Net Worth: 2018-11-01

The turning leaves on the maple tree are beautiful in our backyard. There is a chill in the air. We celebrated our fifth Halloween Anniversary with a resounding success!  Last, but certainly not least we experienced our largest net worth increase since we began this financial independence journey. Thanks for coming through for us Elon!

Elon Smile

Before we get into the details, we will compare from last month. The current month is on the left, then the previous month, and finally the percent change from the previous month on the right.

Net Worth: 2018-11-01

ASSETS 2018-11-01 2018-10-01 % CHANGE
Cash Savings $20,657.47 $21,414.22 -3.5%
Cash Back/Gift Cards $1,061.03 $933.66 13.6%
Cryptocurrency $2,965.57 $3,468.31 -14.5%
Retirement $588,244.46 $501,890.23 17.2%
MOST 529 $5,646.53 $5,403.31 4.5%
House $305,000.00 $305,000.00 0.0%
Cars & Boat $45,495.00 $46,610.00 -2.4%
TOTAL ASSETS $969,070.06 $884,719.73 9.5%
Credit Cards $7,267.07 $4,270.87 70.2%
Car Loan $15,600.00 $16,200.00 -3.7%
HELOC $24,500.00 $25,116.77 -2.5%
Mortgage $181,275.48 $182,548.58 -0.7%
Student Loans $209,503.15 $209,719.25 -0.1%
TOTAL LIABILITIES $438,145.70 $437,855.47 0.1%
TOTAL NET WORTH $530,924.36 $446,864.26 18.8%

Cash Savings

I finished listening to You Need a Budget by Jesse Mecham on my way to read 42 books for the year. From the book, I plan to give every dollar earned a job and stop stressing over adjusting the budget. There was a timing issue at the end of September where some credit card payments had yet to reach the bank inflating our cash balance. Rather than have this happen, I held off paying any credit cards before the end of the month that are not due until November.

Although the total balance of all our cash accounts decreased by $756.75, our Emergency Savings accounts increased by $1,117,72. I considered separating the account to emphasize the $700 or more we save each month.

Cash Back/Gift Cards

In October, I cashed out $21.29 from our Amazon account to pay for part of a gift for one of our kids. The cash back from our vacation spending increased this category by $127.37.


Dr. SoS suggested this morning that we cash out our cryptocurrency and write it off as a loss. We are down $13,090.16 from the high last February. We do not need the write-off and we do not need the remaining cash. I already mentally wrote off the entire amount, so we might as will sit at the table until the cocktail waitress stops bringing us drinks and see what happens in the distant future. The technology is still in its infancy and with Ethereum having a market cap of $20,775,469,291 I do not see it disappearing in the near future. Who knows maybe the Ethereum Bulls will be right and it will eventually be worth $1,500 to $5,000 per coin. All we can do is wait and see.

Retirement a.k.a. The Wild Ride

Welcome to The Wild Ride that was our holding of shares of Tesla (TSLA). I am a huge fan of Mr. Elon Musk. I truly believe his innovations in electric vehicles, space travel, and artificial intelligence will go down in history as helping save humanity from itself.

We wanted to get completely out of the market this past summer when I saw signals that the market was beginning a downward trend. We were completely out just after I wrote Selling Our Investments, but a few months ago Tesla seemed like a rare opportunity to cash in on the good news that I anticipated would come despite all the constant negative press and ride the volatility through options trades along the way.

Cost Basis

When I began trading Tesla stock and options in earnest, I read and watched everything I could while slowly accumulating shares when the stock dropped, which reduced my cost basis. Calculate cost basis by multiplying shares purchased by the price paid per share, adding up the totals, and dividing by the total shares owned. You can also include dividends, stock buy-backs, and options trades, but this is a simple example.

Purchase Price
Per Share
Shares Purchased Total
$330 10 $3,300
$300 20 $6,000
$260 30 $7,800
Total 60 $17,100

In the above example you divide the total amount by the total shares purchased.

$17,100 / 60 = $285 per share

Therefore, as long as you sell your shares for more than $285 you make a profit. You will lose money on any sale less than the original price, but the gain on the lower buy prices make up for the difference. The best option, of course, would be to make money on all shares purchased.

The Plan

Elon stated multiple times that Tesla would be profitable in 2018-Q3. After graphing the stock for the year, I noticed that the stock seemed to get to about $350 and then retreat.

After the earnings call, the stock shot up past my cost basis and kept going. Because the stock is so heavily shorted, I thought if short-sellers began to cover their positions that the stock may continue up. The stock peaked at $347 and retreated. Unfortunately, it dropped back down to around $327. I felt that I missed my opportunity and the stock would fall back to lower levels. My plan was to get my IRA over $500,000, so I calculated exactly where I would have to sell my shares to get there.

