Financial Independence Update Report – August 2021

Michael QuanFI / FIRE, Investment, Misc, Net Worth6 Comments

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Financial Update August 2021

Take a peek at our personal numbers for the month of August 2021.  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.


August – Overview & Updates

August was a busy month for me as I finally had my first book signing… whew.

It was exciting, fun, terrifying, and nerve-wracking all rolled into one. More importantly, I got through it and was so grateful for everyone who came out to support me.

It felt great to do something out of my comfort zone as I value growth highly.

Aside from that, I went out fishing offshore in San Diego, but we came up empty-handed for the larger pelagic fish (eg. tuna). Next time!

I’ve also taken a deep dive into crypto once my book event was done. There are so many rabbit holes to follow, but I’m feeling much more confident in my new level of understanding and will be sharing these specific ideas and strategies with my OnFIRE Income Accelerator group soon.

I even picked up a secret rare Spider-man NFT at the beginning of August. This is Marvel’s first NFT so I’ll likely hold this one for quite a while.

Finally, I celebrated my 16th wedding anniversary and got to share a little Hollywood getaway with my wife for the day.

We got to use some Hyatt points for the room here (Thompson Hotel). Points well spent!

Finally, I booked our room for Hawaii during New Year’s. Prices were pretty steep, but I found a great deal through Tripadvisor. However, I wasn’t able to use points for this one.

Okay, let’s get to the numbers!

Net Worth Summary

August was another decent month for net worth.

We finished the month at $2,855,215 vs. $2,821,866 this past July.  This is a +$33,349 increase to our net worth or +1.18% by percentage.

These increases can be attributed to the increase of our real estate holdings and a 1/3 of the increase is a rise in our stocks portfolio.

Cash flow was UP for August.

We ended up with +$1819 of cash flow for the month.

*As you’ll see above I had to make some manual adjustments here and with the income accounts as Personal Capital has been having some problems recently – including some income entries not making into my total monthly cash flow. So I had to make some manual adjustments.

 

Income for August was UP from the last month to $17,231.


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

As mentioned above, Person Capital isn’t showing all income entries. So, the adjustments are for the missing STR income AND online income (coaching this particular month).

The STR (short-term rental) continues to do well income-wise, however, we’re having some issues with the AC again… so profitability took a hit in August.

Expenses



August’s expenses of -$14,634 were UP compared to last month.

As you can see we had a fair amount of expenditures. The second largest is actually for future travel to Hawaii at the end of the year. This is for our future hotel accommodations which they’ve already charged for.

We saw another hefty month in the restaurant’s category (again). We spent a nice chunk celebrating our anniversary and food prices are definitely on the rise. I wouldn’t suggest spending this much on food unless you really value this (we do).

Personal care was higher too as we got a nice couples’ massage for our anniversary.

And, note there was a $400 energy bill in our STR! Ouch. Looks like the AC has been going a bit rogue and I’ve been working with my friend Allan to get this resolved once and for all (although this saga keeps dragging along).

Also, note that our mortgage payment of $4000 includes our PITI (principal, interest, taxes, & interest) PLUS an extra $1820 that goes straight towards the principal (to accelerate our mortgage payoff).

Portfolio Balances (Equities)

The markets have continued to move upwards in August. So we again get to see the effects of compound interest in our favor.

Not too much to report on our stocks allocation. This more or less remained the same from last month.

Final Thoughts

August was a great month of new experiences and new highs.

I’m looking forward to the Fall temperatures soon in San Diego… nice cool mornings followed by some warm sunshine always hits the spot.

In September I’ll be heading to Fincon, a financial influencers conference, in Austin, TX. I’m looking forward to seeing old friends and connecting with my mastermind group while I’m there. I will also get an opportunity to hit Dallas for a couple of days on the tail end and even meet up with Mr. Hobo Millionaire while there.

Also, I’m hopeful that September will finally be the month we get our California state income tax refund! We’ve had to jump through numerous hoops, but I finally got some resolution with the franchise tax board. Turns out my CPA accidentally filled out the wrong line for withholding and caused this huge backup.

 

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Readers, how was your August? What did/are you going to do for summer?

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6 Comments on “Financial Independence Update Report – August 2021”

  1. Wow an NFT! I’m really into cryptocurrencies but haven’t dived into the world of NFTs yet but that’s really cool that I know a fellow personal finance blogger who bought it!

    Congratulations, may it go up to 8 figures in profit soon 😉

    I can’t wait to hear about your Hawaii travels. That’s a state that I’ve been wanting to visit for a very long time.

    1. The AC has been a comedy of errors. It first started by not blowing cold air. Thought we got this resolved during the inspection, but had the same issue after closing. So the home warranty techs came out to “fix” it (again). And they seemed to have except my power bill shot up to $400! So that led to the installation of a smart thermostat which then led to more troubles…. let’s just say it’s still ongoing. Hopefully it’s resolved by when I see ya!

  2. I’ve been having issues with my central air in my STR also. The cost to repair sucks but also messes with my rating as guests aren’t happy. Hoping to fix it once and for all also. Do you have a nest thermostat to keep the energy bill down?

    1. Man, this AC has been like a rusty nail in my side since the beginning. I’ve had the home warranty techs out twice, my PM guys out multiple times, and still having issues (they’re already on the second smart thermostat – we’re using the ecobee most recently)… arghhh. Thankfully my friend is doing a great job otherwise and the cash flow can handle it. They also do a great job managing communications. So, hopefully we don’t get hit too hard with the AC issues. Glad to know I’m not the only one in this “boat”!

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