October 2017 Financial Update

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

October 2017 Financial Update Summary

Total Net Worth$194,000+$6,000
Assets$439,200vs Previous
Savings$300+$0
Home (based on Zillow)$320,200-$4,500
Vehicle #1 (based on KBB)$8,400-$400
Vehicle #2 (based on KBB)$27,500+$600
Stocks/Bonds/Mutual Funds/ETFs$62,000+$6,500
Peer-to-peer Lending$10,800+$200
Real Estate$10,000+$0
Liabilities$245,200vs Previous
Home Loan$202,400-$1,000
Home Equity Line of Credit$0-$0
Home Depot Credit Card$0-$1,900
Vehicle #1 Loan$9,900-$200
Vehicle #2 Loan$32,900-$500
Credit Cards$0+$0
vs Previous

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

Notes

Our newest vehicle’s value bounced back after an abysmal previous month. The older vehicle started to depreciate again.

Ah, the joys of Zillow! The value of our home shot up last quarter, but the last two months have seen the value head down significantly. Because of these drastic shifts in value, I’m starting to wonder if I should remove the house from my net worth calculation. Thoughts?

We paid off the Home Depot card, which as you may recall, was the new carpet. We look forward to actually having that installed sometime early December.

Assets

The Junk Bond we purchased has been selling at about a 100% gain from where we bought it. Is this showing that the company is in a better financial situation now? Only time will tell.

We had a great month for stocks. We were able to add $2,750 to our Roth IRAs, and the overall increase was $6,000. Most of the stocks we own did well this month.

Our Lending Club investment is doing pretty well, but we do have about $260 worth of notes that are currently late on their payments. If they all catch up our ROI at this point is 17%. If they all default, our ROI would be 12%. So reality is somewhere in the middle, and we’re pretty happy with that.

We received back and reinvested our Fundrise money. We’re now in a fund called the Heartland REIT. Things look promising, and they claim we are receiving about $2 a day on average, but we haven’t gotten a dividend from them yet. That should happen in January.

Liabilities

As we mentioned above, we finished off the Home Depot Card and now we just have the cars and mortgage left as liabilities. This has really been quite freeing, and it’s helped us start making progress towards our goals.

Goals

We have two main goals right now. We’re trying to put the remaining $5,500 that we’re eligible to do into our Roth IRAs (we’re both half 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 (50% complete) – estimated $1.5k 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 November: Continue (we’ve done $5,500 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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