The Result

Mid-week, I toyed with the idea of placing a covered call, but my wish to get completely out of the market overruled my wish to generate more cash-flow and risk not selling the stock. I finally set my limit price at $344.60 and the sale went through on Thursday. This month includes the end of month balance of the account before the sale. I also generated $5,371.63 by trading options for the month. My crazy Ludicrous Mode Tesla ride is over and I am back out of the market for the duration. The APY for the past 12 months for my IRA was 40%, so I feel pretty good about sitting out while we see what happens to the market. Tesla may continue to rise, but I was not willing to take that chance with the entire market teetering on the edge.

MOST 529

I created another 529 account for our middle daughter Ms. O. I deposited $400 into the account and then used the money to pay for books for the current semester. In addition, we deposited our monthly $200 into the account for Baby SoS. I decided that we will make two more deposits and then take a break to divert that money toward paying off the HELOC.


We plan to keep the value of our house the same unless there is a serious change in the market value. Here are the updated numbers from our mortgage company

2018-11-01 2018-10-01 % Change
Xome Home Estimate $350,107 $355,094 -1.4%
Zillow Home Estimate $306,597 $303,712 0.9%
Average Home Estimate $328,352 $329,403 -0.3%
Median Home Price $304,950 $312,500 -2.4%

Cars & Boat

My car dropped $1,033 from the previous month. Do you think it is due to that new scratch on the trunk? Last month, NWA-anon from mentioned that they do not include depreciating assets in their net worth. I include mine because I could sell our car or boat for cash. Unfortunately, there is really no way to know the true value of them. What do you think? Do you include yours? Why or why not?

Credit Cards

How about that? You take your wife on a vacation in San Diego and your credit card balances shoot up 70%. I guess that is better than actually putting an offer on the house she found in Coronado, California. It was on the low-end of homes there at only $1.8M. The trip was worth the increase in credit card balances. We left Baby SoS and enjoyed our first vacation together since our honeymoon. We both loved walking the beaches for hours hand-in-hand.

I could pay all of the cards off today, but this money would come out of money I allocated for other purposes in the future. I plan to pay them off in a week or two and get back to paying them off weekly once Dr. SoS takes her paycheck for the month.

Car Loan

Hey what do you know only 26 payments (2 years 2 months) to pay off my car. If it was not a 0% loan, we would pay it off even faster than we are paying.

HELOC (Home Equity Line of Credit)

This is our largest debt. I told Dr. SoS that we are going to pay this off in 2019. The balance is $24,500, but I know we can do it. It just takes planning and dedication and we have that in spades.


Only 120 more payments (10 years) to pay off our house. It seems like a long time, but it was just 5 short years ago when we refinanced to a 15-year loan. I believe once we have this paid off, we will be Financially Independent. I also believe we will have the house paid off in less than 10 years.

Student Loans

It amazes me that a 3.125% APR on a $200,000 loan costs us $538.65 per month. It definitely makes one feel like you are going backwards. The good thing is that at some point in 2019 we will be able to snowball at least some of the money we are paying on the HELOC toward this loan and decrease this crazy interest payment each month.

As of the first day of November 2018, we have a net worth of $530,924.36 up 18.8% from our net worth of $446,864.26 last month and up 49.6% from our October 2017 net worth of $354,905.09. Our current net worth puts us in the top 31% at 214/687 bloggers on the Rockstar Finance Directory Net Worth Tracker.

Thanks for following us on this journey. Keep saving and even though it is getting cold, keep swimming!

Mr. SoS


  1. HA! Love your thought process on your crypto holdings! I believe we ave the same motto in life.

    Great job on avoiding taking a bath this past month as most of us have. It truly shows your financial intelligence.

    Last point, I like how you have separated out your checking from your savings account. I do the same thing in order to show the ‘savings’ each month. Smart moves!

    1. Thanks for following along. I always enjoy your comments. With regard to the Crypto, if I had any deep faith that it would rebound, I would buy more, but I read such conflicting news on Ethereum all the time that I figure I will just let it ride. We could use the money if we were not down so much from our purchase, but as long as I hang on there is a chance it could rebound in the distant future.

      As for our investments, we really lucked out being in Tesla during the October decline. After yesterday, I believe we may be in for a much larger decline. That’s why we are completely out of the market for the duration. This is something that each person has to decide. For those that continually invest, a market decline will not matter much in the long run. Personally, I prefer selecting stocks based on the Warren Buffett and Charlie Munger style of deep value investing and right now there is very little on sale. Therefore, I will wait until one of my wonderful companies goes on sale and buy back in at that time.

      As for our emergency savings, we are putting a pause on increasing it while we pay down debt. I mentioned this in our newest blog post. Thanks again for your comments!

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