Financial Independence Update Report – November 2021

Michael QuanFI / FIRE, Investment, Misc, Net Worth2 Comments

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Financial Independence Update Report – November 2021

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

Hello, F.I. friends! It’s that time of year again when the weeks melt into days and before we know it we’re in the middle of the holiday season.

Last month has been quite busy with both travel, building out my latest side hustle, and family time during the Thanksgiving break.

First, NFTs have still been taking up a chunk of my time these days. I’ve been busy recording/editing the content for NFTs UNLOCKED and not buying & selling as much during this time (I did pick up the first Disney and Star Wars NFTs tho!).

First Disney NFT

This side hustle has been fun because it’s something that I would already be doing myself, so why not help other people in the process? It’s been great though to have eager students wanting to learn best practices with buying and selling their first NFTs for profits. We’re up to 27 members now which is fabulous!

Outside of NFTs, I have made a few additional moves with crypto. I sold off some stocks to invest some additional monies into crypto (BTC & ETH). With recent volatility, I’ve been doing my best to catch downswings and taking advantage of the no-wash rule for now… gotta take your advantages when you can.

The further I dive into crypto and NFTs, the more bullish I’m becoming from a technology perspective. We’re on the cusp of shifting to Web 3.0 and there’s no lack of creativity (especially within the smart contracts) and new innovation with blockchain tech. It’s true that most of this tech may disappear over time, but that’s just a sign of innovation. There are many places to profit as early investors and innovators. That’s why this past month I sold off some stocks and reallocated to crypto and my NFT funds. Although crypto investments only make up 2% of our overall NW, I will continue to invest well into 2022 AND get greedy during the volatile market swings downwards.

Part of why I’m doing this is also because the US dollar is in jeopardy. It has been for a while, which is why I hold ASSETS vs. cash. However, with crypto now in play, China becoming the dominant commerce giant, and inflation rampant, it’s going to be a harder sell for the US dollar in the long run. We still have some time, but I do believe there’s a transfer of wealth occurring and it’s on a global basis. Have you ever considered what would happen if the US dollar was no longer the world’s reserve currency?

Speaking of assets, I’m still looking for more short-term rental properties, but the competition is still high and prices are up. The unit across from mine that I purchased for $130k is going for $180k just several months later.

We are also turning over our traditional LV rental properties as our market rates were too far below market rates. There’s a little rehab to deal with, but it’ll be nice to get the places back in good order and be able to pick up the additional cash flow soon.

Finally, I had a fantastic trip out to FL to serve as a youth leadership captain during Tony Robbin’s UPW. I got to do this with my great friend, Allan, which was beyond amazing, and make some new friends in the process. It’s so encouraging to see and be present in the energy of the youth (ages 14-17). In fact, one takeaway was to build out our own youth entrepreneurship program for this age range. The younger we can get our kids hungry, creating value, and leveraging time, the better.

AND… this past month we finally hit $3M in net worth (for a few days at least… it fluttered back before the month closed out). We’re incredibly blessed to continue to grow our assets even as I live a non-traditional FIRE lifestyle.

Okay, let’s get to the numbers!

Net Worth Summary

Financial Independence Update Report – November 2021

November was a nice move for net worth. As I mentioned above, we hit $3M towards the mid-end of the month, but it didn’t stick… ah well.

We finished the month at $2,985,839 vs. $2,936,257 this past October.  This is a +$49,582 increase to our net worth or +1.69% by percentage.

These increases are primarily from real estate appreciation and savings. Stocks were a bit up and down this past month, so our portfolios didn’t add anything this time.

Cash flow was POSITIVE for November.Financial Independence Update Report – November 2021

We ended up with +$2,577 of cash flow for the month.

*Note this doesn’t account for the extra principal we are paying. 

Income for November was DOWN from the last month to $16,304.


Financial Independence Update Report – November 2021

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

Online income was decent again with the addition of new members to NFTs Unlocked. Rental income was down as we turn out the old tenants and find new ones. We’ll likely have another drier month in this area for December too.

Expenses

November’s expenses of -$13,729 were DOWN compared to last month.

The largest contributors this month can be attributed to property taxes (I paid an extra quarter also so I don’t have to deal with it while we’re in Hawaii… more on that later).

Finally, 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). So, technically this is another form of savings.

I’m still focused on my NFTs group at the moment but am seriously considering shifting the mortgage to a HELOC to take advantage of the accelerated banking principal.

There are some bigger rehab expenses coming up next month.

Portfolio Balances (Equities)

The markets marched forward at the beginning of the month, and then pulled back for a loss.

I got a bit lucky as I sold some off during the highs to fund some crypto purchases.

How did your portfolio fare last month?

Financial Independence Update Report – November 2021

Our stock portfolio has been rebalancing with more alternatives (crypt0) lately.

Final Thoughts

One final activity that I was on top of at the month’s end was getting my wife a new Southwest credit card. We had to cancel her old one but were able to get her a new one with a 100k point potential. This will be great because it will be an excellent start to getting her companion pass some time in mid-March. This means any time she flies, she can bring along someone for FREE! And, after some debate, I decided I should go after it too. I had to also shut down a couple of cards but was able to snag one the final day.

*If you ever need to close out a credit card, ask them to move the existing credit from that card over to another one as this will then minimize the effects on your credit score.

These two moves coupled with her Chase Sapphire Preferred card we got her a couple of months ago will likely yield $10k+ worth of FREE travel.

And speaking of “FREE” travel, we’re heading to Hawaii! Yup, I booked this with my existing companion pass (expires year-end) and used up points we had to fund this trip. We can’t wait to ring in the new year over there and show the kids around.

Readers, how was your November? Any big holiday plans coming up?

 

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2 Comments on “Financial Independence Update Report – November 2021”

  1. Michael, you must be sandbagging us! You couldn’t find a way to $14K in all this?!?!! Suuuuuure!:-) Well, December will be a nice way to close out your year, congratulations on all your progess and accomplishments in 2021. Also admire your generosity of spirit in offering your mentorship and guidance in FL to the Tony Robbins’ youth group. And if I haven’t mentioned before, really like your opening for the monthly updates, to “never define yourself by (net worth)”. Thanks for sharing your journey!

    1. Haha!! At some point, all valuations are funny money, but hey… I gotta be consistent with the way I’ve been tracking all this time. 😉

      And yes, spoiler alert, we’ve tipped the scale over $3M in Dec. already.

      Glad you noticed my note about NW. I do my best to emphasize this, but it’s so easy to tie a sense of significance or feel a “lack of” based on NW. I get it… I used to feel the same a long time ago. And yet it’s such a helpful tool and metric to keep us on track to our financial goals.

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