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