Now that 2012 is over, let’s take a look back and see how we did financially. I have been keeping track of our income and expenses over the last 2 years and it’s quite illuminating. If you’re not doing this for yourself, you should try for a year so you can see where all of your income goes.
Let’s start off with savings. We had a few months of setbacks due to the rental properties, but overall we were able to save $13,191. Most of the extra money went into the 529 plan for Baby RB40 and I invested the rest in peer to peer lending and dividend stocks. I will be quite happy if we can repeat this in 2013.
We did quite well with our net worth in 2012 as well. I just calculated everything and we increased our net worth by 25%! That’s amazing! How was it possible, especially since the SP500 went up only 13%? I won’t know for sure until I do taxes this year, but I think the major factor is that I sold off most of my Intel stocks and options holding when the stock was around $26. I then reinvested that fund into dividend stocks which generally did well. I also updated our properties value which was gave us a boost in the net worth department.
All in all, we did much better than expected in 2012. For 2013, our goal is more modest. I will be very happy if our net worth increases by 7%. I think this will be quite difficult because I don’t have a fat paycheck from Intel anymore.
Here is a table for those of you who are curious.
Average monthly Income: $4,544. Our goal was to keep this above $4,500 so it’s right on target.
Average monthly Expense: $3,419. The goal was to keep it under $3,500 and we met it as well.
I’m going to stick with these same goals for 2013. All our income should rise a little this year so we might be able to over perform on the average monthly income goal, but we’ll see. It really depends on the rentals. If we can turn them around in 2013, we’ll improve our income quite a bit. I also need to bake in the tax for 2013 as well since I’ll have to start sending in a quarterly check.
Good luck in 2013…
2013 will be the real test for us because it will be a full year without a regular paycheck for me. I’m sure it will have some ups and downs, but I’m very optimistic for 2013. Here are our financial goals this year.
Net worth: increase 7%
Saving: save at least $13,191 and invest in 529, peer to peer lending, and dividend stocks.
Average Income: more than $4,500
Average expense: less than $3,500 or less
I hope you like this revamped monthly cash flow format. It’s more compact and easier to read. Let me know what you think. Good luck to you in 2013!
If you need some help keeping track of your finances, you should try using Personal Capital to manage your budget. It’s a great free budgeting tool. It can help you keep track of your income, expenses, and net worth, all in one place. Personal Capital is geared for investors and have many great tools. See my review of Personal Capital and how they helped me reduce what I’m paying in investment fees.
For 2018, Joe plans to diversify his passive income by investing in US heartland real estate through RealtyShares. He has 3 rental units in Portland and he believes the local market is getting overpriced.
Joe highly recommends Personal Capital for DIY investors. He logs on to Personal Capital almost daily to check his cash flow and net worth. They have many useful tools that will help every investor analyze their portfolio and plan for retirement.