Progress Report through June 2020 (Auto Repair Edition)
What Happened and What Is Happening
Even though our investments grew this month, so did our expenses. We had several one-time and annual expenses due this month. One of those was a repair to our 2011 Toyota Sienna.
Some time in the winter, we noticed that the AC system would reset back to 75 degrees after we would turned it on. We waited until we needed an oil change before we had it checked out. Turns out that it was the Air Mix Damper Control Motor Circuit (or something like that) and was going to cost about $2000 to fix it. A lot of the cost was the labor because the dash would have be taken apart. At the time we didn’t think spending about 20% of the value of the vehicle to do a repair like this was worth it. Everything seemed to work fine other than the inconvenience of setting the temperature each time.
Then the 90+ degree summer days came along. We ended up realizing that the broken part controlled the cold air to the passenger side of the car. What was an inconvenience quickly became more of desirable thing. Besides, we thought it would be hard to sell the van in the future knowing that it would need $2000 in repairs to make everything right.
After thinking about our options, I ended up calling Toyota North America and telling them our story. I told them that we’ve owned several Toyotas and due to the way they helped us when our Prius battery died several years ago, we ended up buying the Sienna. In the end, with their assistance and the 15% off Costco Auto coupon (check it out if you’re a Costco member), the repair cost about half what it originally would have.
One other thing you’ll see has changed is in the “How Much We Invested” numbers. These numbers can swing wildly from month to month, so I’ve decided to change them to a 6 month average to help smooth them out and better see how we’re trending.
How did this affect us?
Because our expenses were higher this month, you’ll see the Expense Related numbers moving up less than our Money Related numbers. Below are some details related to our expenses. I don’t think we’ll see expense numbers this large until we replace the Prius later this year.
- Internet (paid annually to save money) – $549
- Homeowner’s Insurance – $829
- Auto Insurance – $562
- Pest Inspection – $155
- Materials for a new Dining Room Table – $650
- Marmon Valley Trail Ride – $297 (most of which we got back when family paid us back in July)
- Toyota Sienna Repair – $1017
The Money Related Numbers
36.46% to target number (previously 34.80%)
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.
97 months (previously 98)
The number of months until my 45th birthday and our finish date.
74.86 months (previously 78.07)
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
10.63 times annual spending (previously 10.54)
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.
42.52% to minimum FIRE (previously 42.16%)
The minimum number to achieve FIRE is 25 times our annual spending. This number shows how close we are to the absolute minimum.
29.16 times annual spending at goal number (previously 30.29)
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
42.11% of 6 Month Average Gross Income Invested (previously 41.44%)
The amount we invested in things like 401k, Roth IRA, taxable accounts, and Employee Stock Purchase Program divided by income from our main employment.
52.48% of 6 Month Average Net Income Invested (previously 51.59%)
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.
46.10% of 6 Month Average Gross Income Invested with Employer Contributions (previously 45.43%)
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.
57.45% of 6 Month Average Net Income Invested With Employer Contributions (previously 56.56%)
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.