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Accountability

My gosh you guys, I wrote a quick little post in December on how my 2018 went.

It’s time I do an actual full update and set some new goals! I didn’t update a whole lot through 2018 as I was much too busy being my workaholic self to bother with writing nonsense on the internet. 😉 I did note that I went from about $130,000 networth in April 2018 to about $179,000 in December 2018. I took the time today to actually review the true stats;

I use YNAB to track all my expenses and accounts and it tells me that at the end of December 2017 I had a networth of $110,413.61. Now that all the marbles have been tallied and updated for 2018, my final stats are….

Holy cow! Isn’t that just incredible? I increased my networth by $71,726.43 through saving and investments. I’ve double-and even triple checked the numbers and all my accounts appear to be listed accurately. I’m pretty happy with how the year turned out.

I tracked by expenses as well, approximately $15,000 was spent on living.

I had a huge year for medical spending, I am thankful to live in Canada where doctors visits are covered.. but I spent quite a lot this year on orthodontics, the dentist and supplements and ND visits that are not covered. My other largest bill was food… I do not pay rent or a mortgage (as Toms house is PIF) but do cover more of the food bill,

Not including in my spending was travel spending;

  • 11 week RTW Oct-Dec cost $3,975.63 + approx $700 cash
  • One week in NYC August $331.58
  • January 3 week Philadelphia/Florida: $853.11
  • and various weekend totalling about 2 weeks away which I did not factor in, an approximate $750 orso was spent on that (my share)
    Total spent on 17 weeks of travel: $6,610.32  or $389/week. Not bad!

I also spent a rather large amount on my new-to-me baby-SUV, a 2014 Chevrolet Trax for which I paid $12,900 when all was said and done.

All in all, I spent a fortune on EVERYTHING in 2018, I also earned a fortune and saved A LOT.

Now, about those goals, what about 2019?

For 2019 my singular goal will be to keep increasing passive income and consequently my networth! I haven’t done any recent updates with regard to my current portfolio so that shall remain a mystery for now. I created a spreadsheet that tracks my current holdings and passive income, and shows my monthly number at one glance;

As you can see, at $273 a month or $3,276 a year I have quite a while to go before I’m anywhere near retiring off it. My magic number for my current financial situation is $239,000 invested, this generates a measly $700/month in income, of which it’s possible for me to live off.. but not enjoyably, most likely.

So for 2019 I’d like to increase my NW to $220,000, this is a $38,000 increase and its a conservative number compared to what I accomplished in 2018…. and at the end of 2019 I’d like that monthly passive income to come in at $385/month.

As in previous years, I’ll be tracking using my progress bars in the side bar —>

2 goals, 11 months to go, let’s do this. 🙂

I don’t write regularly enough for there to be a clear pattern in how my thoughts evolve on a given subject matter over time. Recent musings have led me to consider however that perhaps I would enjoy everything in life a little more if I were to work part-time, rather than full-time. I don’t seem to be capable of striking proper work balance and workaholism is definitely a problem I have. So, I am not FI yet, (although recent calculations put me at $200k NW next spring) how do I do that?

I gave up the apartment I was still paying for in December and moved in with Tom officially. He already is FI on his own, to where I strive to be, so our bills are already very low. He pays property tax, electricity and aside from the internet bill and home and vehicle insurances there are very little other bills.  I pay most of the groceries. Although we haven’t officially discussed it the arrangement seems fair to me. (I also suspect he pays little attention to where food actually comes from as long as there is food)

If you’ve read any bits of this blog you’ll know I’ve always kept my expenses as low as possible.

With no more rent eating into my budget, and with no more cellphone bill my expenses are really quite low and almost half of them are food-expenses.

I’ve been playing around with ideas on how to change my working situation to part-time, rather than full-time and a basic monthly budget would look something like this

Groceries $200
Fuel $80 (a lot less driving with no day-job)
Spending money $50
Restaurants $50
Medical $20
Clothing $50
Household $20
Car insurance $47.00
Life insurance $12.00
Birthdays $20
Christmas $20

Total expenses: $554.00, $6,648 annually.

Interest income at the end of 2018 should consist of $3,000 leaving me to cover $3,648 of my expenses which I can easily do.

Sidehustle incomes – minimal effort required – I anticipate in 2019
Misc income: $700 (possibly onward)
AIRBNB: $1,800
Sidehustle X: $1,000 (conservatively, $2,000 so far this year)
Total: $3,500 – $4,500

If I return to a simple cottage cleaning job in the summer I can easily earn $7,000 working weekends over the summer and cover all of my annual expenses, side hustle incomes would then cover my portion of our travel adventures and my interest income would remain with the principal allowing my savings to continue to compound. It’s likely my interest income will actually be quite a bit higher as I continue to add to my savings and investments. There is also a possibility of scaling the AIRBNB and doubling that income.

I haven’t accounted for any big purchases here, I purchased a 2014 Chevrolet Trax last month solving the vehicle-dilemma, I dont need to buy a house and together we can absorb any big bumps just fine.

So the gist of it? Once my current contract ends I don’t think I will be pursuing any further contract. That’s a little scary, but the numbers say ill be just fine. It’s really quite simple, keep your life simple and expenses low and things don’t have to get too complicated.

My last post was made January 22, in Thoughts on how to move forward I talked about a long of things. Personal, health, work, about shifting the focus of my financial planning from just getting my shit together to planning for a different future. I thought I had written here after but… figments of the imagination can be pretty realistic I suppose. 🙂 So here’s an update!

Early retirement is on my mind a lot. I suppose this has always been the goal, it has always been what got me started on this path, what got me to fix my mess, get out of debt and save, it is what makes me live like no one else now so that my tomorrow can be different.

I’ve made quite a lot of progress recently. Healthwise I feel amazing, after enlisting the assistance of a naturopathic doctor and finding more like minded people. Through getting back into my workouts and finally, seriously addressing my diet I simply feel amazing. I have not felt this full of life in a very very long time. I’m no longer afraid, I’ve also developed a healthy dose of scepticism toward the medical doctor I have dealt with this past year, but that is perhaps a post for another day. 🙂

Financially I am doing well, I am doing better than I ever expected. I achieved a $100k networth on October 1, 2017. And now, only 6 months later can celebrate;

Which is pretty darn incredible. I guess the snowballing thing just continues once you pay off debt! My goal for 2018 is to achieve a $175,000 networth. My RRSP contribution room for 2018 is $16,528.  So i’ll be using that to reduce my taxable income. There’s been some updates too in the job department, but I’ll leave that for another post.

To get from $135k to $175 is kind of a leap, I mean 40k in one year? I was even considering trying for $185k but lets not set unattainable goals ;). I don’t have a gargantuan income but living simply does allow me to save a lot. This year I will also earn more than last year, which is fantastic, I intend to save it all.

$250k is the magic number for me, its my freedom number, it’s the number at which I will be barista-FI. Financially independent enough to be able to survive on any basic part-time job and live according to my needs and wants.  (assuming, as a single person, not as a couple). I suppose it’s still quite a bit away, it’s a big enough number. So here she goes, a $40k addition to my NW by the end of 2018. Can I beat it?