GreenMonsta Journal

[GreenMonsta]

October financials:


61% savings (index funds, cash reserves)
10% housing
8% general (house projects, family spend)
8%food
5% DS college
5% cell phone, utilities
2% student loans
1% transportation


SWR: 11.07

NW: 9.03 annual spend

Income was up in October. Spending was decreased from prior month as there were no big projects or unexpected costs.

October was another down month for the markets. Savings rate was high and this allowed for slight improvement in SWR.

Family and I visited a farm this month. The kids really enjoyed it. I think they most enjoyed seeing and having the opportunity to pet highland cows. My DS reminded me of myself when he randomly asked me to guess how much one highland cow cost insinuating to me he looks up random things and, like me, feels obliged to share the knowledge.

In other news, with DD I am reading Schooled written by Gordon Korman. It’s plot is quite the reverse from our last book, My Side of the Mountain. It’s about a homeschooled kid who lives off the grid with his grandmother and his experience being emerged into the public school system after his grandmother breaks a hip. It’s light hearted and entertaining.


October Physical performance:

Miles Ran: 89; Goal 60
Push ups: 296
Push up Max: 66; Goal 75
Pull ups: 46
Pull up Max: 6; Goal 10

I increased my mileage from 76 to 89 miles ran this month. I ran mostly 4 days/week with one outlier week when I ran 5 days. On one run, I pushed myself to my maximal distance.
My strategy was to run 10 miles out from home and see if I could get back home. I was able to maintain a steady run the 10 out and then up to another 7 on the way back home. I lasted for 17 miles in total. This was followed by a quite challenging 3 mile walk to complete the trip back home. I didn’t include those 3 miles walked in my total stats above but they were indeed hard.

Push up max improved from 60 reps to 66 reps. Pull up max increased by 1 rep.

[fiby41]

Don't leave us on a clifhanger.. how much does the cow cost?

[GreenMonsta]

November financials:


51% savings (index funds, cash reserves)
14% general (house projects, Christmas gifts, family spend)
10% housing
7% food
7%Transportation
5% DS college
3% cell phone, utilities
2% Insurance
1% student loans



SWR: 10.6

NW: 9.4x annual spend

Income was typical in November. Spending was up. This was due to Christmas shopping as well as a trip by DW and DD to spend the weekend with my DS at his college apartment. I stayed home as it was more or less a ladies trip (another mom went) to decorate a Christmas tree, etc at the young men’s apartment.

Also, I bought a new vehicle to replace DW’s old one. The 7% transportation allotment went towards the new vehicle registration. Instead of purchasing in cash I elected for a 3.9% loan for attainment of said vehicle. I decided I would sleep better at night by retaining the high cash reserves should an emergency or problems with my rental properties arise. Plus, the cash reserves are earning ~5% in money markets and CDs, but that is a secondary consideration.

Don’t get me wrong, I feel a ton of unsettling cognitive dissonance admitting a new car purchase (on credit) here. But, I was tired of throwing good money into our old junker. The straw crushing the camel’s back came on the weekend of Halloween when the thing ran hot on our way to take DD to a local haunted house. Compounded was the following day consisting of me unsuccessfully trying to fix a coolant leak. With respect to my savings rate, it should take a forward looking 7-9% monthly hit to pay for the vehicle as well as increased insurance and yearly registration cost. There should be no maintenance cost (in theory) for the foreseeable future. Fuel cost should also be reduced given the switch to hybrid. Now that I have come clean on that, I shall move on.

November was a great month for the market. Savings rate was decent and with higher equity prices my SWR improved nicely from 11.07 to 10.6.


Intellectual ERE.

