Financial Update Report – December 2016
Below you will find a snapshot of our December financials – including a brief synopsis of our net worth and cash flow.
Want to track your own personal finances as I do? Download my free budgeting spreadsheet. Check out my post – How to Budget Like a Bad Ass!
2016 was a bit of a blur, but it was a nice one! Check out my recent post highlighting my wins and misses – 2016: A Year of Unexpected Fortune.
December’s numbers are always a bit skewed due to last-minute expenses and inbound gifts from the grandparents to our kids, but let’s dig in and take a look.
Net Worth Summary
We ended the month of December at $1,739,333 vs. $1,721,345 this past November. This is a $17,799 increase in our net worth or +1.03% by percentage.
This was a nice way to end the year on an already good up year.
Last Month’s net worth change was close to $20k. This can be attributed to an increase in property values rising and our equity portfolios rising also.
I also threw up a chart for the year so you can see how we’ve performed for all of 2016. From Jan to Dec 2016, we had almost a $200k uptick in net worth. Again, this is primarily reflected from the rise of real estate values and equities (i.e. stocks).
Given this increase in net worth, it’s interesting to note that total cash at the start of the year was $109,494 vs. $97,171. This is a reduction of $12,323 for the year or -11.3% by percentage. Note this is cash in the bank, not cash in my portfolios. Recall that I did allocate $8000 to invest in the Honest Co. a few months ago, so it’s not as drastic as it may look.
Cash Flow Summary
December was a large month in income, though it’s a bit deceptive with $5000 of this coming as gifts to our kids from their grandparents. Income was also up from quarterly dividends which is always nice to see. This month had a positive cash flow of $3886 for December.
Income of $16,724 was up sharply from last month.
Income is primarily made up from my wife’s teacher salary, rental income, dividend income, and misc investment income (eg. RealtyShares). However, as noted above, some of this came from gifts our parents to the kids.
As I’ve mentioned before, I’m really starting to focus on new ways to drive revenues in 2017. My core focus will be on video, a teachable course, coaching, and affiliate income.
Expenses of $12,838 were down compared to last month. Having said that, I’m known to procrastinate a bit with our charitable donations, so it was a bit of a scramble New Year’s Eve to work in thousands of dollars of donations. We’ll keep these charges in mind when exam next month.
As a quick side note, I did rectify last month’s few hundred dollar hosting charge that I didn’t even need! So, again, remember to monitor your automated billing.
It looks like we trailed the S&P index for the month. But, we are still up for the year.
Next year you will likely begin to see me move even more money out of equities and into safer vehicles like muni-bonds, etc.
With December being the final month, I also included my portfolio performance for the 2016 year. It’s a respectable 10.36% increase. This beats the S&P slightly, but the DOW index beat us by a couple of points. Again, I’m okay with this given I didn’t spend a lot of time and effort in this area last year. Furthermore, my portfolio sees less volatility during the sharp adjustments down or up.
With the holidays crowding December, it always feels like it’s a whirlwind, right? But, I encourage you to go back and see how you performed this past year. It doesn’t matter if you did great, okay, or even terrible. What can you learn from the past year? What theories worked, vs. what actually happened in the markets in 2016?
I’ve been both amazed and dumbfounded at the markets this year, but luckily I’ve still been able to profit. Sometimes it’s not about how smart you are, rather it’s about how well prepared you are and your ability to react quickly.
Readers, how was your December? Did you take note of 2016 as a whole? What kinds of financial goals do you have for 2017??