Welcome to the craziness that is our net worth for the month of July. We overspent and after such a great month in June our net worth decreased by over 6%. Here is how everything breaks down.
Net Worth: 2018-08-01
|Cash Back/Gift Cards||$864.10||-52.7%|
|Cars & Boat||$47,106.00||-0.7%|
|TOTAL NET WORTH||$409,451.13||-6.14%|
Our assets took a dive while our liabilities increased. This looks bad, but things are not as bad as they seem. We have to dive into the details to see the truth.
This is one area where we did well. We are up an amazing $3,471.18 from last month, which is the highest our cash and savings have been since we began recording our net worth in May of last year. As I mentioned last month, our plan is to increase the balance in our Synchrony High Yield Savings account by at least $500. This last month we increased it by another $700.
Cash Back/Gift Cards
I spoke with Dr. SoS and we decided to cash out $1,100 of our cash back from our American Express Blue and Citibank Double Cash cards and put this money into our Synchrony High Yield Savings account. We did this because Synchrony is now up to 1.85% APY and we were not making any interest letting it sit as cash back on each card. We will probably move more money in this way in the months to come. Making this transfer lowered our the Cash Back section of our net worth by 52.7%, but helped increase our cash savings by 9.5%. The trick is to make sure you save the money and do not spend it once you cash it out.
Our brokerage account is roughly at $2,000 and the remaining is in Ethereum. As I mentioned last month, this was a poor speculation since we are down another 7.2% from the previous month. I read this morning that it may get back down below $200 USD per ETH. Riches or bust is the name of the crypto game!
This is where the craziness happened last month. We were down to our last stock, which was TSLA. On Monday, July 30, I placed a covered call at $330 to sell all our shares. I made $2,400 on this transaction before fees and commissions thanks to the stock volatility. During the month, I made a total of $5,075.48 after fees and commissions. The stock was down 6.6% from July 1st. This difference lowered our net worth by over $26,000. My plan was to ride the stock back up to $350 making money on out of the money covered calls along the way. Little did I know the earnings call would send the stock up $50 per share blowing through my covered call and selling my stock on Friday, August 3rd. Since I pull my net worth each month at the end of the month, the August 1st numbers are low, but next month will look great!
The Vanguard Federal Money Market Fund Investor Shares (VMFXX), where I put my money for my 403b and 401a, is a disappointment. The balance went down during the month in a fund that is not supposed to lose money. I need to reach out to Fidelity Net Benefits and find out what the best cash-type investment is so I can get my money out of the market before the correction/crash.
I am much more pleased with the results from moving our 529 to the Vanguard Interest Accumulation Portfolio. This account went up $1.89 in interest, which follows Rule #1, which is, “Don’t Lose Money!”
Home estimates are down for the month. Could this be the beginning of a pull-back on the crazy home prices in the area? Only time will tell.
|Xome Home Estimate||$358,786||-0.3%|
|Zillow Home Estimate||$301,428||-0.9%|
|Average Home Estimate||$330,107||-0.6%|
|Median Home Price||$284,450||3.8%|
Cars & Boat
We are only down 0.8% this month on our cars and boat. My son’s car increased in value another 3% this month. It would be interesting to know if this rise in perceived value is due to more demand for inexpensive vehicles.
Our total credit card balances are up nearly 80% for the month. This was an incredibly expensive month. We upgraded Baby SoS’s bed. Her original crib was a 4-in-1 crib, so we needed to buy the rails to turn it from a toddler bed into a full-size bed. We have been very unhappy with our foam mattress because it sleeps so hot. I put another $800 on our new card to buy a new mattress and foundation. After some requisite research, we decided on a Nectar mattress. I have to say it is the most comfortable mattress I have ever had and since it was $125 off and came with two pillows, we felt it was a better buy than buying a cheap mattress for Baby SoS. If you don’t believe me, maybe you will believe a guy in pajamas.
If you are in need of a new mattress, use our link to Nectar mattress and we will receive a $50 Amazon gift card. It is a great mattress despite the silliness of their ad.
We also had a refrigerator water line and a toilet leaking. We had the plumber fix the water lines for both. Then we needed to buy a new toilet. Luckily, I replaced our other two toilets, so I was able to install the new toilet myself saving hundreds of dollars. When in doubt YouTube it!
We are down to 29 payments (2 years 5 months) left to pay off my car. The only problem is that Dr. SoS really wants a different car. I do not think we will buy another car anytime soon because one car payment is enough, and this would directly impact our net worth. She keeps dreaming, though.
HELOC (Home Equity Line Of Credit)
With the last huge payment we skipped a payment this month. Now that the kids will soon be paying back our loans to them, we will begin paying this down pretty fast in the months to come. I would love to have it paid off by the end of the year.
Only 123 more payments (10 years 3 months) to pay off our house. Having a 15-year fixed mortgage limits our spending on vacations and such, but it sure does feel good to see our equity visibly increase every month.
Another $200 off the principal on a $200,000 loan.
As of the first day of August 2018, we have a net worth of $409,451.13 down 6.1% from our July 2018 net worth of $436,222.36, but still up 21.6% from our August 2017 net worth of $336,638.17. Our current net worth puts us in the top 42% at 255/614 bloggers on the Rockstar Finance Directory Net Worth Tracker.
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Keep saving and swimming!