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