If you have any questions on how and/or why I calculate and share my net worth, you can find details here.  Please note there are some affiliate links contained below for Personal Capital, but please know that I only recommend products or services that I believe would help my readers.  Personal Capital is FREE to use and a very powerful tool.

NW Snapshot 013116-rs

Overall Summary

So January was both a good and bad month combined.  It was good because we finally pulled a small profit for the month – woo hoo!  But, it was bad in the sense the markets have been volatile with downward momentum hammering most people’s net worth.

Net Worth Summary

Overall we ended up at $1,526,641 at the end of January, coming from $1,552,024 this past December.  This is a $25,383 reduction to our net worth, or a -1.6% drop.

Although I don’t like seeing $25k evaporate into thin air, -1.6% is not that much relative to the drop in the markets overall.  Beside, we’ve been long overdue for a correction.  The important thing is not to panic (which I’ve totally done before and gotten burned!).  This time however, I’ve been more grounded and disciplined.  In fact, I purchased some VTI earlier in January when the S&P index was down ~8% YTD and plan to purchase more on further drops.

Cash Flow Summary

 

CF Expense 013116-rs

Finally a post-holiday month without excess expenses!  And, it showed up with us being able to pull a small profit out of January of $805.56.

We’ve definitely been making it a point to eat in more often which is good on for two reasons.  First it saves money, and second it’s healthier overall.

CF Income 013116-rs

Income was made up of my wife’s teacher salary, our rental income, dividend income, and misc income (p2p, notes, etc.).

Portfolio Balances (Equities)
Portfolio Snapshot 013116

You can see that a chunk of last month’s differential was tied to our equities portfolios.  Since it’s only a third of our overall net worth, we’ve haven’t been hit too much.  Having said that, real estate markets could follow suit, although I don’t see if happening anytime in the near future.  Real estate is also a longer and slower cycle relative to equities.

Outlook

I suspect February will be back to break even or a little down (we’ve got a large auto insurance premium due), but should bounce back nicely once we file our taxes and receive our tax refund.  If your curious how I budget, check out – How to Budget Like a Bad Ass.

I’m excited to see what else 2016 has in store!

Readers, how was your January?  Are you bullish, or bearish for 2016 and beyond?

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Michael

Hi, I have been blessed to take an early retirement in my mid-30's so I can focus on becoming a better father, blogger, and investor.

My goal is to help you find your personal path to financial freedom, and to enjoy the entire journey.

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8 Comments on “Financial Update – January 2016”

  1. I’m impressed that you’re so on top of it that you’ve got your January numbers in already! I’m 90% of the way there, just need to download a few days’ worth of transactions and reconcile, but still. Do you always examine your budget every month no matter what? I only ask because I tend to eyeball mine monthly, but only really process and evaluate on a deeper level maybe 1-4 times per year. It tends to smooth out the bumps of property taxes, insurance premiums, etc. that way.

    1. Yeah, I’m similar in that I only eyeball my budget on as monthly basis now. But primarily because it’s existed for so long now and I know the outliers.

      Typically I’ll go in for a deep dive quarterly to update forecasts etc.

  2. Impressive that you only dropped 1.6% during this month. I was right in the same ballpark and dropped about 1.5% – I guess it’s one of the perks of not having all your worth in the market in times like these!

    I fully expect 2016 to be a rocky road, but it definitely makes for some good buying opportunities! It sounds like we are both on the same page and at least looking at it as an opportunity to buy cheaper shares.

    1. “Rocky Road”… I like that! (the term and the ice cream…hehe) Like you, I plan on picking up some marshmallows if the road gets too bumpy.

      Glad to hear you weathered Jan decently as well. What other asset classes have you allocated to beyond equities? Do you have a favorite?

  3. Hey MIchael, Down months suck. But they are part of life. We weathered January pretty well but the market definitely affects us too. At least the dividends are still coming in. That said we managed to pick up some great stock deals, I think our average yield on them was over 6%, pretty sweet considering they rarely yield above 4% Should make for a good bump when the market straightens out. Whenever that might be.

    1. Nice yields Andrew. And good job picking up deals on the way down. I suspect we’ll have more buying opportunities as 2016 progresses. We’ll see!

  4. Most of my growth opps are still in equities right now. A quick breakdown with back of napkin math breaks down as: 31% us stock, 11% intl stock, 22% primary residence, 15% cash, 5% bonds, 16% other consumption.

    I’d like to get my feet wet more in real estate (rentals) but need more capital to make that happen. In the meantime, we just throw a bit extra towards the mortgage every month. I’d also like to get the other consumption (cars and other non-growth assets) in the 5-8% range in the next few years.

    1. Nice… throwing extra to the mortgage each month is a great strategy to cut down the years. Sound like you’ve got a good strategy and headed in the right direction!

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