cmonkey's journal

Where are you and where are you going?
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cmonkey
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Re: cmonkey's journal

Post by cmonkey » Tue Oct 09, 2018 3:23 pm

jennypenny wrote:
Tue Oct 09, 2018 3:01 pm
You definitely seem like a DIY-type cmonkey, so I think you'll love it.
Thanks jp, we'll have to stick together! :D

We've both wanted a little girl for as long as I can remember now and when we found out it's a girl we were both ecstatic (still are!).

SavingWithBabies
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Re: cmonkey's journal

Post by SavingWithBabies » Tue Oct 09, 2018 5:00 pm

Congratulations! With our first, I had to learn that sometimes I had to be selfish for the greater good (I had sleep deprivation for the first 6 months and didn't realize it until after the fact). That probably sounds like whining but I mean it more in the sense that it's worth paying extra attention to your self to make sure you're in good shape to help everyone else.
Last edited by SavingWithBabies on Wed Oct 10, 2018 10:39 am, edited 1 time in total.

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vexed87
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Re: cmonkey's journal

Post by vexed87 » Wed Oct 10, 2018 9:41 am

cmonkey wrote:
Tue Oct 09, 2018 9:01 am
Our daughter is due in late January. :)
...
It's funny jacob would link to that climate article because this is something I'm struggling with now that I know she's on the way. Not really that I'm burdening the planet anymore (we're only plannng on one child), but more for her own well being later in life. I've found myself wondering what I can do to make her life easier in a world that's going to be falling apart.
@cmonkey

First off, congrats to you and mrs. cmonkey. It's great news, even in troubled times, a baby born into a happy home is to be treasured by you and your kin. I've never been the gushy type around other's kids, but there's nothing quite like holding your own baby girl! I know from experience you'll love the challenge, it's a gift that truly keeps on giving. Just get your sleep in now whilst you still can, at some stages you'll forget what a full nights sleep feels like, but with a smiling baby in your arms you'll not mind too much ;)

As you know, I too spend a lot of time thinking and worrying about this same stuff, even whilst DW doesn't! We cannot guarantee any outcomes in their lives, and for people who are so used to being in control of our own destiny, that is hard to accept. You will soon find out your baby has her own agenda, but we can at least try our best to equip them with a stable home and the skills and all forms of capital that they need to navigate the challenges of the future insofar we are able. There's not much more we can do than that.

I have, probably as you have, come to the conclusion that our generation may live shorter lives than our parents, and our children shorter still, but that's not to suggest that that life will be any less worth living or meaningful. Without detracting from the tragedy of the situation, if anything, the challenges of the future may make lives in some senses more real and meaningful than they are currently for many poor souls, in that sense there will be constraint where there was plenty, but plenty where there were once constraints. I don't know if you have read Tribe by Sebastian Junger, but that gave me a lot of comfort about where we are heading. In some senses, I'm glad that DD and future generations are not destined to live in a truly techno-dystopian and increasingly pathologically alienating society. The crisis to some extent pushes the reset button on the whole crazy world we currently inhabit. Not that it will be all sunshine and rainbows. But there's room leftover for a bit of warped optimism.

Honestly though, even though it's an intangible irrational thing to do knowing what we know, IMO becoming a parent might be the most human achievement I ever made, and there's something to be said for that.

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C40
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Re: cmonkey's journal

Post by C40 » Wed Oct 10, 2018 12:32 pm

I bet you two will be good parents

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cmonkey
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Re: cmonkey's journal

Post by cmonkey » Wed Oct 10, 2018 2:22 pm

@Saving and @C40 - Thanks :) Working from home full time will hopefully help with the routine changes coming my way.
vexed87 wrote:
Wed Oct 10, 2018 9:41 am
First off, congrats to you and mrs. cmonkey.
Thanks vexed! I appreciate your words of wisdom. I bet you've done more thinking about it than even I have and certainly more reading. I'll have to pick that book up at the library. I hope your little one is doing well.


