Gilberto de Piento's Journal

Where are you and where are you going?
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cmonkey
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Re: Gilberto de Piento's Journal

Post by cmonkey » Thu Jun 15, 2017 9:00 am

Any chance of taking public transit?

Your rent/mortage is really high as well, constituting 50% of your lowest spending. Maybe a move to a more public transit friendly area?

FWIW I agree on the expenses. We plugged 1500 into our truck last month, taking some LT capital gains to pay it, so thankfully it had no impact on my forward income. I really hate vehicles!

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El Duderino
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diy mechanic

Post by El Duderino » Thu Jun 15, 2017 9:32 am

Nice work on the suspension components Gilberto! Replacing things like ball joints and bushings in the suspension arms can be daunting because often you need special tools like presses and pickle forks (not the cocktail pickle kind) that can be rented for free from auto shops but most people don't take advantage.

I must be one of the select few who looks forward to doing regular maintenance on their cars. Perhaps you'll learn to love it too as your experience and ability increases.

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Gilberto de Piento
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Re: Gilberto de Piento's Journal

Post by Gilberto de Piento » Fri Jun 16, 2017 9:46 am

Any chance of taking public transit?

Your rent/mortage is really high as well, constituting 50% of your lowest spending. Maybe a move to a more public transit friendly area?
I use a bike for almost all local transportation. I have that part covered as my location is very bike/walk friendly. If I didn't do a couple of driving vacations per year and travel a lot on the weekends the car would be gone.

I thought about selling the car and using rental/taxi/shared car but the costs come out about the same and it's much less convenient since the rentals/shared cars are not nearby and not always available. I'm hoping that once the maintenance is done on this car I can put limited miles on it and it won't need much more work. If not maybe I'll get something Japanese with very low miles (expensive) in hopes that it will be low maintenance.
Nice work on the suspension components Gilberto! Replacing things like ball joints and bushings in the suspension arms can be daunting because often you need special tools like presses and pickle forks (not the cocktail pickle kind) that can be rented for free from auto shops but most people don't take advantage.

I must be one of the select few who looks forward to doing regular maintenance on their cars. Perhaps you'll learn to love it too as your experience and ability increases.
Thanks! This work was (thankfully) easy with no special tools required. There's no need to extract or press anything. The ball joint and bushings are built into the control arms so you just unbolt the old unit and bolt in the new one.

I've changed from liking to work on cars to disliking it as I got more experience. I used to really like working on cars and get a feeling of accomplishment from it but the thrill is gone. I've experienced all the fun stuff (build motor, swap motor, swap trans, bodywork, paint) and, true to INTJ form, I'm no longer interested. I'm in it purely for the savings now.

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Gilberto de Piento
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Re: Gilberto de Piento's Journal

Post by Gilberto de Piento » Wed Jul 05, 2017 2:04 pm

June 2017

My spending is still up but improving. $250 for car maintenance.

Expenses
Alcohol & Bars 24
Auto & Transport 256.39 (control arms/ball joints/bushings and alignment)
Business Services 17.98
Cash & ATM 40 (farmers market mostly)
Charity 89.94
Clothing 24.7
Doctor 15
Gas & Fuel 10.16
Groceries 205.71
Gym 51.7
Internet 48.56
Laundry 20
Mobile Phone 12.26
Mortgage & Rent 970
Sports 50.54 (bike parts for commuter bike, etc.)
Travel 56 (campsites for upcoming trip)
Total -FI 1892.94

Income

Paycheck 2454.96
Amazon 114.27
Google 134.19
Checking 18.81
457b 1384.6
Total +FI 4106.83

Savings 2213.89
% Spent 46%
% Saved 54%
SWR 11%
SWR with Internet Income 10%
Years Remaining 14.6
Years Remaining with Interest 7


There are risks and costs to a program of action, but they are far less than the long-range risks and costs of comfortable inaction.
John F Kennedy

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Gilberto de Piento
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Re: Gilberto de Piento's Journal

Post by Gilberto de Piento » Sun Jul 23, 2017 4:03 pm

I reached a net worth of $200,000! It took almost two years to go from 100 to 150 but only a year to go from 150 to 200.

