Financial Update Report – August 2016
Below you will find a snapshot of our August financials – including a brief synopsis of both net worth and cash flow.
If you have any questions on how and/or why I calculate and share our net worth, you can find details here. Please note there are some affiliate links contained below but know that I only recommend products or services that I use or strongly believe would help my readers. Personal Capital is FREE to use and a very powerful tool I use to help create these financial reports.
If you’re interested in how you can track your own personal finances as I do and want to download my free budgeting spreadsheet, check out my post – How to Budget Like a Bad Ass.
Wow, summer just flew by, didn’t it? We didn’t get a ton of heat down here in San Diego, so that’s been nice. I’m lucky to be able to take my kids all over the county and be active.
Last week’s theme… kites!
Anyhow, August has been interesting. I’m still in awe that our NW climbs even though we took in a negative cash flow this month.
Net Worth Summary
We ended the month of August at $1,648,827 vs. $1,629,202 this past July. This is a $19,625 increase in our net worth or +1.2% by percentage.
This increase was considerably nice again this month. I love the increases of course, but again I don’t know how sustainable this is in the next couple years. We’ve been in a bull market for quite some time now. And, once you’ve been around as long as I have, you know there are ALWAYS shifts in market cycles.
So basically, I’m preparing myself to not get “attached” to this “wealth”. 🙂 This applies to both equities and real estate values that continue to rise.
Cash Flow Summary
This past August saw a cash flow loss of -$672.61. This loss can be mainly attributed to the reduced income we had from one of our rental homes in Las Vegas. The tenant had to be evicted for non-payment and the property manager took care of the logistics.
Thankfully there was no major damage, but there were additional costs to turn over the property like wear and tear repair, painting, carpet cleaning, etc. Oh yeah, a couple of months prior to the tenant leaving the water heater went out. This cost $850 to replace… ouch.
If you plan to own property, just remember that cash flow will fluctuate in little spurts like these. However, if you plan accordingly for this, you won’t be upset and you realize it’s just part of the process.
The rest of the income came from my wife’s teacher salary, rental income, dividend income, and misc investment income.
Expenses were $11,232. This was similar to last month and up a bit due to a quick staycation with my wife to celebrate our 11th wedding anniversary.
(We did a little kayaking in the La Jolla cove and explored some cool sea caves. $80 for the two of us on a tandem kayak.)
Expenses will be coming down about $60/month after switching over to Directv from AT&T U-Verse this month. However, we may take $30/month of this to apply towards getting my wife her first smartphone! She’s been resisting since forever but is getting close to caving in… finally. 🙂
Speaking of smartphones… I did have an unexpected expense this weekend with my current iPhone 6. This will technically hit September’s numbers, but I thought I’d share it anyway.
That set us back $109 before tax at the Apple store today. But, at least if my wife inherits this phone now, she’ll enjoy a brand new screen!
(BTW, that was the handy work of my son slapping it out of my wife’s hands)
Portfolio Balances (Equities)
Looks like I beat the S&P 500 for August. I didn’t really look into why, but I’m just gonna go with it. 🙂
As I’ve been mentioning, the markets do feel a bit high in my opinion. So, this past August, I did a little “trimming” with my equities and raised my cash position by $30k or so. I may do even more in coming months.
While I don’t suggest trying to time markets, I will occasionally “shift my weight” in my portfolios to adjust to the momentum of an environment I believe could be coming.
Despite the negative cash flow this month, August ended up being another fantastic month for adding to net worth.
Oh yeah, I do have one “toy” that I’m planning on purchasing soon… an Apple Watch!
I’ve had my eye on this for quite some time now and I’m eagerly awaiting the announcement for the next release (likely this Wed.).
I’m eager to get my hands on this to help track some fitness goals, plus I just like tech devices. If the new watch doesn’t have any major changes, I’ll probably stick with the first generation one.
I hope you all had an enjoyable Labor Day weekend regardless if you had to work or not! 🙂
Readers, how was your August? Do you have any Fall financial goals? Do you have an Apple watch? 😉