Financial Update Report – October 2017
Below you will find a snapshot of our personal financials for the month for October 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!
So, I just got back from the TR’s Life & Wealth Mastery seminar a week ago. It was great! I learned so much and took so many notes, I thought my hand was going to fall off. 🙂
Anyhow, I’m working on a couple of posts to share some of the ideas I learned at each seminar. Look for these soon.
The end of October put a nice grin on to my face. Why?
We finally tipped the scale and officially crossed $2M of net worth!
It may very well be a temporary position, but it’s a fun goal post to reach nonetheless.
Ironically enough, we also had our largest negative cash flow this month (I’ll discuss details below). It just goes to show you the power of compound interest in contrast to extraordinary spending.
Let’s have a quick look at how things penciled out last month.
Net Worth Summary
Net Worth marched upward with a 5-digit gain and pushed us past the $2M mark. We ended the month of October at $2,003,214 vs. $1,934,374 this past August. This is a $68,840 increase in our net worth or +3.5% by percentage.
Yes, this is a significant increase! And, there were some considerable increases in both equities and real estate values. But, I also added in some new assets since we were so darn close to that multi-million dollar goal.
$20k of this increase is me adding in the value of our cars ($15,000 combined, both paid off) and misc valuables ($5000). I may pull the cars back out at some point since it’s constantly losing value, but for now, it’s relevant. 😉 Misc valuables consist of electronics, jewelry, things, etc. I’m sure it’s probably closer to $20k+ in value (sold off in a fire sale), but I just added $5000 (25%) to stay conservative.
Yet, this does beg the question, do we need to rebalance? And if so, where?
Cash Flow Summary
So, cash flow isn’t a pretty of a story as net worth.
October was a negative cash flow month again with a loss of -$6311. This was our largest loss in a single month this year and I’ll discuss specifics below.
Income of $12,396 for the month remained lower than usual due to one Vegas property still paying off its recent turn over costs. The good news is that we finally re-rented the other home for $1225/month.
Our income is primarily made up from my wife’s teacher salary, rental income, dividend income, and misc investment income (eg. RealtyShares).
Rental income has been down due to two homes being vacant. Both are rented now, but some of the capital expenditures are still being paid back to the property management, essentially wiping out the rent paid from Oct. We should be back to normal income levels soon!
October’s expenses of $17,550 were the highest for the year.
The extraordinary expenses are attributed to:
- Travel – Hotel and Meal Plan at Life & Wealth Mastery – $3000
- Plane ticket – Purchased ticket for Mom to travel with us to London this coming December – $764
- FBA – Purchased more units of product and paid the balance of the order – $1700
- Charitable donation – $500
- Oh yeah, I also bought a bike! – $600
So, yeah that’s an extra $6564 spent this month. I’m okay with it though because it was conscious spending on investments & giving.
I won’t lie though, I’m hoping this goes down significantly in November! 😉
Portfolio Balances (Equities)
My portfolio was just slightly above the S&P 500 this month. Equities have certainly played a significant role this year with an appreciation of $82k this year so far. I’m glad I kept some skin in the game despite being bearish these past couple of years.
After attending Wealth Mastery this past week, it’s a bit fitting that we finally hit the $2M goal post for the first time.
I’m excited as ever to keep pushing this forward to our 10-year goal of $10M.
There are a lot of things to do with more money, including, but not limited to pursuing our direct passions, helping others, giving back, traveling, and purchasing some new toys.
The world needs more conscious millionaires, and I’m counting on you to join us!
Readers, how was your October? Did you see a nice uptick in your equities (stocks)? How about real estate?
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