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cmonkey
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Re: Gilberto de Piento's Journal

Post by cmonkey » Sun Jul 23, 2017 8:57 pm

Congrats, great milestone!

MDFIRE2024
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Re: Gilberto de Piento's Journal

Post by MDFIRE2024 » Mon Jul 24, 2017 12:51 am

Great! Keep on going for the next milestone!

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Gilberto de Piento
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Re: Gilberto de Piento's Journal

Post by Gilberto de Piento » Mon Jul 24, 2017 6:52 am

Thanks!

Jason
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Re: Gilberto de Piento's Journal

Post by Jason » Mon Jul 24, 2017 12:20 pm

Congrats on 200K, Gilberto de Piento.

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Gilberto de Piento
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Re: Gilberto de Piento's Journal

Post by Gilberto de Piento » Mon Jul 24, 2017 12:55 pm

Thanks Jason!

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Allagash
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Re: Gilberto de Piento's Journal

Post by Allagash » Wed Jul 26, 2017 12:41 am

Your rent has stayed about the same since you started this journal about 4 years ago. You are lucky. A rent of $970 4 years ago in say CA, Portland, Seattle...would now be about $1,400+ with the huge annual rent raises that go on here on the west coast. Shit man, I would be thrilled if I could find $970/mo rent (which appears to include water/sewer/garbage too). What area of the US do you live?

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Gilberto de Piento
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Re: Gilberto de Piento's Journal

Post by Gilberto de Piento » Wed Jul 26, 2017 8:29 am

Your rent has stayed about the same...
I live in the upper midwest. According to the only article I could find rent is up about 10% over the last three years in my location. My rent does include electric/heat/water/sewer/garbage. I am lucky that my rent is relatively cheap and has increased very slowly.

I don't like paying rent since it is by far my biggest expense but it definitely is a good deal compared to the crazy markets in Seattle, etc. On the other hand, the locations you mentioned have benefits and my apartment definitely has some issues.

I am tired of renting and landlords. Houses are expensive and only getting worse. I'd like to buy a house and I have a downpayment saved but I also have a dream of moving somewhere else. I've been in this position for years and can't seem to break free.

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Allagash
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Re: Gilberto de Piento's Journal

Post by Allagash » Wed Jul 26, 2017 11:28 pm

Rent is a tough nut to crack in the budget. Reading through a lot of these journals, the folks who have got their rent down WAY low generally either split it with their SO or have roommates. I don't have a SO and roommates are a non starter for me, so rent is a BIG challenge to the ERE budget in my area. In my area it does not make sense to buy vs. rent.

I'm looking at possibly relocating to a area with lower rent. I may eventually sell a rental property in another state and use the proceeds from that sale to pay all cash for a modest home somewhere in the U.S. with reasonable house prices.

Have you thought about where you might want to move if you did move?

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Gilberto de Piento
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Re: Gilberto de Piento's Journal

Post by Gilberto de Piento » Tue Aug 01, 2017 11:10 am

Have you thought about where you might want to move if you did move?
I had some specific plans but I don't want to get into the details here. Unfortunately the locations I am interested in have the same or higher housing costs.

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Gilberto de Piento
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Re: Gilberto de Piento's Journal

Post by Gilberto de Piento » Tue Aug 01, 2017 11:29 am

July 2017

July was another bad month for spending. I bought car tires ($450) and had to care for someone who was ill (I had to travel and buy restaurant food a lot. The person is doing much better now.).

As I mentioned in an earlier post I now have $200,000 in assets. I've included a chart below showing how this is allocated. Note that the pension line starts abruptly because I wasn't tracking it before the middle of 2016 and can't go back and add it because I don't have the numbers.