I ran across William Bernstein’s website after catching one of his interviews on a Boglehead podcast. On Bernstein’s website and other interviews, I stumbled across some great audiobooks offered free on YouTube. I am sure many here would find the topics relevant and beneficial with respect to investing:


1. Where are the Customers’ Yachts by Fred Schwed

2. Devil take the Hindmost by Edward Chancellor

3. Extraordinary Popular Delusions and the Madness of Crowds by Charles Mackay.

I have finished 1 and have partially completed 2 and 3. Two and 3 are similar however 3 seems to go beyond the financial and more into crowd psychology. If someone only had time to listen to one of the three, I’d say Devil take the Hindmost has been the most concise and insightful.

There is a quote by the 1st author that I found quite memorable and thought provoking:

Speculation is an effort, probably unsuccessful, to turn a little money into a lot. Investment is an effort, which should be successful, to prevent a lot of money from becoming a little.
Fred Schwed Jr

November Physical performance:

Miles Ran: 89; Goal 60
Push ups: 195
Push up Max: 66; Goal 75
Pull ups: 34
Pull up Max: 7; Goal 10


My mileage came in at 89 again this month. I participated in a marathon towards the end of month. I was hoping to beat my time from 6 years ago (first and only marathon) which was 4:45. It seemed plausible considering my preparation was more sound this go around. Unfortunately, that didn’t happen and I finished with a time of 5:08. I was on pace for a personal best going into mile 21 at which time I hit a “wall”.

The last 5 miles were brutal. The last mile was dreadful. Within the last mile, my jog turned into a walk and the walk turned to a stop with both hands positioned on my knees. Next thing I knew, I stumbled to the grass and passed out. I am not sure what caused this. I remember my face landing sternly on the ground and then I was out. I awoke to some nice lady softly rubbing my head and asking if I was alright. She provided me with a salt tablet and some water. It was a struggle to stand so I attained a seated position instead. An earlier finisher passing through in a car stopped and offered to drive me up to the finish line. My attempts at standing were unsuccessful so I concluded this was a rational course of action and I agreed. At that time, the kind soul who awoke me mentioned another alternative stating “the cut off time isn’t for another hour. You can sit here for a while until you’re able to get up and finish “. After further consideration, I decided to stay put on the side of the road until I could stand and finish the 0.7 mile left. I did indeed stand and finish. Actually, I finished running with DD at my side whom was waiting for me with Rocky Balboa music playing on her phone.

I later learned the lady whom stopped to help me had finished the half marathon earlier and had just been walking to catch her friend finish the full when she witnessed me face plant onto the ground. She said my nose was bleeding because I fell right on a pine cone. I later thought it fortunate that it wasn’t one of those green pointy ones.

I didn’t focus much on pull-ups/push-ups this month. Pull up max increased by 1 rep to 7. I had planned to work on my push up max in the week after the marathon but I’ve felt too sore. So, push max stays the same at 66.

[GreenMonsta]

December financials:

43% savings (index funds, cash)
16% DS college expenses
16% General spending (Christmas/family)
8% Housing
7%Transportation/car insurance
7%Food
2%cell phone, utilities
1% student loans


SWR: 10.43
(annualized spending divided by current net-worth).

NW: 9.58 annual spend

This month’s savings rate dropped. Not only was this due to higher transportation cost (car payment, increased insurance premium) but also due to a big outflow towards helping DS cover tuition. Christmas gifts also decreased savings.

In many respects, I feel like I am failing at going ERE. However, there is progress being made. I tend to view myself as getting a “degree” in FI at the University of ERE. Even though my GPA sucks and I have to retake classes, I know I am progressing in the curriculum.

Overall Savings Rate for 2023 was
54%

Family:
I spoke with my DS on his future post college life. He informed me that he is 3 semesters away from graduating. I suspected this was the case but the reassurance was nice. His plans are to move to Chicago where his GF will be attending graduate school. It sounds probable that Chicago is where he will begin full-time employment.

We discussed expenses he will pick up as dad’s economic support will end at that point. I assume he knew this but I wanted to discuss anyways. I believe he has a realistic view on what finances will be like. Things will be tight but he will control his own destiny.

