Financial Update Report – May 2017

MichaelInvestment, Misc, Net Worth25 Comments

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Financial Update Report – May 2017

Below you will find a snapshot of our personal financials for the month for May 2017.  This includes a brief synopsis of our net worth and monthly cash flow activity.

Curious WHY I calculate and share our personal net worth?  I explain it here.

Want to track your finance the same way?  See how I use Personal Capital to help create these financial reports absolutely FREE.  Also, download my budgeting spreadsheet found in my popular post – How to Budget Like a Bad Ass!

May Overview

Financial Update Report – May 2017

First of all, you many notice the new look with the reports.  That’s because Personal Capital recently updated their portal with a fresh new look!  I’m liking it so far, although the main summary page looks different now and I’m still getting used to that.

So after a profitable April, we did a bit of a reversal.  The theme for the month…

May I spend some money?

We had some larger purchases this month which hit our expenses, and cash flow took a negative hit.  But, how would net worth show up this month?

Net Worth Summary

I was pretty happy last month with a big push forward, so I figured this month would be pretty quiet.  We ended the month of May at $1,899,256 vs. $1,842,173 this past April.  This is a $57,083 increase in our net worth or +3.1% by percentage.

Adjustment

As I’ve mentioned prior, sometimes Zillow’s estimates for property values are a bit out of line with actual comps.  So, if I find that’s the case, or even suspect it, like this past month, then I will simply make an adjustment to get a more conservative net worth calculation.

We did see an extra $11,000 in equity value the past month, but that means there’s another $46,083 of increased net worth value from somewhere.

After digging around a bit, I did see it was indeed from newer updated property values.  After running my own analysis on the properties, I decided to adjust the value of the properties by $30,000.

So what that means is I’m only going to count an increase to our NW of $57,083-30,000 = $27,083, and that will put us at $1,869,256 at month’s end.

Cash Flow Summary     

Darn, it would be great to have a tax refund every month!  Alas, we were back to our normal income without any refunds or quarterly dividends.  With increased expenses, we wound up with a -$2250 loss this month.


Income of $12,789 was down from April by ~ $10k.  This isn’t surprising since we had a big tax refund show up last month.

Our income is primarily made up from my wife’s teacher salary, rental income, dividend income, and misc investment income (eg. RealtyShares).



Expenses

This month we spent $15,039 which was an increase in $5k compared to last month.  Major expenses included a new computer to replace my decade old PC which was on its last leg.  I spent about $1000 on the new one because I’d like to make it last another 10 years!

One other large expense were new tires for my car.  We’re headed up to Mammoth in a couple of weeks and since it’s a long distance I didn’t feel comfortable driving on tires that were balding.  That cost a little over $600.  Finally, $658 of this was actually a charge by my wife to cover a school club banquet.  She’ll get a reimbursement later this month.

Other larger ticket items included a dance class tuition for my daughter, hard drive for my NAS, preschool tuition for my son, and a cargo box for our car.

Portfolio Balances (Equities)

I can’t complain about my portfolio currently.  It’s still chugging along even though I have a chunk sitting out on the sideline.  This may not be the smartest thing to do, but I really want to have a decent amount of cash whenever the markets head south.

Final Thoughts

Well, I can’t imagine we’ll be spending nearly as much next month.  I think we got all the larger purchases out-of-the-way in May!

My wife is finally on Summer break and my daughter will be off this Friday.  I’m looking forward to two trips to Mammoth and 1 to Yosemite near the July 4th weekend.  It’s been awhile since I’ve been camping, but it’ll be a ton of fun figuring it out with my family.

Other projects I’ll be working on in June are installing some garage racks and purging a ton of unnecessary stuff!

Readers, how did May treat you?  Any upcoming plans for the Summer?  😉

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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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25 Comments on “Financial Update Report – May 2017”

      1. Totally agree. I was using Mint for a while, but thought it lacked in reporting functionality. So I added Personal Capital and I’ve been pretty happy with it’s aggregate views.

  1. Ahh the occasional month of high expenses! Those can be tough to swallow, but they happen and since they are all good and necessary expenses I’m sure there are no regrets at all. That’s life and it goes on. For the year I’m sure your monthly average expenses are still in line.

    Good month for the real estate! Thanks for the update, Michael.

