February 2017 Net Worth Update - Cash Flow Diaries (2024)

This is my official February 2017 Net Worth Update. Below are my actual numbers for ALL my investments and liabilities as of 03/01/2017. Detailed explanations and a quick summary can be found below. If you would like to see my previous months net worth posts, please visit my Net Worth Tracker. I have been tracking my net worth monthly since May 2015. If you want to learn how to track your net worth then check out how I am doing it.

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Quick Summary and comments: -$4,172

Last month I officially became a half a millionaire which was huge news for me! And now for this month I went negative. 🙁 However, its only negative on paper because if you notice, my stock options decreased by $11k. This was because I cashed some out and just haven’t received the check for it yet. If I would have received the check before I wrote this post, my balance would have been in the positive. So in my book it’s not really a loss, just super bad timing! Oh well. For more details on why I cashed out some more stock options you can scroll down to my stock options section.

My credit card debt also sky rocketed because I spent a lot of money this past month booking future trips for my wife and I. I love booking future vacation because it gives me incentive to start working out. I always say to myself how I need to look good for this next trip!! Hehe. Other than that everything is pretty normal, nothing else happened that really affects my net worth. My cash went up a lot butthat was only because I received a bonus from my day job which was nice.

On a bright side, now that my Amazon FBA side hustle is officially over (see more on that below), I am now ready my next business endeavor. I am ready to begin my next real estate investment. I have begun strategizing about how and what I will do for my next investment property. Obviously I am no longer buying turnkey rental properties because I now live in Indy and can find my own deals. My last 2 rentals I bought via wholesale which worked out well for me. For this next property Im not quite sure yet how and from where I will purchase it. I am actually considering becoming my own wholesaler so I can score my own deals and not have to pay other wholesalers for a fixer upper. Another strategy I am thinking about involves using a government assisted program that I found here in Indy offering to sellabandoned houses for dirt cheap. I only discovered this a few days ago and need to read up a lot more on it but it’s very intriguing to me. Hopefully by my next net worth update, I will have purchased a new investment to work on or at least be very close to buying one. I love the hunt!!!

Amazon FBA Update – Well if you guys did not already read my last post I published last week, my amazon FBA business is officially over. As far as I am concerned, it was a huge failure. I didn’t even come close to the amount of money or returns I thought I would see. I did however actually make a little bit of profit. It wasn’t a complete loss. If you want to check out all the actual numbers including income and expenses be sure to check out the post. And I also decided that because I will no longer be selling my private label product on amazon, that it’s okay to reveal to you what I was selling. So here is the product I was selling on Amazon FBA.

Okay enough about that, lets jump into my net worth categories.

Assets: Explanations of each of my assets.

Cash:=+$10,925

My cash is finally going back up!! I love having cash because the more it grows, the faster I can buy rental properties!! This month it went up a lot only because I received a hefty bonus check from my job. I hate having a day job so much and really do not like what I do but they pay me a lot of money and let me work from home so as far as I am concerned, i’m trapped working a day job for now. If I ever get to the point though where my passive income is a lot higher or I am able to figure out another awesome way to make income, then you can say bye bye to my day job. 🙂

My cash as noted above in the spreadsheet consists of my wife and I’s checking account. My REI (Real Estate Investing) checking account as well as my separate Amazon business checking account which I will probably be closing out soon now that I am done with that business. VerySatisfied!

HSA account: +$131

Slight increase in my HSA account from my paycheck contributions. Nothing crazy.

My HSA deductible is $1300 for the year and I have close over $5k in this account so with that being said, since I am maxed out already with my yearly deductible, I don’t see a need right now for depositing more funds. I am only taking a very small amount out from my day job paycheck to fund this account. Any money after that deductible will just sit in that account not making me money. I know I can use the money that I don’t put in there to get better returns as long as I invest it in more real estate. This number should increase each month a tiny bit. Satisfied!

Company Stock Options: -$11,754

My stock options hit an all time high last week and I just had to sell some of it. I can’t believe how it continues to grow and it’s really exciting. Too bad im running out now. I don’t have very many left. Well not as many as I want!! All in all with the sale I just did last week for about $12k, I think I have cashed out over $30k total since I have had them. Im grateful that my company gave me these for sure. I still have over $30k (as of now) in these left and that is enough for a nice down payment on house. May need to cash out again if this stock continues to rise.

These are stock options from my day job. I am fully vested. Satisfied!

Stock Portfolio:–$685

My stock portfoliois built of precious metal mining stocks. It has been a roller coaster ride with these as expected. Lately they have been going up it seems although this shows a loss, I guess it had a bad month. I’m not too worried about what these do in the short-term. I’m in it for the long haul on these as I think it’s just a matter of time before the precious metal sector takes off. Overall I am still profiting from these stocks as I bought them for dirt cheap.

I bought all my shares usingtradeKing. Satisfied!

