July is here so it is time to provide our monthly update on our FI project and how we are doing. June has been an incredibly busy month with a lot happening in our family. We welcomed our second daughter at the beginning of June, and we have put our current house on the market while at the same time trying to find a new place to live in North Carolina. Needless to say there has not been a lot of extra time (or sleep) in our household lately. With that said I did take a little bit of time to update our numbers to see where we are right now, and things are still looking pretty good. If I had posted this a week earlier (Brexit…) it would be a different picture, but short term fluctuations like this are going to happen, and surprisingly they don’t bother which is the purpose of having a long-term plan.
Currently our Net Worth is: $664,659 adding $11,465 to our total this month and a $61,705 increase since the start of the project. This month I had a significant amount of additional income (~$6,500) that includes a new job signing bonus and some extra summer work. I have a fair amount of this money set aside to cover moving expenses so it will probably impact the spending amount in July at the same time, I am not designating the money as savings even though it was not spent (yet). The savings rate for this month was 31% which is way under our target but still keeps us around 50% for the year. Here are our numbers broken down:
ASSETS Prior Month June 30th, 2016 % CHANGE
$1,120 $1,160 3.45
Florida Retirement Plan
$27,842.41 $27,966.97 .45%
Solo 401k Accounts $5,636.71 $5,742.82 1.8%
College Savings (ESA & 529)
Taxable Brokerage Account
Real Estate Assets $359,500 $363,000 1%
Primary Home Value
$225,000 $225,000 0%
Here is how we did on our goals for June 2016:
Our goal is to save $60,000 (or more) this year and we are still on track to meet this goal. We saved $1,942.06 this month bring our yearly total to $32,963.14. As I indicated in above we have additional money we did not spend, but I will wait until the dust settles from moving to determine how much of that will actually go into savings.
Spending this month was $5,257.76 which exceeds our $5,000 target. Honestly I am not going to complain as the spending this month includes items associated with having a new child.
Interestingly while not much has been done in this area since my last update, we are now fully engaged in this process as we start packing up our current house in anticipation of moving at the end of the month. I hope we will have the time needed to do this right instead of simply throwing items in boxes just to make the packing process go quicker. We may actually completely achieve our goal primarily because we are moving.
I was hoping that I would be able to write a detailed post about leaving my current job for a new job, but I have just not been able to find the time to sit down and write, well that and with minimal sleep writing has been a little lower on my priority list. The synopsis is that I am leaving my current employer in Florida for a new job in North Carolina and I am taking a pay cut to do it (sort of). Because this will have an impact on our timeline I want to share my analysis in a post including why I think this will actually speed up my time to financial independence while at the same time working in a job that is significantly better in so many ways than my current job.
Hopefully I will start picking up the pace of my writing soon to share what is going on with our project and other material that I have been wanting to write for a while. The nice thing is that this blog is an outlet for me to share rather than an additional job so I don’t feel a lot of pressure to write everyday (or week) even though I would like to share more in the future.
The sixth month of our financial independence project is now in the books, and we are halfway through 2016. If you are reading this blog I encourage everyone to keep track of your spending, savings, and net worth even if you don’t share it with the rest of the world like we do.