FIRE Progress Report through May 2020

Progress Report (Pandemic Edition, Part 3 and hopefully the last)

What Happened and What Is Happening

As the economy and markets have been improving, you’ll see an significant increase in our numbers. Our expenses in May were down 4.39% from 2019. During this month, we still had a few expenses that we normally wouldn’t have. this included tires for the Prius (which has over 275k miles on it now) and some other maintenance, outdoor flowers, and graduation gifts.

Our numbers were affected positively by the inclusion of some stock awards I was given at work that weren’t previously being pulled in by software I use. It finally started pulling them in when they fixed another issue for me. The stock awards are essentially given to you one time, but you can only get a quarter of them every year for 4 years. If I leave, I forfeit what hasn’t converted.

Every 6 months, the employee stock purchase program does it’s stock purchase. That also happened this month. That combined with some good income from Adro Solutions and you’ll the investment numbers be unusually high this month.

How did this affect us?

March to April was a significant improvement in the numbers, but April to May saw an even larger boost. The markets continue to boost the numbers, and the addition of the stock awards made a huge boost to our numbers.

As for the expenses we had this month:

  • Flowers – $160
  • Tires, Alignment, Oil Change – $600
  • Graduation Gifts – $240

The Money Related Numbers

34.80% to target number (previously 29.83%)

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.

98 months (previously 99)

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

78.07 months (previously 89.43)

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

10.54 times annual spending (previously 9.01)

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.

42.16% to minimum FIRE (previously 36.03%)

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

30.29 times annual spending at goal number (previously 30.20)

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

60.28% of Gross Income Invested

The amount we invested in things like 401k, Roth IRA, taxable accounts, and Employee Stock Purchase Program divided by income from our main employment.

74.91% of Net Income Invested

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.

64.27% of Gross Income Invested with Employer Contributions

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.

79.87% of Net Income Invested With Employer Contributions

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.

FIRE Progress Report through April 2020

Progress Report (Pandemic Edition, Part 2)

What’s Happened and What’s Happening

We decided to become DoorDash drivers in our spare time. We’ve got a lot of that lately and needed something to do. We’ve been using the extra money we’re making from that to put towards a new car. I’d honestly suggest it if you’re looking for a way to make some extra cash and get out and see new places. We figure we’re making about $15 to $25 an hour as long as you decide to deliver during reasonably busy times. If you’re interested in checking it out, feel free to use my referral link: https://drd.sh/5rVLhP/ (I haven’t seen that I get anything if you were to use it.)

Our expenses continue to level off or decrease slightly. A lot of that can be attributed to not being able to really do anything.

This past month we ended up having to do a major car repair to our 2006 Prius. Turns out it needed some fixes to the brakes and the rear struts needed replaced after we went over a small bump and one corner of the car looked like it just gave up.

We also purchased a new lawn mower after our mower of 10+ years rusted through. We decided that will never happen again, so we went with a Toro with an aluminum deck.

Finally, we got our daughter a new phone for her birthday. When you can’t go anywhere, there aren’t really a lot of options. We figured that she’s using it a lot to stay connected, so it made sense. It wasn’t a fancy iPhone or anything.

Finally, my life insurance came due this month, so that got paid.

How did this affect us?

If things changed quickly in March, they changed just as quickly in April. You’ll see that most numbers have rebounded back to where they were a couple of months ago. Some have even improved from where they were a couple of months ago and the markets haven’t even fully recovered. Some of that may have to do with the fact that we kept investing as things were declining, so we got an extra boost when they went back up.

As for the expenses we had this month:

  • Daughter’s Phone – $250
  • Life Insurance – $440
  • Car Repairs – $800
  • Lawn Mower – $532

The Money Related Numbers

29.83% to target number (previously 26.10%)

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.

99 months (previously 100)

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

89.43 months (previously 97.44)

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

9.01 times annual spending (previously 7.88)

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.

36.03% to minimum FIRE (previously 31.52%)

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

30.20 times annual spending at goal number (previously 30.19)

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

35.95% of Gross Income Invested

This is the amount we invested in things like 401k, Roth IRA, taxable accounts, and Employee Stock Purchase Program divided by income from our main employment.

44.67% of Net Income Invested

This is 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.

39.94% of Gross Income Invested with Employer Contributions

This is 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.

49.63% of Net Income Invested With Employer Contributions

This is 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.

FIRE Progress Report through March 2020

Progress Report (Pandemic Edition)

What’s Happened and What’s Happening

Wow, what a month it has been! If I had 10 guesses, a pandemic or stay-at-home orders would not have been on that list. I know this is a scary time for a lot of people and many people have lost their jobs. I’m fortunate to work for a company that will be impacted, but will weather this storm without any job loss.

If you’re struggling right now, I know it’s easy to think “if I would have done this or that, this would be easier”. Unfortunately, I think it’s our nature to go back to business-as-usual once things recover. If you’re stressed right now from a financial perspective, you may want to consider writing down how you feel. Then write down what you’re going to do when everything starts to return to normal. One example may be to build an emergency fund large enough to get through something like this. Put that note somewhere you won’t forget about it. Look at it in 6-12 months and start to do those items when you’re able.

How did this affect us?

This past month, we’ve pretty much done everything as we normally have. Some larger expenses this month include taxes, building a custom closet (which was cheaper doing it ourselves), and I paid for a year’s worth of haircuts ahead of time. I had learned about doing this through the ChooseFI podcast. Essentially, find those things that you’re going to use when you’re no longer stuck at home. Then offer to pay for those products and services in advance to support those businesses or individuals through difficult times.

You’ll notice that all of the numbers this month except one went in a negative direction. That number was “X times annual spending at goal number”. This month saw our largest drop in expenses year over year! A lot of that has to do with the fact that we didn’t do a spring break trip and our tax bill was lower this year. Overall this is a positive thing as our expenses continue to be tracked more accurately. Now that we have a full year of tracking our expenses more accurately, our year over year monthly numbers are accurate. However, our rolling 12 month averages still have another 9 months to become fully accurate.

If you’re able to save and invest right now, you have a great opportunity to really springboard ahead. This is not the time to shy away from saving because you see the markets drop. The stock market is on sale!

All that sounds great if you’re able, but if you’re not, that’s okay! The most important thing is to stay safe and healthy!

The Money Related Numbers

26.10% to target number (previously 29.79%)

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.

100 months (previously 101)

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

97.44 months (previously 88.28)

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

7.88 times annual spending (previously 8.51)

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.

31.52% to minimum FIRE (previously 34.03%)

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

30.19 times annual spending at goal number (previously 28.55)

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

35.40% of Gross Income Invested

This is the amount we invested in things like 401k, Roth IRA, taxable accounts, and Employee Stock Purchase Program divided by income from our main employment.

43.99% of Net Income Invested

This is 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.

39.39% of Gross Income Invested with Employer Contributions

This is 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.

48.95% of Net Income Invested With Employer Contributions

This is 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.