July 2016 Net Worth

hot money

Hello all, it’s the TOL’s bringing our Net Worth update for the month of July 2016.  July was a fairly quiet month on the home front.  Down here in South Carolina, we suffered through a serious heatwave, with temperatures surpassing 100 degrees!  But then again, that just summer in the South.

While the sun was blazing, the TOL’s were blazing also in July, as we continue to build on our momentum to financial independence.

Here are the numbers for July:

July NW

Now this looks much better than the previous two Net Worth reports for May and June!  To be clear a $1,500 increase to our bottom line is huge for us.  At the beginning of the 2016 we originally set a goal of achieving $140,000 in Net Worth.  Of course we were a dual-income family at that time.  While that goal may be challenging, I see $120,000 being within reach before 2016 closes out.  Whatever the case, we will try out best to make it come to pass.

For the month of July, our net worth increased 1.3% to $113,848.82.  Let’s break down the numbers.

Debt:

Total debt eliminated for July totaled $836.16, which consisted of a regular monthly mortgage and car payments.  We were able to add extra funds towards paying off one of our cars.  The loan balance on one of the cars is very close to going below the $10k mark, and we are very excited about that.  Right now it sits at about $10,200.  Just as important is the fact that we are close to the intersection where our cash exceeds the loan balance, giving us the ability to pay the car off in one lump sum payment – should we choose.   A paid off car would greatly improve our monthly cash flow and free up funds that could be used to build up the New Life Portfolio.

Assets:

CASH:  Our Cash position decreased by about 6% but could have increased were it not for a one-time charge.  A minor car repair during July cost us about $960. Though our cash balances decreased by about $554, we could have actually experienced an increase were it not for the repair.  But it’s ok, things happen, and it’s great that we had a cushion in cash and did not have to take on debt to pay for the repair!  Cash also dropped a bit as we paid extra on the car payment, as mentioned above.

PORTFOLIO:  Just like it did in June, the value of our New Life Portfolio jumped in July, also!  For the month of July the portfolio value increased $1,722.91, a whopping 18.7% increase from June!  The majority of the growth in the New Life Portfolio came when we decided to add our CVS holding to our portfolio, instead of recognizing it in our retirement account.  During July we added DIS to our portfolio (Loyal3), as well as added shares to our OHI and MET positions.

RETIREMENT:  Our retirement accounts saw a decent increase in value of 1.1%.  This is a good increase considering we moved our CVS position out of retirement and into the portfolio.    It is also important to mention I started contributing 1% to my 401k at my job in July.  Not a huge amount but I am not a big fan of retirement accounts that lock your funds up until you are 60 years of age or older.  Part of the increase is the 401k contributions and the remaining increase is just the market being good to us.

OTHER ASSET ACTIVITY:

  • Our vehicles saw a 6% decline in value, not as bad as the previous two months. Depreciation and valuation changes are non-cash transactions; therefore, it has no effect on cash flow.
  • Our home value saw a decrease, unfortunately. Our home value, based on Zillow, less a 15% estimate reduction, decreased 1%.
  • Paid vacation leave increased 8%! The reason for this is a 4% raise I received at my job!  With this raise, it makes my vacation hours worth more since they are calculated based on my current salary.  Combining this with the standard addition of hours per pay period and no hours used, that equals $573 increase in Paid Vacation Leave hours.

Overall, the Net Worth moved in the right direction with a nice $1,500 jump.  It was good to see our assets increase after the past three reports showed decreases.  We will continue to push forward and build on this positive momentum in July.  We can’t wait to see what August brings the TOL’s!





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