2013 Retrospective
So 2013 has been a very difficult and rewarding year. We have managed to save 45% of our income and closed out the year with 98 months worth of living expenses. Furthermore, we have managed to relocate the family out of NYC and into a significantly lower cost state.
Challenges along the way
During this year, the single biggest drain on resources was the move out of NYC. It has so far set me back by 26K dollars and I will still need to pay more before I'm entirely done with it. This was a painful move, filled with headaches, heartaches, and backaches.... X(. With that said, I don't think I have it in me to move again for at least another 4-5 years. Uprooting has proved to be THAT difficult.
There has been quite a few skirmishes this year with my dear wife over her money management issues. At this point in time, I think we've settled back into the cash in an envelope system. All other options that gave her more control over her own money has been very unsatisfactory, with the last attempt this past summer resulting in a negative balance in her checking account and a massive pile of useless consumer goods. That was a huge setback, with many thousands of dollars was squandered in this effort. So now, we are back to square one, and the cash system is the only method that seems to work.
Dear wife's parents are entering increasingly dire financial straights. As such, we have had to bail them out for the last several months now. I see this becoming a long term trend since they have nothing set aside for their retirement except for the house that my FIL inherited from his parents. This is going to get painful in 2014, I just know it...
Strategic Opportunities for 2014
Ideally, if our household budget could be further optimized to take advantage of the lower cost of living at our new locale, then the time to Financial independence will be halved. The thing that I need to do is revisit the budget and cut every shred of excess out of it. One complication here is that DW and I are trying to have another child, this will increase cost, but it's worth it!
My day job is increasingly evolving into a Executive role. Now I'm directing many separate development teams and flying out to see client executives on a semi-regular basis. I have a secretary and meals at work are increasingly being catered. It is a possibility that I might get promoted into a Executive level position at some point in 2014. I'll have to wait and see. If that becomes a reality, I think I will use this as a spring board to jump to a CTO level position at some point in the near future.
The core money-makers for my side business (smartphone apps and niche sites) are clearly on the decline. Revenue has been falling for the last 6 months. The good news here is that I'm in the process of re-deploying my efforts towards newer technologies such as Wearable apps and Crypto-currencies. These 2 areas have the potential of massive profits and I'm getting into both in a serious way in 2014.
Finally, I sense a major correction in the market coming soon. I don't have enough facts to back it up, but it's just a very strong feeling. Thus, I've begun to scale back on my financial investments and to hoard cash. If the market tanks in 2014, I will be in a good position to pick out valuable ETFs/REITs/MFs at a bargain.