This is my official August 2016 Net Worth Update. Below are my actual numbers for ALL my investments and liabilities as of 08/31/2016. Explanations and quick summary below chart. If you would like to see my previous months net worth posts, please visit my Net Worth Tracker.
How To Track Net Worth
TOTAL NET WORTH: $418,428
Quick Summary and comments: –$6,460
A negative month!!! Nooooooooo! After having the best net worth increase I ever had last month it’s all coming back down. There are multiple factors why this happened which I will explain here. I am now 1 month into living in my new home of Indianapolis and the amount of money we have spent to get the house fully furnished and the way we want it is just too much freakin’ money!! The house is bigger then our last home and we had to get rid of a bunch of stuff from our old house in Austin which only led to more purchases for us trying to settle in here. I also am seeing a significant drop in my precious metal mining stocks as it appears there is a correction occurring right now after making over 100% gains since I bought them. With the FED indicating another possible rate increase in the next month or two it seems to be putting a hit on these stocks. I do still think that we are in the beginning stages of a precious metals bull run so I will most likely buy some more shares during this dip to prepare for future gains which I will dive in below in my Stock Portfolio summary. All that along with my final fees for my Amazon FBA project has decreased my net worth by over $6k this month.
Here are some additional info on my personal life and amazon fba business for those of you interested.
Personal Life Update – I have now been living in Indy for a month now after making this drastic move to help me reach financial independence early. We are officially all settled in now, my house renovations are complete and we are finally enjoying and exploring this new cool city. We really like it so far and are very happy to say the least. I have also begun my search for my next rental property which is exciting. It’s rather difficult finding something that I like though as I am being very picky now about the location of this next rental. I have learned even more now by living here in Indy that there is a lot of buzz and excitement occurring in a few neighborhoods near downtown and I have reason to believe that the appreciation growth in these neighborhoods is far greater than the majority of Indianapolis. These are the neighborhoods I want to concentrate on and purchase from so that I can have a greater chance of increasing appreciation gains while also cash flowing. The problem with this new strategy though is that I am pretty late to the game here. All the local big time investors are already hitting these neighborhoods hard and driving up the prices already. I mean the prices are still dirt cheap compared to Austin or most other major cities so I should be fine. Stay tuned for further posts on this.
On an entirely different note, I am finally heading off to my Honeymoon with my wife at the end of this week and we are super excited. We got married 4 months ago and held off on the honeymoon for all kinds of reasons. So I will be gone for a whole week soaking in the beach and having zero responsibility. Can’t wait!!
Amazon FBA Update – My amazon product is now officially listed on Amazon for sale as of about a week ago. It’s very exciting and nerve-wracking to say the least. I have spent so much money and time getting this up and running that it scares the heck out of me to think it might fail. There is no reason to think that this has been a failure just yet but so far about a week in, I have only sold about 11 real organic sales. This does not include the 25 products which I have given away to try to get some reviews on my listing. I will be creating a new amazon fba update post where I will get into all the details for you and should have it ready in a few weeks so stay tuned for that one because it will be juicy and I will dive into all the numbers.
Okay enough about my personal life. Now let’s get to the breakdown of each asset.
Assets: Explanations of each of my assets.
As indicated in my summary above, I spent a lot of money this past month buying furniture and other household items for my new place here in Indy and I also spent a few thousand dollars paying the remaining costs of my amazon shipping costs. This put a huge damper on my cash value. Next month I will be paying the remaining amount owed on the renovations done on my new primary house so that will also probably put me in the negative on my cash.
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. Satisfied!
HSA account: +$139
Slight increase in my HSA account from my paycheck contributions. Nothing crazy.
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: -$2,096
After seeing big gains on these stock options that last few months, they have finally began to taper back down. The price on these bad boys actually at one point crossed over my selling mark however I was stuck in a freeze so I couldn’t pull the trigger on selling them. I still plan on selling these if they hit a certain price mark or at least sell about half of them to cash out some. Just need to keep monitoring them and see what happens. I would love to cash out high on these and use that money to buy more real estate. I just don’t personally think that the stock price will ever be much more than what my selling mark is.
These are stock options from my day job. I am fully vested. I will end up selling a bunch of these in the future if it hits a certain price. If I do sell, 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. Satisfied!
Stock Portfolio: +$3,181
This increase is actually now what it seems at all and I actually took a loss this month for about $4k due to the correction that seems to be occurring right now with my mining stocks. I made an additional $7k deposit into my tradeKing account this month in anticipation of buying more stocks during this dip and that deposit is being accounted for in my total tradeking value. I haven’t used that $7k to buy any more stocks just yet though so they are just sitting in my account waiting for me to buy. You can take a look at my actual holdings here in my mini stock portfolio. I am not worried at all about these stocks dropping in price right now because I am convinced that we are still in the beginning stages of a multiple year bull run in precious metals. I have already seen over 100% gains on these stocks and I want to buy more so that I can ride the bull cycle up these next few years. This is all speculation of course based on all the research and news articles I have been reading lately on what is going on in the precious metals sector. Right now that it is correcting itself seems like a perfect opportunity to buy some more. Satisfied!
