Recap:
The most noticeable change this month is the decision to remove our personal vehicles out of the net worth. I was always up in the air about including them but I figured they are valuable and add to my current net worth. The problem was KBB value fluctuates too much and the constant change in value was compromising the overall percentages of this monthly report. So as much as I want my Net Worth to be as high as possible, I care more about the accuracy of this report. October was a pretty standard month. My income was reduced a little for the time off from having our baby girl but other than that everything stayed the course. We currently have our rental property under contract but I won’t be excited until it actually closes. If we close in December, that will add a nice little increase to our Net Worth but we are currently looking for another rental so Im sure the proceeds would just go to the new house.
ASSETS:
House Market Value – (+0) – As expected, no change!
Rental #1 – ($0) – $80,000 Currently under agreement! Lets hope for the best!
Profit Sharing – ($1,660.90) – Market increase – Keep climbing baby!
Employer Stock – (+0) – This probably won’t be updated until the end of the year.
Checking/Savings – (-$4,598.86) – Combination of having a baby and taking 2 weeks off definitely has this number down. Family is the one thing I will never compromise for money. I will fully take advanatge of being my own boss and taking the time necessary to be home for them.
Money Market – ($129.39) – It has been decided that we will be using this money for our next rental. The ability to have money saved away is allowing us to take advanatage of a slow real estate market. In Pittsburgh, the market really slows down once everyone goes back to school, so I am fully expecting to be able to jump on a good deal within the Winter months.
Emergency Fund – (+0) – No Emergency = No Change! Thank you God!
LIABILITIES:
Primary Mortgage – (+1218.97) – 178 more payments to go!
Rental #1 Mortgage – (+64.33) – Principal pay down! Hopefully only two more payments go to this house!
Excess Spending (Budget Overage) – (-$1,270) – I am very happy to keep this number anywhere under $2,000. Although looking back through my expenses, the common trend is definitely going out to eat and alcohol! If we could give up drinking, we would be millionaires way sooner!!! But where is the fun in that?!
MONTHLY NET CHANGE: -$2,808.57
MONTHLY EXCESS SPENDING:-$1,270
Net Worth Breakdown #2 : September 2019
Recap:
September will be the last Net Worth breakdown without diapers, formula and million doctor visits for a while. Our baby girl decided to arrive on September 28th so it took me a couple weeks to finally write this breakdown. I was already interrupted once by a crying baby and I’m only two sentences in! My wife and I have determined long ago that we want to live the fullest life possible and in our case that meant growing a family faster than growing a net worth. I will agree with criticism that raising children is expensive but what people don’t mention is all the free moments you get in life from having those children around. Our entertainment expenses have dropped significantly since our first son was born and that is because we no longer seek the fulfillment in the activity bucket of life… Ok, yeah I have to mention that may have something to do with lack of energy but even going to bed at 10pm, we have never been happier!…. Back to September’s Net Worth: This month was a pretty chill month because most of the time was spent waiting on Baby Girl to arrive. The only exciting news is we listed the duplex we have for sale but with this fall market it seems to be slow and people have already put away the checks for the year. The numbers are absolutely ridiculous and it is a cash cow but the market has slowed down so we may pull it off the market until Spring. If you’re wondering why I want to sell if the numbers are so good, it has 100% to do with the area its in and the tenants it attracts. I will be focusing on B neighborhoods and up from now on!
ASSETS:
House Market Value – (+0) – Same as last month. Although we are starting an addition on the back of the house next month so this number will be increasing soon. It won’t be until next Summer because the construction will be delayed during the Winter months.
Rental #1 – ($0) – $80,000 all day… We currently have it listed at $95,000 so I’m hoping to add a little extra to this after is sells.
Profit Sharing – ($1143.48) – Market increase – As stated before, Im not too worried about the ups and downs with any stock.
Employer Stock – (+0) – Still haven’t received the new numbers on my wife’s company stock so we will keep it the same instead of speculating.
Checking/Savings – ($861.86) – This was one of the months that I am happy to just see it in the green. One week off for maternity leave and a real estate transaction falling through will do that to you.
Money Market – ($56.51) – We have this money in a Money Market account because I don’t know what I’m going to do with it yet. Mostly likely it is going towards another rental property but I haven’t found anything I’m in love with. I’d rather have this collect 2% than the 1.1% my savings account offers. (Same recap as last month but exactly the same so why change it!)
Emergency Fund – (+0) – The only way this changes is if my wife quits work! (Shes getting 3 months maternity leave so this definitely wont change for a couple months!)
Vehicle Value – (+113) – Not sure why they increased in value but again Im only tracking because they are worth something.
LIABILITIES:
Primary Mortgage – (+1209.14) – 1st payment towards paying the house off in 15 years!!! Only 179 more payments to go
Rental #1 Mortgage – (+59.77) – Principal pay down! Nothing exciting!
Excess Spending (Budget Overage) – (-$1,253) – Damn near cut this number in half! Thats what I like to see. Any positive traction I can get month to month on this category will be a victory. I know that since we are “Enjoying Today” that this category will have its ups and downs but if we can limit the ceiling of this number then I will feel comfortable with our spending.
MONTHLY NET WORTH CHANGE: +$3,443.76
MONTHLY EXCESS SPENDING : -$1,253