Financial Independence Update Report – July 2021

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

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Net worth Report July 2021

Financial Update July 2021

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

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July – Overview & Updates

July was fun. Since we knew school was about to return (we’re in a year-round school system), we took a quick trip to Disneyland and California Adventure.

Surprisingly, it wasn’t as packed as I’d anticipated.

So we were able to get on a lot of rides and even got to ride Rise of the Resistance which was outstanding… highly recommended!

We also had a back-to-school movie night in the cul de sac with our neighbors and watched Black Widow.

And, by July 21st, they were back in school… woohoo! (Or so I thought)

It was nearly a year and a half since the kids were away from being physically at school, what could go wrong?

Well, I was super eager and happy to see them off the following day. AND, I was excited to get some free time back to myself without any distractions. And, for the first 3 days, it was fabulous!

The only problem is that it was short-lived. By the following week, despite wearing masks and keeping distant, about 20-30% of the school caught a cold. Thankfully it wasn’t anything serious, but it was a bit scary not knowing at the time.

Our school district’s policy is that if you’re out sick, you need to come back with a COVID negative PCR test result. So, guess who was back home with the kids all of last week?

Oh well, everyone is nearly healed up now and it’s back to school business this week.

How about you? Have your kids returned back to school?

Alright, let’s get to the good stuff… $$$

Net Worth Summary

2021 July Net Worth Summary

July was a good month for net worth.

We finished the month at $2,821,866 vs. $2,792,965 this past June.  This is a +$28,901 increase to our net worth or +1.03% by percentage.

These increases can be attributed to the increase of our real estate holdings and NOT our overall stocks portfolio values which actually dropped a nominal amount.

Cash flow was FLAT for July.


2021 July Cash Flow Summary

We ended up with a -201.70 of cash flow for the month which made it essentially a breakeven month.

Income for July was DOWN from the last month to $13,756.


2021 July Cash Flow INCOME f Summary

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.).

The STR (short-term rental) property continued to do well in July, renting 30 out of the 31 days. We had $4000 of revenue for the month which continues to blow my mind.

Although we’re still waiting for our CA refund, we got some answers finally. It looks like the Franchise Tax Board wasn’t able to verify a portion of our pre-paid taxes. So, our CPA has been helping us to get this squared away and fax documentation to this effect last week. With any luck, we’ll receive it in August sometime.

We did however get a $333 child tax credit from the FED. However, we did not get the full amount as our AGI from last year was too high with the sale of our townhome.

Expenses



2021 July Cash Flow EXPENSE Summary

July‘s expenses of -$13,959 were DOWN compared to last month.

Our largest expense last month was our quarterly advisory fees. Yes, this is expensive, but they are super convenient.

We saw another hefty month in the restaurants category. Restaurants are still a large portion of our expenses, and I will pull back on this more this coming months. Food prices have been astronomical!

I also spent $400 to replace our Fujitsu document scanner as our other one broke. Totally worth it though to digitize everything and save on space.

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

Portfolio Balances (Equities)

Despite the market moving forward a couple of points, our portfolio values stayed the same. A large part of this is attributed to management fees from our wealth manager.

Our U.S. stocks allocation continues to be the largest percentage of the portfolio. It’ll be interesting to see how this fluctuates before the year-end.

Final Thoughts

I’m excited to say that Barnes and Noble reached out a couple of weeks back and wants me to do an in-person discussion & signing. That will be fun!

If you’re local to San Diego, please come say “Hi” in person. I’d love to meet you.

Barnes & Noble San Diego – Point Loma – August 28th @ 2:00 pm

 

One future purchase I also made in July (with points) was a trip to Hawaii!

Although we would have preferred to go in the Fall, both my wife and I will be traveling during our kids’ school break.

So, we’re booked for the end of the year and thankfully I still can use my companion pass for my son (at least one way).

I haven’t booked the hotels yet cuz the pricing is a bit crazy. Hopefully, it falls a bit, or I’ll get to become more resourceful.

Car rentals are still astronomical too. So, I may consider TURO, but I hear it can be a bit dicey as owners may cancel on you without a lot of lead time.

 

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

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

  1. Just discovered your blog! Great info. What specifically are your Quarterly Advisor Fees? Do you have a financial advisor, stock broker or something different?

    1. The fees are based on graduated schedule, but ~$2300 the last quarter. We use a RIA that helps with the portfolio mgmt, estate planning, etc. It’s expensive, but I don’t have to think about it… we’ll except when I see the fees! 😉

    1. Yup, I think it sucks most of the kids or those who are at higher risk and unable to take the vaccine. Fingers crossed it gets approved for kids sooner than later.

  2. Oh man! I am excited for my kids to go to school next week, but I can only imagine something similar will occur. Ah the fun of parenting during a pandemic.

    Glad you guys made it to Disneyland though. Sounds like a great “summer break” – hehe. Hope the rest of your kids school year is a bit smoother!

    1. Yeah, it was a bit crazy. It was like dominoes with all of our neighborhood friends. Out of 10 kids, I think only 1 was able to avoid the cold! Luckily it was a mild one.

      Hope your kids’ transition back to school is smoother. 🙂

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