FIRE Month Savings Progress Report for August 2021

concrete tunnel

Month 3 of Kitchen Remodel

Most numbers moved in a positive direction as we start to finish the kitchen. We’re in the final phases and there is light at the end of the tunnel. We have a functional kitchen with running water and a stove again!

Our month to month savings percentage dropped considerably from the month prior, but that’s not surprising. Fluctuations of income or an extra paycheck can make that change considerably each month. It’s much more important overall that the month-to-month 6 month average is generally increasing.

If you look at the graph, you’ll notice that our 25x Expenses Goal has also went up way past our Minimum FIRE Goal. After the expenses for the kitchen remodel drop off our 12 month moving average next year, we should see that line drop considerably into a more reasonable average. Fortunately our Future Value numbers have remained well above our 25x Expenses Goal which means that even with the higher expense number, we should have enough to cover them in the future.

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:

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. This month was the final payment for the counter tops prior to them being installed.

  • $2650 – Remainder of counter tops
  • $518 – School fees
  • $484 – Optometrist and glasses
  • $226 – Europe trip
  • $175 – Orthodontist
  • $144 – Veterinarian

The Money Related Numbers

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

55.73% to target number (previously 53.73%)

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.

83 months (previously 84)

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

43.37 months (previously 46.77)

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

10.06 times annual spending (previously 10.24)

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.

40.26% to minimum FIRE (previously 40.96%)

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

18.06 times annual spending at goal number (previously 19.06)

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

-41.58% Month to Month Change In How Much Saved (previously 40.48%)

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.

-43.74% Month to Month Change in How Much Saved With Employer Contributions (previously 34.58%)

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

5.94% Month to Month Change in 6 Month Savings Average (previously 18.11%)

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.

5.20% of 6 Month Average Net Income Invested With Employer Contributions (previously 17.98%)

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