Expenses
Alcohol & Bars 33.74
Auto & Transport 463.99 (car tires)
Business Services 17.98
Coffee Shops 8.98 (July vacation expense)
Fast Food 63.83 (caregiving and July vacation expenses)
Gas & Fuel 262.88 (caregiving and July vacation expenses)
Groceries 213.47
Gym 51.7
Internet 28.56
Laundry 20
Mobile Phone 12.25
Mortgage & Rent 970
Restaurants 56.05 (caregiving and July vacation expenses)
Travel 100 (campsites for August vacation)
Total -FI 2303.43

Income
Paycheck 2454.95
Amazon 143.75
Checking 19.46
457b 1384.6
Total +FI 4002.76

Savings 1699.33
% Spent 58%
% Saved 42%

SWR 14%
SWR with Internet Income 13%

Years Remaining 25.6
Years Remaining with Interest 10


Stress is the bag of bricks you can pick up in the morning and let it weigh you down or you can just not pick it up. A lot of it's in your mind.
- Robert O’Neill

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Gilberto de Piento
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Re: Gilberto de Piento's Journal

Post by Gilberto de Piento » Fri Aug 04, 2017 8:49 am

Thanks!

Jason
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Re: Gilberto de Piento's Journal

Post by Jason » Fri Aug 04, 2017 12:09 pm

Last year I spent close to 10k visiting my dying father. I would have spent every penny I had to be there for him.

If it was my mother, I would have told them to ship me the body at their expense and upon receipt promptly thrown it out of the back of my car onto the New Jersey Turnpike.

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Gilberto de Piento
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Re: Gilberto de Piento's Journal

Post by Gilberto de Piento » Tue Aug 22, 2017 8:19 am

Last year I spent close to 10k visiting my dying father. I would have spent every penny I had to be there for him.
Thankfully my situation wasn't to that point but things were really looking bad for a couple of days. I agree with what you are saying.

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Gilberto de Piento
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Re: Gilberto de Piento's Journal

Post by Gilberto de Piento » Tue Aug 22, 2017 8:34 am

Damn, I'm spending too much money lately. I just looked at my spreadsheet and it has been six months since I met my goal of spending $1800 or less, let alone the $1500 I was spending for a few months. I really need to get my act together. I know I can do better than this.

This month (August) is going to be bad too. I spent $220 on a flight for a vacation next month, $75 on new shoes (the old ones had holes in them), $480 on a weeklong vacation, and $150 on a car repair. For the most part my travel is cheap and I mostly work on the car myself but it all adds up.

Whats the problem? Vacation travel and auto repairs. I haven't done a lot of travel in my life and I don't want to regret not having more fun but its really messing up my finances. I have a lot of vacation days and to just use them one at a time here and there seems like a waste. The car has really been a money pit over the last few months. I still think it is an ok car but it has needed a lot of maintenance. I think for the next car I am going to spend more to get something with lower miles and that is more known for low maintenance.

Jason
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Re: Gilberto de Piento's Journal

Post by Jason » Tue Aug 22, 2017 9:13 am

Glad the health thing turned out alright.

I was recently with these Italian people visiting my area. One of them was a cab driver in Vatican City. He was headed out to bike over the Brooklyn Bridge. We didn't speak the other's language but we found a way to communicate to the other that he was sick of Vatican City and that I wouldn't bike over the Brooklyn Bridge if Serena Williams had her butt cheeks spread for me at the other end. That in a nutshell is my view on travel.

Now cars. Pure. Fuckin. Evil.

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Gilberto de Piento
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Re: Gilberto de Piento's Journal

Post by Gilberto de Piento » Fri Sep 01, 2017 9:43 am

August 2017

A good savings rate due to three paychecks and solid internet income but way too much spending due to a vacation and yet another car repair. Jason's earlier comment about cars is proving true, though I'm not sure how do what I want to do without one.

