November 2017 Financial Update

It’s time again for our financial update. This one is for November 2017. You can read last month’s update here. To see all our financial updates, please go here.

Unfortunately in November, life just kept getting in the way of working on this blog. Nothing bad happened. We were just super busy, which sadly meant there was only one post in November. I’ll get into that more in the Notes section below. Now onto the data!

November 2017 Financial Update Summary

Total Net Worth$200,500+$6,500
Assets$444,900vs Previous
Savings$300+$0
Home (based on Zillow)$324,400+$4,200
Vehicle #1 (based on KBB)$8,000-$400
Vehicle #2 (based on KBB)$26,100-$1,400
Stocks/Bonds/Mutual Funds/ETFs$65,300+$3,300
Peer-to-peer Lending$10,700-$100
Real Estate$10,100+$100
Liabilities$244,400vs Previous
Home Loan$201,400-$1,000
Home Equity Line of Credit$0-$0
Home Depot Credit Card$900+$900
Vehicle #1 Loan$9,700-$200
Vehicle #2 Loan$32,400-$500
Credit Cards$0+$0
vs Previous

All amounts have been rounded to $100 increments for readability.

Notes

Life is keeping us on our toes. Here are some of the notable items from this past month:

  • My wife just left a few days ago for a two week training to become a fire fighter.
  • My dad has been fighting cancer for a bit now. He mentioned that he’d like to go on a trip to Alaska with us, so we’re doing a cruise in May.
  • The flooring was put in for most of our house. Due to that we were forced to pack up and move a lot of things. I’ve found that I don’t miss most of them and enjoy a less cluttered life. I think we’ll be getting rid of a lot of excess stuff soon.
  • Christmas shopping is in full swing.
  • I have a constant nagging feeling that we really need to beef up our emergency fund. The economy is doing pretty well, but it won’t be forever. Because of this, I’m leaning towards doing a balance transfer on the two cards I use each month for cash flow.

All of things will have affect on our finances. I’ll dig into these below in more detail.

Assets

We had another decent month for stocks. We were able to add $2,750 to our Roth IRAs, and the overall increase was $3,300. Lending Club (LC) really struggled due to a revised Q4 estimate, but I think it will be fine in the long run. Kroger (KR) has been doing amazingly well since the latest quarterly report. It looks like their death due to Amazon was greatly exaggerated!

Our Lending Club investment is doing pretty well still, but there are many notes beyond 31 days late. Two of those are in bankruptcy, so they are probably completely lost. Because of this, I started using their adjusted account value from Lending Club which discounts notes that are late depending on how late they are. This is why the value went down $100. The account still has an ROI of 12.7%, which we’re happy with.

Fundrise is starting to show some solid growth. They also just announced a reinvestment program which we’ve signed up for, so we now have a chance for compounding returns. The first dividend we’ll receive should be in January.

Liabilities

Our vehicle’s continue to remind us that automobiles are a terrible investment. They are depreciating far faster than we are getting them paid off ($1,800 vs $700).

We added $900 on the Home Depot card to replace some flooring in a 23″x10″ room with laminate instead of carpet. It ended up saving us about $1k from the carpet price. We have 12 months to pay it off if we so desire.

To beef up the emergency fund quickly, we’re considering using a balance transfer. We have an offer of 0% for 18 months with a 3% balance transfer fee. If we used that, we’d pay off our two cards that we use to cash flow each month (aka: we pay the off every month). We’d then use the money we would have used to give us a one month buffer.

That would create some debt, but it would give us a buffer and some additional protection from life’s little hick-ups. We’ll have an update next month to let you know what we decided to do. What would you do?

Goals

We have two main goals right now. We’re trying to put the remaining $2,750 that we’re eligible to do into our Roth IRAs (we’re both 75% funded) by the end of the year. In addition, we’re also wanting to build up a $1k emergency fund on the way to a one month fund and then finally a three month fund.

We have the following items left on our remodeling adventure:

  • Downstairs bathroom (90% complete) – estimated $200 left
  • Upstairs bathroom – estimated $5k
  • Front fence – estimated $2k
  • Side driveway and back patio – estimated $18k
  • External siding – estimated $25k (this needs to be done in the next year or so)

Goals for December: Continue (we’ve done $8,250 so far) maxing out our Roth IRAs for 2017…hopefully around $2,750. Possibly add some money to savings…maybe even get to $1,000.

Longer Term Goals: Financial independence, remodel our fixer-upper home, opportunity to travel throughout our lives

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