Net Worth 2016-05

Total Net Worth in May: $424,163 (+$5,685) – Satisfied

May was was a solid month.  We broke thru the $420K level for the first time.

Look for big news coming.

Assets: +835,798 – No Change

We made no changes to our assets this month.

As I have mentioned before, real estate valuations are very subjective, I plan on making a couple of updates a year, and the value listed is conservative and would hopefully approximate the net cash we would take home after a sale (excluding the mortgage payoff but less closing costs and realtor fees).

But I will (knock on wood), have some changes in June….

Next month I will update the value of our cars

Net Cash Accounts: (-$1,424) –Not satisfied

I paid for some dental work this month, so my FSA account went down by $1,200.  This is use it or lose it money anyhow, and we did set up the FSA this year knowing I needed to get this specific work done.

In addition, and this is a small house keeping thing………..I fully admit to being a nerd, I enjoy balancing our accounts in Quicken.  I am OCD when tracking our finances.  I enjoy it, I come home after work and to unwind I balance our accounts in Quicken.  I mean all of them, FSA, HSA’s, escrow accounts, mortgage balances etcyou name it……..I  update them daily.

Anyhow, so in Quicken, when we take cash out of our ATM, I make a transfer into an account called ‘wallet’, where theoretically we can make expense entries as we spend our cash.  It all sounds good….but bless her heart….my wife is terrible at making entries in on small items purchased with cash.  I am a little better but my cash entries , aren’t exactly GAAP compliant.  So over the course of 3 or 4 years, our net worth summary ended up with about $1,000 more in our ‘wallet’ than we really had in her purse/my wallet.

My OCD self needed to get it fixed, its bothered me for months.  And I can’t easily subtract it from our net worth totals, because the expenditures really happened, we just didn’t capture them, and the Quicken numbers are tied into how we budget, how we view our spending etc.

We entered a $500 expenditure this month, and will take another $500 next month (so we can ‘budget the expense’ across 2 months) to get the ‘wallet’ account down to the few dollars we actually carry in cash.  Its not a perfect solution as it makes it look like our cash accounts dropped faster than they did.  But oh well, it will end up making our numbers look better at the end of the day.

By the way, I said last month we would likely be flat on our cash, and I was right if you exclude the FSA.

Net Cash Rental Accounts: -$3,358 – Not satisfied

Ok….I will write more about it in a separate blog post.

1) we had a tenant accidentally burn up a fence.  So we have paid to get that fence fixed, but as of right now we haven’t yet billed our tenant, about $1,500 to repair the burnt section, and the burnt out wooden planter and to re stain the fence.  We should get reimbursed in June.

2) We have a tenant moving out, so we spent some money to fix up the house, we bought a power washer to clean up the brick exterior and power wash the sidewalks.

3) We got a couple of rent payments sent to us that hit after the end of the month.

Next month should be better.  I would point out, if you have real estate, you absolutely need some capital reserves to get you thru the ups and downs.  Ie paying a handyman to repair a fence while you are still waiting on your tenant to pay you back.

Retirement accounts: +$7,346 – A solid month,  satisfied

We made an extra payment of $2K to our 401K loan, and we made our normal 401K contributions.

Hopefully we can look to increase our contributions in July.

Liabilities: -$621,586 (+$3,122)  – Satisfied

A solid month in May , we paid an extra $2K on our 401K loan and had our normal $1,000 pay down on our mortgages.


How did you do in May?