Intellectual:
Rereading Early Retirement Extreme. I am hoping to learn and pickup things I missed prior. Also, I am trying to renew/strengthen my mindset going into 2024. Speaking of mindset, this month marks my 1 year anniversary of journaling here.

December Physical performance:
This wasn’t a good month for health. I did little exercising and had a poor diet. I am glad I accomplished the Marathon in November but my intrinsic motivation took a hit.

[fiby41]

1. Where are the Customers’ Yachts by Fred Schwed

2. Devil take the Hindmost by Edward Chancellor

3. Extraordinary Popular Delusions and the Madness of Crowds by Charles Mackay.

The first book is in the public domain.
I haven't read the second but it was heavyly referenced in this memo of Howard Marks
https://www.oaktreecapital.com/docs/def ... 37bc0f65_2

[jacob]

Howard Mark's strategy/worldview aligns the most closely with my own of any "well-known investor I know", so naturally, I like. Out of the three, I do indeed prefer the second. Also, as an unmentioned bonus 4th, see https://www.amazon.com/More-Than-You-Kn ... 0231138709

[GreenMonsta]

January financials:

57% Savings
24% DS Educational expenses
7% Housing
5% Food
3% Transportation
2% Cell phone, utilities
1% Student loans
1% General spend (family stuff)

SWR: 10.3
(annualized spending divided by current net-worth).

NW: 9.75x annual spend

DW and I had a no spend month in January which was a success. Having such allowed us to make another large contribution to DS tuition without a meaningful hit to our savings rate. Income was higher this month which also helped to keep up the savings.

In other news, I decided to take cash out of savings and pay off the loan on our car. It sucks to see the drop in cash reserves, but with it all in hindsight, it was a worse feeling having a car constantly breaking. I am glad we have the new car at this point. My DW unfortunately has a sick parent now and has been commuting about an hour 1-2 times/week to be present. So the fresh wheels are appreciated in that regard.

Family
DS needed increased help with covering tuition for the new semester. While it’s tough to shell out so much money to a University and rental unit, at the end of the day I really value helping him.

DW was encouraged by how much we saved having avoided non essential purchases. I think at times it felt like a sacrifice for her. She isn’t a big consumer, but she does like doing crafts with DD, trifting with DD, making things for others, cooking for coworkers, etc. So in general, these activities require her to make frequent small purchases.

I stumbled on a YouTube video of Dolly Freed and her Possum Living that sparked my interest. I haven’t read the book but I watched the video with DD and DW. The video wasn’t of great quality as it was made in the 70s?. But the message was great. It was nice to point out a female figure living a lifestyle not dependent on consumer culture that I could share with my DD. Afterwards I informed DD that although Dolly left school as a youth she became highly educated on her own terms and went on to become an engineer at NASA. I doubt she was that interested. She probably thought that although dad doesn’t watch much TV, when he makes the occasion, it’s weird. She for sure learned that TV quality was terrible in the 70s. You could barely make out facial features. Maybe it wasn’t that bad. I digress…

Anyways, it got me thinking that how mom/dad behave is the best teaching tool for her. So likewise, conversations and our display of simple living should be sufficient. If she manages to avoid the trap of materialism and the debt/chains it brings, well, I would like that.

Intellectual
After rereading Early Retirement Extreme, I dove into the following:

The Intelligent Investor;
In Praise of Idleness;
Meditations;
Seneca-Letters from a Stoic;

The philosophical works were impactful. The Intelligent Investor seemed to be a cautionary tale for chasing returns. It lays out a great framework for the “enterprising” investor. It points out how creative accounting makes it difficult to know the intrinsic value of a business. Unfortunately, (or fortunately?) I lack the confidence and motivation to be any more enterprising than about 3-4 index funds.

US Large Cap;
Small/Mid Cap;
Internationals.

Speaking of the latter, developed markets Ex-US have have a dividend north of 3%. This is compared to the S&P 500 with a yield of 1.4%. I feel a bit like the US Large cap is my growth holdings and internationals represent my value exposure.

