FIRE Month Savings Progress Report for July 2021

not our actual floor

Month 2 of Kitchen Remodel

All the numbers have moved in a positive direction this month with the exception of one. This one number is mostly affected by expenses for the kitchen remodel. So far, the remodel has taken a bit longer than expected, but fortunately, there haven’t been too many surprises so far. We’ve got drywall, painting, and cabinets done. We also have floors done in 3 out of 4 areas. The remaining big items are countertops, backsplash, and appliance and plumbing hookup. After that it’s just finishing touches like trim work and some painting touch ups. We have plans to redo our back closet, but I think we’re going to hold off on that until this winter. We’re currently experiencing remodeling fatigue.

We hit a major milestone this last month in our net worth after all of the accounts from my previous employer were rolled over into their new homes. Hopefully as our expenses level off towards the end of this year and we continue to invest, our net worth will continue to grow.

If you’re wondering what I use to record our numbers monthly, it’s Personal Capital. You can start using them too and we both get $20: https://pcap.rocks/adam4058

How did this affect us?

Our average of monthly expenses continue to increase, even though our monthly expenses dropped a little bit from the month prior. That’s because we have some lower expense months that are dropping out of the 12 month average and that causes raising the average. Once our kitchen remodel months drop out of the average in about 8 months, our annual expenses should start to drop again.

  • $1400 – Drywall work
  • $1097 – Property taxes
  • $550 – Annual internet payment
  • $349 – Miter saw
  • $270 – Cabinet levelers
  • $230 – Dumpster

The Money Related Numbers

Current and future value against Minimum FIRE Goal and 25x Expenses Goal

53.73% to target number (previously 52.21%)

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.

84 months (previously 85)

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

46.77 months (previously 51.63)

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

10.24 times annual spending (previously 10.23)

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.

40.96% to minimum FIRE (previously 40.92%)

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

19.06 times annual spending at goal number (previously 19.59)

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

40.48% Month to Month Change In How Much Saved (previously 77.04%)

This number shows the change in what we saved this month compared to the prior month in things like 401k, Roth IRA, taxable accounts, and Employee Stock Purchase Program.

34.58% Month to Month Change in How Much Saved With Employer Contributions (previously 67.51%)

Same as the prior number, but with employer contributions counted.

18.11% Month to Month Change in 6 Month Savings Average (previously 2.48%)

This number show the change in what we saved this month compared to the prior month, but on a 6 month rolling average. This helps to smooth out months over time and shows a more general trend.

17.98% of 6 Month Average Net Income Invested With Employer Contributions (previously 4.22%)

Same as the prior number, but with employer contributions counted.