Financial Update Report – January 2017
Below you will find a snapshot of our January financials – including a brief synopsis of our net worth and cash flow.
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And just like that, we’re into February! How was your January?
NW for us was up a touch and we had a lot of expenses this past month.
Net Worth Summary
We ended the month of January at $1,745,425 vs. $1,739,333 this past December. This is a $6,092 increase in our net worth or +0.4% by percentage.
This nominal increase comes from the increased value of our real estate holdings, but cash flow was negative.
Cash Flow Summary
Cash flow was negative for January primarily because of new travel expenses.
Income of $13,687 was down from December, but inline with most months in 2016.
Income is primarily made up from my wife’s teacher salary, rental income, dividend income, and misc investment income (eg. RealtyShares).
I finally shipped out my initial 100 units of product to Amazon’s warehouses, so I plan on doing to targeted ads to sell these. I’ll be writing up an FBA post soon to discuss this project in further detail.
So, let’s take a look at why January was such a large month in expenses for us. Expenses of $16,931 were up a lot compared to last month. A couple thousand can be attributed to charitable donations. You see, I kind of procrastinated until the Dec. 31st to get some of my final donations in. Because of this, some of the charges ended up appearing in January’s statement.
The other major outlier as mentioned above was for travel.
I recently took a vacation out to Texas which added a couple hundred in hotel fees. I also pre-paid for a hotel in Los Angeles for March when I will be attending Tony Robbin’s UPW (hopefully – I’m on a waitlist).
Finally, I paid a $1800 as a deposit for a fishing trip I’ll be taking this coming August. I’ll be traveling to Panama with a few cousins to visit a secluded fishing resort. It’s expensive, but I’ve never taken a trip like this before, so I’m super excited! The way I look at it is I need to travel like this while I’m still young and energetic. 🙂
Portfolio Balances (Equities)
Looks like we’re trailing the S&P to start off the year. I’m not so concerned, but I do need to start moving some more of my stock allocation over to bonds this coming month.
As you can see from my allocation we’re still pretty heavily weighted in stocks. I may move over an additional 8% or so to bonds, or at least some conservative dividend stocks (any recommendations?).
I’m definitely going to be traveling a lot in 2017. We’re doing a family trip to Vegas in Feb, UPW with my wife in L.A. in March, New Orleans in April, Mammoth in June, Yosemite in July, Mammoth again in mid-July, Panama in August, and Vegas again in the Fall. It’s gonna be busy busy!
Luckily I snagged a Chase Sapphire Reserve card for both my wife and me before the 100,000 point promo disappeared. Those points will cover approximately $3000 in travel costs if I book through Chase travel. This should more than cover my flight to Panama, our flights to New Orleans, and still have another grand in misc travel costs to cover. If you’re still interested in picking one of these cards up, you might be able to do it in a Chase branch and snag the 100K bonus points, but it’s expiring Mar. 12th.
It’s rare that I sign up for a card, but this was too good to pass up. After a year passes, I think I’ll probably down grade to a card that doesn’t have the annual fee. That way I can keep my credit, but not have to pay the $450 annual fee any longer. Anyhow, I thought adding this card would ding my credit a touch, but instead it shot up a few points to 826… go figure. 🙂
Readers, how was your start to the new year? Any thoughts on where the markets are headed? When’s the last time you bit on a credit card offer to snag some sweet bonuses?