In this update: stocks look good, no change in real estate, my LendingClub.com monthly update, I wasted some money this month, and the only Christmas song I actually like.
For those of you paying attention (hi mom!) this is my first monthly update in a while. That is on purpose. An update every month was getting a little boring. Not much changes over the course of one month. I am going to start doing these updates quarterly (or basically whenever I feel as though there is enough change for it to be interesting). I am also going to take out the info about my investment portfolio. Percentages mean very little. I think readers would be more entertained with hard numbers. I am not quite ready to share those, but I hope to reach that level of comfort soon. So if I do talk about my investments again, it will have numbers associated with it.
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: $1,050
Mortgage Payment (Including Principle, Interest, Taxes, and Insurance): $424.65
Property Management Fees: $84
Total This Month: -$1,608.65
Let’s start with the good news, shall we? I finally got this place rented out again! And it is rented for $25 more per month than it was previously. These are good things in the long run.
Now, you may be looking at that big red number and expecting the bad news. Here it is. Because of the crappy winter Indianapolis had and because there was no tenant living in the house, there were massive leaks found when de-winterizing the property. They had to go into the walls and fix a few things. I am looking forward to the day that this property runs smoothly.
More charge-offs this month. I am hoping that starting in the new year, my latest automated investing strategy (employed a few months ago) will actually start yielding results and the fat from previous bad automated investing choices will be trimmed. That means next month might be even lower, though.
Current Annualized Return: 12.75%
Current Lending Club Account Value: $5811.27
The drop in my return continues. 12.75% is, in the grand scheme of things, a good return, but we are now on the cusp of this not being worth the risk and the complication. In recent years, I have strayed from my very simple financial approach. 2015 may be the year that I get back to that and consolidate, especially if Lending Club turns out to just be a pretty good investment in the end.
This is a little teaser. I have officially started my own business and am SERIOUSLY in the red right now. I will be announcing the business in a new Side Hustle series that I am starting. It is scary – REALLY scary to put a whole lot of my savings into a project. However, because I have built my net worth over the years, I do have some wiggle room and the ability to bounce back. Could this mean that it takes me a few extra years to retire? Yes. But I am willing to take that chance rather than never have tried at all. I have to look at this as a very risky type of investing as opposed to spending. More to come.
I did it. I finally caved. After YEARS of talking about seeing The Book of Mormon on Broadway, I finally broke down and bought tickets for me and my finance. Cost for 2 tickets? $358.50 – yikes, that’s an expensive Xmas gift. Good news? The play was excellent! We both had an amazing time.
Last Fall, I moved and saved some rent, but I have lived on the Upper West Side for the past 2.5 years. In her song False Hope, Laura Marling talks about sharing an apartment on the Upper West Side. Oh, it’s a good song otherwise as well!
Can’t wait for Spring weather – bring it on!
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