This is my official February 2016 Net Worth Update. Below are my actual numbers for ALL my investments and liabilities as of 02/29/2016. Explanations and quick summary below chart. If you would like to see my previous months net worth posts, please visit my Net Worth Tracker.
TOTAL NET WORTH: $367,279
Quick Summary and comments: +$12,834
Wow! February ended up being a very good month for me. This is actually my new record high increase for one month since I started tracking my net worth. I am very excited to see this and the main reason why I had such an increase was mainly because of my cash position. In mid February I received my yearly bonus from my day job and it was quite hefty at around $7k. That is what made my February net worth update nice and sweet! Although it is good to see a jump like this it also saddens me because I know this will all go away in the near future. I have a lot of big expenses coming up in the next 1 to 3 months and it will bring my increasing net worth to a screeching halt. I may even have a negative month if I have to pay 2 or more of these expenses in the same month. I will try to spread the expenses in the next 3 months though so I don’t get hit too hard in one month. Here are the big expenses coming up for me in the near future.
1) Wedding Costs
2) Honeymoon Costs
3) FBA/Private Label Costs (this is my new side hustle that I am concentrating on to generate more income, more info on this below.)
4) Pay the Tax Man! I am anticipating on owing 10k or more this year in taxes. I have an appt with my CPA later this week to see what the damage is going to be.
So as you can see, it will get worse before it gets better. But that is okay with me, this is going to be a unique year for me because of those first 3 items listed above and to be honest, I am really excited about all 3 of them. Anyhow, February was a very busy month for me because I have spent countless hours reading and listening to podcasts regarding my new side hustle. I mentioned in a previous post that 2016 will be the year I side hustle for the sole purpose of generating more income so that I can buy more rental properties. That’s right folks! Im side hustlin for rental properties! Ha! At the end of the day as I have said numerous times, it will be the passive income I receive from my rental properties which will make me financially free so I need to figure out more ways to buy more rental properties. That new way will be selling private label products on amazon. From what I have read and heard, this can be a very lucrative side hustle with a lot of potential to fast track my journey to financial freedom. I will be writing up some more posts about this in the future so stay tuned if you are interested in hearing what I have to say about this and how I will pull this off successfully.
Now let’s get to the breakdown of each asset.
Assets: Explanations of each of my assets.
My cash shot up drastically this month because I received a $7k yearly bonus from my day job. I was very pleased to receive this and it came just in time because I will have to use this money to go toward some of those big time expenses coming up.
My cash as noted above in the spreadsheet consists of two different checking accounts. My normal checking account and my REI (Real Estate Investing) checking account. Very Satisfied!
HSA account: -$294
HSA went down this month because I actually had to go to a few doctor appointments for an issue I am having with one of my ears. It’s really strange and I would rather not get into it but my medical insurance did not cover a bunch of these costs hence the negative HSA amount.
My HSA deductible is $1300 for the year and I have close to $5k in this account so with that being said, since I am maxed out already I am only taking a very small amount out from my day job paycheck to fund this account. Any money after that deductible will just sit in that account not making me money. I know I can use the money that I don’t put in there to get better returns as long as I invest it in more real estate. This number should increase each month a tiny bit. Not Satisfied!
Company Stock Options: -$2,096
Darn stock options! I had it up to here with watching these go down every month. I have nothing more to say about these. 😐
These are stock options from my day job. I am fully vested. I may end up selling a bunch of these in the future if it hits a certain price. I would like to use the money to buy another rental property. I’m not in a hurry to sell it so I will play along with the market and see what happens. Not Satisfied!
Stock Portfolio: +$1,833
This went up mainly because I made another $1k deposit to my TradeKing account in February so I could buy more stock that I wanted. Overall though, I am actually up about $1k in this portfolio so I am quiet satisfied with it. Satisfied!
I lost a little money in the old crappy 401k but it’s not really a big deal because I do not contribute any money in this account. I made an executive decision awhile back to take money out of my 401k and no longer contribute any more money to it. Mainly because I do not get matched contributions from the dreadful day job. But also because I KNOW I can make better returns using that money on rental properties. I really don’t like the idea of having an account that punishes me to take money out because of age. Satisfied!
Property # 1
I have updated the value on this property and it went up $10k in January. This has really helped me boost my net worth updates. Thankfully this house is in a great hot market and I have very good equity in this property. Over 100k worth!
This is my primary residence. The market I live in is extremely hot and I expect the appreciation on this house to continue to grow however I will only update the market value once a year, in January of each new year. Satisfied! Here are more details on this future investment property.
Property # 2
My tenant in this property informed me he will not be renewing the lease which is coming due in June so I will be looking for a new tenant in May. I am my own property manager on this one so will be screening and finding my own tenant. Other than that, no issues, repairs and rent paid on time on this one. This is my first rental property. It used to be my primary residence. I expect gradual appreciation from this property as well because it is in the suburbs of this HOT market I live in. Love me some HOT markets! 150K is about what its worth now based on MLS comparisons. Satisfied!
Property # 3
Rent paid on time. No issues or repairs. This is my first turnkey rental property I purchased out-of-state. I do not expect much appreciation on this property. I purchased this for CASH FLOW purposes only. Satisfied!
Property # 4
This has been my problem property because there is horrible property management running this. I have been waiting on the lease to expire on this one to transfer this over to my other property manager and the process for this has finally begun. Beginning April 1st, this house will be under new property management and I am pleased about that. The house is fine and the tenant is fine, its just the PM is a horrible communicator and they slack off in a lot of areas where a PM should shine.
This my 2nd turnkey rental property. I do not expect much appreciation on this property. I purchased this for CASH FLOW purposes only. Satisfied!
Property # 5
Mortgage paid on time. No issues. This is a note that I own from a house that I sold via owner finance. If you notice though, the reason why this asset will continue to go down from the spreadsheet above is because it is a note and the principal balance on it goes down each month as the buyer pays me. Remember, I’m the lender on this one. Satisfied!
Property # 6
Rent paid on time. No repairs, no problems. This is my 3rd turnkey rental property, I purchased it in early June 2015 and I absolutely love this house. I do not expect much appreciation on this property. I purchased this for CASH FLOW purposes only. Satisfied!
Property # 7
Rent paid on time, no issues, no repairs. This is my most recent turnkey rental property, I just bought this in late October 2015. I purchased this property also for CASH FLOW purposes only. I am not expecting appreciation gains on this one. Satisfied!
Liabilities: These are self-explanatory so I wont dive too deep into these however I would like to include the items below for informational purposes.
I only use one credit card (rewards card) that I use to purchase my everyday expenses. I pay this off in full every month. I am receiving 1.5% cash back on this card and am very pleased with it. Satisfied!
I purchased this vehicle before I had the proper knowledge on how to be totally awesome with finance and investments so that is the only reason why I have this loan. If I knew then what I knew now, i would have purchased a used vehicle all cash. It is not worth it to me to pay this loan off because the interest rate on this loan is 2% and I would rather use that money to buy more rentals where I will make a much greater return. I will continue to pay it down slowly. Satisfied!
Last 30 days net worth graph from Personal Capital
I really do love this chart, it looks great and its nice and big. The big increase at the end is from where I updated my property value on my primary residence. That is exactly what I want to see each and every month in this chart.
If you want to set up and track your net worth online like I do, create a FREE account at Personal Capital.
There you have it folks! How was your month? Subscribe here if you would like to receive emails on future posts including more net worth updates.