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 spent a lot of money and my net worth went down due to lack of income. Oh well. No big deal. There are things I’m way more anxious about than money right now.
Summer is finally here which means it’s time for travel! I visited my brother in Chicago for his graduation and I got really lazy about taking public transportation so I spent approximately $200 just on taxis alone.
I also booked our flights to Dublin for our honeymoon this fall, so that took up another $600 or so after using up our Amex points. I’m kind of annoyed by the personalized pricing mechanisms that make ticket prices escalate between searches for the same itineraries. I usually can just clear my cookies or use a VPN to see base level prices but it is a hassle.
Credit card related pro tip, though: If you want to liquidate your Amex points for 1 cent/point, just book some travel and ask for a refund within 24 hours. The refund comes back in the form of cash instead of points.
Other overages came in the form of food (obviously), thrice annual water bill, and a new scanner so I could use some of my free time to finally digitize all the papers I’d been storing for years. I also had to shell out $100 to pay for my SDIRA that houses my Lending Club account. Just one more way that my P2P investing experiment has been super disappointing.
Notable things that happened this month include:
- Attended my brother’s college graduation
- Participated in protest against family separation and detention
How were your finances in June?