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 #12: June 2019

Net Worth Update #12: June 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.

June was a solid month for movement overall. There’s lot’s of exciting news to share below!

Assets

Primary Bank Account: $21,053.38

Change from last month: +1,079.50

This number is continuing to climb pretty steadily, which definitely isn’t a bad thing. We’ve started to increase the amounts that we’re sending to savings and debt pay-off, but it would seem that we should be able to increase that amount even more. I’ve been struggling to find the happy balance point with keeping money relatively consistent mainly due to the sporadic nature of our purchases.

Savings Account: $4,283.76

Change from last month: +1,707.11

This is the first month in 2019 that we’re added more than the standard $200 to our savings. We decided on an additional $1,500 because that was the net cash flow from our S Pine property. As it turns out, the extra $1,500 wasn’t missed during June and we now know that we can continue to put this additional amount away each month.

401(k)’s: $77,455.81

Change from last month: +5,122.03

June saw a strong bounce back for our 401(k)’s and numbers are just above where they ended back in May. We still don’t prioritize these accounts and I don’t even contribute to mine at the moment, but these accounts serve as a strong reminder of the principal of compounding. They also serve as a strong reminder as to why I don’t put a lot of trust into the volatility of the market.(For more info on my thoughts about investing in stocks, check out this post).

Lending Club: $1,260.01

Change from last month: +48.32

The notes in our Lending Club account continue to struggle. Despite injecting $50 in cash to this account, the overall balance didn’t keep up. I’m starting to see more accounts being charged-off, but I’m not too worried. This is still a small account for us and we’ve specifically made the decision to have low expectations for these funds. Since the inception of the account, we’ve only had 5 accounts default out of the current 92 total loans created, which is still decent considering we focus on the higher risk loans.

Lending Club 2019-0601.PNG

S Pine Street: $375,000.00

Change from last month: None

We were able to book flights out to the property and meet the new tenant! Overall the visit was pretty uneventful, though I did see that we’re experiencing a water problem in the basement. We’ve had water problems since we purchased the property, but never actually did anything about it. For the month of July I’m committed to starting to address the issues head on, starting with new gutters.

Total Assets: $479,052.96

Change from last month: +7,956.96

Assets 2019-0601.PNG

Liabilities

Mortgage: $345,488.09

Change from last month: (-753.30)

Another relatively meaningful change here. We’re rapidly approaching 10% in equity and the pace is only continuing to ramp up. The way I look at this account is that despite paying for the mortgage and only seeing a small percentage of the payment going to principal, I can add the amount of change to the net cash flow for the property. In essence, we shifted our net worth by over $2,250 in just one month from this property. Despite the equity currently being less liquid than our main accounts, this is still real money that would be captured if we decided to sell the property. (You can learn more about our investment property here.)

Student Loans: $4,309.19

Change from last month: (-3,016.17)

We’re less than two full months away from never having to pay on student loans again! (assuming we don’t get Master’s degrees). This feels like such a gigantic accomplishment that I’m seriously debating sending extra funds to the remaining accounts to take care of that this month instead of our savings. I wonder what it will feel like when we’ve hit a level of financial capability commensurate with not having a single student loan to our names…

Credit Cards: $14,291.95

Change from last month: +697.26

The amount of work travel that Mrs Money Smith expenses on her personal credit card was pretty stagnant this month. This meant that for the first time in 4 months, we haven’t seen four-digit growth on these accounts. This may only be temporary, but it was nice to see that we didn’t add to this fire as much as we normally do.

Auto Loan: $15,306.18

Change from last month: (-478.44)

Just small changes for this account’s principal balance. Nothing exciting to report and just slowly moving this number towards zero.

Mass Save Loan: $16,085.00

Change from last month: (-416.10)

No major movements here. We’re actually paid ahead just a little on this loan due to rounding up our payments. 0% APR is easily the best thing to see when looking at our accounts holistically.

 

Total Liabilities: $395,480.41

Change from Last Month: (-3,966.75)

Liabilities 2019-0601.PNG

OUR NET WORTH: $83,572.55

Total Change: +11,923.55

Trend 2019-0601.PNG
Ratio 2019-0601.PNG

Overall thoughts for the month:

June was a roaring success in my book. We moved all of our accounts in the right direction, (except credit cards), and by some pretty substantial margins. We moved our net worth by over 14% this month! We tried something new and added more to how much we automatically send out of our main accounts and realized that the money wasn’t missed at all. This was a small test for us and it worked like a charm, we now plan to send that extra cash flow from rentals to savings every month. As we’re starting to shift away from debt pay-off and into cash accumulation for properties, I expect to see the Assets column start to climb much more aggressively.

Goal for next month

Last month’s goal was to sit down as a family and budget out our spending. I wasn’t sure how this would specifically manifest but I believe it worked out as well as it needed to. We’ve already gone through a few iterations of our ‘budget’ and we’ve essentially landed on knowing where our money is going and being more mindful of purchases. These conversations are where the idea of sending our extra rental cash flow to savings came from and has already started to make small impacts on or everyday spending…That being said, the goal for this month is:

The goal for July is to set the next, relatively small, renovation on our S Pine property in motion. As I mentioned above, there’s always been a water problem in the basement and we haven’t really tackled the issue head on. To start, I want to speak with a few basement experts and see what they recommend. My initial research shows that getting control from the exterior of the home is the first step. I’m expecting to get new gutters on the house, but only time and research will tell. I plan to attack this goal by making a call-list of appropriate vendors and getting quotes. From there it’s taking all of the viewpoints and creating a plan of attack for the property.

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

Net Worth Update #11: May 2019

Net Worth Update #11: May 2019