June Highlights and Lowlights
- Vacation! – We took a 2 week road trip vacation to California. It was a ton of fun, but we also spent quite a bit of money. We paid for the trip in May and June so it’s spread out over two months.
- Net worth – It’s mid year so I thought it would be a good time to update the value of our properties. The real estate market has been going up this year so our net worth got a nice boost this month. The stock market and bonds didn’t do well and we dropped a bit there, but it looks to be recovering a bit now.
- Online Income – We had another great month in the online income category. Thanks everyone for supporting Retire By 40!
- Rental Income is a small negative (-$75) this month. Our tenants in the rental home could only pay part of the rent. They have been good tenants for 3 years though, so I’m working with them to catch up on back rent.
- P2P income from Prosper is a little low at $56. The ROI is currently at 8.43% and we should be seeing around $75/month on average.
Net Worth (+12.9% YTD, 4.9% MTM)
As I mentioned above, I updated our home and rental properties value this month. The most notable change came from the 4plex at +$50,000 in value since late last year. I also added a small pension I had from my old job into the net worth calculation as well. This wasn’t on my spreadsheet previously.
The stock market and bonds were a bit crazy in June. We ended up about even by the end of the month. I cashed out some positions in April so I was able to get in when the market dipped. It was hard buying on the fall though. Both stocks and bonds kept falling in price and it was only at the end of the month that we came back to even. After the ups and downs, I think I’ll go back to buy and hold. It’s much easier for me to deal with. All of this buying and selling is too stressful.
If you need help keeping track of your finances, try using Personal Capital to manage your budget and net worth. It can help you keep track of your income, expenses, and net worth, all in one place. Personal Capital is geared for investors and has many great tools. See my review of Personal Capital and how they helped me reduce what I’m paying in investment fees.
Our asset allocation is still a little out of whack. I’ll keep working on it for the rest of 2013.
Saving (+$10,432 YTD)
We are doing quite well at mid year. I contributed $10,000 to our kid’s 529 account in June when the market was down so at least we don’t have to worry about that anymore.
Our saving this month is +$2,653.
Piggy Bank 2013
- earmarked for the 529: $0. We had $2,500 in this fund and I added $2,500 from our saving this month. That’s $5,000 toward the $10,000 contribution. We’ll make up the rest from our saving account and the travel fund below.
- Travel fund: $0. We had $1,800 here and since we already traveled, I’ll just move this to help pay for the 529 contribution.
- Fun money: $840
- Investment/Slush Fund: +$153 = $2,793
- Taxes: $2,666. We are done with taxes until next April. From my estimate, we probably need to send in around $1,000 next year.
Income (target > $4,500)
On the income side, we did about as well as May (quite well.) Over the last 2 months we have been doing much better than our $4,500 target.
- Rentals: If it’s not one thing, it’s another with the rentals… As I mentioned above, the tenants in our rental home could only pay partially in June. They are planning to catch up in July. There are a few more repairs coming from the rental home too, so I don’t think things are going improve much for the rest of 2013. At least the 4 plex didn’t have any problems in June.
- P2P lending: Our ROI dropped a bit from 8.8% to 8.43%. This isn’t great news and hopefully we can bring it up to around 9% at some point. Here is an update I wrote recently – Peer to Peer lending isn’t as passive as I thought.
- Dividend and interest: We had another very good month on this front. Dividend income is great and require minimum work. It’s the best passive income avenue for me so far.
- Online income was great in June. My goal was to make $18,000 online in 2013. At the half way mark, we already hit $15,000 so I’m very happy with our progress. It would be great if we can keep this up. Thank you for supporting us and signing up for products I wrote about. I will break down the income in the monthly Retire By 40 Newsletter, so sign up now if you haven’t yet (at the top of this post.)
- Misc income: We had quite a bit of extra income this month. $100 from my brother to help with grandma’s living expense, $45 from credit card reward, $200 from grandpa to help with the vacation rental (he came to stay with us for a couple of days in Santa Barbara), and $100 from a focus group I participated in. Being part of a focus group is a pretty good gig. I wouldn’t mind doing it about once a month or so. The extra $100 income is nice.
Expense (target < $4,000, not including tax)
Our expense was higher than usual again due to the summer vacation expenses (entertainment). Luckily, we paid for the vacation rental last month so the expense was spread out over two months.
Summer Fun and Vacation
Santa Barbara and Bay Area trip. I guess that’s not too bad for a two week vacation. We stayed with my brother when we were in the Bay Area.
- Gasoline and parking – $253. This is equivalent to about 6 months of normal driving for us.
- Food – $418
- Entertainment – $150. Zoo and wine tasting.
- Rental home for a week in Santa Barbara – $1,287 (paid in May)
Wrap Up June
I was afraid we would have a negative month in June due to the two week vacation, but things worked out pretty well. We spent a lot of time with family and friends so we didn’t spend a huge amount of money. We also ate at home many times and that saved a lot of money too.
Overall, the first half of 2013 has been very good so far. The only negative is the rental income. We are on track or better for everything else. If we can keep it up for the rest of this year, then 2013 will be a pretty good year. 🙂
How about you? Did you have a good month? Any progress on your New Year Goals and Resolutions?