I haven't fallen off the wagon but my feet have been brushing against the grass for awhile now and I've become used to it. Next month, barring anything crazy happening, I'm going to do much better on spending.

Expenses
Alcohol & Bars 23.62
Auto & Transport 150 (The car exhaust I replaced last fall broke and had to be replaced/repaired. I had someone else do it.)
Business Services 17.98
Cash & ATM 100 (vacation related)
Charity 20 (Hurricane Harvey)
Clothing 73.85 (New running shoes, old ones tore prematurely.)
Fast Food 29.15 (Vacation, should have made lunches instead of buying)
Gas & Fuel 317.88 (Vacation driving)
Groceries 191.84 (not bad)
Gym 51.7
Home Improvement 24.82 (routine maintenance)
Laundry 20
Mobile Phone 20.17 (wanted data plan for a month)
Mortgage & Rent 740 (moved so rent is lower, this should really help over the long term)
Restaurants 42.22 (vacation)
Shipping 7.2 (sold an item but had to ship it)
Sports 48.84 (vacation)
Travel 221.4 (vacation)
Total -FI 2100.67


Income
Paycheck 3666.98
Amazon 123.19
Google 108.09
CafePress 32.48
Checking 19.52
Gift 13.71
457b 2076.9
Total +FI 6040.87

Savings 3940.2
Spent 35%
Saved 65%
SWR 12%
SWR with Internet Income 11%
Years Remaining 19
Years Remaining with Interest 8


Develop the habit of letting small bad things happen. If you don't, you'll never find time for the life-changing big things.
Tim Ferriss

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MDFIRE2024
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Re: Gilberto de Piento's Journal

Post by MDFIRE2024 » Sat Sep 02, 2017 12:15 am

Gilberto de Piento wrote:
Fri Sep 01, 2017 9:43 am
Expenses
Total -FI 2100.67

Income
Total +FI 6040.87

Savings 3940.2
Hey Gilberto de Piento, I like how you view and write about "expenses" as "-FI" (minus FI) and "Income" as "+FI" (plus FI). It is plain simple, but I don't see it in many journals. I guess you are one of the few, who write about it in your journals. But you are 100% right, expenses means less FI and income is more FI. What I like is, that it highlights the factors behind FI. I am trying to visualize many things, e.g. charts, statistics, etc. with colors..., but up to now, I haven't wrote a "-" (minus) before my expenses. Perhaps I try that too.

By the way: great progress on your journey to FI. It seems, that you have managed to increase your SavingsRate over the last few years.
What I am interested in. Do you purposefully write FI and not FIRE, ERE or FF?

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Gilberto de Piento
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Re: Gilberto de Piento's Journal

Post by Gilberto de Piento » Tue Sep 12, 2017 8:25 am

Do you purposefully write FI and not FIRE, ERE or FF?
I'd like to say that I did a lot of thinking about this but really I am just copy/pasting from a tracking spreadsheet that I downloaded from another ERE user.

Thinking about it now, "FI" for financial independence seems appropriate for my situation. I'm working toward early retirement but even if I didn't have to work at my current job I'd probably keep busy with other work.

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Gilberto de Piento
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Re: Gilberto de Piento's Journal

Post by Gilberto de Piento » Fri Sep 15, 2017 8:51 am

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I think I'm going to start celebrating round number net worth achievements here. I hit $210,000 today!

I'm really starting to see the compounding work due to recent stock market gains. If I have $200,000 and the market goes up 11% (vtsmx is up 11% this year) I now have $200,000 * 1.11 = $222,000 for a gain of $22,000. This is around what I am able to save each year. Crazy.

Jason
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Re: Gilberto de Piento's Journal

Post by Jason » Fri Sep 15, 2017 3:55 pm

A stash is like having an employee that goes out and works for you. It is a hot stock market but its nice.

Congrats.

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