Financial Update Report – November 2016
Below you will find a snapshot of our November financials – including a brief synopsis of our net worth and cash flow.
Find out WHY I calculate and share our net worth – here. Please note 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.
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!
This month always seems a bit shorter due to the Thanksgiving holiday. I really love November though, because it brings together our family and friends that we don’t always get to see on a regular basis. And, there was so much that I’m thankful for this year.
Of course, I’m thankful again for another uptick in our net worth, despite a negative cash flow this month.
Let’s check out why.
Net Worth Summary
We ended the month of November at $1,721,345 vs. $1,703,254 this past October. This is a $18,019 increase in our net worth or +1.1% by percentage.
As you may notice further below, we had a nice increase in our equity portfolio of ~$11k. Combined with continued rising property values, we were able to push upwards a bit more.
Remember that net worth is simply a guiding metric to see where your financial trajectory is going. Keeping an eye on cash flow is just as important (if not more).
Cash Flow Summary
Well, we managed to find ourselves back in the red this month – i.e. negative cash flow of -$1646 for November. Let’s see why…
Income of $12,059 was on par with last month.
Income is primarily made up from my wife’s teacher salary, rental income, dividend income, and misc investment income (eg. RealtyShares).
For 2017, I am already planning to make a concerted effort to increase my own personal income from the blog by spinning off some courses and other affiliate related resources (the ethical way!). I’m excited because I’ve been laying the foundation with the blog the last year and a half and I can feel momentum growing. I actually just completed my first podcast interview which should go live in the next couple of months. 🙂
Expenses of $13,075 was definitely an increase compared to last month. The additional spending can be attributed to charitable giving, an increase in restaurants spending, and some online services which are more business related than personal. In fact, as I write this, I noticed I was automatically charged a few hundred dollars for hosting I don’t even need! So, remember, as great as automatic billing is, it can also be dangerous if you’re not monitoring it closely.
In fact, as I write this, I noticed I was automatically charged a few hundred dollars for hosting I don’t even need! So, remember, as great as automatic billing is, it can also be dangerous if you’re not monitoring it closely.
Portfolio Balances (Equities)
So, we were definitely trailing the S&P index for the month. That’s okay though, because we’re still up for the year.
As you may remember, I’ve been hoarding more cash lately. Ironically, the market just keeps going up. So, it’s a good time to point out that you never really know what’s going to happen with the markets. At least I don’t! But, I still try to nudge my portfolio one way or the other if I think I see a trend coming. I’m still a bit bearish from this point, but I’m humble enough to know anything can happen from here.
What I do want to point out is that I really don’t spend a lot of time and effort in this area. I can’t really influence the performance of a stock. So, it’s important to focus your efforts on ideas and assets that you can control. For me this a side hustle, or purchasing an investment property. Not only do you hone your skills as an entrepreneur, but you have a much better chance of leapfrogging the traditional “slow play” investment strategy.
One final appeal to comment on my Charity Challenge! Your comment WILL make a difference. Don’t miss out! You’ve got until Dec. 5th, but don’t wait.
Finally, as went enter this final month of 2016, see where you can eek out a tiny more juice from any 2016 goals you may have had. Even if you didn’t start on some goals that you had, a little progress = some progress. Build that habit of taking action and you won’t need to live in a world of regret.
Readers, how was your November? Did you get sucked into any Black-Friday or Cyber-Monday deals (like I did)?