Financial Update Report – March 2021

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

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Financial Update March 2021

Take a sneak peek at our personal numbers for the month of March 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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March – Overview & Updates

March was a busy month!

I bought a new rental property, knocked out our taxes, purchased my first bitcoin, celebrated my birthday, and I got to finally hold my book in my hands!

I’ll start from the top. As I mentioned last month, I was looking for a short-term rental property. Well, I found one! The property was nearly turnkey and pretty much ready to go. I made a solid offer of $130K cash on a list price of $140k. It worked! This was an incredibly smooth transaction. Both my agent and seller’s agent worked well, and things got done quickly and efficiently.

There were some minor repairs which the seller took care of and I’m happy. For example, the dishwasher was leaking, and the AC wasn’t blowing a lot of cool air.

Next, up my friend who will be helping me to manage the property is furnishing it and getting it ready to rent out. It should be ready mid-April and we’ll be taking a quick family trip out to see the new place. We’ll be the guinea pigs.

March is usually our tax deadline to get all of our documentation and details over to our CPA. I took care of it and met the time requirement only to find out a couple of days later they were extending the tax deadline this year to May 15… go figure. It’s all good though because it won’t be hanging over my head when I’m focused on upcoming book stuff.

So, I finally made a speculative bet by buying some bitcoin. I did this through BlockFI because they actually give you a return on your crypto account and give you a signup bonus too! If you’re considering it, check out my partner link (thanks!) which can get you a bonus worth up to $250! Anyhow, I funded my account with $1000 to start and have bought BTC in $100 increments a few times. Prices have been fluctuating around $55K to $59K.

The F.I.R.E. Planner

And to help celebrate my birthday this year, Simon & Schuster sent me a couple of author copies of my book! That was an awesome feeling to hold it in my hands. The book, The F.I.R.E. Planner launches in just a month now (May 4th), so I’ve been busy reaching out to other bloggers/influencers. To celebrate the book launch, my friend Jennifer is going to have me as a guest for our local ChooseFI group. Unfortunately, I just recently found out that there won’t be any in-person book signing opportunities… oh well.

If you’d like to WIN a free copy, we’re running a Goodreads giveaway where we’re giving away 20 copies!

Anyhow, let’s jump into our financials…

Net Worth Summary

 

March was a strong month for net worth.

We finished the month at $2,520,065 vs. $2,489,239 this past February.  This is a +$30,826 increase to our net worth or +1.23% by percentage.

Our stock portfolio led with a sizable increase (~$67k). However, our real estate and cash values went down this month. Part of this was from the property purchase. The zillow estimate was lower than what I paid for it. On the flip side, our primary residence value went up higher than I think it’s worth. So, just a reminder that zillow’s zestimates aren’t a perfect pricing metric, but it’s an easy way to keep track of estimated real estate values.

Cash flow was UP for March.

We ended up with -135,929 of cash flow for the month.

Income for March was up from the last month at $12,090.

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.).

Next month I hope to be higher again with the 3rd round of stimulus coming in. With that said, I’m still a bit concerned with the inflationary pressures this will create in our monetary system.

Once the STR property is in place, we’re targeting income of about $3000/month and about $1500/month in expenses. So, there should be another $1500/month that will drop to the bottomline.

Expenses


March’s expenses of -$148,020 were up A LOT compared to last month.

As you may imagine, this is from the cash purchase of the STR property in Vegas. There are additional expenses in here that cover furnishings, TV, supplies, etc.

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

Portfolio Balances (Equities)

 

We funded our 2020 Roth IRAs last month, and put some additional capital to work.

With so much $$ being printed, I think we’ll keep riding up for a while. If we do enter a correction, however, we’ll be ready to deploy some additional cash into this year’s Roth IRAs.


Our U.S. stocks grew nearly two points last month. So, that’s where you can see a widening of the US vs International gap widening. I’m not quite sure the trigger point from our wealth manager for rebalancing, so I guess we’ll see in the coming months.

Final Thoughts

The book release has me pretty busy these days. However, once that settles down, I’ll be considering financing for the new Vegas property. Unfortunately, rates have started to climb higher, but they’re still down relatively low in comparison to the past few decades.

I’ll still be playing with my speculative BlockFi account and trying to pick up more bitcoin on days there are big drops.

Anyhow, I had to share this (I already have for my newsletter subscribers) because it’s fun to get excited about “investing” sometimes… even if it’s “speculating”. Have fun, but be smart.

Readers, how was your March? Did you do any financial spring cleaning?

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6 Comments on “Financial Update Report – March 2021”

  1. Awesome. Congrats on the book! That must feel amazing. If you are going in on blockchain/crypto, make sure to pick up some ETH too. It’s obviously peaking at the moment, but it will be the backbone of the decentralized internet. So I think it’s worth it to consider if investing in blockchain tech.

  2. Congratulations on your STR and new book. How exciting! I wonder how you are going to manage it from afar? Just curious. I bought my rental in the Bay Area , which is where I live. But ROI is not as good as what you would get.

    1. Great question, Thomas. This will be my 3rd rental out in the Vegas area. And while I was apprehensive in the beginning, I have full confidence in my property managers. They pretty much handle everything and just get me involved for larger decisions. With that said, I spent a fair amount of time vetting them in the beginning… there are bad PMs too!

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