Each month I will post an update on my finances to both give you, the reader, some insight into my situation and to give me markers of my progress on my financial journey. My updates consist of two parts:
- Financial Progress Table – Tracks net worth progress.
- Spending Table – Compares monthly spending to an average (for me) “bare bones” budget, keeping me accountable for additional expenses.
For now, monthly updates include only my personal net worth and spending. As my fiancé and I combine our finances, updates will shift to cover going values instead.
Each net worth goal in the Financial Progress table is broken down into undisclosed units of money. My current goal is to reach “Financial Freedom.” By the time I reach this goal I will have:
- A retirement account that can support us when my fiancé hits 65
- Two college savings funds funded for four years of in-state public university tuition, room, and board
- An emergency fund for six or more months of living expenses
- Sufficient liquidity for my fiancé and/or I to make a career change with one to two years’ runway
- A mortgage less than two times my gross salary without bonuses
Once “Financial Freedom” is achieved, the focus will then working be towards “Financial Equilibrium”, where the income from investments covers all our ongoing expenses.
I’ve created a “bare bones” budget which represents the average minimum amount I can expect to spend each month. This is the minimum amount I need to comfortably live in case of a job loss, emergency, etc. I expect to frequently go over my “bare bones” budget in a number of categories (here’s looking at you, “Groceries & Dining”), but I want to remain accountable to myself when I do so.
For privacy reasons, there are two things I do not include in my spending updates: my monthly mortgage and charitable donations (pegged at 10% of my net income).
I expect June to be pretty wan in comparison to the accelerated financial progress I’ve experienced the last few months. I don’t feel any different yet for being unemployed, in part because I did some thinking, planning, etc. for my likely new job over the weekend. However, I am now forcing myself to disengage. This is my funemployment and I’ll play Civ V as much as I want to!
Because I spent May trying to tie up all the loose ends, I was pretty engaged with work. I think this is part of the reason why my spending overall was pretty decent since I tend to overspend when I am stressed and anxious about work, but not when I’m focused and busy.
I spent a lot on taxis this month, first going to jury duty (which was inaccessible by public transit) and then frantically rushing to interviews so as not to be late. With the exception of that and food– always with the food— I was pretty low key.
Notable things that happened this month include:
- Went to jury duty for first time
- Last full month at old job; did the hustle for a new one
- Attended fiancé’s cousin’s first communion
- Finished my last full month of work at my old company
- Got job offer I think I’m going to take (after some negotiation, of course)
How were your finances in May?