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 #7: January 2019

Net Worth Update #7: January 2019

You can check out our latest net worth update here.

You can also find my personal net worth template here that you can download and use for your own tracking purposes.

Last month was a little depressing to look at, we arguably spent too much on Christmas and also saw our 401(k)’s drop in value. Luckily this month is where we were able to rebound from all of that nonsense and get back into the swing of growing our net worth at a better rate. Let’s jump into the details of each month and see what we’ve got:

Assets

Primary Bank Account: $10,825.46

Change from last month: +203.66

Our main checking account is always a mixed bag of emotions. We happen to have a decent amount sitting here right now, but with our lifestyle, I know that this really just represents the payments that will inevitably have to be paid out over the course of the month. We have a few trips planned over the next coming months, which will surely take it’s toll on this number. Overall, I’m happy to see that this account inched up ever so slightly in January.

Savings Account: $1,761.39

Change from last month: +202.99

Similarly to last month, the savings account is back on track to start building again. I’ve realized that I definitely prefer the safety of having a larger amount in our savings, so seeing it back down as low as it is doesn’t get me jazzed. Luckily we’ve only had to dip into our savings once since establishing it over three years ago, so I’m confident that by the time we need it again, we’ll have this number back into a good spot.

401(k)’s: $67,729.54

Change from last month: +4,880.57

Reversing the trend from last month, our accounts had bounced back from the end of the year, and then some. The type of activity that’s been happening to our accounts is exactly why I’m not a fan of investing in the market. There’s so many unknowns with the market that we have no control over, which is why we only put enough to get our employer matches and funnel our money elsewhere. (For more info on my thoughts about investing in stocks, check out this post).

Lending Club: $987.37

Change from last month: +65.27

Another $50 was sent into this account this month, and we’ve gained an additional $15 in interest charges. Watching this account slowly take off has been really fun and I’m glad that it continue to build on itself. My main concern is that I don’t know where the rate of return will cap off. We’re up to 13.47% this month and that numbers been steadily rising since we opened our account.

Lending Club 2019-0201.PNG

S Pine Street: $375,000.00

Change from last month: None

I took a trip out to the property a few weeks ago that you can read about here. It was a useful reminder of why we invest in real estate and how much I enjoy upgrading property to maximize value. Though the number that I report will only change after an official appraisal, I know that this house would sell for a good chunk more than what we’ve paid for it. More importantly, when fully rented, this property cash flows over $1,000 per month, and will continue to do that for the rest of it’s useful life!

Total Assets: $456.303.76

Change from last month: +5,352.49

Assets 2019-0201.PNG

Liabilities

Mortgage: $349,130.65

Change from last month: (-641.41)

Every time I take the time to look at our mortgage, I have different thoughts. Some months I want to refinance, other months I want to turn the note into a 15 month note. At the end of the day, the amount we pay here is less than the amount we take in with the property, and that’s the real goal. While it’s sad to see how little the principal changes, despite how much we pay into it, knowing that we’re also making money every month in rent makes up for that. In an effort to appreciate the little things, I do want to point out that we’ve hit the under $350k mark on this note! We technically hit that last month, but I wasn’t in a frame of mind to notice the small wins then. (You can learn more about our investment property here.)

Student Loans: $19,983.19

Change from last month: (-336.46)

In the spirit of small wins, this number also hit a milestone in January- we’re finally under the $20k mark with student debt! This is actually a pretty significant win considering we’ve never really made these loans a priority for payoff. As I look back through our tracker, we’ve only paid off a little more than $8k in principal on these loans over two years, but that’s still going in the right direction, so I’ll take it.

Credit Cards: $11,496.97

Change from last month: +2,368.62

Just when I thought Mrs Money Smith was taking some time off from her work related work travels, she set off to London for a week to participate in a few events. While the number here has gone up, we will definitely get to reimburse all of the associated costs, and this number will hopefully start to trend down in the coming months. We still pay off our cards in full each month, so no interest payments here :)

Auto Loan: $17,054.58

Change from last month: (-316.77)

Another small move for the auto loan. Nothing exciting here to report as we’re not accelerating payments on this or even making it a priority until we’ve paid off other higher interest loans.

Personal Line of Credit: $1,636.24

Change from last month: (-1,510.05)

We’re so close to paying this off completely that I can taste it. Next month should be a huge win for us regarding this account as it will be the month that we finally finish bringing this number to zero. Once we pay this off, we can take the monthly amount of just over $2,500 and add that to the next highest interest loan, which is a few of our student loans.

Mass Save Loan: $17,472.00

Change from last month: (-416.10)

Nothing exciting to report on this loan because it’s still the same song and dance. We pay the minimum on this because it’s a 0% APR. This will probably be our longest surviving loan, outside of our mortgage of course.

 

Total Liabilities: $416,773.63

Change from Last Month: (-852.17)

Liabilities 2019-0201.PNG

OUR NET WORTH: $39,530.13

Total Change: +6,204.63

Trend 2019-0201.PNG
Ratio 2019-0201.PNG

Overall thoughts for the month:

After the excitement of the holiday’s died down, January went back to normal which was something I welcomed with open arms. I had a great time seeing family, but I definitely prefer the quieter side of life. Financially, I would say that we’re better now than ever before, we have a pulse on what’s important and we’ve been really focused on being more deliberate with what that is. Mrs Money Smith went crazy and decided to try her hand at the Marie Kondō tidying phenomenon which resulted in lots of donations to our local Goodwill, and I got the chance to head back out to our property on the East Coast for some much needed learning. Our finances have become less of a part of our lives as we’ve become much more aware of where our money is going and it’s been a huge weight off of our shoulders. Life is good:)

Goal for next month

Last month’s goal was to take the time to compare our new paychecks to our old ones and to send any extra money from those toward our debts. I’m happy to report that we did do that, which resulted in sending over $1,400 dollars per month extra! This was an insane amount of difference to me, but I’m glad we did this, it helped to combat our lifestyle creep and is keeping us honest with where our money is going. I would definitely recommend doing this for anyone who wants to automate where their money is going…The goal this month is:

The goal for February is to finally make the last payment towards our PLoC. It’s a long time coming and it will feel so amazing to finally do so. The good news about this goal is that it’s one that we should definitely be able to accomplish, as I mentioned above. We should even have a little extra left over from that payoff to add on some additional payments towards our student loans.

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

The Importance of Tracking Property Expenses & How I Do it

The Importance of Tracking Property Expenses & How I Do it

7 Lessons Learned From My First Real Apartment Turnover In Another State

7 Lessons Learned From My First Real Apartment Turnover In Another State