Based in Los Angeles, The Money Smiths is a blog comprised of thoughts related to personal finances, real estate investing, and musings on early retirement.

Net Worth Update #3: September 2018

Net Worth Update #3: September 2018

You can check out my latest net worth update here.

You can also find my personal net worth template here.

This has been a busy month for us, so let’s jump right into the numbers.

Assets

Primary Bank Account: $11,939.43

Change from last month: +3,011.77

This feels like a pretty large change this month, but that’s mainly because we held off on sending extra money to our bills in anticipation of our move. The good news is that we did end up finding a new place, which has cheaper rent and still meets our needs! (you can read more about that here) The bad news is that this much cash sitting in our account can skew our numbers.

Savings Account: $5,047.52

Change from last month: +207.40

We are continuing to place $200 per month into the savings account right now, so that's the change here.  We haven't had to touch this account in a while, though I expect to have to use this in the coming months. We just had one of our tenants give a 30 day notice and we plan to renovate the bathroom when she moves out, but for now it stays put. I also noticed that the interest rate on the account moved up to 1.90% APY this month!

401k: $66,408.43

Change from last month: +1,003.22

This is slower growth that I was hoping for this month, but growth is growth nonetheless. (For more info on my thoughts about investing in stocks, check out this post).

 

Lending Club: $734.99

Change from last month: +59.55

We're still keeping our semi-monthly injection of $25 per paycheck going into this account.  I’m continuing to watch this account closely as I’m not 100% sure we will keep this long-term, but for now we continue to build it.

Lending Club 10012018.PNG

 

S Pine Street: $375,000.00

Change from last month: None

This value will continue to remain constant until the next time we have a reason to assess the property.  Which will likely need to happen in the next year or so if the market continues to rise and inflate the value, as we plan to refinance into a traditional mortgage as soon as we have the equity we need to do so.

Total Assets: $459,130.37

Change from last month: +4,281.94


Liabilities

Mortgage: $351,684.33

Change from last month: (-633.46)

This mortgage represents over 82% of our total liabilities! It’s pretty crazy to think that housing can be so expensive, but that fact also lends to why we invest in real estate in the first place. You can learn more about our only investment property here.

 

Student Loans: $21,292.18

Change from last month: (-333.07)

It finally happened!! We were able to pay off another student loan!! This felt so good to do, I had such a hard time waiting that I actually sent the extra money early and ended up over paying by $50, but it was amazing. After reading Dave Ramsey’s book (my review of it here), I can completely understand why he says to pay off your smallest, most attainable loans first. There’s so much stress lifted off of our shoulders with this loan being finished. Even though the loan only represents a $40/month payment, it still feels like we’ve made significant progress towards our goals.

 

Credit Cards: $9,591.83

Change from last month: +6,140.55

This number continues to fluctuate in large swings. Our credit cards are our primary means of paying for life right now, ever since we completely paid them off. The reason this number grew so much this month is because Mrs Money Smith spent almost two weeks travelling across Europe for work. Add on top of that, the wedding that we just flew out to in New York, and we’ve had quite the month of spending on these bad boys.

 

Auto Loan: $18,310.65

Change from last month: (-310.49)

Still slowly chipping away at this one. I don’t like to consider the value of our vehicles in our net worth, but according to my account on CreditKarma.com, my car has a private party sale value of $22,200 so it’s good to know that we owe less than what we could sell it for if we needed it. (For why I don’t include the vehicle value in our assets, check out this blog post).

 

Personal Line of Credit: 6,958.25

Change from last month: (-451.51)

This is the second month in a row that we haven’t made this bill our priority. Last month I needed to build a new PC, and this month we decided to hold back to make sure we would have enough for a deposit on a new apartment. I think this will continue to be a slower decrease than I want as we’re expecting to spend another large chunk of cash on our upcoming bathroom renovation on the South Pine property.

 

Mass Save Loan: $18,581.60

Change from last month: (-416.10)

We’re still paying the bare minimum on this loan as it’s at 0% APR. Nothing too exciting to report on this loan this month.

 

Total Liabilities: $426,418.84

Change from Last Month: +3,995.92


OUR NET WORTH: $32,711.53

Total Change: +286.02


Overall thoughts for the month:

No, you didn’t misread that, we only moved our net worth by $286. This is a little discouraging to write, but I think the bright side is that we were able to accomplish a great number of activities this month and still move in the right direction.

As I mentioned above, we’ve had an incredibly busy month for September. We successfully landed a new apartment, which meant moving all of our belongings (shout out to Brandon and Ari for their help with that). We flew out to NYC for our friends wedding, and we also received a 30-day notice from one of our tenants. The coming months will be interesting for us as I’ll have to figure out how to fill a vacant unit for the first time since moving away from our property.

There will certainly be some interesting challenges ahead, but I have confidence that we will continue to set ourselves up for success. It will be interesting to see how all of the expenses that are likely to come up will affect our net worth, but I guess we’ll just have to wait until November to see.

Goal for next month

Having the goal of paying off one of our student loans last month was a helpful catalyst for actually achieving that. So now knowing this about myself, I plan to keep giving myself a goal to complete each month. This months goal:

The goal for October is to document as much as I can about the process of finding new tenants while living out of state. This is both for you, the reader, and for me to be able to observe my own processes and find improvements for them.

Let me know what you're goals are down below in the comments, or shoot me a message on the contact page.

-Mr Money Smith

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