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.
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.
Cash Flow Summary
It was nice to see positive cash flow of $1327 for October.
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.
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)
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.
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?