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 #5: November 2018

Net Worth Update #5: November 2018

You can check out my latest net worth update here.

You can also find my personal net worth template here.

This has been another busy month for us with lots of changes and a lot of firsts, experience-wise, so let’s jump right into the numbers!

Assets

Primary Bank Account: $10,302.82

Change from last month: (-1,053.93)

If you remember from last month, I predicted that this account would drop, but I assumed it would drop significantly more than it did. The reason it didn’t move as far as I thought it would if because we padded the account from our savings account. Since I started a new job, we didn’t receive my paycheck for a week of work, so our cash flow wasn’t as strong this month.

Savings Account: $1,355.94

Change from last month: (-3,899.79)

As mentioned above, we pulled $4,105 out of the account this month to make up for the fact that we’re only receiving one paycheck, and also paying for a bathroom remodel at S Pine St. The way the contract works, as our contractor hits certain milestones, I send him another check. There’s still a few thousand left to disburse to him, but I wanted to be safe with what was in our checking account, and at the end of the day, that’s what our savings are for. Even though this number dropped, we’re keeping the $200 per month injection going for now.

401(k)’s: $65,774.74

Change from last month: +2,596.29

The markets bounced back a little but we’re still not seeing a lot of growth here. I predict that this number will start to slow down even more for us as my new company doesn’t have a 401(k) match yet. I will be taking the difference in what I normally put into my personal 401(k) and sending that towards our debt pay-down for now. (For more info on my thoughts about investing in stocks, check out this post).

 

Lending Club: $859.75

Change from last month: +63.20

Another $50 was sent into this account this month, and another $13 came back in as profits. The rate of return has also been steadily increasing. I’m curious as to how this rate is actually tracked in their system, and whether it takes the leverage of being able spend my money again, once it comes back. I still don’t plan to invest heavily into this account, but it’s fun to watch it slowly chug along.

Lending Club 12022018.PNG

 

S Pine Street: $375,000.00

Change from last month: None

We’re nearing completion of our bathroom renovation on the 2nd floor of this property! The last thing outstanding is our exhaust fan, which was installed but isn’t functioning properly - which will get fixed in the next week or so! This is a perfect example of why tracking net worth is important, but the numbers don’t always paint the full picture. With the way that I track the value of our property, I don’t speculate on the numbers, I use the last assessment that I have on file. That explains why, even though we just spent $8,200 renovating the bathroom, we aren’t adding $8,200 to the value of the property and we still see no change.

Total Assets: $453,293.25

Change from last month: (-2,294.23)

Assets 12022018.PNG

Liabilities

Mortgage: $350,411.47

Change from last month: (-637.42)

This number continues to trickle down. Something I’ve been looking into lately is what actually goes into a refinance for a property. I believe that our property has definitely grown in assessed value, and I would love to be able to either get rid of our PMI, or convert this mortgage into a 15 year note, so that it’s paid off faster. No official progress on either of those topics yet, but definitely something I’m working on. (You can learn more about our investment property here.)

 

Student Loans: $20,554.48

Change from last month: (-423.15)

Small moves in the right direction again. This number is comprised of six different student loans with varying amounts and interest rates. Once we’ve paid off our PLoC, these will be our next targets for pay down, but until then - same old same.

 

Credit Cards: $7,504/79

Change from last month: (-3,209.57)

It feels like the travel that Mrs Money Smith has been doing for work is starting to slow down. This is nice to see, because it makes this number feel less daunting. Even though we don’t actually carry a balance over each month, whenever I look at the credit card bill I can feel my blood pressure rising. It’s a big number, but I’m happy to say we’re still completely in control of our credit cards!

 

Auto Loan: $17,685.10

Change from last month: (-153.60)

What’s interesting about this account is that the timing with which payments are registered is slightly off from my 1st of the month reporting. Each month jumps between a $150 change, or a $450 change. This isn’t necessarily a good thing, or a bad thing, just thought that was worth pointing out.

 

Personal Line of Credit: $4,237.10

Change from last month: (-1,080.82)

Another strong change this month! Our focus for pay-down is currently the PLoC because it represents the highest APR of all of our commitments. I didn’t send any extra, on top of the standard amounts, because of the new job and change and pay structure - but I expect that next month, as our expenses return to normal, we will be sending a decent amount of money towards this account.

 

Mass Save Loan: $18,165.50

Change from last month: (-138.70)

This loan’s reporting seems to follow the same trend that our auto loan does, which is certainly worth noting. Other than that - we’re still just sending the minimum as this was actually free money! No other fun changes to report otherwise.

 

Total Liabilities: $418,558.44

Change from Last Month: (-5,643.26)

Liabilities 12022018.PNG

OUR NET WORTH: $34,734.81

Total Change: +3,349.03

Trend 12022018.PNG
Ratio 12022018.PNG

Overall thoughts for the month:

This month was both super exciting, and incredibly slow at the same time. The exciting parts were my new job, taking a nice week long vacation at Mammoth Mountain, and managing the bathroom remodel from 3,000 miles away. The slow parts were maintaining the status quo of our debt pay-down and trying to minimize the amount of work that we’re doing with our only investment property.

Since I’ve recently changed to having a real estate agent help with our tenant search, it’s definitely felt like a weight has been lifted from our shoulders. As I assess and realize that spending one months rent to find new tenants through a third party is really totally worth it, I’m glad we went down that path. The bad news, is that while we don’t currently have tenants, in one of the units, the house doesn’t necessarily cash flow as much money as we want it to. At the end of the day, we’re breaking even for the current tenant set up, and we will be back to making money as soon as we get someone moved in!

Goal for next month

Last months goal was to take the time to relax and appreciate all of the things that don’t require money, and truly appreciate our friends and family. I think that goal was definitely met, considering I spent so much time relaxing that I didn’t even bother posting for two weeks…The goal this month is:

The goal for December is to take the time to read at least one financial improvement book. I started the year strong with reading, but I’ve noticed that I’m slowing down and not making that a priority, so I’m going to push myself to get back on that wagon!

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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