New Year, New Goals!
What happened this last month?
This month welcomes in a new year. We saw our expenses drop this month quite a bit from the previous year. Last year we had several one time expenses, the largest being paying off orthodontics. This year, we really only had some smaller unplanned for expenses for auto maintenance and a college deposit. Our oldest has finally decided on where she’s going to college, so we had to pay her deposit to lock things in.
Looking forward to the future – we have plans to replace another vehicle this year. We’ll be selling our Prius to our youngest daughter this summer when she’s gets her license. We made a deal with both daughters that we would pay for half of their first car, and half of their car insurance. That will help to encourage them to drive safely, get good grades to receive insurance discounts, and treat their cars well by maintaining them.
Our numbers have improved over the previous month as well. It appears we’ve hit another new high, so that’s worth celebrating. However, with as much uncertainty as there is (and always is), the numbers can fluctuate quite a bit month to month. Over the long term they should move in a positive direction.
Where did we spend the most?
Our monthly expenses were up down considerably compared to last month. Annually, they’re also up quite a bit from last January, but working their way down.
- $1380 Property taxes
- $532 Automobile maintenance
- $300 College deposit
The Money Related Numbers
Completed! – 106.93% to target number (previously 102.92%)
This is our invested assets (401k, HSA, IRA, brokerage, etc.) divided by our target goal number.
42 months until original FI date (previously 43)
The number of months until my 45th birthday and our Financial Independence date.
Completed! – 0 months until calculated FI date
The number of expected months until we reach our target number. This is based on our current expected monthly contributions, assuming a 10% annual return.
The Expense Related Numbers
11.73 times annual spending (previously 11.07)
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.
46.90% to minimum FIRE (previously 44.26%)
The minimum number to achieve FIRE is 25 times our annual spending. This number shows how close we are to the absolute minimum.
10.97 times annual spending at goal number (previously 11.07)
We’d like to save 25 times our annual spending. This is how many times our annual spending we’ll have saved when we reach our goal number. If it’s 25 or greater, than our goal number will be enough to cover our expenses. If it’s lower than 25, we’ll need to either cut our expenses or increase our goal number.
How Much We Invested
-0.79% Month to Month Change In How Much Saved (previously -71.98%)
This number shows the change in what we saved in our investment accounts this month compared to the prior month.
4.03% Month to Month Change in How Much Saved With Employer Contributions (previously -71.49%)
Same as the prior number, but with employer contributions counted.
-1.64% Month to Month Change in 12 Month Savings Average (previously -0.39%)
This number shows the change in our 12 month rolling average. This helps to smooth out months over time.
-1.48% of 12 Month Average Net Income Invested With Employer Contributions (previously -0.12%)
Same as the prior number, but with employer contributions counted.
How we track the numbers
I’ve been using Empower (referral link) to track our numbers. I put them into a spreadsheet that calculates the numbers you see above.