401K: +$168

I made an executive decision awhile back to take money out of my 401k and no longer contribute any more money to it. Mainly because I do not get matched contributions from the dreadful day job. But also because I KNOW I can make better returns using that money on rental properties. Any movement you see in this asset is only from market fluctuations. I am not able to withdraw the remaining amount in here until I quit my job. I really don’t like the idea of having an account that punishes me to take money out because of age. Satisfied!

Property # 1 (Indianapolis, IN)

My primary residence in Indianapolis. This was originally a turnkey property I bought back when I lived in Austin. After the rehab I put into this house when I first moved to Indy I am happy to report that the appreciation has been nice on this. With the sold comps I reviewed I priced the house to be worth now $130k. Could be more actually but I am a bit conservative with this one. I bought this house for $67k. I moved into this rental because I love the location, the size of the house and because my mortgage on it is less than half of what I was paying when I was living in Austin, TX. SuperSatisfied! Here are more details onwhen I originally bought this oneas a rental property.

Property # 2 (Austin, TX)

Rent paid on time (early actually) and no repair requests. The perfect tenants as far as I’m concerned. I screened them myself and I am proud. 🙂 This is the property I self manage in Austin. Even now that I live in Indy, I will continue self managing this one. I think I can do it from afar and if in the future I realize that I can not continue being my own property manager, then I will probably just find a PM to handle it. So far everything is going great. I have not heard a peep out of them and they locked in for a 2 year lease so I’m hoping this one is a cash cow for a long time.

Grow your net worth today with your FREE Personal Capital account.

Property # 3 (Indianapolis, IN)

Rent paid on time, no repairs. Good month for this one. This tenant is super picky and likes to submit repair request for really small stuff.

This is my first turnkey rental property I purchased out-of-state in Indianapolis. I do not expect much appreciation on this property. I purchased this for CASH FLOW purposes only. Satisfied!

Property # 4 (Indianapolis, IN)

Rent paid on time, they submitted a repair for a leaky faucet which I approved. This was only a few days ago so it hasn’t even been fixed yet. This tenant also decided to renew another year. That will be the 3rd year with this same tenant. Talk about awesome!! This property was the one that I fired my property manager from originally when I first bought it as a turnkey rental properly. Since I switched PMs, the tenant is happy, the PM is happy and I am happy. Everything is great with this one.

This my 2nd turnkey rental property in Indianapolis I do not expect much appreciation on this property. I purchased this for CASH FLOW purposes only. Satisfied!

Property # 5 (Austin, TX)

Mortgage paid on time. No issues. This is a note that I own from a house that I sold via owner finance in the Austin area. If you notice though, the reason why this asset will continue to go down from the spreadsheet above is because it is a note and the principal balance on it goes down each month as the buyer pays me. Remember, I’m the lender on this one. Satisfied!

Property # 6 (Independence, MO (KC))

Rent paid on time and no repairs on this one either. This is the lastturnkey rental propertyI purchased located in the Kansas City area. I bought this in late October 2015. I purchased this property also for CASH FLOW purposes only. I am not expecting appreciation gains on this one. Satisfied!

Property # 7 (Indianapolis, IN)

Rent paid on time and no repairs on this one. The lease on this one is set to expire in June 2017, so 3 months from now however the tenant has already reached out to my PM about extending another year. This one was the one I wanted to convert to an airBnb but if the tenant wants to stay I am going to have to let him. The tenant has been great so far and I don’t want to ruin that. Easy cash flow baby!!

I bought this rental property from a wholesaler here in Indy after I moved here. I paid this one in cash and it came with a properly screened and paying tenant which was great. The property needs some fixing up however I won’t mess with it until after the tenant moves out or submits repairs. This is the one I really want to convert to an AirBnB.

Property # 8

Rent paid on time and no repair requests. Life is good!

I bought this housefrom a wholesaler here in Indy for $65k in a very popular Indy neighborhood back in late October 2016. I finished the rehab on this one in late November/early December 2016 and got it rented out for $950 just in time for Christmas. December is not easy to find a qualified tenant. Not only did my property manager find a qualified tenant but the tenant signed an 18 month lease so that we both don’t have to deal with a vacancy/move in December again. Talk about a Christmas miracle!!!

Liabilities: These are self-explanatory so I wont dive too deep into these however I would like to include the items below for informational purposes.

Credit Card

I only use one credit card (rewards card) that I use to purchase my everyday expenses. I pay this off in full every month. I am receiving 1.5% cash back on this card and am very pleased with it. Satisfied!

Car Loan

I FINALLY PAID OFF THIS CAR LOAN!! WoooHooo! Im excited about this. I always had the cash to pay this off but never wanted to because my rate was so low. This loan was for my Jeep Wrangler which I replaced with a minivan. Since I sold the Jeep, I had to pay off the lien. Good riddance!! On the loan that is, not my poor Jeep!! 🙁

Last 30 days net worth graph from Personal Capital

I really do love this chart, it looks great and its nice and big. This month is pretty stagnant except at the end there when I sold some stock options. I haven’t received the check yet for that sale so it looks like I lost money. 😐 Good stuff!