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
This is my new primary house which is actually one of my older turnkey rental properties that I have purchased. I moved into this rental because I love the location, the size of the house and because my mortgage on it is less than half of what I was paying when I was living in Austin, TX. Super Satisfied! Here are more details on when I originally bought this one.
Property # 2
This is the property I self manage in Austin. Even now that I live in Indy, I will continue self managing this one. I think I can do it from afar and if in the future I realize that I can not continue being my own property manager, then I will probably just find a PM to handle it. The new tenants I personally placed in here about 5 months ago have been nothing but stellar. So far everything is going great. I have not heard a peep out of them and they are locked in for 2 years so I’m hoping this one is a cash cow for the next few years.
This is my first rental property. It used to be my primary residence at one point. I expect gradual appreciation from this property because it is in the suburbs Austin which has been growing tremendously. Love me some HOT markets! 150K is about what its worth now based on MLS comparisons. Satisfied!
Property # 3
The tenants on this rental property put in multiple requests to fix a bunch of minor things in my opinion. I have spent about an additional $350 so far trying to make them happy and they have just recently submitted another request for minor repairs. I decided I am not going to fix these though as none of them are safety concerns or preventing the house from being an adequate living environment. The tenants have been paying the rent on time each month though which is good.
This is my first turnkey rental property I purchased out-of-state in Indianapolis. I do not expect much appreciation on this property. I purchased this for CASH FLOW purposes only. Satisfied!
Property # 4
Rent paid on time every single month and haven’t had any repairs on this since the last one which all went down when I fired my property manager from. The tenant is happy, the PM is happy and I am happy. Hopefully I will continue to not have anymore problems with this one now that we have resolved all the issues we had before with the plumbing and the horrible PM.
This my 2nd turnkey rental property in Indianapolis 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 in the Austin area. 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 issues, no repairs. This is my most recent turnkey rental property located in the Kansas City area. I 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. This past month was not so great but overall I guess it wasn’t a huge dip.
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.
Considering everything going on, not a bad month. Are we going to get a look at the amazon product? Feels like it’s a big secret. 🙂 Enjoy the honeymoon!
Hey Brian! Yeah I would say $6k down considering everything is not so bad. As for the amazon product, if there is one thing I have learned from this whole process is to absolutely keep your product a secret. The competition out there is fierce and there is a big problem with people hijacking your listings and doing copy cat stuff. I wish I would could tell you though bud. 🙂
It always seems when that one big up month happens, it is always followed by a negative, no matter what you do.
Glad to hear you are enjoying your move to the MidWest. I’ve never been to Indy before even though I’ve lived in Wisconsin all my life. It is on our list of cities to visit though.
Haha yeah it does seem like that. Thanks bud! If you are ever Indy, let me know.
I wouldn’t sweat it. Down months are going to happen. Now that the move is complete, the expenses should start going down and you will be back in positive territory. I have been reading along and I am amazed at the energy you have for new projects. Some days, its all I can do to get out of bed 🙂 . Keep chugging along, I think you are closer than you realize to achieving your goals. You could take a break and start reaping the benefits now for a few months and build up the bank account. But why stop I guess. Good Luck and thanks for sharing your incredible efforts! Cheers!
Yeah Im really looking forward to my finances getting back to normal. As of now I think all the big spending is finally done. Well at least for this type of household stuff. Haha yeah trust me, sometimes I wish I didnt have so much going on but I just cant stop thinking the more I do now, the faster I can hit financial freedom.
Will be interested to hear more about how the Amazon FBA is going. Will also be looking forward to hear more about real estate out in Indy. I have heard that the Fountain Square area is pretty hot. How do you like Indy compared to Austin?
Yeah I should have a post on that in a few weeks max. Its crazy how it all went down and to the point I am at now. Oh yeah fountain square is very hot! The prices there have really appreciated just in the last year or so and its starting to occur in other surrounding areas. Those are the areas I want to hit! I like Indy a lot so far and my life has improved compared to Austin so in that sense I like Indy more. But I miss some stuff about Austin too. Too early to tell which one I like better so far.
I fared slightly better than you. My network only increased by $76 this month.
At least it seems like it is one time factors contributing to the drop. You won’t be furnishing your new home forever (though I am sure you will find plenty of projects!) and you just came off a huge month.
Haha hey I would much rather have a $76 increase then a $6k loss so congrats on that!
Some months it goes up others it goes down as long as the months it goes up are larger than the months it’s goes down you are doing ok.
Wise words spoken my friend!! Thanks for the words of encouragement. 🙂
You are on the general upswing. You will rebound. You are doing good things! Keep up the great work and the money will follow!
Thanks Steven! Im trying hard! Cant wait to score my next rental!
Enjoy your honeymoon – I wish I was still on mine.
That’s cool you made your first Amazon sales. I bet once there are a few reviews the sales will come a little faster. I suppose as a one-off, it probably won’t be worth the money and time invested, unless you take what you learned and do more products.