Physical performance:
In January I was a total slacker with exercising. Next month I will actually try to get outside and move again.

[GreenMonsta]

@fiby41
@jacob

Thanks for the material and book recommendation.

[GreenMonsta]

February Financials

70% Savings
10% family activities/spend, health
5% DS Educational expenses
5% Food
4% Utilities
3% Transportation
2% Cell phones
1% Student loans

SWR: 10
(annualized spending divided by current net-worth).

NW: 10x annual spend

We cracked a 70% savings rate for what I think is the second time since tracking. It was a really good month on the income side and expenses are slowly coming down. Also, we reached a 10% SWR thanks to flows into investments and a ~5% uptick on the S&P 500. With some luck, we may be at a single digit SWR in the coming months.

More on expenses:
We decided to sell some assets and use proceeds to pay off the mortgage on our family home. Our mortgage was just shy of 6% which negated a bit of the opportunity cost of no longer having the money in “productive” assets.

So going forward, housing expenses should be reduced allowing for increase in savings rate on most months. The exception will be when tax/insurance are due.


Family
I ran into some issues getting my expense inputs to flow into a pie chart on our monthly spreadsheet. DW noticed this when I sent her the “usual” screenshot of our monthly financials and the pie chart was missing. This led to her correcting my problem as well as me learning that she is way better at spreadsheets/graphics than I am. Also, our DD was sitting in between us and took interest in the conversation and document. I went on to show DD our past budgets and that Mom/dad do indeed try to practice what we preach when we tell her to Save half/ spend half. TBH, we try to save much more than half and would like her to do the same but save half/spend half is easier for a 10 year old to grasp.


Intellectual

I read How to Drop Out by Ran Prieur as well as the thread here on the forum. I went on to watch some YouTube interviews with Ran. Two quotes from the essay that really stuck with me:

-There is one rule that's very simple, but not easy: observe reality and adjust.

-Don't rush it. Getting free is not like walking through a magic doorway -- it's like growing a fruit tree.

The second quote was fun to read as DW and I actually did plant a citrus tree earlier in the month.


Physical performance:

I did get out to exercise more, albeit not much. DD and I went on about 5 walks and did a little running together as well.

[GreenMonsta]

March Financials

59% Savings
23% Family activities, tools, professional development.
6% DS Educational expenses
5% Food
3% Transportation
3% Utilities/Cell phones
1% Student loans

SWR: .098
(annualized spending divided by current net-worth).

NW: 10.16x annual spend

Income was typical this month but “general spending” was higher. This was due to replacing our lawn mower, a professional development course and a partial payment toward a family vacation that will be taken in July.

Investment flows were slightly different this month. 41% of income went into stock index funds but then 18% went towards investment in our housing. Our roof has had a slight leak around the chimney brick due to lacking adequate flashing. So, for the first time in a while I hired a helper, someone proficient in metal roofing, to install new flashing and replace some water damaged roof decking. Also, our house has needed fresh caulking and paint since we bought it. This is something we have put off until last as to fix up the living areas first. So this month, we also hired a helper to refresh our exterior by replacing caulking and painting the entire home.

While DW and I could have performed the exterior painting, the roof work was quite far from my zone of competence. And as one who gets gravitational insecurity, both roof work and painting high peaks are better left outsourced.

So anyways, with respect to investment, I raised my home value on my balance sheet in direct proportion to the amount spent. This balance sheet adjustment is something I can repeat as we bring/fix the home up to its average market value. I currently have its value plotted well below what popular real estate apps have it listed. It’s a bit of a mindset change for me to consider home improvements as “investment” and I did not calculate this as part of savings rate in all of 2023. But lately, I have started to consider that a paid off and sound housing unit is equally as important as stacking index funds. So going forward any reasonable investment we put into our house, things that promote the longevity and general market value, I shall consider it in savings rate/investment.

March numbers reflect flows to the roof/materials and attaining -30 gallons of paint. With the painter completing the work currently, April numbers will reflect the labor portion of painting the house.