In case anyone didn't notice (I'm sure no one did) I have been parsing out on my spreadsheet the expenses for baby so far. Mostly some clearance clothes and pre-natal vitamins in there at this point. I'll label it as Baby/Kid going forward but it's currently labeled "misc" under household. So far so good, we are not high at all. We've also bought a number of more expensive items on Craigslist for super cheap including the car seat and a stroller and a huge stash of clothe diapers valued at over 1K bucks for 250 bucks.

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7Wannabe5
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Re: cmonkey's journal

Post by 7Wannabe5 » Thu Oct 11, 2018 11:22 am

Congratulations!

Ditto what jennypenny said about DIY and no worries :D This year you will be hanging cloth diapers out to dry, and 30 years from now you will be giving her advice on how to best clean out the gutters on her own new home (sigh-cue Joni Mitchell.)

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cmonkey
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Re: cmonkey's journal

Post by cmonkey » Thu Oct 11, 2018 12:34 pm

7Wannabe5 wrote:
Thu Oct 11, 2018 11:22 am
Congratulations!

Ditto what jennypenny said about DIY and no worries :D This year you will be hanging cloth diapers out to dry, and 30 years from now you will be giving her advice on how to best clean out the gutters on her own new home (sigh-cue Joni Mitchell.)
Fun stuff! :lol: :lol:

People think we are crazy for doing clothe, but they are much improved these days. And people have figured out there is a used market for these. They disappear quick and we got lucky with our find. We'll resell when we are finished for close to what we paid.

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Re: cmonkey's journal

Post by theanimal » Thu Oct 11, 2018 12:46 pm

Congrats cmonkey. Looking forward to reading updates. FWIW, my friends who have kids love being parents and have structured their lives to spend more time with their kids.

And I've noticed more than half of them use cloth diapers. It seems to be a net positive vs buying tons and tons of disposables.

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Re: cmonkey's journal

Post by Kriegsspiel » Thu Oct 11, 2018 7:23 pm

7Wannabe5 wrote:
Thu Oct 11, 2018 11:22 am
30 years from now you will be giving her advice on how to best clean out the gutters on her own new home (sigh-cue Joni Mitchell.)
I've been thinking of how to use a drone to clean my gutters. I'll bet in 30 years it will be commonplace.

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Re: cmonkey's journal

Post by LiberateMind » Fri Oct 12, 2018 11:26 pm

Congrats!! Its a huge moment in life for sure. Waiting to hear more from you how the life changes once the kid arrives.

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cmonkey
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Re: cmonkey's journal

Post by cmonkey » Tue Nov 06, 2018 6:50 pm

theanimal wrote:
Thu Oct 11, 2018 12:46 pm
Congrats cmonkey.
LiberateMind wrote:
Fri Oct 12, 2018 11:26 pm
Congrats!!
Thanks to both of you!

October 2018 Update


Much of October was spent away from home. We stayed with family in MN for 2 weeks and saw DW's brother off and married. It was a great time! At the end of the 2 weeks we didn't want to go home, so we stayed for another week. Ah the joys of a WFH job!

The last week of September I also spent in Boston for business travel, so I was away from home for 4 full weeks. Not fun. :oops:

Because of that our expenses were a bit below average, but so much the better.

This was the second month since I started this journey that my FI balance shrunk. We were down about 2400 from September levels, ending the month at 243K despite my pay.

We saved 93% of my pay this month, which is a new record!

We are now 10 months from 4%. I also extrapolated out our expected expenses for the next 6-8 months and our TTM value is going to enter a nice range around 12K if we can control our spending. We might just drop below 12K. If it gets down to this level, 4% will come in April of May of next year, which is super exciting to me! It'll be a nice goalpost to knock out.

End Game Planning


So I've started thinking about when I'd like to call it quits and have begun making mental plans for it. First, accumulating a cash cushion to get us through the first 5 years when we wait for our first Roth IRA ladder distribution to make it out. Until now I've invested my pay within a few weeks of each paycheck but am going to start accumulating until I get around 20K - 25K in cash saved up. We'll only have about 7.5K or 8K in unlocked annual income, so we need some cash to make up for that. I don't want to rely on selling assets.

