Financial Update Report – July 2017
Below you will find a snapshot of our personal financials for the month for July 2017. This includes a brief synopsis of our net worth and monthly cash flow activity.
Curious as to WHY I calculate and share our personal net worth? I explain it here.
Want to track your finance the same way? See how I use Personal Capital to help create these financial reports absolutely FREE. Also, download my budgeting spreadsheet found in my popular post – How to Budget Like a Bad Ass!
Whew, this month was a bit of a blur with 2 trips, a week of volunteering, and sending my kids back to school! I’m thankful that I had the last week to finally catch up a bit.
I’m also grateful that our finances stayed intact while I was away. 😉
Let’s take a look. Overall we had a small negative for cash flow for the month, but a decent push forward in NW.
Net Worth Summary
Net Worth moved ahead again, with us ending the month of July at $1,917,748 vs. $1,886,134 this past April. This is a $31,614 increase in our net worth or +1.7% by percentage.
A good chunk of this increase was added from our real estate holdings. I finally took away the adjustment for the real estate values after the last two months because, since that time, there have been more properties sold in our community that better validate the comps (comparable real estate).
Of course, this is a bit fun to watch as we creep closer to $2M, but I’m also very aware that this equity could vanish quickly. Let’s see how high this can float before the balloon pops. 😉
Cash Flow Summary
July was a negative cash flow month with a loss of -$720. I’ll discuss the additional expenses below.
Income of $11,420 for the month was down a bit as we are missing income from our vacant San Diego property.
The good news is that we have re-rented it out and actually received our asking price of $2995/month vs. $2760/month with the previous tenant.
We also re-rented the Vegas property at the higher rental price of $1500/month vs. $1350/month previously.
Our income is primarily made up from my wife’s teacher salary, rental income, dividend income, and misc investment income (eg. RealtyShares).
This month we spent $12,140 which was about average for the year. Some of the additional expenses were from a donation we made of $800 to help a friend’s family deal with unexpected funeral costs.
We also had several bigger real estate related items to address like new carpet, painting, kitchen sink, blinds, etc. This cost around $5500, so it’ll take a little while to catch up with a positive cash flow for this property. Thankfully it’s been pretty low maintenance at this property for the last few years, so there are reserves to carry these costs.
Portfolio Balances (Equities)
With regards to our equities portfolio, we’ve been gaining steadily as the markets rise, though we were trailing the S&P this month.
I also ran Personal Capital’s investment checkup tool. It shot out some interesting data including my largest held stocks (by value). Aside from my index funds/ETFs, AMZN is my largest holding (30 shares worth ~$30k).
It’s interesting to see some of these where they are today given I purchased many of these so long ago. PYPL (PayPal) was a spinoff from Ebay stock I held since 2002. Google has performed nicely as well over time.
Realty Shares Update
In addition to everything else that was going on this past month, I also received back the principal from two remaining Realty Shares investments. This is significant because these were my final two open investments.
As I noted in a prior post, Realty Shares is where I was holding a chunk of change. In this specific case, I was returned capital in the amounts of $8,000 and $15,000. They are still calculating some of the profit payments, and that will come over soon. I’ll let you know if the targeted IRR (internal rate of return) was hit or now.
Overall I have been very satisfied with Realty Shares the past 3.5 years, however, the investing environment has been shifting and I’m contemplating my next REI moves.
I’ll be honest, I was pretty checked-out this July with so many things going on. Yet, our assets continue to work for us in our absence. This just goes to show you the power of compound interest and the importance of creating a solid asset base, and it reaffirms my mission to help anyone else looking for FIRE (Financial Independence, Retire Early) as much as possible.
Ah yes, before I forget, my first podcast (Masters of Money) with PT (Phillip Taylor – Founder of FinCon) was finally released. You can find it here if you’re interested in hearing me ramble. 😉
I hope you’re having a wonderful summer while working hard to achieve FI (financial independence).
Readers, how did your finances do in July? Any notable events or vacations?