Family

A close family member of DW was recently diagnosed with a likely terminal condition. I don’t want to speak much on someone else’s personal situation but it’s certainly a reminder on the how fleeting life is. Remembering the shortness of life and thinking about death (my own or those close to me) keeps me very grounded. Especially as a chronically ambitious person, this is helpful. It makes me think about my probably few and narrow life purposes of being a good father/husband and reminds me not to make everything else too complicated.

We will take a family vacation this summer with said family member. It’s a simple beach vacation where we will rent a house with entire DW’s immediate family and immediate family’s families. Typically big family vacations tend be expensive and not very restful for me. But this could be the last memorable family vacation DW has with a whole family. So I want to take care not to be a downer on my wife with respect to my own spending preferences.


Intellectual

I began March with the re-listening of Ishmael with plan to follow up with the second two of Daniel Quinn’s books. Ultimately, I couldn’t find a free audio version of The Story of B or My Ishmael so I stopped short.

The passing of Daniel Kahneman sparked my interest in Thinking Fast and Slow. I remember hearing about Kahneman during my exploration of Nassim Taleb’s work as there are some interviews of the two of them together discussing Antifragitlty. So far the book has been interesting.

The book is making me think a lot about my own daily decisions, work, as well as which “system” I default too. I see myself as naturally using System 1. With respect to System 2, I am a bit more lazy. I have been noticing all the unhealthy snacking I do during tasks that require my System 2. Per the research discussed, the added glucose is actually whats needed to overcome other distractions/temptations and utilize my System 2 for completing challenging work. It’s quite an unhealthy phenomenon but obviously effective in meeting productivity demands. Psych research is very interesting when attempting to generalize to one’s own mental framework.



Physical Activity:

I took a week of paid time off in March. It was the week my DD had spring break. During this time, we went on a kayaking trip and many long walks. It wasn’t much in the way of vigorous activity but meaningful nonetheless.

[mathiverse]

I have been noticing all the unhealthy snacking I do during tasks that require my System 2. Per the research discussed, the added glucose is actually whats needed to overcome other distractions/temptations and utilize my System 2 for completing challenging work. It’s quite an unhealthy phenomenon but obviously effective in meeting productivity demands.

You may want to consider changing the glucose sources you use if the ones you use are unhealthy *and* you are dissatisfied with that. It doesn't seem like the phenomenon is unhealthy, but rather your solution to it. I don't know how many carbs you need to ingest to satisfy your system 2 needs, but here are a few ideas.

Rice, potatoes, and other starches are all glucose (what you said you need) compared to candy which is glucose and fructose. If you want something sweet, you can eat a few bananas or whatever fruit floats your boat which contain glucose and fructose, but also more nutrients and fiber. All of these things fit in most people's idea of a healthy diet. If you are on a low carb diet, higher carb nuts might fit better than whatever you're eating. Higher carb vegetables like squash might also suffice. There are lower carb vegetables, but the volume needed to get adequate glucose for this purpose might be hard to snack on. I'm not sure.

[GreenMonsta]

Mathiverse, I think you are on to something and I appreciate that you pointed out the distinction. The process is very natural and not in and of itself unhealthy. I think I have a lazy vs more easily exhausted system 2 and the choice of unhealthy snacking is probably equally a coping mechanism. Interestingly, I can recall past prolonged periods when I have been able to work primarily from system 1 and it’s easier to perform on healthy foods. The “desire” for comfort foods really doesn’t exist during those days. It’s like the need for a snickers break doesn’t occur during periods of flow.

Not that I’d buy or eat a snickers. It’s more or less baked cookies that get me.

[fiby41]

Is that completely true though? The human brain is quite efficient in energy usage running on what it would take to power a lightbulb. I read in the book Psych that it doesn't take more energy to think hard thoughts.

But I do relate that 'will power' for a day seems to be finite and if you spend it on not/doing something you have little left for not/doing something else.