I hope everyone had a great Thanksgiving because now it’s time to get ready for Christmas! Mrs. RB40 put up the Christmas tree after Thanksgiving and RB40Jr is already counting down toward Christmas. 24 more days left! He’s been a handful this year, but he’s trying his best to be good this month. Oh, I have some good news for those of you following RB40Jr. I wrote in the last SAHD update that he had a lot of trouble controlling his emotion and frequently punched other kids. Recently, he has been having more successes with control. He hasn’t punched other kids for over 2 weeks! His teachers have been keeping a close eye on him and they were able to head off some altercations. We feel like he’s turning the corner and everyone is really happy about this.
On the personal finance side, November was pretty rough. We had some big expenses last month and our liquidity is drained. We paid $15,000 in property tax, one of our tenants left, and I rehabbed the unit. Google also updated their search algorithm and that had some negative effects on my online income. Anyway, we got a new tenant in and everything should get back on track by the New Year.
2015 is almost over and there is just a little time left to accomplish all our goals. I say it a lot, but time really flies now. Maybe time moves faster as you get older? I don’t know. Let’s check on our 2015 goals and then I’ll go over our cash flow for November.
Invest $50,000 in our tax advantaged accounts (Done!!!)
We added $3,598 to our tax advantaged accounts in November. Mrs. RB40 contributed $1,698 to her employer sponsored 401k. I added $1500 to my i401k and $400 to RB40Jr’s 529.
We contributed $51,275 to our tax advantaged accounts so far in 2015. Woohoo! We did it! This is a huge accomplishment because we don’t make that much money anymore so it feels great to be able to put away over $50,000 this year. That’s one big goal out of the way.
Surpass $50,000 in RB40 Junior’s 529 account (progress at 91%)
RB40jr currently has $45,731 in his 529. We contribute $400 per month via auto deduction. The stock market was flat in November so we didn’t see much change here. We probably won’t meet the $50k goal this year. Unfortunately, we don’t have enough extra cash to make the extra contribution here unless we have a windfall in December. I’m keeping my fingers crossed, though.
Generate $10,000 from our dividend portfolio (progress at 93%)
We received $725 in dividends last month. We are at $9,264 so far this year. We should surpass $10,000 in December, the big dividend month. I think we should receive about $1,500 in dividend next month.
Exercise 120 times (Fail…)
I gave up on this goal a few months ago. I just couldn’t go consistently anymore. In November, I did manual labor at the rental for 2 weeks straight. That’s definitely more activity than going to the gym for one hour. I’m going to ask for a fitness band for Christmas and set a better goal for 2016.
Try 6 new restaurants in Portland (Done!)
Visit a foreign country (Done!)
Costa Rica was great for the most part. Next year I plan to take an extended trip to Thailand. We’ll see if I can make it work.
Net Worth (+5% so far in 2015)
The stock market didn’t do much in November. There was a small dip in the middle of the month, but the S&P 500 came back by the end of the month. We didn’t see much change in our net worth either. I will update our properties’ value when do a 2015 wrap up. We should see a better increase then. Real estate price has gone up significantly this year and I haven’t updated the value since last year.
For 2015, I was hoping to increase our net worth by about 8%. We are a little behind, but I think we’ll get there once I update our properties value. Also, 8% might be difficult to hit at this point. I probably should make the goal more flexible like 2-3x long term interest rate. Generally, 2015 has been good. The stock market has been volatile, but we seem to be doing well.
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Take Home Income (target > $5,000)
November wasn’t great on the income front. As I mentioned above, we had a vacancy at the rental and the rehab was an added expense. We were in the red with the rental income for November. Other than that, things looked okay.
Mrs. RB40’s Paychecks: $5,198.
Rental income: -$947. Not great, but the rental income will increase starting next month. That’s good for the long run.
Online income: $2,899. Online income was pretty good in November. I will break down the online income and expenses in our monthly newsletter so if you’re curious, sign up with our email list.
Dividend: $725. Our dividend income was a not bad in November. We should see higher dividend income in December, the best month of the year. You can see our dividend portfolio here.
Interest: $2. Interest rate is quite low so this will be small in the foreseeable future.
P2P lending: $59. Our ROI is holding stable at 8%. That’s not bad at all. I don’t have to do much for this account and it is making much more than our saving accounts. The fund here is not very liquid, though.
Misc income: $0. No side hustle in November. 🙁
Expense (target < $4,500)
I think we did pretty well with our expense in November. We spent a bit more on groceries because it was Thanksgiving and my mom was here. Other than that, things look okay.
Housing: $2,256. Mortgage, HOA, and property tax.
Cash Allowance: $0. We had cash left over from our Costa Rica trip so we didn’t need to make any cash withdrawals.
Groceries: $553. This is a bit higher than usual, but it’s not bad.
Child/Dependent: $681. That’s for 4 days of preschool per week. I’m really looking forward to full time kindergarten at our public school next year. This whole category will drop to basically nothing. We also purchased some new clothing for him in November. He outgrew most of his winter clothing from last year.
Entertainment: $50. Gym membership fee.
Misc: $93. We ate out a couple of times. I also needed new underclothes.
Transportation: $80. I filled up more than usual in November due to all the driving around for the rental rehab. It’s still pretty good, though.
Extra Saving ($13,714 so far in 2015)
We had just $90 extra saving in November. I’m very happy to squeak by with a positive month. The rental turnover was a painful bump in the road, but it is part of being a landlord.
Misc fund: $3,714. This will go toward the new flooring in the rental.
Extra retirement fund: $0. So far we sent $10k from our extra saving to fund our Roth IRA and my i401k.
Overall, November was okay. Our income was a bit low, but we still came through with another positive month. We’ll definitely be in the red in December. The new flooring in the rental will cause us to go into the red. We’ll have to dip into our savings to pay for that. I’m looking forward to 2016, though. We will be in a good shape for more stability next year.
Did you have a good November? There is only one month left to wrap up all your 2015 goals. Good luck!