Jan/Feb 2016

So, obviously one of my goals I talked about in my intro post was to get a handle on our money situation.  We have a budget, but when we thought long and hard about exactly what we spend on a monthly basis, we really didn’t know the answer.  We can ballpark it, but ballpark doesn’t work for us when we’re on a mission.  So, that was job 1.

The other thing was to compile all of our accounts into one place to get a handle on our net worth.  This was an area that, honestly, we were far less certain of.  After compiling the number for March 1, I can honestly say that I would have been off.  WAY off.  Like possibly tens or a hundred thousand dollars off.  Luckily the result was better than I expected.  And in this market I consider that a huge win.

So, I’d like to get more detailed on this in the future, but for simplicity sake I’ll do this:  Personal Capital says our spending for Feb (I didn’t start using it until mid-January and not relying on it for that month) was $85% of our income.  YIKES.  Obviously that needs to come down if we’re going to make any sort of progress getting to financial independence more quickly.  Without our mortgage  it’s 66%.  I should also add that the spending amount also includes additional amounts paid toward some debts (mortgage and student loan – our only actual debts).  THIS is why you don’t want debt, people.  It literally eats up all the payments I could instead be saving.  “Same as cash” is NOT a good deal, I don’t care if it’s zero interest!  Because both are low interest (3%) we have decided to instead start saving the additional payments starting in March.

Net worth….this month our net worth totals in at $448K and some change.  Like I indicated, better than I expected, but we still have a ways to go.  $448K isn’t bad, but if your spending is 85% of income, it pretty much sucks.  The FI formula would tell us we have a LONG way to go before FI.

So…..spending.  We are in the midst of two projects that is causing spending to be higher than normal; a laundry room renovation and an outdoor project.  Once complete spending will come down, and then we really need to have a “no additional spending” month to get a good handle on what our minimum monthly expenses really are.  One win though was bringing food spending down $300 this month.  I’ll take it.

feb2016

In summary, we suck.  We really are two fools.  Gah!  Onward toward progress!

Leave a Reply

Your email address will not be published. Required fields are marked *