Financial Update Report – August 2016

MichaelInvestment, Misc, Net Worth23 Comments

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Financial Update Report – August 2016

Below you will find a snapshot of our August 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.

Overview 083116

August’s Overview

Wow, summer just flew by, didn’t it?  We didn’t get a ton of heat down here in San Diego, so that’s been nice.  I’m lucky to be able to take my kids all over the county and be active.


Last week’s theme… kites!

Anyhow, August has been interesting.  I’m still in awe that our NW climbs even though we took in a negative cash flow this month.

Net Worth Summary

We ended the month of August at $1,648,827 vs. $1,629,202 this past July.  This is a $19,625 increase in our net worth or +1.2% by percentage.

This increase was considerably nice again this month.  I love the increases of course, but again I don’t know how sustainable this is in the next couple years.  We’ve been in a bull market for quite some time now.  And, once you’ve been around as long as I have, you know there are ALWAYS shifts in market cycles.

So basically, I’m preparing myself to not get “attached” to this “wealth”. 🙂  This applies to both equities and real estate values that continue to rise.


NW Summary 083116

Cash Flow Summary

This past August saw a cash flow loss of -$672.61.  This loss can be mainly attributed to the reduced income we had from one of our rental homes in Las Vegas.  The tenant had to be evicted for non-payment and the property manager took care of the logistics.  

Thankfully there was no major damage, but there were additional costs to turn over the property like wear and tear repair, painting, carpet cleaning, etc.  Oh yeah, a couple of months prior to the tenant leaving the water heater went out.  This cost $850 to replace… ouch.     

CF Income 083116
Income of $10,650 was definitely lower than normal as a result of this tenant loss, but we’ve since found a new tenant (within 30 days) and things should return to normal soon.

If you plan to own property, just remember that cash flow will fluctuate in little spurts like these.  However, if you plan accordingly for this, you won’t be upset and you realize it’s just part of the process.

The rest of the income came from my wife’s teacher salary, rental income, dividend income, and misc investment income.

CF Expense 083116


Expenses were $11,232.  This was similar to last month and up a bit due to a quick staycation with my wife to celebrate our 11th wedding anniversary.


(We did a little kayaking in the La Jolla cove and explored some cool sea caves. $80 for the two of us on a tandem kayak.)

Expenses will be coming down about $60/month after switching over to Directv from AT&T U-Verse this month.  However, we may take $30/month of this to apply towards getting my wife her first smartphone!  She’s been resisting since forever but is getting close to caving in… finally.  🙂

Speaking of smartphones… I did have an unexpected expense this weekend with my current iPhone 6.  This will technically hit September’s numbers, but I thought I’d share it anyway.


That set us back $109 before tax at the Apple store today.  But, at least if my wife inherits this phone now, she’ll enjoy a brand new screen!

(BTW, that was the handy work of my son slapping it out of my wife’s hands)

Portfolio Balances (Equities)

Portfolio Summary 083116

Looks like I beat the S&P 500 for August.  I didn’t really look into why, but I’m just gonna go with it.  🙂

As I’ve been mentioning, the markets do feel a bit high in my opinion.  So, this past August, I did a little “trimming” with my equities and raised my cash position by $30k or so.  I may do even more in coming months.

While I don’t suggest trying to time markets, I will occasionally “shift my weight” in my portfolios to adjust to the momentum of an environment I believe could be coming.


Despite the negative cash flow this month, August ended up being another fantastic month for adding to net worth.    

Oh yeah, I do have one “toy” that I’m planning on purchasing soon… an Apple Watch!


I’ve had my eye on this for quite some time now and I’m eagerly awaiting the announcement for the next release (likely this Wed.).  

I’m eager to get my hands on this to help track some fitness goals, plus I just like tech devices.  If the new watch doesn’t have any major changes, I’ll probably stick with the first generation one.

I hope you all had an enjoyable Labor Day weekend regardless if you had to work or not! 🙂

Readers, how was your August?  Do you have any Fall financial goals?  Do you have an Apple watch? 😉

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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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23 Comments on “Financial Update Report – August 2016”

  1. Nice August Michael! You seem pretty unconcerned about having to evict that tennant and its effect on your cash flow. You must be used to that kind of thing already.

