Update October 2024 FIRE – Retire at 40
Hello everyone! Did you have a good month? October passed us by. RB40Jr was busy with Ultimate Frisbee and Wushu almost every day. I started a ceramic class and a lute class. It was a lot of fun, but I was driving all over town. It was a relief when the fall season was over. The RB40Jr team placed 3rdrd in section B. That was great! They plan to move up to the A division in the spring. All in all, life was busy in a good way.
On the personal finance side, October was good. We didn’t spend too much, but our income was less than I would have liked. Our monthly cash flow was negative, just under $100. Our net worth is down a bit too. We are very ahead this year.
Ok, I’m going to share how I’m doing with my New Year’s resolutions. Then, I’ll look at our net worth and cash flow. Let’s go!
2024 Terms
Here is my goal spreadsheet for 2024. It works well. Try it if you can’t keep up with your New Year’s resolutions. The key is to review the spreadsheet every month to track your progress. That way, you can see which goals need more attention and work on them. We have less than 2 months left in 2024!
Financial Terms
FI ratio > 100%
The FI ratio is income divided by spending. If you can generate enough income to cover your expenses, you’re good to go. By 2024, I have reduced this goal to 100%. We are growing and I feel we could use more money. After 10 months, our FI rate is 113%. Not bad!
*FI rating = income / expenses
3% Law
Everyone is familiar with the 4% retirement withdrawal rule, right? Basically, you should have a successful retirement if you withdraw less than 4% of your investable assets annually. Let’s see if we can spend less than 3% by 2024. This is a great way to assess your retirement readiness. We will put everything together by the end of the year.
Track net worth and hope by +10%
I have been tracking our value since 2006. Nice to see progress. This year, I would like to see 10% gains. At this point, profit is completely dependent on the stock market and there is not much I can do to influence this goal. I will track it down and keep my fingers crossed.
Our earned value 16.4% since the beginning of the year. That’s great. 2024 is a good year for investors.
Health Goals
Exercise 3 times a week
Now that I am 50 years old, health is a job 1. I need to exercise regularly to stay healthy for a long time. I joined a gym and plan to exercise at least 3 times a week. I’m a little behind in October. I took a week off because I was a little sick. Life after 50 is hard!
Health check
Equally important is going to the doctor. At this age, we have more care and protection to deal with. Here is my list for 2024. This one is over!
- Colonoscopy. Done!
- Physical age. Done!
- Dental examination. Done!
- A vision test. Done!
- Immunization. Tdap, Flu, and Covid vaccine. Done!
Happy goals
International travel
Mrs. RB40 was turning 50 this year and wanted to go on a fun ride he’ll never forget. We visited Japan for 3 weeks. It was good. I would like to stay there for a year or more.
Happiness level > 8
I’m a happy guy by nature so this should be easy. Life has been good these past few years.
October was a good month. We were busy with different activities. Life is good when you are busy.
Help RB40Jr start a YouTube channel
We stopped this one. The RB40Jr. lost interest.
Net Profit (+16.4%)
I have been tracking our value since 2006. It is very encouraging to see our progress. The power of integration is amazing. Our investment returns far outweigh my annual engineering fee. This year, our total number is up 16.4% year to date.
***Important*** My best advice is to stay with the lesson. Don’t stop investing. You should continue to invest whether the stock market is up or down. You may think stocks are expensive, but they will look cheap in 10 years. Keep investing and you will achieve financial independence one day. Don’t try to time the market.
This is our total value chart from Empower. (Personal Capital is now Authorizing.) Sign up for a free account at Empower to help manage your net worth and investment accounts. I check in regularly to check our value and use their free tools. It’s a great site for DIY investors.
I’m not sure why the chart looks like this. The review period may be interrupted in August and September.
Oct 2024 FIRE Cash Flow
This FIRE cash flow chart includes my online income, side gigs, and taxable income. Mrs. RB40’s salary is not there because she plans to retire in a few years.
October was a good month. Our income was not good, but only a little.
October 2024 FIRE Income: $3,352
Our FIRE salary was smaller than usual in October.
- Real Estate crowdfundingPrice: $563. You can read more on the RE Crowdfunding Passive Income page.
- Dividend IncomePrice: $515. A slow profitable month.
- Rental Fee: $693. We’ve had an uneventful month in rentals.
- Blog income: $342. My online income continues to drop. October was a slow month. Things are not going well.
- Unusual activities: $644. Not bad for about 20 hours of work.
- Other: $550. I finally filed my taxes and got a refund.
- Interest: $45.
Cost: $3,449
This year, I plan to spend about $65,000. How much money did we spend last year? After 10 months, we spent about $54,000. We should be under budget this year. However, I did not start any remodeling projects this year. It has been very busy. I will work on it next year.
Here are some details.
- HousesCost: $1,304. This includes mortgage, utilities, furniture, repairs, and maintenance. Our housing costs are low because we live in a duplex. We split most of the costs with our tenant.
- TransportationPrice: $320. Gas and insurance. I also had to renew my registration and annual parking permit.
- Entertainment: $210. We ate out a few times.
- GroceriesCost: $499. The grocery bill was lower than usual.
- LifePrice: $135.
- A childPrice: $447. Unfortunately, child-related costs also increase as the RB40Jr grows. We make payments for his dentist and international school trips.
- WalkingPrice: $413. Mrs. RB40 went to California for a short vacation.
To save:-$97
Completion October 2024
Okay, let’s wrap it up. October was a good month. We stayed busy for a month. The rest of the year should be uneventful. We look forward to going hunting in the winter. Life will get busy again soon.
That’s October. Did you have a good month?
A minimum wage is the key to early retirement. These days, I invest in commercial properties with CrowdStreet. They have many projects throughout the United States. Go check it out!
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A minimum wage is the key to early retirement. This year, Joe is investing in real estate with CrowdStreet. They have many projects all over the USA so check them out!
Joe also highly recommends Personal Capital for DIY investors. They have many useful tools to help you achieve financial independence.
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