July Financial Update

We paid off a mortgage! Reaching this accomplishment was threatened once again when I was told another rental property needed the HVAC replaced ($3,900), but we were able to cover the cost of the unit replacement and pay off the last $3,000 on the mortgage. This gives us $391 worth of positive cash flow each month going forward.

Our two usual suspects are late on rent. One said that her bank account was frozen, and she has no idea why. With a history of forgery, fraud, and domestic abuse, I can’t imagine how this could have come about (sarcasm..). The other just casually emails us and says “Rent will be late. Sorry for the inconvenience.” Lovely. They also don’t pay the late fee, although I’m tracking that to be able to recoup it from the security deposit.

Last month, I mentioned that we had credit card rewards expiring without our knowledge. After several unanswered phone calls, it was resolved through a checking account credit.

  • Utilities: $420. This includes internet, cell phones (we pay quarterly, so this is a big bump from last month’s total), water, sewer, trash, electric, and investment property sewer charges that are billed to the owner and not the tenant.
  • Groceries: $590.
  • Gas: $327. We traveled to Virginia this month, so that caused a higher use of gas. Mr. ODA’s work trip also caused an increase in gas usage, but that’s covered through his employer.
  • Restaurants: $275.
  • Entertainment/Travel: $1,167. But this includes $485 worth of Mr. ODA’s work hotel that was reimbursed. This also includes $535 for our hotel stay in Virginia for 5 nights.
  • Investment: $1,100
  • Rental work cost us about $150 in supplies, and I paid one house’s quarterly HOA dues of $240.

Our net worth has increased again this month thanks to the stock market and property values. We’re down to 7 mortgages. We’d like to pay off one of the houses that our partner holds the mortgage on, but we need to re-evaluate our finances together first because that equates to about $20,000 for each of us.

ANNUAL TRACKING

I don’t love the format of these posts, so I’m brainstorming ways to share updates going forward. For now, I created a chart to show our spending so far this year and how it has changed month-to-month. I have a feeling I’m not categorizing our spending consistently after seeing this information, so I’m going to dive in deeper. At the end of each year, Mr. ODA asks me what our spending by category is, and I need to recreate that information each time. I thought I was being better about it this year with these monthly updates, but I’m not.

That’s my lesson learned for this month – while tracking your spending, track it consistently and look back at previous months. I thought $300 in gas was consistent with previous spending, but now I see that it’s much higher. While we did travel to Virginia this month, is that really representative of such a drastic increase? We may be ok with the entertainment that driving more has given us, or we may decide we want to scale back our spending in this category. It’s also important to know that some spending is seasonal. While our gas usage is high during the summer, we knew we were planning several trips and wanting to be out of the house more than we were over the winter.

Overall, I don’t feel like I have a good grasp of our spending after seeing this graph, and I plan to dig deeper into the costs. I’m glad I looked at it in this format halfway through the year, before I would have to go back through all 12 months of spending! It’s easy to see an increase in net worth and be complacent, but I’d rather be more intentional with our spending than we have been over the last few months.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s