Financial Independence Daily FI discussion thread - July 03, 2020 |
- Daily FI discussion thread - July 03, 2020
- Weekly FI Frugal Friday thread - July 03, 2020
- My 10 year post FIRE check in
| Daily FI discussion thread - July 03, 2020 Posted: 03 Jul 2020 01:07 AM PDT Please use this thread to have discussions which you don't feel warrant a new post to the sub. While the Rules for posting questions on the basics of personal finance/investing topics are relaxed a little bit here, the rules against memes/spam/self-promotion/excessive rudeness/politics still apply! Have a look at the FAQ for this subreddit before posting to see if your question is frequently asked. Since this post does tend to get busy, consider sorting the comments by "new" (instead of "best" or "top") to see the newest posts. [link] [comments]  |
| Weekly FI Frugal Friday thread - July 03, 2020 Posted: 03 Jul 2020 01:07 AM PDT Please use this thread to discuss how amazingly cheap you are. How do you keep your costs low? How do become frugal without taking it to the extremes of frupidity? What costs have you realized could be cut from your life without pain? Use this weekly post to discuss Frugality in general. While the Rules for posting questions on the basics of personal finance/investing topics are more relaxed here, the rules against memes/spam/self-promotion/excessive rudeness/politics still apply! Since this post does tend to get busy, consider sorting the comments by "new" (instead of "best" or "top") to see the newest posts. [link] [comments]  |
| Posted: 03 Jul 2020 12:20 PM PDT EDIT: Since I'm getting trolled about my FIRE date (yes, as described in the first paragraph of this post the date was somewhat fluid depending on your exact definition of FIRE) I'll explain. About 10 years ago I folded up my computer business and started buying houses to use as rentals. I did still service existing customers, but stopped going after new customers. I also was much more hands on with the real estate in the beginning. So, I don't always want to explain all that, and sometimes count my FIRE date from the day I hired a property manager to deal with the rentals and tenants. If you count that day, it is about 7 years, if you count the day I quit the computer business, then it is 10. All of this is explained in some of my previous posts...but if that is reason enough for you to want to troll me, feel free, I guess....now back to the original post. I don't have an exact FIRE date since I was self employed and gradually phased out my active involvement in the business, but it is close enough to 10 years I'm going to call it that rather than get bogged down in the details. I used to post quite often on the FIRE forums, but feared my posts were becoming redundant so I haven't posted much in the last 6 months or so. EXPENSES I'm still on the goal of spending $10K a year or less that I've maintained for the last 7 (about) years. I'll first address my spending over the past 6 months...not much has changed other than the way I account for everything. In the past I was on a $800 a month budget, with the understanding large purchases would be averaged out over several months. Now instead of doing that, I've adjusted to a new system I'll describe below. Fixed Costs (These are basically all my monthly bills) Car Insurance - $45 Cable (internet) - $70 Water/sewer/trash - $60 Cell phone - $35 Electric/Gas $120 Total $330 monthly Of course there is a little variance from month to month in the electric and gas, but as one goes up, the other tends to go down. So I went off the highest month total for my budget. In reality it will vary from about $90 at the lowest to the highest of $120. Variable costs (these are things I still spend on monthly, but are more in my control) $170 monthly This includes groceries, toiletries, entertainment, car fuel, pet food, clothes, etc...basically anything I need to survive and have fun that isn't covered in my fixed costs. I'm able to spend where needed here and it varies greatly from month to month...but to give you an idea of how it breaks down on average, it would be about $100 a month on food, toiletries, and pet food (my "grocery store" purchases) about 30 on gas for the car, and about $40 for everything else. One time expenses (these are the one time expenses and cover everything not in the other two categories) $3600 per year So far half way through the year I've spent $1580 out of this. That includes car repairs, new tags for the cars, vet bills, medical, etc. Making this category yearly instead of trying to average these large expenses monthly makes it much easier on the accounting side of things. I can also put anything into this category if I go over for some reason on the monthly variable costs...although that hasn't happened yet. INCOME/SAVINGS/INVESTMENTS For those unfamiliar with me, I built up a portfolio of rentals houses by buying under valued fixers and then doing full renovations and renting them long term. I've continually reinvested the profits into buying more houses, and now have a full time management, renovation, and maintenance team in place. My gross business income over the first 6 months was $94,650 My net income after all business expenses, new purchases, labor, material, and management was $61,104 My investment accounts took a major hit and still have not recovered. Three funds I was heavily invested in ceased to exist. Normally this wouldn't be a major deal since they didn't make up a huge chunk of my portfolio, but because of how my brokerage weights new investments a lot of money got shoved into those funds that might as well been flushed down the toilet. Total current value of my dividend based stock account $60,002.84 Total dividends paid year to date $2798 (reinvested) Total current value of my leveraged index funds account $113,991.59 Total dividends paid year to date $1417 (reinvested) Acorns stock account $3,302.12 Total stock $177,296.55 Fundrise account $48,616 Money market account/bank slush fund $21,146 Total liquid capital $247,058.55 Misc net worth Approx. total value of real estate owned free and clear $1.58M Partial car collection total value (I only count cars that are going up in value above purchase price) $54,000 Total non liquid (real estate and cars) estimated $1,634,000 So, that is how things look for me through the first half of the year. Not a lot has changed or been impacted by the shutdowns. My rental income has continued to grow, but my stock took a hit, so overall not a huge change in my overall net worth since the end of last year. Spending has stayed constant, although I did put in offers on a couple of houses (for myself, not the business) that didn't work out. If I did end up buying a house to live in, it would throw a wrench in those numbers...but who knows if that will happen. As always, feel free to ask any questions! [link] [comments]  |
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