Financial Independence Update Report – September 2021
Take a peek at our personal numbers for the month of September 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.
September – Overview & Updates
I love the Fall. Out with the hot and in with the cool. It’s also a fine time to travel, especially when the kids are out for their Fall break. Despite having two weeks for the kids’ Fall break, we ended up not taking any family trips this time because I was attending FinCon21 the first week and my wife had a girls’ trip the second week. Nevertheless, the kids still had a fantastic Fall break hanging out with their grandparents, cousins, and neighborhood friends.
FinCon21 was held in Austin, Texas this year. It’s the first conference I’ve been to in a couple of years in person and it was really nice to get back out. This was both an in-person and virtual event for those who weren’t prepared to make it out in person. Although I had a little reservation about coming out, I felt the risk outweighed the reward and I’m glad I went out.
The conference was Wed. – Sat of last week. And being that my mastermind group was all attending, we decided to do an offsite beforehand and shared an Airbnb right in the heart of downtown Austin. This was incredible and quite relevant as were speaking on a panel later during the conference about masterminds. And although we meet regularly throughout the year, being in person added another level of connection that isn’t always possible in a virtual setting (sorry Zoom, it’s true!).
In addition to talking about our businesses, we also got to shoot the shit about life and lots of fun tangents like NFTs and family fun nights. It’s hard to place a tangible value on these interactions, but because of this mastermind, I was blessed to be connected to so many other brilliant minds over the weekend and I found some clarity that I’d been missing for some time (more on that later).
I also brought 10 books to the FinCon21 authors’ booth where you could sell your books to other attendees. And, I’m happy to say I sold out! This was great because I didn’t want to have to trek any excess back home.
It was also nice getting my feet wet “speaking” on a panel during the conference. It went well overall and I think people appreciated the ideas we brought forth. I also recorded a podcast episode with Carl (aka. Mr. 1500) and Doug Cunnington of MileHighFI – an up-and-coming FIRE podcast.
Upon completion of the conference, I took a bus ride up to Dallas to hang out with my cousin for the weekend. And just before that, I had to good fortune of meeting up with Mr. Hobo from MrHoboMillionaire. He was super nice and has an incredible story of entrepreneurship in the software side of tech.
On the money side of things, September had a lot of movement. It may not seem that way because our total NW didn’t shift all that much, but there were a lot of swings which I’ll cover below.
Net Worth Summary
September was a small move for net worth.
We finished the month at $2,858,432 vs. $2,855,215 this past August. This is a +$3,217 increase to our net worth or +0.01% by percentage.
What is interesting, however, is that there was a lot of movement within our different silos of wealth, whether it be cash, equities, or real estate.
We ended up with +$15,014 of cash flow for the month.
*As you’ll see above I still have to make some manual adjustments here and with the income accounts as Personal Capital has been having some problems recently – including some income entries not making into my total monthly cash flow.
Income for September was UP from the last month to $28,778.
As mentioned above, Personal Capital isn’t showing all income entries. So, the adjustments are for the missing STR income AND online income.
This may seem like a great month of income from first glance, but it wasn’t all that great. Here’s why. Most of the positive cash flow seen here was from the CA tax refund that FINALLY made it back. If we back this out, we were only up a bit as we have some larger unexpected expenses come through (like a new A/C unit).
September’s expenses of -$13,764 were UP compared to last month.
The STR (short-term rental) continues to do well income-wise, but we’ve continued to have ongoing issues with the AC unit. So after several visits/repairs later, I decided to just bite the bullet and purchase a new A/C unit for the property. It wasn’t worth the hassle and scheduling nightmare to the existing guests. You’ll see this show up as real estate cap-ex on the second line.
The good news is that with the AC issue finally resolved, this should stabilize the energy bill expenses which were out of control in the months past.
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.
Portfolio Balances (Equities)
The markets took a noticeable hit towards the end of the month in response to the uncertainty of the FED budget balancing.
Despite the devaluation of the overall portfolio, the allocation didn’t change much.
With that said, what you won’t find on here is some diversification into cryptocurrency… namely ETH.
I have been purchasing some more ETH through Coinbase and then transferring it over to my meta mask wallet so I can trade NFTs.
Speaking of NFTs, remember that Spider-man one I shared last month? Well, the floor price for it went from $2500 to $8500! That’s quite the move and suspect it’ll go up even higher in years to come. I plan to hold it for quite some time since I bought it with prior profits, but I’ll update you guys here from time to time.
I’m always amazed by how much markets and specific sectors can move, yet within our own silos of wealth, it doesn’t look like that much has occurred. I suppose that’s a good thing because it shows the power of diversification.
Also, look for more conversation around crypto coming up. I’m definitely bullish on ETH, not just because of NFTs, but because of what it will mean for future business transactions. NFTs are only the beginning. So, I’d like to diversify our portfolios even more and get more exposure to crypto which I have been doing more of lately.
On the real estate front, I need to re-apply for a new HELOC so we can bid on new STR properties with cash. We made a couple of list price offers recently as conventional buyers but lost out to cash buyers.
Finally, I’m working on a new project after FinCon21. As I mentioned I got some additional clarity around some areas of focus I’ve never explored and it’ll be interesting to test the market. More specifics to come, but let’s just say I’m going to do a better job of tapping into my personal story and create value in a new way.
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Readers, how was your September? Are you ready for the holidays around the corner?