Monthly Review - September 2006 ($546,782, +$29,283)

Contributed by mm | October 1, 2006 1:39 PM PST

As expected, we extended our winning streak to the fourth month. Helped by a handsome annual bonus payout and employee stock option appreciation, our family net worth grew almost $30,000. At $546,782, we are now within a stone's throw of reaching our 2006 net worth goal of $550,000.

MONTH-END BALANCE SHEET

HIGHLIGHTS OF THE MONTH

• Our business income proceeds dropped from the all-time high in August to a normal level in September. Our sales pipeline is currently weak, but I still expect our 2006 annual business income will be 50% higher than that of 2005.

• While S&P 500 advanced 2.5% in the month, our international-stock-focused portfolio only delivered $3,400 in gains. Still, our year-to-date investment income (excluding employee stock options) added up to $33,000, putting us on track to meet the annual goal of $40,000 investment return.

• During my recent US trip, I picked up two new credit cards that both offer 12-month 0% APR balance transfer (Citi PremierPass and Discover Platinum). Now I have almost $50,000 from 0% or ultra-low APR balance transfer deals, and I park all such balance in high-yield money market accounts like Emigrant Direct that are throwing out 5% APR. It is sweet to sell my creditworthiness for over $2,000 in income a year.

• I opened brokerage account in China and started some fund investing in domestic market.

NEXT STEPS

• Corporate tax return for our family business will be due by the mid of October (the fiscal year ends in June). Time to hurry up to ship the form.

• Chinese Yuan continues to appreciate rapidly against US dollar, and I am researching how I should hedge my risks since I get paid in US dollar and most living expenses are paid in Yuan.

• We will be vacationing in Southern California in mid October.

This Post Has Received 12 Comments. Share Your Opinions Too.

meteorazure Commented on October 1, 2006

Congrats on your sep performance. I have recently discovered your post and will be back soon :)

personal finance advice Commented on October 2, 2006

Congrats. It's always a good month when net worth increases rather than decreases.

Mike Commented on October 2, 2006

I'd like to take advantage of taking cash from a credit card account and placing it in Emmigrant Direct, but I'm a little confused as to how to go about it. The links that you post both have 0% on transfers, but how do you use that to get cash? Do you call them and negotiate with them on a way to do a cash ACH transfer and are able to have them remove the percentage fee that they normally charge?

golbguru Commented on October 2, 2006

OK dude, I have to admit that other than television personalities you are the only living person I know (albeit only through your blog) who has actually earned $29K in a month !:)
Congratulations and wish you many winning streaks in time to come.

2million Commented on October 2, 2006

Mike, here is a howto on getting the transfer money - O% Balance tranfer guide.

MM, your 401(k) returns are very small - is that focussed on international assets as well?

MM Commented on October 2, 2006

Mike, my local credit union is my money laundering machine.

http://www.pfblog.com/archives/5260_in_praise_of_our_credit_unions_credit_card.shtml

Tarik Commented on October 4, 2006

I'm really curious about the 0% interest credit card balances that you transfer over to earn 5% back. It seems like a brilliant idea because the extra $2,000 you earn is beating inflation, and could possible return you even more money in the long run. Just like Mike commented, I too am confused about the whole process.

william Nixt Commented on October 4, 2006

Mike, I have been followimg your quest for one million for the last three years. Retired and past my earning years except for brokerage account. I have been using your monthly increases as my personel goal. It's a good competition. I feel you should invest a small sum in speculative stocks. Trust your own DD.

MillionaireInTraining Commented on October 5, 2006

I am just a finance student and therefore my knowledge is mostly in theory form, not practice, but I think the remedy for your currency situation is a hedge via a yuan or dollar derivative. I'm sure I will be corrected if I am wrong, but I think you want to purchase a call option on the Yuan or buy a put on the dollar (in reality you will need a series of options as they are exercised/expire). I am not sure if individuals are allowed to write options, but in theory a hedging strategy can be created in this manner also. Good luck, please let us know what you decide to do.

mark Commented on October 5, 2006

I can't think of anything more boring than a web page tracking someone's net worth.

Curly Tree Commented on October 9, 2006

Congratulations on your big net worth boost! I recall how I used to be able to do this while still single all the way before I had kids. Now that I have a larger family (there's 5 of us all in all) and a household generating massive utility and yard fees, I am at a loss to save as much as I used to. So my strategy during my younger years was to save, save, save. Now I have shifted my strategy to generate higher income through business.

KC Commented on October 15, 2006

Likewise, can someone please explain how you take cash from a 0% credit card offer without the usual 3% cash advance fee?