June 2016 Net Worth

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The first half of the year has whizzed by as we have wrapped up the month of June.  The month of June saw Mrs. TOL and I celebrate our 1st year of marital bliss!  I look forward to a lifetime of joy with her.  She, along with our family, are my biggest motivating factors and the reason why I rise and shine early in the mornings.

For this post I will do the usual comparison of the month in review to the previous month.  In addition to this I will also compare our financial numbers at June 30, 2016 to the financial numbers at December 30, 2015.

Here are the numbers for June:

June NW

It is not as bad as last month’s report, but the needle was moved slightly in the right direction.  For the month of June, our Net Worth increased $136.88 (0.89%) to $112,336.52.  Though we would have liked to see a bigger increase, we will be happy that it moved in a positive direction, as May’s Net Worth report saw a drop of over $1,000.    Let’s break the numbers down a bit and see what happened in June.

Debt:

Total debt eliminated for June totaled $948.31.  This is the result of our regular monthly mortgage and car payments.  We managed to add extra funds towards paying off one of our cars.  We are making great progress as the balance on one of the cars has been lowered to about $10,700.  We are getting close to a 4-digit loan balance.  Paying off one of the cars would have a large impact on our monthly cash flow as a one-income family.  However, the rate is on the lowest balance is only 1.99%.  This brings us to that age-old question – pay down debt on a low interest loan or invest the proceeds?  What do you think we should do?

Total debt as of December 31, 2015 was $127,506.67.  In 6 months we have managed to knock out $12,393.34 (9.7%) of that debt!  A huge part of that was Milestone Achievement #1, where we knocked out a $5,000 credit card balance in one month!

Assets:

CASH:  Our Cash position decreased by a minimal amount, dropping by $105.22 (-1.1%).  I am not too concerned about an increase or decrease in cash.  However, I would like to see cash touch $10,000 at the end of a month.  Not that it means anything to me; it’s just such a nice, round and whole number.  There is a car repair that we will be making in July that will probably drop our cash balances even further.

Our cash position at 12/31/2015 was $6,971.06.  Compared to our cash balance of $9,240.18 at June 30, we increased in this category $2,269.12, or 32.5%!  That’s a very good 6-month increase considering the amount of capital we put into our portfolio.

PORTFOLIO:  The value of our New Life Portfolio really jumped in June!  For the month of June the portfolio value increased $929.47, a whopping 11.2% increase from May!  To compare to the overall market, the DOW closed on May 31 at 17,787 and closed on June 30 at 17,929.99.  The majority of the growth in the New Life Portfolio came by way of adding additional shares of MetLife (MET), a sell/buy of Realty Income (O)/Wells Fargo (WFC), and smaller purchases in the Loyal3 account.  We continue to expect more portfolio growth as we will continue to put capital to work.

The New Life Portfolio was valued at $3,393.13 at December 31, 2015.  The value now stands at $9,202.47, almost pulling off a triple bagger!  The portfolio increased $5,809.34, or 171%!  This is the reward when you are focused and diligent in saving and investing money when seeking financial independence.

RETIREMENT:  Our retirement accounts saw a slight decrease in value of 0.2%.  We expect to see an increase in our retirement accounts as I begin to pump fresh funds into them. Outside of capital contributions, any increases/decreases will be due to overall market fluctuations.

Our retirement accounts were valued, as of December 31, 2015, at $59,599.26.  As of June 30, 2016 the accounts are now valued at $65,991.06, an increase of $6,391.80, or 10.7%.  Approximately half of the increase can be attributed to an account that we discovered a few months ago.  The remainder of the increase was from market fluctuation and fresh capital.

OTHER ASSET ACTIVITY:

  • Our vehicles saw a decline in value, losing 9% of their values. 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’s valuation, less a 15% estimate reduction, decreased 4%.
  • Paid vacation leave decreased 4%, as I used hours for our anniversary trip to Charleston, SC. There are no trips on the immediate horizon, therefore, my leave balance will continue to increase in hours and value.

Overall, the Net Worth moved in the right direction, just not very much.  Our last three reports have shown our total assets decreasing slightly.  I attribute this to factors beyond our controls: car depreciation, decline in value on our home which is the biggest part, percentage wise, of total assets (around 50%).  We will continue to increase the areas where we have more control, such as cash, the portfolio, paid leave balances and reducing our debt.

NOTE:  As of this writing, I was notified I received a 4% raise in pay on my job!  It will be interesting to see how this will affect our Net Worth for the remainder of 2016, as we fully plan to put the extra funds to work, and not waste!

 


3 thoughts on “June 2016 Net Worth

  1. David Schauber Reply

    Congrats on your progress, especially on that raise and getting rid of that credit card debt. You were asking about what to do about the debt that’s charging you 1.99 percent interest. With the interest that low, I would think you’d do better by putting excess capital into an investment that pays a decent dividend. But, that’s just me. On the flip side, there’s that psychological impact of getting rid of that debt. To each their own….

  2. Tradeourlife Reply

    Hi David.

    We bounce back and forth on that car loan. I most definitely could put the extra funds to work in the market and earn double what the rate on the car is costing us. I could purchase more T, OHI, JNJ, even get back into O and earn a steady high yield. However, I think it would be quite refreshing to have one of our cars paid off and have a little more cash flow. The market is very high right now and good deals are hard to come by!

    Thanks for commenting!

  3. […] this looks much better than the previous two Net Worth reports for May and June!  To be clear a $1,... tradeourlife.com/july-2016-net-worth

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