So glad you could join me for my monthly net worth update! Why do we track net worth anyway? It’s just one factor in the grand scheme of things.
In order to become financially independent (and that’s my goal, peeps), I know that I’ll need multiple streams of easily-scalable, passive income.
I’m going to start tracking my passive income growth through another series of posts so be sure to check that out later this week.
So let’s get into how things for August:
Over the last three months, our net worth has increased by $33,470 (+7.70%), growing from $434,824 to $468,294.
One year ago, our net worth was $359,812.
Pretty cool to see those big numbers change over a year’s time.
This brings our monthly average growth back up from $7,827 to $10,067 for 2017. Last month was a butt kicker, and you can peep that here:
We’re now back-on-track for HALF-MILLIONAIRE! status in 2017.
Ok – calm down everyone.
Put your clothes back on!
Sam, get off the table. There are children.
Let’s cover changes by category!
We had income of around $6,947. The fun thing about this is that $621.53 came from side hustles that Alison and I have going.
We also got $342 in credit card cash rewards! That’s over a period of about 12 months so no big deal there, but it’s still fun to get some cash back. That money went straight into our travel savings account during a time when our budget is quite tight.
We are playing the credit card rewards game, so there’s an unsettled credit card bill of over $5K which is scheduled to be paid as usual.
We always pay our credit card bill in full each month, and we currently use Mint.com to keep our budget straight.
I think we’ll hit our bonus rewards target for a new card we got (Chase Ink Business Preferred) this month which means we’ll see another 80,000 points in our Chase Ultimate Rewards account. These points can be redeemed for over $1,000 in travel costs!
Health Savings Account
This is a pre-tax account designed specifically for health care expenses. We contribute the maximum allowable $6,750.
Thanks to my employer for contributing $900, we only have to send in $5,850, or $487.50 per month.
Our goal is to grow our HSA to match the size of our healthcare plan’s out-of-pocket maximum: $13,000. So, we’re 46% complete on that goal!
This is an education savings account for our oldest daughter who’s 3.5 years old. ESAs are great because the savings and growth are completely tax-free as long as they are used for qualified education expenses.
We’re putting away the standard ESA max amount of $2,000 spread over 12 months.
- Contributions: $166.66
- Gain/Loss: $44.29 (+0.53%)
A lot happened in August.
I sold all of my shares of single stocks ($5,393.85) as well as all of the mutual fund shares I’ve been saving for real estate investments ($52,032.81).
Then, I moved $5,300 over to cryptocurrency investments, where you’ll see a large jump for August.
The other $52K is being held for a potential purchase of our first duplex! We don’t know what the market will do, and we don’t want to risk losing any capital in the case that we need it for a real estate deal.
Notes on those single stocks: In February of 2017, I split $4,000 into eight chunks of $500, and bought eight different tech stocks. Here’s how they came out:
As you can see I had a focus on gaming companies. I still believe them to be great investments because I don’t see most of these companies going anywhere for a long time.
But I made the decision to get out because I’m speculating that a new cryptocurrency will become popular in the next year in China.
- Cash Invested in August: $3,458
- Cash Invested YTD: $21,704
- Gain/Loss YTD: $16,023 (+73.82%)
Prepare yourselves for a recurring theme.
The ebs and flows of cryptocurrency. July was a down month, things recovered tremendously by the end of August.
Ethereum bulled its way to $384, and this is where I have my largest holding.
I invested in a new cryptocurrency which is highly speculative, but could turn into a monster in China: NEO.
As I always say, I’m not trying to convince ANYONE to get into cryptocurrency.
I’m sharing my experiences, and I’m happily answering questions for those of you who have contacted me directly.
Would you like to learn more about the basics of securely investing in cryptocurrency?
I’m developing an e-guide which will be a compilation of everything I’ve learned during my crypto investment journey. To get your copy, just sign up for the wait list below:
We have officially converted our contributions from our Roth IRAs over to our traditional 401k through my employer.
This means that we are stopping our contributions to our Roth IRAs. YES.
We’ll now be maxing out our traditional 401k in an attempt to shield more from taxes NOW, which creates $450 more that we can dedicate to real estate investing.
The reason for the change is that we are interested in creating passive income now versus building up a massive nest egg that we can’t touch until we’re 60+.
So, with the change, we’ll be investing more into retirement, paying less in taxes, and having more leftover for investments that will create passive income now and let me quit my job sooner.
The other point is that there’s this neat Roth Conversion Ladder that my boy David @ Zero Day Finance introduced me to. I can convert money from my traditional 401k during future years (where I plan to make a lot less income than I do now), so I can avoid paying as much in taxes on that money.
Additionally, that converted money would be available to me a lot sooner, as in 5 years after conversion.
If you want to read more about that, check out this article by Mad Fientist:
I’ll put together a post going into more detail on how this worked out for me, soon.
- Contributions: $3,124.34 (includes employer match)
- Gain/Loss: $1,615.02 (+0.88%)
If you are interested in a neat net worth tracking tool, click here to give Personal Capital a try. It’s a super neat tool!
I still like to use spreadsheets, but Personal Capital gives me a quick and dirty dashboard with cool reports. The history is nice as well, much easier to tweak dates and see graphs change.
Home – It’s not that useful of a metric, but I guess the home went up this month… yay.
Cars – The only asset I own that is guaranteed to go down in value. No surprise there! I truly believe that NOT overspending on cars has been key to my success. If you’d like to see exactly what I do to keep cars from ruining my finances, check out these posts:
Personal Property – We haven’t added anything significant to our valuables. This is basically an estimate of the cash we’d net if we opened our home and sold everything in it, and with fairly conservative estimates.
I’d actually like to see this number go down over time, as we learn to spend even LESS money on STUFF. You can read more on my thoughts here:
Change in Liabilities
Credit Cards – I’ve scheduled the payment for August, but it hasn’t gone through yet so I show my liability at just north of $5K.
I believe in tackling personal debt, but I’m OK with credit cards if you pay them off each month. You can read a bit about my philosophy on credit cards here:
That’s All She Wrote
Not a bad month due to my gains in cryptocurrency. I’ve had a lot of questions about this lately, so if you’re interested in the e-guide I’m writing, click here to join the waiting list.