Financial Independence Report – September 2022

Michael QuanFI / FIRE, Investment, Misc, Net WorthLeave a Comment

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Financial Independence Report – September 2022

Take a peek at our Financial Independence Report – September 2022.  This includes a synopsis of our net worth and monthly cash flow activity.


Learn HOW to calculate your net worth, but NEVER define yourself by it.  Curious as to WHY I calculate and share our personal net worth?  I explain it here.

Want to track your finance automatically and for FREE?  See how I use Personal Capital to help create these financial reports.  If you’re new to budgeting, download my F.I.R.E. Budget spreadsheet.


September – Overview & Updates

The month started out on the other side of the country as I was attending FinCon22 in Orlando, Florida.

This is always a great time to reconnect with old friends and meet some new ones as well.

 

I also spent a couple of extra days to mastermind in person with my business mastermind. It was great, although, still challenging to get everyone together at one time.

Luckily, we got an AirBNB offsite and were able to connect by just being at the house.

I also spoke on two panels this year at FinCon22 – one about publishing a book and the other one about crypto and NFTs.

To be honest, while I was there, I got a bit down on myself after seeing all of the cool things people were doing. I’ve felt a little bit scattered the past few months trying to figure out what’s “next” and beating myself up for not knowing exactly, or thinking that I do know, and then not following through.

In the end, it was necessary to go through this process and to feel the discomfort. It’s a sign of growth!

What I realized is that I want to do more public speaking as a way to further my impact. AND, I want to continue exploring multiple avenues as I’ve done. I know this isn’t the best business decision, but I have afforded myself the freedom to do so.

With that said, my main goals and intended outcomes haven’t shifted. It’s to serve more people, created a bigger impact, and grow a larger life for me and my family.

So, you may see some changes with the site in the near future, and/or direction. But don’t worry, I’m not going anywhere.

Now, onto our numbers… Our net worth plummeted again, although we did come out cash flow positive, so that’s something!

Net Worth Summary

Financial Independence Report – September 2022

September saw another significant drop in our net worth.

We finished the month at $2,851,136 vs. $2,935,584 this past August.  This is a -$84,448 decrease to our net worth or -2.88% by percentage.

This month saw a loss of value across the board from all asset classes, primarily made up of our stock portfolio and real estate holdings.

Cash Flow

Our cash flow was also POSITIVE for September.

Cash flow was UP this month and came in at +$2,193.

Income

Income for September was also UP from the last month to $13,334.


Our recurring income is primarily made up of my wife’s teacher salary, rental income, dividend income, misc investment income, and online income (coaching, online related, book, etc.).

We’re also missing a little but of short term rental income (~$1100), but will recapture that in October likely. Thankfully I noticed this simply by updating this report this month!

Also, the STR did quite well again in Sept with 28 days of occupancy.

Expenses

September’s expenses of -$11,142 were DOWN compared to last month.

Had to pay our estimated taxes this month to the IRS.

Going out was still a lot this month, but down considerably from the prior month. I’ve been trying to eat in more often when possible. Going out is so expensive these days!

Finally, note that our mortgage payment for our primary residence has been cut down to $2500 which includes our PITI (principal, interest, taxes, & interest) PLUS an extra $300 that goes straight towards the principal (to accelerate our mortgage payoff). I had previously been paying off more of it, but because the interest rates are so high now, I’m in no rush to pay it off when our rate is 2.875.

Portfolio Balances (Equities)

Another month and a big slide back down… almost a 10% correction which happened fast!

And, I’m super grateful that I pulled out $36k of VTI just as Jerome Powell made his comments in Wyoming in Sept. You can’t always time these things, but I made an educated guess and it paid off. With that said, if the cash wasn’t going to be allocated already, I would have just left it in the market.

We’ll see where we go from here!

 

Financial Independence Report – September 2022

Whoa, this portfolio is looking pretty thin compared to last year.

Final Thoughts

It’s kind of crazy to think how long we’ve gone without a recession! But, it’s long overdue and I’m excited.

It’s hard to believe, but we’re still waiting to be approved for our HELOC from BofA. They’ve been dragging their feet so long that they had to re-run our credit reports again! At this point, who knows how long this will take… only time will tell. It’s also frustrating because I’ve had to keep some credit card travel reward opportunities on pause while this is processed.

However, I am excited to see numerous properties in Vegas start to cool off from their ridiculous highs just a few months ago. I suspect we’ve got further to fall AND once I do have the HELOC in play, it’ll be nice to make quick cash offers and ideally scoop up some lucrative deals.

I’m also continuing to dollar cost average into the markets via ROTH IRA contributions, strong NFT projects, etc.

Don’t miss the boat! Opportunities are NOW and in the future. But, you’ll miss them if you operate in fear.

Readers, how was your September? What opportunities are you identifying?

 

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