July 2015 Financial Statement: A Starting Point

It's all about the Benjamins.  And Jacksons.  And Lincolns.  And Washingtons.

It’s all about the Benjamins. And Jacksons. And Lincolns. And Washingtons.

I’m planning to share real-world numbers for my assets, debts, and retirement accounts going forward formatted as a monthly financial statement.  You’ll have to bear with me as I didn’t have all the information organized with last month’s balances on a few things, so some of these values are approximate.

Why share real numbers?  We’re afraid to talk about money as a society, and as a result, most people are terrible with it.  I know how unbelievably lucky I am to make good money– more than enough to survive most places in the country– but I have also seen it go to zero several times in the past few years.  I worked two full-time jobs for about six months this year to be able to save as much as humanly possible so that someday soon, I’ll be impervious to job loss and unexpected emergencies.  I have more than many, less than some, and I believe that there’s more good in showing that by living a modest lifestyle, you can do huge things.  You can do what I am doing– maybe better.  The point is, it isn’t about how much you make, it’s about what percent you save.

In July, I put about $3,000 towards my retirement accounts, which is less than I would like.  The goal is to put $6,500 towards retirement accounts 8 months out of the year.  Luckily this month, my primary residence continued to rise in value, which improves my overall net worth by a lot.  These next few months, with quarterly taxes due, I’ll only be able to put a few thousand away each month.  After that, I hope to have a few very good months where I really cram money away.  Last month was very expensive with some international travel, and getting engaged.  I paid for the ring in cash, so no debt was accrued.

Broadly speaking, I’d like to put another $30,000 towards savings this year by finding some side jobs.  Between that, paying down debt, and other savings, I’d like to end the year with a Net Worth of over $150,000.  I’ll be incurring some big expenses next year, including three more rental properties and a wedding, but hopefully work continues to come my way and I can just cram in the hours and continue to save.

Assets - July 2015

AccountBalanceLast MonthChange
Personal Checking$8,298.02$17,702.36-$9,404.34
Real Estate Operating Account$1,235.65$609.67$625.98
Real Estate Cash Flow Account$1,027.54$855.94$171.60
Credit Cards-$3,920.69-$10,000$6,079.31
Retirement - After Tax$39,886.48$39,540.68$345.80
Retirement - 401(k)$53,294.18$49,740.36$3,553.82
Retirement - IRA$4,576.98$4,503.49$73.49
Asset - Home$393,573.00$381,392.00$12,181.00
Asset - Rental 1$53,040.00$52,297.00$743.00
Asset - Rental 2$71,456.00$70,970.00$486.00
Mortgage - Home-$384,166.24-$384,384.71$218.47
Mortgage - Rental 1-$44,965.24-$45,021.93$56.69
Mortgage - Rental 2-$48,687.25-$48,750.00$62.75
Student Loan 1-$23,411.37-$23,411.37$0.00
Student Loan 2-$14,553.14-$14,553.14$0.00
Student Loan 3-$5,411.68-$5,411.68$0.00
Net Worth$101,272.24$86,078.67$15,193.57

Retirement Update

With retirement accounts totaling $97,757.54 at the end of July, a 4% Safe Withdrawal Rate would allow us to take out $325.85 per month.  My rental properties, after all expenses, vacancies, and short and long term maintenance are considered, produce $441.00 of safe cash flow every month.  I do not plan any further property purchases this year.  If I can keep my expenses under $500 a month after bills for the rest of the year, I hope to add $30,000 more to the retirement accounts.

Safe Monthly Income: $766.85

% to Goal: 15.33%

One thought on “July 2015 Financial Statement: A Starting Point

  1. Pingback: April 2016 Financial Statement - The Frugal Vagabond

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.