Net Worth 2016-03

Total Net Worth in March: $405,389 ($91,563) – Incredibly satisfied

March was the best month we have ever had.  The stock market did well, our tenants moved in.

During the month we broke the $400K barrier for the first time, 21 months since we broke the $300K barrier and 4 months since we broke the $310K barrier.  I know we kinda ‘cheated; to get here since I picked this month to update the value of our properties, but even without the increase in asset values, we had a really good month.

Assets: +$78,242 –Incredibly satisfied

After holding off for some time, I decided that it was more appropriate to occasionally update the value of our real estate holdings.

I came to this conclusion for a few reasons.  There was getting to be a significant discrepancy between the values of our real estate and the values listed on the Net Worth updates.

More importantly, we are making decisions to buy/spend/rehab/invest etc on real estate, the results both good and bad are best reflected by keeping the values at least somewhat close to market.  For instance we might decide to sell a property if the value has gone way up.  Maybe we rehab a house based on our value vs the after repair value.  Maybe we accept low cash flow if we are getting 10% year over year appreciation vs selling if the market is flat.

I think real estate valuations are very subjective, and I don’t want to get into monthly updates since places like Zillow etc are so volatile. I plan on making a couple of updates a year, and I am trying to make it so the value listed would roughly approximate the amount we would take home after a sale.

The Duplex’s value went up from $308K to $340K in our latest Net Worth Estimate, similar structures in the area have actually sold in the $350K-$390K range.  Zillow currently has an estimate of $385K so I don’t think that $340 is overly aggressive.

I have increased the value on the rental house from $230K to $280K.  This house is in a booming neighborhood in Dallas.  Our real estate agent estimated that its current value would be about $300K.  So the $280K number I believe to be fairly conservative.

I  left the price of our current house the same as we just bought it in Nov of this year and a few months ago, I already increased the value a little based on some rehab work we did to the house.

I used KBB to update the value of our autos and reduced the car value by $616, and the SUV by $555.

Net Cash Accounts: (-$4,208) –Not satisfied

Our cash balances were down quite a bit.  My wife’s kids came to town, and we spent some money shopping, eating out etc.  So our credit card balances (which are paid in full every month) went up.

In addition we paid everything we could on our personal loan so the overall balances in this area were negative.

Net Cash Rental Accounts: +$965  – Satisfied

We were up this month on our rentals.  Finally have someone living in our old house offset by some final expenses we took on to get the house ready to rent.

Retirement accounts: +$9,708  – Incredibly satisfied

A great month in our investment accounts. My 401K account had its best month ever.  My IRA did well as Apple is starting to come to life. The wife’s 401K did well as she is entirely in a Vanguard S&P fund.

Honestly in this area we just need to continue investing, and to continue increasing our contributions over time.

Liabilities: +$6,857  – Incredibly satisfied

A great month, we paid off the personal loan (+5,761) we took out to buy/rehab the house we bought in Nov.  I absolutely hated taken out this loan, it went against just about everything my wife and I are trying to do.  Being able to get it paid off is a great relief, it lowers our fixed costs by $310/month.

Next month we will turn our focus to the 401 loan, we owe $19.2K, I would like to see us have it paid off by Aug.

The remaining improvement (approx +1,100) was just due to regular amortization on our other loans.

How did you do in March?

Advertisements

2 thoughts on “Net Worth 2016-03

  1. Sounds like your are moving along in the right direction financially. Congrats!

    I believe Vanguard has some of the best low cost, high performing funds on the market today and I’m very happy with the returns. Apple has made a bit of a recovery and I do own some, so hopefully that trend continues.

    Liked by 1 person

  2. Thank you for your kind words, its always nice to hear comments to help motivate us.

    We have a lot of our retirement accounts heavily invested with Vanguard. In the IRA I have mostly blue chip growth stocks,with a position in a Vanguard Small cap fund.

    We have our 401K’s in Vanguard. My wife’s account is all in VIIIX (Vanguard S&P 500). My 401K is all vanguard broken down right now as 10% healthcare, 33% institutional index (S&P500), 14% money market, 23% Small Cap, and 20% Value.

    I need to do a post one of these days as to why don’t particularly believe in bond (at this level of net worth savings and interest rates) or International funds . Instead I hold a little bit of cash, that I move incrementally into the market during downturns.

    I plan on doing a post one of these days on why I think it might be important to have at least some diversification away from passive investments.

    Thanks for stopping by.

    Like

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s