July 2014 Monthly Update

Monthly Update – July, 2014

In this update: stock market performance, real estate, my LendingClub.com monthly update, an interesting item I spent money on, a business idea, and a song or two I’ve been listening to recently.

Month 2 of my updates and OOF! What a month for stocks. Actually, I say oof, but my actual initial reaction when I saw the stock market go down was “Ooh! I can buy more shares with less money! Hooray!”. I even surprised myself with that initial gut reaction, honestly. I think I have finally achieved the long term investing mindset that I have been striving for. Anyway, on to the updates.

Investment Portfolio

Personal Capital has a pretty a fun feature. It tracks “You Index” and tells you how much your investments are up or down as a percentage and compares that to a few other indices such as the S&P 500 and the Dow. Here’s a look at my snapshot for July.

Personal Capital You Index
Right at the end of July, we took a little dive. Of course, as we know now, that continued on into August. We’ll have to see how the overall August monthly report shapes up.

Like I said, my initial reaction was to bump up my contributions to my index funds. I don’t have a lot of wiggle room, since most of my dollars have specific jobs already, but I had a little extra cash on hand that I am currently funneling into the market.

Real Estate

Disclaimer: Below are the straight income and expense numbers for my real estate investment. Part of the income is being put aside for reserves in case maintenance issues arise or the property is vacant for a period of time. Some months, the cash flow may look extremely rosy, but keep in mind that this is a long term strategy with expected bumps along the way.

Rent Income: $1,025

Mortgage Payment (Including Principle, Interest, Taxes, and Insurance): $424.65

Property Management Fees: $102.50

Total This Month: $497.85

So this is what I am hoping that my rental property cashflow statement looks like most months. I know I will have to take care of maintenance and vacancy in the future, so I have to save some of that net income for reserves, but it’s nice that it is running smoothly this month! I’m hoping that this stays as boring as possible going forward!

Lending Club

So I decided to delay my July recap until I had the Lending Club statement in hand. I figured an extra week wouldn’t hurt. I also found that you can set filters on Lending Club, SAVE those filters, and then USE those filters to dictate your automatic investing! Amazing! I am able to make sure I don’t invest in someone who has had previous defaults among a number of other filters. My overall return for July is down since May, but I am hopeful that now I have a little more control, that it will even out a bit.

July Interest Received: $94.28

July Late Fees Collected: $0

July Losses (due to defaults): $24.29 (this was actually June, but I am counting it here since we skipped June).

Current Annualized Return: 17.67%

Current Lending Club Account Value: $5698.37

So last month I recapped May, so in the two months since, I HAVE had my first default (and it even went to the “Charge Off” category, which means Lending Club is so sure that it isn’t getting paid, that they are taking it off of my books!) However, still only having one default so far isn’t so bad.

July Spending

Ok, get ready – this is a bad one. In July, I went to a bachelor party. It was a TON of fun. We rented a house for the weekend, went gambling (well, I don’t really gamble, so I watched my friends gamble, really), drank beers, ate food, and generally had a great guy time. The best man covered everything up front, so I didn’t really have a concept of how much I would owe. I was prepared to drop $200 – $250 for the weekend. The bill came back, and it was a total of $446.39! Of course, I had to suck it up and just pay. I am 30 years old and it seems as though I have a ton of wedding and wedding-related events to go to these days.

Recently, I was talking to my mom and she said, “your generation is weird. It seems as though you feel you have to go to EVERY wedding that you’re invited to.” Honestly, she is right. I do feel as though these days, you are expected to go to friend’s weddings that you are invited to (and bachelor parties). It gets expensive, but this is one area of my life I may have to look at and strategize about. It does make me happy to be there for my friends, but the price tag varies so greatly depending on the friend. In the end, I am lucky that I can afford to go to these types of events, but I need to be better with my priorities.

Business Idea

So this is a fun new section I dreamed up. It probably won’t happen every month as I am not that consistent with my business ideas. Basically, whenever I get an entrepreneurial idea that I think is neat, I plan on sharing it here. Often, there will be a reason why I’m not pursuing it (as you will see with this one), but I’d love to get thoughts and feedback on these ideas, just to get everyone’s creative juices flowing!

July’s idea is called “Hashtag Collage”. A customer comes to the site and enters in a popular hashtag. For instance, if you are at Comic Con 2014 (which I was for work and it was insane), you could enter #SDCC (for San Diego Comic Con). The service would look through Twitter and scrape all the photos that were associated with that hashtag and create a collage. You could then order that collage on a t-shirt, or any other print-on-demand product. You could also customize the design a bit. For instance, someone could order a t-shirt with big, bold letters that said #SDCC and within those letters, was the collage of photos. For an example of what I am talking about, check this image out.

Of course, the obvious reason I can’t pursue this idea is the fact that I don’t have commercial rights to all the photos on Twitter. That is a huge legal hurdle to overcome. But regardless, I’d love to hear your feedback.


People seemed not to mind the music section last month, so it’s back! It seems like the past few summers, I tirelessly listen to remixes from an artist called Viceroy. He has a series of remixes called “Jet Life” where he takes awesome 90’s jams and gives them a reggae/summer vibe. It’s great this time of year. Be sure to pump all of these jams at your next BBQ! Here is one of his latest:

For the rest of these summer remixes, go to Viceroy’s SoundCloud remixes page here. Check them all out, but again, especially the ones that say “Jet Life”! Enjoy and here’s to a great August!

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4 thoughts on “Monthly Update – July, 2014

  1. Louise @ Good Financial Choices August 11, 2014 at 8:11 am

    Hello from over the pond, I’m liking the details in your updates such as the business ideas.

    I agree it’s the right time to put more money into index funds, if only we had some lying around. I can’t quite decided if it’s worth holding onto cash and investing when it dips each month…… I’d guess you’d have to be talking about big amounts of money before it made any real difference.
    Louise @ Good Financial Choices recently posted: Net Worth 0 – August 2014My Profile

    • Mr NYBudget August 11, 2014 at 10:13 am

      Thanks Louise. And you are definitely right. It would take big chunks of money to make a real big difference and of course, you never know HOW low a market is going to go, so timing is generally bad. But I think the mindset of NOT wanting to sell and in fact wanting to buy when the market goes down is a healthy one, even if you don’t run out and act on it.

  2. Ryan @ Impersonal Finance August 21, 2014 at 2:40 pm

    That’s some pretty solid rental income. I’ve been searching for a property to invest in, but just can’t seem to find something I like enough and where the numbers make enough sense to pull the trigger. I’m being overly cautious, but I suppose that’s one area where it benefits me. And I dig the business idea. I think if you were able to overcome the hurdle, it would be great for businesses that could order prints of events they hold, or postcards, things of that nature.

    • Mr NYBudget August 21, 2014 at 3:35 pm

      Thanks! Yeah, pulling the trigger on the first property was extremely difficult. In the end, I just decided to take the plunge. I thought the numbers worked, but wasn’t sure. I thought the house was a good value in a good neighborhood, but wasn’t sure exactly how good a neighborhood needs to be. My advice would be that, if you are in a financial position where you can risk the money, just jump in to a deal that you think looks good, even if you aren’t 100% sure. Worst case scenario, you probably only lose a little bit of money and gain a lot of experience/learn a lot!

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