What’s a Millennial Worth: March 2017

Well this has been an interesting month guys. I found my first rental property late February, selected a lender, and closed on the house in late March.

There was quite a bit of leg work during that time – getting paperwork filled, finding an insurance provider, etc. And there’s more to come. In April, I’ll need to finalize my lease contract, find a tenant, and do any routine maintenance in the meantime.

But enough about April – let’s wrap up March!

Why do I post my Net Worth?

Each month I release my net worth to reveal how I’m progressing¬†– or not ūüôĀ – for all to see. My hope is two fold¬†– I want you guys to hold me accountable to my goals. I also want to give somewhat of a blueprint for others to follow. Obviously everyone’s situation is different, but it doesn’t hurt to learn from my mistakes!

Each month I’ll give you a breakdown of my Income, Assets, Liabilities, and ultimate Net Worth. Use this information as you please – as long as it’s legal!

March’s¬†Numbers: Net Worth $139,832.08¬†(Up $1,657.83)

In a month in which someone bought a house, I’d consider any increase in net worth outstanding. When buying real estate, you’re basically moving funds from one account to another and (hopefully) diversifying yourself. In this case, my closing costs were around $28,000 – which came completely from my cash reserves.

Income Breakdown: $6,152.33 (Down $55,814.84)

Salary: $4,963.17¬†up $1,,470.07.¬†So I’m beginning to realize that my salary fluctuates by about $1,000 a month – and I have no idea why. I can only attribute this to overtime, but I plan to dig into this a little more.

Rental: $425 down $425. Ok, this is getting a little ridiculous. I’m getting a little tired of repeatedly needing to ask for payment – it makes me a little uncomfortable. I asked my roommate to set up his auto pay again, hopefully he will.

Other Income: $3,052.67¬†down $54,571.40. No, that’s not a typo. If you remember, last month I received a large reimbursement for work expenses. That wrapped up the majority of purchases for the current project and so I didn’t receive near as much in reimbursement this month.

FYI Рeven though that reimbursement check was from my employer, it caused a headache with the underwriters for this new mortgage. I needed to provide the underwriter with all my expense reports, receipts, and a letter from my employer explaining that the funds were for PAST expenses, not future expenses.

$2,288.51¬†of this was also due to 401k contributions.¬†I am still contributing 20% to this, but considering the hit my cash reserves took buying this house I may consider dropping the contribution amount slightly.¬†Even if I don’t max my 401k¬†this year, I plan to always get the company match.

Asset Breakdown: $368,323.27 (Up $109,120.81)

Holy moly! Buying¬†Rental #1 sure did boost my assets! Unfortunately it did the same to my liabilities ūüôĀ

Cash: $24,017.35. This $24,587.93 decrease is from the $28k in downpayment and closing costs. Why is my cash account only showing a $24k drop instead of $28k? Well thankfully, that is because of my salary this month.

I’m happy I finally found something to invest this cash in. I am slightly nervous about finding good tenants, but I’m hoping that will work out in the end.

401k: $47,641.72. An increase of $2,145.38 over last month. It was actually a down month for my account though Рmeaning I put in $2,288.51 but lost $143.13 to the market.

My contribution at this point is 20%. It’s going into standard mutual funds offered by my employer package. This amount also includes a 5% employer match on the first 10%.

IRA: $5,978.07 A 1.7% loss over last month. Hey Рthere are good months and bad months.

Primary Home: $139,000. This is what the house was appraised for when I bought it in 2014. I’m using this because I also feel it’s a good estimate of what I could ask.

NEW! Rental #1: $133,000. This is what the house is worth – and what I paid for it (they were hard sellers!)

Securities: $18,686.13¬†down $1,33.93.¬†Down 6.7%. This just wasn’t a good month for any of my market accounts.

Liabilities Breakdown: $228,491.19 (Increase of $107.462.98)

Credit Card Balance: $868.39. The amount doesn’t meant too much. It’s paid in full every month, so even though each month report will show a balance, none of it is interest.

Primary Mortgage: $121.022.80. I have yet to make an extra principle payment on this – even though I know I should. This will drop each month based on the principle in each monthly payment.

NEW! Rental #1 Mortgage: $106,600. 

Net Worth Composition:

Finally! I moved much of my net worth from a cash account earning almost no interest to some real estate. I’m not sure if this is considered well diversified, but I’m glad I’m putting my money where it could potentially earn some income. From my estimations, I could potentially earn a cool 8.34%!

So that’s it. How are you guys doing on your Net Worth tracking. Let me know how things are going on your end and any improvements I can make to help you understand what’s happening with my finances. After all, I want this to help you as much as it helps me!

2 comments

  1. The One in Debt Reply

    maybe a late fee stipulation might help with your roommate? that is good he is still paying you when asked. although the responsibility to receive should not rest on you. hopefully he will get the auto pay set up so the burden is removed.

    congrats with obtaining the 1st rental property!

    • centsofk Post authorReply

      I agree a late fee stipulation would help in most cases. But I don’t want to put that burden on our relationship. He’s a good friend, just forgetful – that’s who he is. He always pays immediately after I mention it to him. I’m considering proposing the fact that it is uncomfortable for me to remind him, maybe that will help him understand.

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