Holy schmoley! My wife and I spent $537 on gas last month.
At an average price of $4 per gallon, that works out to about 134 gallons of fuel…
And since our Prius averages ~44 miles per gallon, we must have driven about 5,907 miles in the month of July. Hot dang!
(Hang on a sec, that can’t be right… OK, maybe there were a few snack food or energy drink purchases at these gas stations that are throwing off my numbers. But still, that’s a crap ton of driving for just 1 month!)
We did have fun though…
Old Faithful Geyser, Yellowstone National Park!
Jackson Lake, Grand Tetons
Yours truly, ripping it on a slalom ski on Flathead Lake, Montana
Other massive spendings in July…
- We paid our tax guy $695 to file our 2020 tax return. (It’ll be a few months before we see our ~$1k refund check probably)
- We prepaid 6 months of our cell phone bills, costing $540. (We’re on a family plan, paying $90 per month for 2 lines with unlimited everything.)
- We spent $1,027 on groceries, $537 on restaurants, as well as $776 on beer/wine. Ouch! This is about double our usual monthly numbers… But, traveling means more expensive food shopping, drinking and eating, so this was to be expected.
- Car services, washes and parking passes set us back $258.
All in all it was a pretty expensive month!
Net Worth as of Aug 1, 2021: $721,633 (+$3,562)
Woohoo! Even with a massive hit to our checking account, we were still able to eke out a $3,500 increase to our overall net worth from our investments.
As for that little +$875 note in blue? More on that below…
Our real estate syndication is paying dividends!
Back in March my wife and I bought into a real estate syndication. Our initial investment was $50,000 and the project will make us money two ways:
- Quarterly distributions: We are expecting $875 per quarter (works out to be $3,500 per year, which is 7% return on our $50k investment). This is just year 1 expectations… the dividend will likely go up slightly in years 2,3,4 and 5.
- Profit on sale: Eventually, somewhere around year ~5, the apartment complex will be sold. We’ll get our $50k initial investment back, as well as profit sharing from whatever additional value the building sells for.
One of the downsides of positive cashflow real estate is that there’s no good way to reinvest the dividends. All the distributions are paid in cash → that’s why I added an arrow paying into our checking account. This is great for people who live off of cashflow. But for my wife and I, we will just be investing the dividends into our brokerage account when we get them.
Detailed Account Breakdown
Cash Accounts: $31,321 (-$3,521): I’m still working out the details to dump our emergency fund into the stock market. I’ve been working on a wacky idea recently about opening a Solo Roth 401(k) with TD Ameritrade. Ideally, I’d like to invest our cash in some type or Roth, instead of our regular brokerage account. More to come on this!
Rental Property + Reserve Account: $243,594 (+$767): Here is how the property made us money last month:
$1,975 — Incoming rent
(-$140) — Property mgmt fees
(-$245) — Commission for lease renewal
(-$160) — Maintenance, repairs, lawn care
(-$663) — Mortgage principal + interest
$767 — Total account gain this month
Woot woot! In other good news, this rental cost me ZERO man hours to manage this month. It’s our favorite property, and we’re planning to keep it long term. (Not part of the rental properties we are selling)
Real Estate Syndication: $50,000: As I mentioned above, we got an $875 distribution check, which went to our checking account. :) We’ll invest this when we move a chunk of cash from our checking account later this month.
IRA – Rollover: $182,349 (+$145): Just a teeny weeny bit of growth here. Since we’re not contributing regularly to traditional retirement accounts, this asset relies completely on market growth.
IRA – Roths: $96,742 (+$1,720): Cheers to tax free growth! It would be awesome to top $100k in these accounts by the end of the year!
Joint Brokerage Account: $234,052 (+$2,733): This account we did pump up by $50k a couple months ago with proceeds from the last rental property sale. Feels good to see it growing immediately — stock market growth is soooo much easier than rentals. :)
HSA: $4,594 (+$81): It doesn’t matter if it’s $81 or 81 cents… growth is growth, and I’m thankful for all of it!
Breakdown of Liabilities
Rental Property Mortgage: -$120,572 (+$246): Someone dropped the idea of paying down this mortgage a little using our emergency fund — it would be a guaranteed and immediate return. It’s a great idea. But, my wife and I are still comfortable with debt and believe investing our cash in the stock market will make more sense in the long run. So for now, this mortgage remains the way it is, slowly being paid down by our tenants!
Credit Card Balances: -$447 (+$1,391): We hammered our credit cards this past month. But, we pay off everything in full, every month, before any interest is owed… We really only use credit cards to collect rewards points!
My wife and I have no other consumer debt at this time. 😎
How did you guys and gals fair this past month? Cheers to killer August!
Ok, one last photo… This is wifey and I celebrating our 6th wedding anniversary! CHEERS 🥂
Joel is a 35 y/o Aussie living in Los Angeles and the guy behind 5amjoel.com. He loves waking up early, finding ways to be more efficient with time and money, and sharing what he learns with others. Rise Early | Retire Early!