I've also figured out that once I'm done working, I cannot contribute to my HSA anymore. MN's low income healthcare options are basically 1. Medicaid and 2. MinnesotaCare. We'll be on MinnesotaCare and there are only a couple of (very good) plans available. Costs will be very low. No premiums for children and with my annual income engineered to (+/-) the federal standard deduction level, we'll pay about $14/month/person in premiums.

If I want private insurance in MN with subsidies, I need to make over 40K annually and then the subsidy is only about 50%. So we are pretty limited.

I'll have nearly 50K in my HSA when we pull the trigger which will cover our expenses and keep growing.

Expenses/Savings


Total Spend - $590.85
Total Savings - $7,378.00 ; 93%

Years Saved - 17.29
SWR - 5.94%

TTM Expenses - $14,090.65 (- $526.10)
Total FAI - $8,706.43 (+ $240.58)

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prognastat
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Re: cmonkey's journal

Post by prognastat » Tue Nov 06, 2018 7:20 pm

Congrats on your crazy good savings rate this month. Keep it up and you'll get to your goal in no time.

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cmonkey
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Re: cmonkey's journal

Post by cmonkey » Tue Nov 06, 2018 8:05 pm

prognastat wrote:
Tue Nov 06, 2018 7:20 pm
Congrats on your crazy good savings rate this month. Keep it up and you'll get to your goal in no time.
Thanks! Time is flying by, it's true and with my daughter coming in 11 weeks (yikes!!) it will go even faster.

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Re: cmonkey's journal

Post by George the original one » Tue Nov 06, 2018 8:35 pm

Exciting stuff!

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FBeyer
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Re: cmonkey's journal

Post by FBeyer » Wed Nov 07, 2018 3:37 am

Initially I was kinda stumped at the 93% savings rate and then I had one of those 'herpetty FI-math derp Batman' the closer you get to FI the more your savings rate approaches 100, it's kind of inevitable!

11 weeks is nothing! Whatever you expect from parenting: It's not going to be like that. Corrolary: You don't know what free time is, until you have children. :D

Congratulations to the both of you.

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Re: cmonkey's journal

Post by thedollar » Wed Nov 07, 2018 4:13 am

FBeyer wrote:
Wed Nov 07, 2018 3:37 am
Initially I was kinda stumped at the 93% savings rate and then I had one of those 'herpetty FI-math derp Batman' the closer you get to FI the more your savings rate approaches 100, it's kind of inevitable!

11 weeks is nothing! Whatever you expect from parenting: It's not going to be like that. Corrolary: You don't know what free time is, until you have children. :D

Congratulations to the both of you.
Is that because the closer you are the more motivated you are to have a higher savings rate or because you also count investment income as savings? :)

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cmonkey
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Re: cmonkey's journal

Post by cmonkey » Wed Nov 07, 2018 8:51 am

thedollar wrote:
Wed Nov 07, 2018 4:13 am
Is that because the closer you are the more motivated you are to have a higher savings rate or because you also count investment income as savings? :)
The 93% was without investment income, I guess I hadn't thought of including that. We just don't spend much money and I also got paid a little extra this month for reasons unknown to me actually. :?
FBeyer wrote:
Wed Nov 07, 2018 3:37 am
Congratulations to the both of you.
Thanks!

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Re: cmonkey's journal

Post by prognastat » Wed Nov 07, 2018 11:09 am

I don't include investment income myself either, does anyone else?

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Re: cmonkey's journal

Post by jacob » Wed Nov 07, 2018 11:41 am

No, investment returns are implicit in the compound returns of the "standard equations", so insofar you're using that it makes no sense to include it.

If you use the simplisitic: years = (25-current NW/spending)*(1-savings rate)/savings rate equation, which does not include compounding, then I can see the argument for using it. You'd have to update it as you go along. If so, the prediction will lead the data and get more and more accurate.

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cmonkey
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Re: cmonkey's journal

Post by cmonkey » Wed Nov 07, 2018 4:27 pm

Thanks to Mr Manic Market, we closed over a quarter million in FI funds for the first time ever today. WooooooooHooooooo!

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