Back from the honeymoon. Thanks. Had an amazing time! I should be writing something on amazon this coming week now that I have a few weeks of sales and more reviews. Its not super exciting but its definitely moving along. I think the amazon business can be quite successful especially if you start selling more products but its very scary depending on amazon as your only source for selling.
They can’t all be winning months. Keep pushing forward my friend.
Thanks Bud!! Im pushing!! 🙂
Man I hate companies who don’t match. One of my friend’s company doesn’t even offer a 401k until after working a year (and yes, it’s an F500 multi-hundred billion dollar company). My company only matches after 1 year but at least they offer a 401k. I’m glad I’m saving on taxes now because the state I live in has a dreaded state and local income tax. I’m going to change my 401k contribution rate as soon as I move to a no state income tax state which could be as soon as 6 months!
Not a bad month considering the move and all. That’s awesome you just moved into your own rental and are living there for the time being. It sounds like you’re looking into more desirable neighborhoods with greater appreciation potential rather than cash flow. Yeah, at this point the deals in Fountain Square are long gone and even Bates-Hendricks have really ticked up. There are a few other little neighborhoods that are less known unless you live there. Good thing you’re on the ground there since Indy neighborhoods can drastically change from block to block.
We can’t always have positive NW months! 😉
I’m eager to hear about your FBA updates soon. I’ve been working with a few suppliers to get my product just right. Fingers crossed this next updated sample will let me hit the ground running.
Thanks for sharing in such great detail, Alexander!
Its tough getting your product just right. And there will probably be some stuff that comes up after you already purchased and shipped. There is one thing I regret I didnt do on my product but I didnt know until after it was shipped. You’ll see, keep an eye out on my post next week. Good luck with your product too. Cant wait to read about it.
Wow, you really have this down. Thanks for sharing your monthly report.
Congrats on the progress despite the negatives. Also hats off for using a cash back credit card. I used a cash back card for the last 10 years, but we recently switched to hotel loyalty card to helps capitalize on the hotel points I earned with my former employer. Going to try it out for a few years and see what we like more.
Hey Josh! I think if ultimately you get back more rewards/cash through your hotel card than you are better off then me. I dont recall the last time I stayed at a hotel, we always airbnb now so that card would not be good for me. Cant wait to read about how it works out for you.
Awesome!! I am getting ready to figure out if I want to rent or AirBnb my house back in FL. Tough decision, I’m not sure what would be the better long term investment – so much to think about 🙂 Have a great honeymoon, woohoo!!
airBnb would definitely take up a lot more of your time and effort. Might be easier to do normal renting if this is your first one. Im considering doing an airbnb too but there is a lot to it. Furnishing the house, being in a desirable location, handling calls/bookings, cleaning and laundry after each stay, etc… The list goes on and on! Might be easier if it is local to you.
Thanks for sharing, as always. Glad you are settling into Indianapolis well. 🙂
Thanks Aliyah, yep we are are settled in now finally and its great!! Im about to pull the trigger on my next rental property which is exciting.
Bro these numbers are EPIC. Very inspirational to those of us that are trying to make these kind of returns.
Haha thanks Dave!! Hopefully I can keep it up.
Nice updates here Alex!
Enjoy your honeymoon, gee living the life eh? 😉
Congrats on the FBA as well, keep on kicking those goals 🙂
Jef!! Whats up bud!!? Thanks man.
You’re welcome bud! I’ve been good man, chugging away and amazing to see how quickly the year is coming to an end right ;)..
Excited to see your updates from your honeymoon and what not!
I am sure you have had months that went the other way too (an abnormal jump). Its all about the long term trend! Glad you are liking the new city
Thanks Evan!! The new city is great so far and we are loving it. I just have to get used to all the up and downs but hopefully long term, it keeps moving up. I dont see why it wouldnt as long as I keep doing what I am doing.
Still looks like a great month considering that you had the highest increase in NW the prior month. I’m glad that you’re liking Indy and have fun on your honeymoon!
Yeah it was an okay month considering but yeah I think im just spoiled now after having really good months periodically. 🙂
Very cool, Brian! I’ve been following your blog for awhile–very inspiring! I’m excited to see how your move to Indianapolis pans out.
I’m in the process of purchasing my first investment property just south of Indy, in Franklin. Like you on this site, I’ll be tracking my journey on my site at http://www.awealthylegacy.com !
Good luck, and enjoy the honeymoon!
Thanks Andrew! Indy is working out pretty good so far. Cant complain! Will be better once I have a few more rentals and making more passive income!! Ill be sure to take a look at your blog, curious to see how it pans out for you as well.
Seriously interesting post. I’m not so much into tracking my net worth only earnings but found this pretty interesting. Keep it up Alexander
Thanks Tom! You should try it out. Might get addicted to it though once you start seeing growth. 🙂
That net worth! maybe in 5 years ill be lucky to be in the $200,000 range! you have done an amazing job at your current age and all I have to say is keep up the great work!
Thanks so much DD!! I appreciate the remarks. Im sure you will be there at some point to especially if you are already keeping track of it and making moves to make it better.