Merry Christmas!

It was a great end to the year as far as finances are concerned. Our expenses this year were slightly higher than last year. We got one final invoice for kitchen electrical work. We also redid the our back closet, which was desperately needed. We shouldn’t have any other major remodeling expenses going forward though.

We also spent a bit more on Christmas gifts for the kids and ourselves than we usually do. I guess that’s what happens when most of the things your kids want are bigger items. Thankfully they’re ones they’ll use for a while.

In the past, I’ve been averaging our monthly savings over a 6 month time period, but decided this month to change it to average over the past 12 months. We’ve been tracking our yearly expenses over 12 months, so it only made sense to track our savings over the same time period. It also helps to smooth out bumps that can drastically increase savings one month. This month we both got bonuses, which really increased things a bit. Because of this change, you’ll see that some of the previous months numbers may not match what you saw reported for November. That’s because they’re based off of the new 12 average savings calculations.

If you’re wondering what I use to track 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 monthly expenses increased slightly this month compared to last month. Starting March 2022, we should start to see our yearly expenses drop considerably each month through the end of the year. This should really help out our savings numbers compared to our estimated future expenses.

• $1248 – Electrical Work
• $1090 – Christmas
• $288 – Vacuum
• $154 – Europe Trip
• $139 – Closet System

The Money Related Numbers

59.24% to target number (previously 56.94%)

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.

79 months (previously 80)

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

38.41 months (previously 42.24)

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

10.18 times annual spending (previously 9.97)

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.

40.71% to minimum FIRE (previously 39.87%)

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

17.18 times annual spending at goal number (previously 17.51)

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

89.62% Month to Month Change In How Much Saved (previously -0.77%)

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.

78.50% Month to Month Change in How Much Saved With Employer Contributions (previously -0.75%)

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

8.11% Month to Month Change in 12 Month Savings Average (previously 3.25%)

This number show the change in what we saved this month compared to the prior month, but on a 12 month rolling average. This helps to smooth out months over time and shows a more general trend.

8.69% of 12 Month Average Net Income Invested With Employer Contributions (previously 4.14%)

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