If you want to set up and track your net worth online like I do, create a FREE account at Personal Capital.

There you have it folks! How was your month? Subscribe here if you would like to receive emails on future posts including more net worth updates.

Check out these other posts:

A Step by Step guide: How to Buy a Turnkey Rental Property
March 2016 Net Worth Update
December 2016 Net Worth Update
October 2016 Net Worth Update
November 2016 Net Worth Update
December 2015 Net Worth Update

February 2017 Net Worth Update - Cash Flow Diaries (2024)

FAQs

What is net worth and cash flow statement? ›

The two basic measures of your financial situation are your net worth and cash flow. Your net worth is a stock, or inventory, that tells you where you currently stand financially. Your cash flow is a measure that gives you a good indication of how the first measure is likely to change over time.

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What's more important, cash flow or net worth? ›

Net worth is the past, cash flow is the future

It has little predictive power, which is a major reason banks tend to ignore it when considering whether or not to approve a loan. And again, this is as true for an individual as it is for a large business. Cash flow is far more predictive of the future.

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What is the difference between net worth and cash? ›

If you own more than you owe, you have a positive net worth. Your cash flow is what's left after subtracting your expenses from your income. Knowing your cash flow is key to managing your money well and a prerequisite to creating a household budget. If your income exceeds your expenses, you have a positive cash flow.

Does your statement of cash flows show how much cash you have coming in and going out? ›

A cash flow statement is one of the 3 main types of financial statements that publicly traded companies prepare, along with the balance sheet and income statement. It shows the cash payments coming in and going out of the company over a period of time—usually a quarter or a year.

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How do I find my net worth statement? ›

Start with what you own: cash, retirement accounts, investment accounts, cars, real estate and anything else that you could sell for cash. Then subtract what you owe: credit card debt, student loans, mortgages, auto loans and anything else you owe money on. Then boom—you've got your net worth.

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What is the formula for the cash flow statement? ›

How to Calculate Free Cash Flow. Add your net income and depreciation, then subtract your capital expenditure and change in working capital. Free Cash Flow = Net income + Depreciation/Amortization – Change in Working Capital – Capital Expenditure.

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What of your net worth should be in cash? ›

A general rule of thumb is that cash or cash equivalents should range from 2% to 10% of your portfolio, although the right answer for you will depend on your individual circ*mstances.

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Which cash flow is the most important? ›

Operating cash flow (OCF) is the lifeblood of a company and arguably the most important barometer that investors have for judging corporate well-being. Although many investors gravitate toward net income, operating cash flow is often seen as a better metric of a company's financial health for two main reasons.

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Is net worth a good indicator of wealth? ›

Think of it this way: Your income is how you make money, but your net worth measures your actual level of wealth, providing a much more accurate picture of your overall financial health.

What salary is considered rich for a single person? ›

Based on that figure, an annual income of $500,000 or more would make you rich. The Economic Policy Institute uses a different baseline to determine who constitutes the top 1% and the top 5%. For 2021, you're in the top 1% if you earn $819,324 or more each year.

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What is a good net worth by age? ›

Average net worth by age

Age by decade	Average net worth	Median net worth
30s	$292,609	$35,435
40s	$740,646	$126,126
50s	$1,345,922	$290,271
60s	$1,654,961	$446,703

4 more rows

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Does net worth include home? ›

Household wealth or net worth is the value of assets owned by every member of the household minus their debt. The terms are used interchangeably in this report. Assets include owned homes, vehicles, financial accounts, retirement accounts, stocks, bonds and mutual funds, and more.

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What are the three types of cash flow statements? ›

The cash flow statement is the least important financial statement but is also the most transparent. The cash flow statement is broken down into three categories: operating activities, investment activities, and financing activities.

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What can a cash flow statement tell you? ›

A cash flow statement summarizes the amount of cash and cash equivalents entering and leaving a company. The CFS highlights a company's cash management, including how well it generates cash. This financial statement complements the balance sheet and the income statement.

Are net worth and cash flow statements most valuable when used together? ›

Ultimately, your net worth and cash-flow statements are most valuable when you use them together. While your net worth statement lets you know what you're worth—how much wealth you have—your cash-flow statement lets you know precisely what effect your spending and saving habits are having on your wealth.

What is net worth on a financial statement? ›

A net worth statement is a financial tool that shows your financial position at a given point in time. It is like a “financial snapshot” that shows the dollar value of what you own (assets) and what you owe (liabilities or debts). This formula for calculating net worth is Assets – Liabilities = Net Worth.

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What exactly means net worth? ›

An individual's net worth is the value that's left after subtracting liabilities from assets. Liabilities include debts like mortgages, credit card balances, student loans, and car loans. Liabilities can also include obligations such as bills and taxes that must be paid.

What is net cash flow in cash flow statement? ›

What is net cash flow? Net cash flow is a profitability metric that represents the amount of money produced or lost by a business during a given period. Usually, you can calculate net cash flow by working out the difference between your business's cash inflows and cash outflows.

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