    1. Good observation, GS. Yes, cash flow is still positive for the year on average. I did wait for our tax refund to pull the gun on a lot of the bigger ticket items. 🙂

  2. We’ve also been talking about checking out Personal Capital, although it’ll probably be more fitting once we hit $0 Net Worth later this year and have some decent investment balances to track. Mint has been my go-to for daily budgeting needs for about 10 years now and I’ll have a hard time ever giving it up.

    Looks like another great month overall and it’s nice to see you allow yourselves to spend some of that hard-earned money along the way too. Thanks for sharing in such a transparent way, it’s very helpful for those of us just getting started to imagine what we can accomplish down the road.

    1. Ryan, Mint is definitely great for budgeting, so need to make the switch until later as you mention. I used Mint for a good several years also back when I was working.

      I’m glad these reports help too. It’s what I would have wanted to see back when I was starting out. 🙂

  3. Congrats on the nice increase! 57k sounds like a great number to me, especially only after one month. I know what it feels like to have big ticket items that you feel like are eating away your cash. But the good thing is they don’t happen often.

    The trips sound so exciting. Hope you have a great time with your family! =)

    1. Ms. FaF, yes, the number seem a bit ridiculous (which is why I reduced it), but that is the power of investing in real estate. 🙂

      There will definitely be a lot of driving this summer. I’m gonna need a new playlist! Have a great summer too.

  4. Woo! Great job keeping that computer for ten years. 🙂 I also have a ten-year-old computer and it’s a bit of a challenge to get, well, anything done on it. 😉 I’m looking forward to some pics of your trips, too!!

    1. MPP, yeah it was a bit strange purchasing a computer this time around because I’ve always had “hook ups” in the past working in the IT industry. Ah well, it was well worth it. I can open like 50 windows now! 😉

      Happy “spendy May”! 😉

  5. When I read your report, I’m finding myself with my jaw on the ground a little bit when you have a net negative income but you’re still up overall from investment growth. Hopefully I can get there soonish – I’ve had net positive income for all of 2017, but my net worth is tied directly to this since my investments haven’t grown too much!

    Thanks for sharing

    1. Erik, I’ll be honest, sometimes I find my jaw on the ground too! It didn’t seem that long ago that I was in your same position where my investments didn’t seem to do much at all. But, as you’ll find out (you’re definitely on that trajectory), compound interest is pretty powerful in the later years once your base in large enough. Stay the course and you’ll probably be further along where I am soon enough. 😉

  6. I bet you’re glad you swapped out that 10 year old computer, despite the $2k deficit this month. Processors have come a long ways in 10 years.

    Seems like you’ve got some great road trips for the family planned this summer! Us too! Enjoy it!

    1. Yeah, quad core procs… woo! I can finally run my videos without them being all choppy. 🙂

      Someday I’d love to take a family road trip all the way through your beautiful state of Washington.

  7. ~$2MM. Very impressive! We love Mammoth and Yosemite as well. We typically go once a year, but this year we couldn’t go yet. My son is turning 2, end of this year, so maybe he’ll be at a place where we can do more stuff with him outside, camping and whatnot; he’s full of energy, in a way that’s hard to contain, so both pros and cons there. Anyways, have fun!

    1. Tim, my son just turned 3 this year, so we think he’ll appreciate camping now. We didn’t do too many trips when the kids were really little.

      Yeah, it’s amazing how much energy kids have! I’m sure our parents said the same thing about us… haha. Have a wonderful summer with your family!

  8. Excellent month, even if it was a peak spending month. It smooths out over the year. 🙂

    We’ve got good plans for the summer – though I’m embarrassed to say that despite being a Californian born and bred, I still haven’t ever been to Mammoth or Yosemite yet. Maybe next year, this summer’s slate is already full with in-state travel, Comic Con in San Diego, a trip to see Hamilton, and a massive home renovation!

    What’s your camping style?

    1. Haha, don’t worry about being a Californian and not doing the obvious… I’ve been in San Diego for 20 years now and haven’t been to Comic Con! 😉 You’ll have to let me know how it is. Hamilton and a massive home renovation seem like a really cool way to spend the summer.

      Oh, and my camping style?? Glamping! Haha. I wish. We’re gonna rough it a bit for a few days in Yosemite, but I think I’ll survive.

  9. Well done on another great month. The new personal capital look is more intriguing… I don’t think I need to do it yet, but I am more inspired than before.

    1. Thanks, ZJ. Don’t fret starting in the hole. When you do finally break free from your debt you’ll have all the momentum needed to build a solid NW.

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