This is my official January 2016 Net Worth Update. Below are my actual numbers for ALL my investments and liabilities as of 01/31/2016. 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: $354,445
Quick Summary and comments: +$8,670
2016 is in full swing and I am feeling super motivated to reach new levels of success. I still can’t get over how good my 2015 was and it will be hard to top that but I have some big ideas for this year that all revolve around making me more passive income. Now I know that money is not everything but for me, having more money means being able to generate more passive income. I truly think passive income is the key to happiness and my mission for 2016 is to grow my passive income streams to new heights. I have a few ideas that I will be sharing in a future post about what I will do to try to do this so stay tuned.
January was a very busy month for because I spent a lot of time researching, researching and researching how to make more passive income. I also spent a lot of time finalizing and booking things for my wedding I will be having later this year. Yep, I am getting married this year and it should be pretty epic. I’m excited about it and I love my fiance to death but I am not going to lie, I am not excited about how much it is going to cost me. But it’s okay. I have accepted it and am moving on.
Now let’s talk about what happened with my net worth this past month. It went up!! Which is awesome! The main reason it went up though is because every January will be the time that I re-calculate the property values on all my investments. The only property that I felt comfortable increasing its value was my primary home. I want to be super conservative about property values and this property was the only one that I know for sure went up in value. I could not gather enough data or conclusive evidence that any of my other property values went up.
If it were not for this property value hike, I would have been in the RED. The stocks that I own are killing me and I dropped over 10k of my net worth alone just in stock values. You are probably aware that so far in 2016, the US stock markets are not starting strong and there seems to be a lot of turmoil and doomsday sayers out there regarding this year’s outlook on the markets. I honestly also think that 2016 will not be a good year for stocks. We’ll see what happens. I am a rookie when it comes to trading or the markets in general so pay attention to anything I say regarding this. Real estate is definitely what I am more familiar with and will continue growing my real estate investments forever!
Now let’s get to the breakdown of each asset.
Assets: Explanations of each of my assets.
My cash position is the only really consistent asset that I have that pretty much goes up every month. Thankfully and I am very grateful for this, I have a great job that pays me a decent salary. So my salary alone plus over $2k per month I get in passive income from my real estate properties makes this number go up nicely each month even after pay all my bills!!
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: +92
This was just my normal monthly contribution. 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. Satisfied!
Company Stock Options: -$9,773
Can you say OUCH!! Jeez these darn stock options are killing me. It does not make any sense to me because the company has not reported any negative earnings and there has not been any bad press about anything. I don’t know why this stock went down so much but I am going to go ahead and say it had to do with the market in general and that most stocks probably went down. Im hoping this goes back up after this up and coming earnings call that should be positive. We’ll see!
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: +$5,446 **NEW**
I just recently started having an additional stock portfolio and although this number looks to be positive. It really isn’t! Here is why. I have deposited an additional $3,000 into my TradeKing account in January. This makes it more than what it was last month when I first opened the account. So overall, i’m actually down about $600 because I have a total of $6k into this. I have purchased a few different stocks and 1 ETF which I will shed more light on later in the future. 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. This really helped my January net worth update and put me in the positive. 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
No issues, repairs and rent paid on time on this one for January. 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
Last month I was paid late on this property by my property manager which I did not like one bit. I mentioned dropping this property management team and I still plan on doing so. The lease for this tenant is up in April so I will soon be in the process of getting this transferred over to a new PM. This property is now all caught up though in rent payments and there were no repairs or any problems for January on this one.
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
I got Janury 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.