May 2016 Net Worth

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This is our Net Worth update.  This is where we lay it all out for the world to see.  It’s where all our income, expenses, assets and debts come together.

I have to admit, these are my favorite posts to produce.  I enjoy tracking our passive income; however, passive income is a “piece” of the puzzle.  The whole “overall picture” lies in that Net Worth amount.  $1,000 a month in dividend income looks good until it is put next to a $-100,000 net worth.  In my humble opinion, as your Net Worth grows, you will move closer and closer to Financial Independence.

With that said, here are the numbers for May:

Displaying May Net Worth.jpgMay Net Worth

It is with a sad face that I report, for the month of May, our Net Worth decreased $1,011.11 (0.89%) to $112,199.64.  This is the first month to month decrease we’ve seen since we’ve been tracking our Net Worth.  I do understand that this is a part of personal finance.  There will be some “down” months and some “up” months.  I’ve seen it happen to the most well-known bloggers.  It’s bound to happen when you have assets that are subject to market valuations and depreciation.  Let’s break the numbers down a bit and see what happened in May.

Debt:

Total debt eliminated for May totaled $762.72, as we eliminated $170.70 off of our mortgage and $592.02 from our car loans.  We hope to knock out a little more debt in June than we did in May, as we will put a little more cash towards debt reduction.  We will see how that turns out next month.

Assets:

CASH:  Our Cash position decreased by about $450 (-4.6%).  I am not too concerned about an increase or decrease in cash.  I would be more concerned if cash grew; to me that means we are not putting it to use!  I’ve always stated that I prefer cash flow over cash; however, we are a one-income family, and the cushion gives us a bit of comfort for unknown expenses.  I stated in April’s net worth post that we wanted to close in on $10,000 in cash in May!  Well, we took a little step back, so we will have to see what happens in June.

PORTFOLIO:  The value of our New Life Portfolio grew again!  For the month of May the value increase $560.74 (7.3%), from $7,712.26 to $8273.00 in MayOur portfolio on December 31, 2015 was $3,393; it has more than doubled since then and has increased each month!  We are making great progress in this area.  Growth in the New Life Portfolio came by way of Starbucks (SBUX) purchases in our Loyal3 account, adding to our already existing position in HCP, Inc. (HCP) and a buy/sell of Wal-Mart (WMT)/Realty Income Corp. (O).  We continue to expect more portfolio growth as we will continue to put capital to work.

RETIREMENT:  Our retirement accounts saw a decent 0.8% bump in valueThis activity is strictly the market, as we contribute minimally to our retirement accounts.  Any increases/decreases will be due to overall market fluctuations.  There will be activity to talk about in June, so stay tuned.

OTHER ASSET ACTIVITY:

  • Our vehicles saw a hefty decline in value, losing 1% of their values. The reason for this larger than normal decline is…I was valuing one of the vehicles incorrectly by entering the incorrect trim (EX, LX, etc.).  Correcting this error took the value of the car down about $2,700.  Luckily, depreciation and valuation changes are non-cash transactions; therefore, it has no effect on cash flow.
  • Our home value saw a value increase after a two-month skid. Our home value, based on Zillow’s valuation, increased 3%, or $391.85.
  • Paid vacation leave finally increased 7%, as I did not use any leave. I already see declines being reported in June, as me and Mrs. TOL’s anniversary approaches.  Off to the beach we go!

Our combined debt load is still more than our net worth, a figure we are working hard to change.  Overall assets dropped 0.8% and overall debt dropped 0.7%.  While it is truly a bummer to see your net worth drop after a month of working hard at the job we are seeking freedom from, we do realize that we are still doing well on a cash basis, as the portfolio is growing, cash is steady and debt levels are decreasing.





2 thoughts on “May 2016 Net Worth

  1. […] is not as bad as last month’s report, but the needle was moved slightly in the right direction.  ... tradeourlife.com/june-2016-net-worth
  2. […] 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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