Journey to FI

August 2019 – Walking the Plank

We are starting to watch the show “Once Upon a Time” on Netflix and Hook is a character that is heavily involved in the show in season 2, which explains my title! We are all tentatively walking the financial plank as the news is echoing recession with the inverted yield curve. This is another good reason that I am so glad to be tracking my finances. I’m curious to see over time how the age old advice of weathering the storm and continuing to buy pans out :).

There’s probably going to be some downs and ups, but I need to remind myself we are in the long game yet and I’m not willing to gamble in timing the market with what we have worked hard to save.

Key Month Updates:

  • Car insurance annual premium was due, and we used $1,600 from Emergency Fund to cover it.  In addition, this is the final month where we are using our emergency fund to cover my wife’s unpaid leave from work.  With teaching work resuming in a few weeks, we’ll be back to our normal monthly income shortly!
  • Our “kid fund” is peaking as we will be starting to pay day care costs this month.  We’ve budgeted enough to ensure that by continuing to add $500 a month that we will be able to cover the first year’s costs without worrying about needing to pull money from other sources.
  • Our total debts were about to fall under $300,000, but we ended up financing the Google Router for 0% as well as a freezer.  We will pay those off over the next couple of months extending our payment out to take advantage of the 0%.  Breaking through big numbers are also emotional barriers like our 300k debt is something I really want to do!
  • I made a successful stock trade in my Roth IRA by selling AMC stock at a nice short-term gain and rolling the proceeds into purchasing ATVI.  The day after my purchase ATVI ran up about 5% but I held the stock and am now looking at a loss in large part thanks to recent more negative press on trade with China and their position to continue to promote currency devaluation.

Overall, we continue to remain consistent with our contributions and are leaving it up to the market to take care of the rest.  There is one addition to the page format going forward.  I am going to include a simple chart to visualize the changes in Investment + Savings, Debt, and Net Worth each month.  Again, keep in mind my definition of Net Worth is not inclusive of real estate equity.  This will remain a good reminder to me of the uphill battle we are fighting and help show the mountains we have conquered.  Already, it’s super impressive to me to see that we’ve gone from -70k net worth in October 2018 to positive 4k Net Worth 11 months later.   

Updated August 4
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Categories: Journey to FI

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