    That always seemed like the hard part to renting property to me…dealing with things when they go wrong. I guess on average it must work out OK though….or no one would bother with rentals.

    1. Actually, this is my first eviction! But as you guessed, Mr. Tako, I’m already comfortable with the averages. Luckily I’ve had some time to build up a cushion before something like this happened.

      1. It is also nice that you didn’t have to do most of the work! I think people overestimate the stress considering you didn’t have to do the day-to-day tasks like filing paperwork and touch ups to rent it out. Rentals aren’t so bad if you let other people do the work and manage your mindset!

        1. We’re definitely on the same wavelength, Brian! At the end of the day, I’m looking for true passive income without my involvement (unless it interests me!).

  2. That’s great you were able to find a new tenant quickly!

    Not so great with the iPhone though… That’s a heck of a spider web!

    I have a few cracks in my screen but nothing that bad (courtesy of my two year old) and recently realized that some folks DIY the screen repair. I’m looking into it more myself.

    1. JW, you could certainly repair the screen yourself if you have the time and patience. There are a lot of YouTube videos showing exactly how to do it.

      The thought crossed my mind as well, but I literally had little splinters of glass falling off whenever I would swipe. I figured that could quickly become a health hazard for me or my kids.

      I also checked out a couple independent repair shops, but it was only a difference of $20-$30 from Apple. So, I opt’d for Apple since you are guaranteed OEM parts and it comes with a warranty. 🙂

  3. That’s quite a thorough smackdown on your phone, there. Your son really showed it who’s boss 😉

    I’m setting some new goals for the rest of the year. I’ve got a big announcement coming on the blog tomorrow, and then I’ll share them!

  4. Nice work! Be careful with that soon to be new watch with the kiddo!!

    Our NW increased 1.6% in August. It surprised me as I thought August was a fairly quiet month for equities. Who knew? Maybe the post-Brexit madness of July made it feel quiet in August.

  5. I really like how you write about your eviction, just another business transaction. It was quite an ordeal for a friend of mine a few years ago.

    I am thinking about acquiring a rental property, the very first, and wonder if you could share the average annual return of various properties you hold, and what kind of return you would aim for when considering a purchase. Thanks

  6. I actually had the same issue with losing a tenant in my rental property a couple years ago and it took almost two months to replace said tenant. That wasn’t so fun. The best decision for me was to unload my property last summer after the most recent tenants moved out and it had appreciated roughly 50% over the five years I had it, with three and a half of those lived in by me. According to Zillow (which has always been on the high side), the property value is basically right where it was a year ago, and the stock portfolio has only gone up, so it looks like it’s worked out so far.

    Great job this month and keep up the good work. I wish i had the balls to post my actual numbers. I’m not sure I’ll ever be there.

    1. TJ, every situation is different. It sounds like you had a nice run with your property before offloading it. Congrats! I also had a property I offloaded. It’s embarrassing, but here’s why… My First Property was a Fat Failure.

      I wouldn’t recommend posting numbers unless you’ve thought it through thoroughly. You can’t take em’ back once they’re out there. 😉

    1. It was a blast. We’ve lived in San Diego for 20 years now and finally checked kayaking in the La Jolla Cove off the list… highly recommended!

    1. Haha, yeah the screen got pretty messed up! It’s crazy that it still worked after, but little shards of glass would fall off after every subsequent swipe.

  7. Pingback: The Church of FI – August 2016 Expense and Net Worth reports from the blogosphere | The Jolly Ledger

    1. D&H, yeah evictions can get messy. Part of the trick to minimizing this, is to stick with a state that favors the landlord of the tenant. If you operate out of a state that favors a tenant, you may be funding a deadbeat tenant for quite a while.

  8. Nice update here Mike! Sounds like a reasonably stable and consistent month :)..
    I’d say while I possibly spent a bit much in August this can be mostly put down to getting back into the swing of things after Europe..

    I definitely have some Spring goals 😉 ha, it’s coming into summer down under!

    1. Yes, I don’t mean to forget you and my friends down under… hehe. Enjoy your spring and upcoming summer! Winters in Southern California are not too far off from summer many years. Mid-70 degrees F year round!

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