I want to explain why I do a monthly net worth update.
- Keep me accountable
- Track my journey
- Prove that anyone can become a millionaire
- Prove that FIRE works
I hit FIRE in 2023 at age 38! Stay consistent and keep investing like it’s going out of style.
Income
My income totaled $6,355. This combines passive income from my military retirement and VA compensation. This month, I saw a sweet $157 increase in this passive income stream. This is because both my pension and VA are inflation-adjusted every January.
Expenses
My expenses totaled $2,283. You might have noticed this is about $1,000 less than I typically spend. It’s because I did something scary this month. I decided to start tracking my spending and spending more intentionally. I realized rather quickly that in 2024 I was spending recklessly and purposely blowing money to see if I could spend it all. I’ll get more into this in my final thoughts.
Savings
Now that I am retired the focus is not on a high savings rate. But seeing my passive income is 2x what I usually spend I foresee myself still saving and investing some money. This month I saved $3,773.
- $3,773 Money Market Account
Check out CC hacking it saves me a ton of money!
Side Hustle
Side Hustle Income: $0
Net Worth: $858,241
My net worth does not account for my passive income. I only account for my liquid investments, cash, paid-off RV, and truck. However, I put my RV for far less than NADA says it’s worth and less than similar models on the used market. I eventually might take the RV and truck off completely but as of today, it accounts for $7K of my total net worth. I have been lowering the RV value by $500 every month and I plan to keep doing this until it’s at a rather low amount or off completely.
That is a +$25,496 gain since my last net worth update for December 2024 was $832,745.
I love using Empower to track my Wealth.
Final Thoughts
January was a great month!! I finally found a truck to buy, and so far, it’s been well worth spending more to give me more value. What is funny is that it was cheaper than many Toyota Tundras I was looking at buying, with fewer miles and more luxury features.
I ended up buying a 2021 F150 XLT 3.5L with 35K miles on it. It has heated seats, 360 view camera, a 12-inch screen display, a full moonroof, a level kit, 20″ wheels, and a bunch of other cool features.
This purchase has been the biggest so far of my experiments. I have been doing experiments where I spend more money to see if it brings me more value. I started this in 2024 and I still need to write up a post on it. I paid a hair less than $39.5K for it. Looking at the market on even these trucks that was a good deal for how low the mileage was and the luxury features on it.
Almost forgot my pension/VA both saw a nice inflation adjustment in January. My passive income increased by $157 a month or $1,884 a year. It’s cool to get paid more simply because I am retired. This is so powerful because my inflation rate has not changed. So I am getting more income and my expenses have not increased because of inflation. Now that could change in months to come but who knows? Often we hear about the dreaded average inflation rate in America. But that means very little what matters is your local inflation rate.
I started to track my spending. In 2024 I went on somewhat of s spending rampage to see if I could spend all my passive income. Well, I was not able to spend it all but on top of that, I spent a bunch of money randomly trying to do so. Not all of it was bad spending but a lot of it did not align with my personal goals and values. Like I started eating out way more and I would even tip stupid high even when service sucked. I was buying more shaving stuff that I did not need and the list goes on. So I decided in 2025 I want to be intentional again and see what my real costs are. My spending dropped by about $1K a month. Kind of crazy to think I was just randomly blowing $1K a month before just trying to spend all my money. Again living full-time in an RV allows my housing costs to be rock bottom. Which is typically most people’s biggest expense in life. On top of that, I have no debt (Well now I have $39K of debt thanks to my new truck!). But my accruing expenses will go up for sure especially in March once I have to start making those good old truck payments.
My Passive Income
It’s cool that I make $76,116 annually without even touching my investments. That is the equivalent of $2,511,828 million invested at a 3% SWR. If you add my investment portfolio, I could have around $120,000 a year in passive income with around a 5%-6% SWR.
Could I hustle more to earn $150,000 in passive income a year? I could, and it does sound cooler than $120,000. But I don’t see a reason to do so yet. I don’t spend anywhere near $120K a year as is. Also, I see my investment portfolio going up as time goes on, which will create more passive income.
It does feel incredible knowing that I can spend up to $120,000 a year and never have to work at a job to do so. It’s all passive income that I get no matter what I do that year or where I live.
Those of you who have been following my Net Worth Updates can probably skip the rest of this post.
Barista and Coast FIRE group.
I have created a FIRE group for Barista and Coast FIRE people. I saw there was a gap in the community and these paths seem like the more enjoyable path. So I said, “I have to take on this passion project.”
One of my desires this year is to get and build more community! Here is the Barista and Coast FIRE group HERE.
Join us in our no-judgment FIRE group
Fitness
No gym, weights, or fancy gear for over a year! I’m slaying this fitness routine. It’s Fun, Simple, and Works. I’m gaining flexibility, strength, and endurance it’s incredible. Mind you this is with me having multiple injuries from the Marine Corps. I have learned I never needed that gym anyway.
On top of that, I have started to cultivate a Facebook Fitness group where anyone is welcome to come to join us. I set Bootcamp challenges to get everyone motivated and active.
Do you have a fitness goal for 2023?
- Get stronger
- Lose stubborn body fat
- Get a more defined six-pack
- Be more active without being judged
Join my FREE no judgment fitness FB group HERE. The goal is to build a community and help positively impact your health for FREE.
Hopefully, you enjoy these updates and it inspires you to keep going!
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