Net Worth Breakdown #1 : August 2019
Recap:
Summer is coming to an end and quite frankly my budget couldn’t be happier. I don’t know what it is, but I am more free spirited when the weather is beautiful. Between the extra $ spent on beer for neighborhood parties and the preparation for our baby girl in September, we are looking for a reason to slow down the spending. I can guarantee those two areas in excess spending are correlated but the fact we spend more in the summertime is inevitable. The big victory this summer however was the ability to take advantage of the mortgage rates dropping. We were able to refi a 4.375% 30 yr loan into a 3.25% 15 yr loan. This met the 1% rule- if you’re able to lower your mortgage by 1% you should highly consider it (this can fluctuate based on loan amount.) Just a quick thought, we could have kept our mortgage at the 30 year term and saved $3,000/ year in interest but seeing our mortgage increasing by $600/month and shaving 15 years off was well worth it. Ya, $7,200 a year isn’t chump change but having a free and clear house at 48 sounds a lot better than 63.
ASSETS:
House Market Value – (+0) – This number will ultimately stay the same throughout my updates because the yearly real estate market is cyclical and I don’t feel the need to constantly fluctuate this value. I will reevaluate this value at the beginning of every year unless there is a noticeable downturn in the market.
Rental #1 – ($0) – This duplex is hitting the market soon so I will keep a closer eye on the market. As for now, its safe to say it is steady. As for selling investments, it’s always a little trickier because different investors value investments differently. Let’s see where this thing ends up!
Profit Sharing – (-$1,376.64) – A little decrease in the market but this is to be expected when invested in the stock market. Could be worse, could be better!
Employer Stock – (+0) – This is a privately-owned company and therefore the price of the stock always stays the same. The value in this stock is it pays out quarterly dividends and depending on the year they had, they will give you free stock based on the total amount you currently own. We won’t see a change until next month!
Checking/Savings – ($4,597) – This is where I mentioned before that the summer kills our budget. Being a real estate professional, my income is always greater from March until October so this number should be higher. I’ll make it a goal to improve this for next month, even with taking a week or two off for the birth of our baby girl!
Money Market – ($34.09) – 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.
Emergency Fund – (+0) – The only way this changes is if my wife quits work!
Vehicle Value – (+0) – Not a huge fan of tracking this value only because I hate vehicles but I guess I need to because they are worth something!
LIABILITIES:
Primary Mortgage – (+0) – First payment isn’t due until September 1st. Not a bad benefit to refinancing. Since we did it the first week of July we were able to avoid two months of mortgage payments!!!
Rental #1 Mortgage – (+59.46) – Principal pay down! Nothing exciting!
Excess Spending (Budget Overage) – (-$2,302) – This is a number that I would love to get a solid grasp on and keep consistent throughout the months. However, I do understand that different months will have different expenses (children birthday parties, Christmas presents, etc.) The biggest expense was actually a birthday gift for my father-in-law. We purchased a fish finder at $855. This is definitely excessive but we said it accounts for the next 5 years worth of gifts for his birthday, fathers day and Christmas. Other notable expense was a weekend away with the wife and kids.
MONTHLY NET WORTH CHANGE: +$3,313.91
MONTHLY EXCESS SPENDING : -$2,302