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 #9: March 2019

Net Worth Update #9: March 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.

We’ve continued our path of debt pay-down at an accelerated rate in March and looking at the difference in numbers feels great. There’s some exciting changes that happened to a few of our accounts, and that’s all listed out below. So, without further delay, let’s jump right in!

Assets

Primary Bank Account: $11,931.33

Change from last month: +1,236.80

This number has continued to grow slowly, despite sending extra money towards debt pay-down. I’m watching this account closely to determine if we can send even more of these funds towards our highest interest notes.

Savings Account: $2,168.16

Change from last month: +203.74

We’ve had two more successful deposits into this account and it continues to slowly gain traction. The interest gained in this account isn’t the sexiest, largest amount in the world, but I’ll still take the free money!

401(k)’s: $72,246.80

Change from last month: +1,922.37

I’m honestly a little surprised to see the rate at which these accounts have continued to accumulate more money. Only one of us is currently contributing to a 401(k), which I would expect would cause a much slower growth. Nonetheless, I’m happy to see that the investments that we’ve been making since we started working are continuing to pay off! (For more info on my thoughts about investing in stocks, check out this post).

Lending Club: $1,105.51

Change from last month: +66.61

We were able to be a part of three new loans issued this month, which represents another $75 in investments, bringing our total number of notes up to 83. I’ve chosen less creditworthy notes lately and have noticed the pool of small loans diminishing slowly. I used to log in and have plenty of loans to choose from under $7,000, but lately I’ve had a hard time finding anything under $10,000 that still falls into a rating category of D or greater. Currently I believe that D-rated loans tend to feel like an appropriate amount of risk vs reward for what I’m hoping to get out of this account.

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S Pine Street: $375,000.00

Change from last month: None

While this number will continue to stay at $375k for a while, there is some exciting news to report for the property. Our new tenant is moving in today! It was a long journey to find a tenant that resulted in a few months of vacancy, but I’m glad we waited for the right person. The relationship is already off to a strong start and I hope to keep her in the unit for many years to come.

Total Assets: $462,451.80

Change from last month: +3,429.52

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Liabilities

Mortgage: $347,740.95

Change from last month: (-746.28)

Wow! Seeing the change from last month number jump from the usual $640-something feels great. Last month our escrow shortage was finally paid off, but we decided to keep the extra money that we were sending towards this bill on the payment schedule. We’ve decided to do this because we’re still paying the PMI on the account and the faster we can pay down the loan, the faster we can work towards removing that PMI. I’ve also recently reached out to our previous Mortgage Loan Officer to heck in and see if he has any thoughts on when we should be able to refinance. I tend to keep in touch with him every 4-6 months to stay on his radar, as well as to keep a pulse on what’s changing in the mortgage world. (You can learn more about our investment property here.)

Student Loans: $16,665.95

Change from last month: (-3,014.69)

I have mixed feelings about thee numbers this month. On one hand, we’ve finally made the transition to focusing on these loans, sending lots of extra money each month. But on the other hand, we’re back to having to stay on top of our loan providers. We sent extra money to some of Mrs. Money Smith’s student loans, as well as mine. Each of those providers states on their website that they apply extra payments to the loan with the highest interest first, then cascades the remaining amount to the next subsequent loans. I’ve found this to be the opposite of their practice and have had to call them to correct payments every time I send extra money. It can be frustrating to have to call them every time a payment is made, but there are certainly worse problems to have. The reason I bring this up is to let you know that if you’re sending extra payments to either Nelnet or Great Lakes, you should double check how the payments are applied because your experience may be similar.

Credit Cards: $7,428.01

Change from last month: +929.33

Our credit cards are holding relatively steady with use, but I believe we should work to spend less each month. We certainly enjoy eating out, and enjoying weekend getaways, but luckily a good majority of these amounts tend to be reimbursable due to them being related to Mrs. Money Smith’s career related travel and activities.

Auto Loan: $16,421.51

Change from last month: (-322.60)

Just plugging along on this one. This entire account is automated for us, so the only time I really look at it is when I want to report on it, for these posts. It’s good to know that the system is working and I don’t have to worry about remembering these payments.

Mass Save Loan: $17,055.90

Change from last month: (-138.70)

Similar to the auto loan, there’s not a lot that has to happen here. Payments go out every month, and I log-in occasionally for some reporting. The progress being made is a ‘slow-and-steady’ one.

 

Total Liabilities: $405,312.32

Change from Last Month: (-3,292.94)

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OUR NET WORTH: $57,139.48

Total Change: +6,722.46

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Overall thoughts for the month:

This month resulted in a small surprise for us, Mrs. Money Smith received her quarterly bonus. While we weren’t expecting the money, (we don’t rely on it so we don’t budget for it), we were able to send all of it straight towards student loans. That resulted in a big drop in total principal and was a nice bump in the right direction. We really wanted to take the money and go buy something fun, but I’m glad to report that we stayed disciplined in our approach and sent it to the right things.

Goal for next month

Last month’s goal was to focus on my professional development in the form of reading one book related to the topic. Unfortunately I didn’t prioritize that reading and wasn’t able to meet the goal. I’ve been incredibly busy at work, often times working 12 hours per day, and haven’t had the energy to sit down and read. While I’m disappointed that I wasn’t able to read the book, I am satisfied with my direction to take time for myself and spend the month recovering where I can. Because of this, I want to keep the same goal for the Month of April as I do feel that professional development is incredibly important and this book will help me in that regard…This means that the goal for this month is:

The goal for April 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 #10: April 2019

Net Worth Update #10: April 2019

Net Worth Update #8: February 2019

Net Worth Update #8: February 2019