June 2017 Financial Goal Update

lake cabin


Update for June 2017:

June was another good month for us. Not only did we get some relaxing time by the lake, but we also had some positive movement on our FI journey.

What are our goals?

2017 Savings: 97% to goal (+6% monthly change)

We should easily exceed our savings goal unless there is some unexpected emergency expense. So far our savings rate is about 80% of our income. I do expect this rate to decline somewhat during the second half of the year.

2017 Spending: 46% to budget (+8% monthly change)

Spending was a little higher this month because we are moving to a new apartment in July, and we needed to put down a deposit and pay the first month’s rent in advance. We curbed the overall spending by cutting down in some other categories like restaurants and alcohol.

2017 Giving: 39% to goal (+15% monthly change)

Since we’ve decided to perpetually rent apartments rather than purchase a large house, we also decided to get rid of our storage unit that was storing a lot of our belongings from our old 3,000 sq ft house. Odds are that we won’t need most of it ever again, and we also haven’t touched it in over 2 years. If for some reason we change our mind, we could easily furnish an entire house for the amount of money we’ve paid in storage fees over 2 years. So we donated a ton of new or gently used kitchen supplies, furniture, and clothes to our local Goodwill. Hopefully, the items find a family that can use them.

Financial Independence: 50.2% to goal (+6.2% yearly change)

Big milestone: 50% of our FI goal!

We may revisit this goal, however. The more I have been reading about FI, the more I’m realizing that there are actually two milestones people seem to be tracking:

  1. Financial independence (which usually refers to 25x your annual spending also known as the 4% rule)
  2. Financial freedom (which usually means 33x or more your annual spending)

Right now our goal is 33x our expected annual spending (and our expected spending in retirement is actually higher than our current spending). This has me reconsidering our overall FI goal. I am conservative by nature, so I want to be 100% sure that we’re not going to run out of money (or even come close to running out of money). More to come on that…



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