Ok, folks. 2018 is rapidly coming to a close. We’ve had a busy year and 2019 will be no different. I’m not sure how I ever had time for anything fun when I was working 40 hours per week!
Looking back on November’s finances, it was a month of holding steady. Out net worth remained the same at $1,988,000. It was a good month of income with $4,173. Our expenses remained moderate at $2,846. In financial terms we’re just fine even though we are still about $50,000 below our year end 2017 net worth of $2,037,000.
Does it feel like 2018 is flying by? Less than two months to go until 2019! We’ve been busy during the month of October. We spent the first part of the month aboard the Caribbean Princess cruise ship. Once we returned to Raleigh, we tackled several projects around the house and enjoyed the nice weather outside.
In financial news, you may have heard that turbulent times have returned to the stock market. At one point, our portfolio was down almost $200,000 for the month before recovering to $1,988,000, a loss of “only” $98,000. Income for the month remained strong at $5,352 while expenses remained rather low at $1,784, or exactly one third of our income. In conclusion, our net worth dropped by a significant margin, however our diversified income streams outpaced our spending.
Better late than never, right? Since we’ve been cruising the Caribbean without internet, this monthly financial update and slice of early retired life is about two weeks late. I’ll work on the timeliness in the future. If I have time 🙂
Aside from having fun on the cruise, I’m extremely excited that it finally feels like fall here in North Carolina. The air conditioning is off and the windows are open after a long, hot, humid summer. Time to enjoy the outdoors before it gets cold!
Financially, September was an okay month. Income exceeded expenses, which is always good. We brought in $2,829 in September while only spending $1,342. On the net worth balance sheet, we shed $12,000 in value to bring our net worth to a still respectable $2,086,000.
When you have kids it’s impossible to retire early, right? I found out that may not be true in all cases. Like my own. We have three kids and still managed to retire early. But how is it possible when kids are soooooo expensive?
The US Department of Agriculture publishes the “Expenditures on Children By Families Annual Report” which examines the cost to raise children in America. The headline number that gets a lot of press is the total cost to raise a child from age 0 to 17: $233,610. And that doesn’t include the cost of college!
Almost a quarter of a million dollars seems really high to me, so I’m diving into our kid-spending to see what it actually costs to raise our three kids.
And just like that, our summer break is over. The kids have been back in school for a week already and us parents are enjoying our peace and tranquility during the middle of the day. The summer weather, however, lingers on. It’s been hot and humid for the past week. I’m looking forward to real fall with it’s cool mornings and lower humidity.
Financially, August treated us very well. Our net worth went up by $14,000 to $2,098,000 thanks to mildly positive stock market returns. Our income remained very strong in August at $5,923 while our expenses remained rather modest at $2,565 for the month.
Any month where your income exceeds spending and your net worth goes up is a good one! Now let’s jump into the details.
It’s early August and we’ve been at home for about two weeks after spending a month vacationing in the Bahamas during June and July. Summer is flying by incredibly fast because we have been so busy!
Our oldest two kids just wrapped up two weeks in summer camp. The whole family has enjoyed lunch, dinner, or play dates with several groups of friends that we haven’t seen all summer. Back to school shopping is mostly done. And school starts in three short weeks!
In the meantime, our lazy investment portfolio continues to be busy as well (in a very hands-off way). Our net worth shot up by $46,000 during the month of July to $2,084,000. Spending was particularly low at $1,389 while income remained strong at $4,361 for the month.
“JM”, a new commenter on the blog, left a great comment asking about tracking spending and how that helps you get to Financial Independence.
“Do you track all your monthly spending, no matter how minute? Did this help get you to Financial Independence? And how?” -JM
The quick answer is yes, I did track all spending down to the dollar while working towards FI. And looking back, tracking everything I spent was pivotal to accelerating my journey to FI.
We’re living it up in the Bahamas on vacation right now! I’m taking a break from the waves, sun, and sand to provide the regular monthly financial/life update. At this point we are half way through our one month stay. Although there isn’t much to do here beyond swim in the ocean, play in the pool, and walk along the canals and marshland, we’re having a good time. We brought lots of books and the wifi and air conditioning are top notch!
Did our finances have a nice month too? In June, we did well from a cash flow perspective with income from investments and the blog exceeding our expenditures. Income was $8,867 while expenses were only $3,554. The stock market wasn’t very kind to us in June, so our net worth dropped by $16,000 to $2,038,000. There’s still enough money in the investment accounts to keep me smiling in the Bahamas!
Over here in the Root of Good household we’re counting down the days till summer. It feels like it’s already here though! May was a lot warmer than usual with highs in the 80’s most days and lots of humidity, including a jolt of moisture from a very early season Tropical Storm Alberto. I suppose this will be good training for our month in the Bahamas starting in two weeks!
How did we make out money-wise in May? Our net worth climbed $21,000 to bring the total to $2,054,000. Reasonably good stock market returns were the main driver of net worth gains in May. Income remained solid at $3,426 for the month. With $3,366 in spending, our May expenses climbed to the highest point for 2018. However, it’s still great news that our spending is less than our income!
April was a blast! It was also an incredibly busy month. We helped out at the kid’s elementary school by chaperoning a field trip and running the school’s spring carnival raffle. I spent four days at CampFI Midatlantic where I presented “How to Develop an Early Retirement Budget”. JD Roth stopped by the house for a few hours before heading up to the camp. The whole family did a staycation for spring break. We assembled a couple more bicycles for us adults. To close out April we threw a big birthday party for our six year old. I’m pretty sure I was less busy when I was working!
In financial terms, April was a good month. After a couple months of losses, our net worth reversed course and climbed by a modest $9,000 to $2,033,000. Our spending remained low at $1,977 which was just a tiny bit more than our April income of $1,837.