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 #8: February 2019

Net Worth Update #8: February 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.

January was a month that overall had some solid gains, but we blew those out of the water this month with some exciting improvements pushing in the right direction. A few exciting milestones were hit and I’m confident looking ahead to what the rest of the year should bring.

Assets

Primary Bank Account: $10,694.53

Change from last month: (-130.93)

This number is down ever so slightly, but you’ll notice that this is far from the trend for the rest of our accounts. Nothing too exciting to report here, as this still just represents holdings but the beginning balance of the month is still a pretty good number to look at, in my opinion.

Savings Account: $1,964.42

Change from last month: +203.03

Another month of steady growth, since we haven’t had any other major expenses pop up on us, since back in December. The month resulted in two more successful $100 deposits, and just over $3 in free money - I love free money! I expect this number to continue to trend this way for a while, since we’ve been able to finally secure a new tenant in S Pine. That means that I won’t be tempted to continue to improve upon that unit while it’s full and I can continue to focus our money elsewhere.

401(k)’s: $70,324.43

Change from last month: +2,594.89

In the spirit of celebrating more of the small milestones in our journey to financial independence, I took a minute to appreciate the fact that we got over 70k in our accounts here! Considering that the average 401(k) balance for our age bracket is only $11,600, I would say we are well ahead of the curve. This fact is even more impressive knowing that only one of us is currently contributing to our company sponsored plan. (For more info on my thoughts about investing in stocks, check out this post).

Lending Club: $1,038.90

Change from last month: +51.53

The trend of getting another $50 into this account each month continued, though we had one of our notes drop off of collections. While that’s disappointing, I’m still impressed and surprised to see that more of our notes haven’t dropped off. I like to pick pretty risky notes to invest in, so I actually expected to see bigger problems related to this account. We’ve already issued 11 new notes this year and still managed to increase the total value of the account by $1.53 over what was transferred in! This is also the first time that we’ve hit the $1,000 mark in Lending Club as well - lots of big moves.

Lending Club 2019-0301.PNG

S Pine Street: $375,000.00

Change from last month: None

No change in value here, despite the renovations because I don’t want to change this without an official appraisal. The cash flow related to this property is in the process of kicking back into gear with a recent tenant acceptance, though nothing new to report on the actual value of the property.

Total Assets: $459,022.28

Change from last month: +2,718.52

Assets 2019-0301.PNG

Liabilities

Mortgage: $348,740.95

Change from last month: (-643.42)

More movement in the right direction for this account. This month I got a notice that let us know that our escrow shortage has finally finished being paid off, so our new minimum monthly payment has dropped to $2,683. As of right now, the plan is to still send the $2,800 we’ve been sending toward this note, which should mean that the principal balance will start moving a little faster as of next month. (You can learn more about our investment property here.)

Student Loans: $19,680.64

Change from last month: (-302.55)

Our student loans have been on a steady path of pay-down for a while due to the fact that the APR’s on these aren’t very high, but we will be putting a much larger emphasis on these accounts looking ahead. These are the next in line for pay-down and are split up across 13 different disbursements. Due to some of these notes only having a few hundred dollars left on them, that number of accounts could drop to 10 by next month!

Credit Cards: $6,498.68

Change from last month: (-4,998.29)

Pretty significant drop here, mainly due to our spending needs leveling off recently. There hasn’t been a ton of new travel booked and we’ve been taking that time to enjoy each other. There is a trip to Spain planned at the end of next month, but since that’s already been paid for, there’s nothing else to really put on our cards for the time being. These balances represent almost half of our total change in net worth this month!

Auto Loan: $16,498.68

Change from last month: (-310.47)

Same steady progress on this account. Nothing too exciting or interesting here.

Personal Line of Credit: $0

Change from last month: (-1,636.24)

It happened! You’re seeing the right number there, we’ve paid off our PLoC! This is a huge moment of victory for us, as this account hasn’t been at a zero balance since we opened it back at the beginning of 2016. I’ve been looking to this moment and visualizing the final pay-off as the flood gates opening to the rest of our account payoffs. As I mentioned about our student loans, this is the real start to snowballing the rest of our bills down to nothing! Hopefully this is the last time we post about our own PLoC - I’ve learned a lot about them and while it was great to leverage money from the bank, this account has started to increase their APR over the past few months and I was nervous that this might eventually turn into rates rivaling that of a regular credit card. Over the past two years I’ve seen our APR move from just over 7% up to almost 10%. To me that’s just not worth the money, though we will leave this account active in the event that we need the funds in the future and because there are no fees associated with doing so.

Mass Save Loan: $17,194.60

Change from last month: (-277.40)

Same slow pay-down here as it’s always been, nothing exciting to report.

 

Total Liabilities: $408,605.26

Change from Last Month: (-8,168.37)

Liabilities 2019-0301.PNG

OUR NET WORTH: $50,417.26

Total Change: +10,886.89

Trend 2019-0301.PNG
Ratio 2019-0201.PNG

Overall thoughts for the month:

There have been a good number of small wins and milestones this month, but also one really big one, and everything has been falling into place with regards to financial progress for us. When I look back through previous net worth updates, I can start to appreciate the macro level trend which is that our overall holdings are all moving in the right direction. Normally, with little deviation from our overall plan, we’ve been able to consistently push our accounts in the right direction. I credit that movement to the goal keeping that we’ve held ourselves to as well as our ability to be smart with out money on both sides of the aisle. Seeing that PLoC drop off the radar is a huge mental win for us and I see this momentum only gaining speed as we get further into 2019.

Goal for next month

Last month’s goal was to finally make the last payment towards our PLoC. If you’ve gotten this far in the post you know that we were able to meet that goal and set ourselves up to aggressively chip at the next set of loans, which would be our student loans. I’m really starting to see the value in placing these goals on ourselves and it’s something that stays at the top of mind for me personally and affects the actions I take throughout the month. I can’t recommend implementing a similar system for everyone I know enough…The goal for this month is:

The goal for March is to focus on my professional development in the form of completing at least one book related to being an effective people manager. I was recently promoted into a new position in which I am being challenged to lead a team of diverse skill sets and I want to make sure that I commit to doing that well, just like our adventures in real estate. I’ve already gone through the trouble of borrowing Multipliers by Liz Wiseman, which comes recommended by one of my peers, so I’m halfway there!

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 #9: March 2019

Net Worth Update #9: March 2019

The Importance of Tracking Property Expenses & How I Do it

The Importance of Tracking Property Expenses & How I Do it