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
This month I made $6,201. This is a mixture of passive income from my military retirement/compensation. Also a little bit of dividends and a return.
Expenses
Expenses total right at roughly $3,900. This number is a bit off below due to things still pending. Remember I am now trying to blow more money to see how much I can spend and to see if I get more value out of spending more. I spent a lot on going out to eat and drink this month. I think just in tips alone I was at around $500. By far the biggest line item this month was eating out and drinks. Crazy to think even with going out as much as I did I only spent a bit less than $4K. Living is cheap once you don’t have debt and spend based on your values.
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 $2,287. I eventually move this money to either my Vanguard MM account or just throw it in one of my taxable accounts.
- $2,287 Money Market Account
Check out CC hacking it saves me a ton of money!
Side Hustle
Side Hustle Income: $0
Net Worth: $754,205
My net worth does not account for my passive income. I only account for my liquid investments, cash, and my paid-off RV on this net worth. However, I put my RV for far less than NADA says it’s worth and less than similar models are listed for on the used market. I eventually might take it off completely but as of today I have it on here and it accounts for $12K of my total net worth. I have been lowering the RV value by $500 every month. I think I will keep doing this until it’s at a rather low amount or off completely.
That is a +$12,334 gain since my last net worth update for June 2024 was $741,871.
I love using Empower to track my Wealth.
Final Thoughts
I feel like July flew by, to be honest since I retired last summer time is just going by so much faster. The saying “Time flies when you are having fun” seems to ring true for me. Well, I ended up just staying here in Southern AL for July. I did a lot of exploring though in the area. There is just so much to do here and so many places to see. I’m falling in love with the area and was not expecting that. I have lived in a lot of places due to my military career and living in the RV. I have to say as of today San Diego and this area have probably been my favorite. Key West would come in as a close third place.
It’s always so surprising to me how I still am not even spending $4K a month and this is with me blowing money eating out and drinking often. I have been told I’m frugal but spent over $1,200 eating out and tipped about $500 in total for July. It goes to show how affordable it is to have a lavish life if you have zero debt and spend on what you value versus trying to spend on everything to impress people and fit into a certain status.
I love how over the years my consistent habits have created this huge foundation of wealth. Now it earns me money no matter where I am or what I am doing. Does it always go up? Of course not as I type this my portfolio has dropped by about $20K or so in the last two weeks. I am perfectly fine with that, as I have shown over the years long-term it just keeps going up.
Though I have yet to have to touch any of my investments since I retired, I love that I have them there as a cushion. Eventually, though I feel like I will have to start doing something because I do not want to die with millions and I don’t want to leave a bunch of money to charity when I pass. I figure I am in no rush to figure that out and will get more serious about it once my portfolio reaches the one or two-million mark.
Honestly, I will probably just inflate my lifestyle at that point to start spending. Things like buying a lavish house, toys, and perhaps a house in another country come to mind. I figure by that time I will be ready to plant roots somewhere and hopefully will know where that is by then. I’ll likely hit the million mark in the next four years. But seeing I am also still investing a little money I could reach it in three years. If I was willing to go back to work or get a side hustle and be frugal I could reach it very soon. But I just don’t see trading my time like that to be worth it. But this could change at any time I want to.
I’m still at a crossroads of figuring out if I want to stay in the RV, rent a luxury apartment, or buy a house. On top of that If I stay in my RV I am thinking of upgrading to something a bit bigger.
Staying In My Current RV
Part of me feels like I am living the luxury apartment life with this RV park having a gorgeous pool, clubhouse, and prison gym plus a few other cool things. But anyone who has lived in an RV knows they just start to get dings and things like this. Much like a house, paint fades things need refreshing and what have you. I’m at that point where I should start doing some refreshing of paint on the RV, the floor has some cracks and chips in it and a few other things could use some TLC. It’s just not as magazine-perfect as it was when I moved into it 5 years ago. Also, I have not had many things break now that I am more stationary. When I was moving a lot of stuff just seemed to break on RVs.
The positives of this are I own my setup and RV rent is only $926 including all utilities. So it’s stupid cheap especially if I wanted to go travel internationally and keep it at a home base. This is by far the cheapest option because I already own the truck and RV so I could slowly pay for the refresh and it would not be a lot of money anyway.
Staying In RV Park But Upgrade RV
The big pro of this is I would get more living space and even the ceilings would be taller making the space feel and look bigger. I could also get one that I am happy with the look of the interior so I would not have to do any refreshing or very little. I would keep the freedom and flexibility I have now and a cheap RV spot in a place that I love.
The cons to this route are that I would either have to pay cash for a bigger RV or I would have to take out a loan and make payments. I do have about $33K in cash right now. I would look at spending around $40K or less on the bigger RV. I would also need to buy a bigger truck as my current F-150 could not pull a bigger RV. The truck would not be a rush though because I am in no rush to leave this area. With the cost of a new RV and a bigger truck if I compare that to the luxury apartment it would take me about 6.6 years to break even cost-wise. That does not include what I could recoup from selling the RV or truck in the future.
The luxury apartment is about $1000 more a month. RV & truck upgrade would be about $80K. So divide $80K by $1K you get 80 months or 6.6 years. Again this does not factor in selling the RV or the Truck.
Moving Into The Luxury Apartment
The idea of having to refresh things in the RV makes me want to move into a luxury apartment. There would be no refreshing needed and if something breaks or needs refreshing they do all the work. The downside to this is It locks me into the area in a way. Yes, I could still move but not as easy with the RV. I would also have to buy furniture for the place. It’s also about $1,400-$1,800 for a luxury apartment depending on the size and location. If I went this route I could also sell my truck and get some type of fun vehicle. So the cost would be more but me having roughly $6,100 in passive income a month without touching my investments I could afford this and still go out and live a lavish lifestyle. But this would also be a pricey homebase for when I do international travel.
The big positive here is no more work on my end and more space. To be honest, since I have been more stationary the RV has not needed any actual fixing. The refresh things are mainly just appearance and cosmetic.
Buying A House
I think I like this idea the least because I feel it ties my freedom down the most and maybe gives me the least amount of flexibility. But I also do like the idea of being able to rent rooms out which could keep my housing costs to about what they are at the RV park. But then I have to deal with roommates which can be a huge hit or miss. I’m not too sure If I should be worried about the prices of houses going up. Because my military retirement is inflation-adjusted and my investments grow faster than inflation I don’t see house price increases being an issue for me.
I’m also not sure If I am ready for the maintenance and repairs that will come with a house. RV’s have their issues but for most people I know who own homes it seems like it’s a lot more expensive and gets a lot more expensive for homes vs the RV. But I do like the idea that I would be building a bit of equity which increases the wealth stash. I’m just so indecisive lol, but again I’m also in no rush which I think makes the choice that much harder. Because I can afford to do any one of these options it’s that much harder to choose.
First World Problems
These are all great problems to have lol. I’m blessed to be in a position of being able to choose what lifestyle I want to do, especially without having to worry about a job or money. The big thing for me is I am trying not to rush the choice right now. Just take my time to see all angles.
My Passive Income
It’s cool that I make $74,232 annually without even touching my investments. That is the equivalent of $2,449,656 million invested at a 3% SWR. If you add my investment portfolio, I could have around $115,000 a year in passive income.
Could I hustle more to make it to $150,000 in passive income a year? I could and it does sound cooler than $115,000. But I don’t see a reason to do so yet. I don’t spend anywhere near $115K a year as is. Also, I only 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 $115,000 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!