Here is our monthly progress on our path to financial independence. I have updated our spreadsheets and reviewed our accounts to determine our net worth and how we are doing on meeting our goals. Our financial independence project is now officially entering the third month and some things have gone according to plan and others are still a work in progress. I have to admit that updating the spreadsheets and running all the calculations to produce this post and check on our progress is my favorite time of the month.
Currently our Net Worth is: $626,545 a $23,591 increase since the start of the project. The majority of this increase so far has come from saving since the market has not been especially positive since starting this project. The next few months might not see such a large growth in savings since we are entering a period where some of the projects my wife works on will not pay again until April or May.
ASSETS Prior Month February 29th, 2016 % CHANGE
$7,304 $9,065 24%
$6539.29 $6541.07 .03%
$60,957.49 $62,620.35 2.73%
Florida Retirement Plan
$40,717.70 $40,459.84 -.63%
$5,325.68 $5,302.97 -.43%
Solo 401k Accounts $1,500 $1,500 0%
$5,325.68 $5,909 3.5%
College Savings (ESA & 529)
$8,592.37 $8,763.85 2%
Taxable Brokerage Account
$55,987 $55,604 -.68%
Real Estate Assets $352,000 $352,000 0%
Primary Home Value
Here is how we did on our goals for February 2016:
Our goal is to save $60,000 (or more) this year and I am still optimistic we can reach that number as long as our income hits our projections. We saved $3,942 this month bring our yearly total to $18,384.06. Almost $2,000 of this went into our retirement accounts with the rest going into our taxable brokerage account. Some of the money in the taxable account will eventually be moved to the solo 401k accounts but I decided to put a delay on those transfers since it is hard to project the income my wife will bring in each month right now.
Our spending goal for the year is to spend $5,000 or less each month and for the second month in a row we failed to meet that goal. We actually did worse than January spending $5,277 this month. I attribute some of this to spending $963.88 on groceries in February and is one of the areas I have targeted to reduce in future months. Housing costs (mortgage, utilities, repairs) remained consistent at $1,816 as did child care at $581. The rest of the spending was split between gas, tolls, clothing and activities for our child, and some entertainment spending at Disney World.
Some progress was made this month primarily in our garage. I sold some of the larger furniture pieces on craigslist that had been taking up a tremendous amount of space ever since we emptied one of the bedrooms to make room for our new addition to the family in a couple of months. In fact, we are almost able to park the car in the garage again! We still need to do a lot of work in this area and we will continue to eliminate clutter and unneeded items from our house and life in the next month or two.
I don’t have any major updates for this area this month, but I am considering some major changes sooner than expected. I may have a more detailed post about this soon!
So far I am really enjoying maintain this blog although it does take a bit more time than I originally anticipated. I was able to post new content four times in February which is below my goal, but I was finally able to update other parts of the site that I have had on the to-do list since I started this project. More than anything else I am enjoying writing about what we are doing since it keeps me focused and honest on our progress.
That wraps up the second month of our financial independence project. Calculations based on our current income, savings rate, and planned expenses, if everything remains the same, indicate a FI date of November 2022. This is two years past the goal we set for this project which means we have to make adjustments that include increasing our income and savings while reducing our expenses. One of the benefits of thinking about FI as a project is that it allows us to see how the actions we take impact our end goal, plan accordingly, and then take action.