Financial Update Report – October 2016

MichaelInvestment, Misc, Net Worth16 Comments

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Financial Update Report – October 2016

Below you will find a snapshot of our October 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.


Financial Update Report – October 2016

October’s Overview

How was your Halloween?  We had our annual neighborhood block party which was a lot of fun.  My kids are young (4 & 2), so they really enjoyed dressing up and collecting candy (even though they’ve only had 2 each!).  Little K is in her princess phase, so she dressed up as Princess Ariel.  Little L dressed up as a Teenage Mutant Ninja Turtle – Leonardo!

BTW, did you see the Game 7 of the World Series tonight?  Amazing!!

October flew by super fast.  Looking back this past month we had some nice progress in both net worth and cash flow.  Let’s check out why.

Net Worth Summary

We ended the month of October at  $1,703,254 vs. $1,661,206 this past September.  This is a $42,048 increase in our net worth or +2.5% by percentage.

As we’ve seen in previous months, a lot of the net worth increases have been due to the rise in real estate values across all of our properties.  In fact, as you’ll see later, we were actually negative in our equity portfolio for the month, so real estate saves the day again!

Having said that, you know I don’t place a huge reliance on these numbers because it may or may not be accurate.  The value of your property is only worth what someone will pay for it and there are of course transaction costs if we ever decided to liquidate any properties (which we have no plans to do).  Nevertheless, a net worth snapshot is helpful as a gauge to see how you’re doing at different points in time.

october-2016-nw

Cash Flow Summary     

It was nice to see positive cash flow of $1327 for October.

october-2016-income

Income of $12,384 was slightly higher than last month.  This can be attributed to full rent being received by a new tenant, and a small increase to my wife’s salary after adjusting our withholdings (we were withholding too much before).

Income is primarily made up from my wife’s teacher salary, rental income, dividend income, and misc investment income.  I also had a couple Personal Capital referral checks too!  🙂

I was hoping to start picking up a little income as well from my FBA project, but there was a sudden shift in Amazon policy.  Basically, they aren’t taking any new products into their warehouses from new sellers until after the holiday rush.  It sucks a bit because I missed it only by a couple of days!!  Oh well, I’ve got plenty of other things to work on in the meantime.

october-2016-expense

 

Expenses

Expenses of $11,058 were back within the normal range compared to last month.  Some misc expenses included a quick date night with my wife which consisted of dinner and a couples massage.  We also spent $600 on a new full-sized mattress for my daughter.  It was a little more than we wanted to spend, but ultimately we decided that getting a quality mattress was important for posture, a good night’s rest, and longevity.  It better last her into college…. just 12 years away!  🙂

Portfolio Balances (Equities)

october-2016-holdings

october-2016-portfolio

As you can see, my portfolio was tracking identically with the S&P’s performance.  Both were down nearly 2 points (2%) this past month.  I can foresee this dropping even further which is why I’ve taken a defensive position in cash lately.  In fact, I may still sell some additional equities before the year is over.

Thoughts

With the passing of Halloween, we all know that Thanksgiving is around the corner.  Christmas and New Years are just behind.  Now’s the time to take a final assessment of your 2016 goals and take action!  It’s not too late if you hunker down now.

For me, that means continuing to chisel away at my FinCon to do list which has already led to some fantastic opportunities (new mastermind group, guest post at Financial Samurai, guest on a podcast, etc.)

Finally, keep a look out for my annual charitable cause post soon.  This is an opportunity for you to share your favorite causes/charities with me and I’ll make a donation to someone’s favorite organization.  Remember, the holiday season is a fantastic time to open your heart to others.

 

Readers, how was your October?  Any final financial goals or actions you’ll be taking before year-end?

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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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16 Comments on “Financial Update Report – October 2016”

  1. Thanks for sharing these reports Michael. It’s always nice to get an inner look into how people are managing their money. I’m new to the game, but hoping I can get up to that net worth level one day!

  2. OMG Game 7 was amazing!! Best world series since I can remember.

    Congrats on the huge net worth increase. LOVE REAL ESTATE!!! 🙂 Im anticipating a hefty jump in my net worth in January once I manually re-ululate all my current home values. Looking forward to it.

    1. Thanks Alexander! Gotta love the power of real estate.

      So, I watched Game 7 off my DVR last night. I’m so glad I tacked on an extra 3 hours of recording time to the allocated time span. Who could have ever imagined and the ups and downs… and the rain delay!! Always awesome to see two quality teams battle. 🙂

  3. Interesting. I am still curious about the stock picking thing. I was just reviewing some of the materials related to the two funds I own (one is an ETF) and one of them tracks the DJIA and the other tracks the S&P 500. The managers have all the work to do to track these indices and I end up being extremely diversified without even trying. It seems like such a good way to go (or I am lazy) so I was curious if you like picking your own stocks better to try to beat the averages or for other reasons?

    I’m very interested in hearing more about your FBA experiment. That’s something I would like to explore as well at some point. I enjoyed your post over at FS as well. Great idea to guest post over there – you are in honorable company!

    1. Glad you enjoyed the guest post, Jesse! It’s my first one so I wanted to create something quality for FS.

      As far as choosing index tracking ETFs or developing an individual portfolio of stocks, my answer would have differed WHEN you asked me this question. When I was younger I was all about trying to beat the indices myself. However, I realized that it took a lot of time and effort to try and squeeze out a couple extra points (which I’d get sometimes and sometimes not). Today, I’d much rather go slow and boring into an index ETF and spend that time and effort in other areas like real estate or working a side hustle.

  4. Game 7 was the best, so glad we moved the mastermind meeting!

    My goal is to set up financially as a married couple. Probably new accounts, combining some, and who knows what else.

    Also – I didn’t know you did a guest post at Financial Samurai. Very cool, will read it now!

    1. I DVR’d Game 7, so I didn’t find out who won until 2:30am. I’m glad I tacked on an extra 3 hours to the end time. I would have been really bummed if it cut-off during the rain delay!!

      Great thoughts around consolidating your finances now that you’re married. Does you wife like to be involved? Or, do you think she’ll be more hands off?

      My wife lets me run with it, but I still do my best to update her from time to time. I’m like, “Wanna know how we did last month?” “Sure!” she’ll say. “Go read our monthly update the blog!” 🙂

  5. Nice update here Mike! I see that you had a spike of about 40K in net worth, along with a positive in cash flow as well, always a good sign :)!

    Congrats to the Cubs, a little bit of a wait although they got there in the end haha..
    My October wasn’t fantastic from a cash flow perspective although November is looking great

    Cheers for the update!

    1. Hi Jef, yes I can’t complain about October! Yeah, Cubs only had to wait 108 years to pick up a world series championship. That’s a long time to wait, but persistence wins the race every time. 🙂

  6. The World Series was crazy, especially the last game! I grew up in Chicago and never thought they’d win, haha. Great net worth increase, even those you were actually negative in your equity portfolio for the month. A great reason to stay diversified.

    1. Haha… well even though you didn’t believe, Michelle, congrats anyway! What a fantastic series all the way down to the final inning.

      Great point about diversity. There will certainly come a time when real estate will be headed down and hopefully one of my other asset classes will step up to whether the storm.

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