FIRE Progress Report through September 2019

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Let’s dive right into the numbers for September.

The Money Related Numbers

25.84% (previously 25.40%)

This is our invested assets/target number. Our invested assets span across a variety of investment vehicles such as 401k, HSA, IRA, Roth IRA, ESPP (Employee Stock Purchase Program) and standard taxable mutual funds.

106 months (previously 107)

The number of months until my 45th birthday and our finish date.

98.75 months (previously 101.41)

The number of expected months until we reach our target number based on our current expected monthly contributions, assuming a 10% annual return.

The Expense Related Numbers

8.26 times annual spending (previously 8.34)

This is how many multiples of our annual spending we have saved up towards our goal. For example, if this value was 9.1 and we spent $10,000 annually, we would have $91,000 saved up.

33.02% to minimum FIRE (previously 33.35%)

The minimum number to achieve FIRE is 25 times our annual spending. This number shows how close we are to the absolute minimum.

31.94 times annual spending at goal number (previously 32.82)

We have a goal amount that we’d like to reach. Given our current annual spending, this is how many times our annual spending we’ll have saved when we reach our goal number.

How Much We Invested

49.43% of Gross Income Invested

This is the amount we invested in things like 401k, Roth IRA, taxable accounts, and Employee Stock Purchase Program divided by income from our main employment.

60.52% of Net Income Invested

This is the amount we invested in things like 401k, Roth IRA, taxable accounts, and Employee Stock Purchase Program divided by income from our main employment, but with taxes subtracted.

53.42% of Gross Income Invested with Employer

This is the amount we invested in things like 401k including employer contributions, Roth IRA, taxable accounts, and Employee Stock Purchase Program divided by income from our main employment.

65.40% of Net Income Invested With Employee

This is the amount we invested in things like 401k including employer contributions, Roth IRA, taxable accounts, and Employee Stock Purchase Program divided by income from our main employment, but with taxes subtracted.

What’s Happened and What’s Happening

The How Much We Invested numbers look great this month. However, that’s because I got paid for some side work and I don’t include that in my income side of the calculations. If you have a skill that you enjoy using and someone is willing to pay you for, use it. This will accelerate you debt pay down, investing, or simply meeting other financial goals.

Our expenses continue to climb every month. I’m optimistic that by the end of this year, they’ll begin to level off. As of December, we’ll have been tracking our expenses more accurately for a full year.

Finally, this month, I’d like to mention some expenses that we don’t normally have every month. First, I got my wife a new phone. She had used her old one for almost two and a half years. The battery still held a great charge, but it just couldn’t keep up anymore. We found a great deal on a new Moto Z3 Play direct from Motorola. Granted it’s last years model, but at a significant discount and comes with a full warranty.

We also purchased some plants to finish our landscaping. We had ripped out some old plants that had outgrown their space, moved all of the stone, and laid new weed barrier. It took several weekends but looks much better and the plants won’t look overgrown anymore.

Last but not least, winter is on its way. That means it was time to get the furnace and A/C tuned up. We generally do this every couple of years. It’s always a good sign when the technician opens it up and says “this looks brand new”.

I hope your autumn is off to a good start. My wife has picked up a seasonal job to raise enough money that we can replaces our downstairs carpet. It’s long overdue and one of the last remaining projects the house needs to feel “complete”.