Gilberto de Piento's Journal

Where are you and where are you going?
cmonkey
Posts: 1791
Joined: Mon Apr 21, 2014 11:56 am

Re: Gilberto de Piento's Journal

Post by cmonkey »

Gilberto de Piento wrote:
Tue Dec 03, 2019 4:41 pm
November 2019

The big news for this month is that I hit $300,000 in FIRE assets! :mrgreen:
Round numbers are great! Congrats.

Gilberto de Piento
Posts: 1500
Joined: Tue Nov 12, 2013 10:23 pm

Re: Gilberto de Piento's Journal

Post by Gilberto de Piento »

cmonkey wrote:
Wed Dec 04, 2019 3:17 pm
Round numbers are great! Congrats.
Thank you!

The net worth chart from my journal post is definitely starting to show an upward curve as compounding does its thing.

It does seem like $300,000 may be an interesting number for me. I am usually able to save about $30,000 each year. Doing this takes a lot of effort on my part. In comparison, with $300,000 if the market gains 10% (just using a round number example), I will "save" $30,000 without doing any work ($300,000 * 10% is $30,000).

A long time ago I wrote down this quote from Jacob:
Interesting things begin to happen once your networth no longer starts which the number 1 or 2.
viewtopic.php?f=9&t=1344&start=125

Gilberto de Piento
Posts: 1500
Joined: Tue Nov 12, 2013 10:23 pm

Re: Gilberto de Piento's Journal

Post by Gilberto de Piento »

For the last few months I have been making my vanguard automatic investment $100 larger each month. I was creeping up on $875, which will give me a total investment of $10,500 in 2020. That plus the 457b limit of $19,500 will give me a total investment of $30,000 for 2020. Today I skipped a few steps and cranked my auto investment up to the final $875 per month! :geek:

Not only does this lock me in to a decent amount of money saved for the year, it also takes some of the stress of saving out. I don't have to decide when to move money from cash to vanguard or what to invest in each time. Of course, it could add a lot of stress if I start spending too much, but I will keep an eye on it. I can always turn it back down or off.

Gilberto de Piento
Posts: 1500
Joined: Tue Nov 12, 2013 10:23 pm

Re: Gilberto de Piento's Journal

Post by Gilberto de Piento »

December 2019

December had high spending as you might expect due to buying Christmas gifts.

Expenses
Alcohol & Bars 12.97
Auto & Transport 107.54 (Working on the car again.)
Bills & Utilities 125.63
Business Services 137.66 (Websites.)
Doctor 45
Fast Food 29.82 (Travelling for Christmas.)
Gas & Fuel 81.19 (Travelling for Christmas.)
Gift 445.19 (Ugh.)
Groceries 256.91
Gym 39.04
Home Improvement 55.97 (House repairs.)
Mortgage & Rent 790.73
Pharmacy 26.62
Public Transportation 65 (Bus to work.)
Restaurants 14.13
Shopping 13.16
Taxes 200 (Property taxes.)
Total -FI 2446.54

Income
Paycheck 2627.45
CafePress 33.18
Internet Ads 119
Checking 45.54
457b 1500
Total +FI 4325.17

Savings 1878.63
Savings wo 457b 378.63

% Spent 56.6%
% Saved 43.4%

SWR 9.4%
SWR with Internet Income 8.8%

Years Remaining 12.7
Years Remaining with Interest 5


The pessimist complains about the wind; the optimist expects it to change; the realist adjusts the sails.
William Arthur Ward

Image

Image

Image

Image

bigato
Posts: 2798
Joined: Sat Mar 05, 2011 12:43 pm
Location: Brazil

Re: Gilberto de Piento's Journal

Post by bigato »

This is not particularly directed at you, but I get really mad when people call expenses/capital as SWR. Those are very different concepts. The SWR is based on historical back testing and doesn’t change depending on your capital. It will always be a constant, whatever you choose it to be, 3 or 4% for the majority of people.

Gilberto de Piento
Posts: 1500
Joined: Tue Nov 12, 2013 10:23 pm

Re: Gilberto de Piento's Journal

Post by Gilberto de Piento »

U mad bro? <navy seal copypasta>

Just kidding, this isn't Reddit, and I know what you mean. I might even argue that "safe" should "possibly safe" or "safe-ish" or "used to be safe and probably still is but who knows?" Here's a corrected version:

Image

Gilberto de Piento
Posts: 1500
Joined: Tue Nov 12, 2013 10:23 pm

Re: Gilberto de Piento's Journal

Post by Gilberto de Piento »

I now have over $300,000 in just my investment accounts!

I posted something similar back in November but that was also counting the cash I have in checking (way too much). These milestones might be a bit contrived but they make me feel like I'm making progress. 8-)

Gilberto de Piento
Posts: 1500
Joined: Tue Nov 12, 2013 10:23 pm

Re: Gilberto de Piento's Journal

Post by Gilberto de Piento »

I am getting a couple percent raise this year. It doesn't keep up with inflation but I will take what I can get and will give me an extra $100 or so per month. :)

Gilberto de Piento
Posts: 1500
Joined: Tue Nov 12, 2013 10:23 pm

Re: Gilberto de Piento's Journal

Post by Gilberto de Piento »

Over the last few years my annual car registration has doubled even though the car itself hasn't changed. It is always something. :x

Gilberto de Piento
Posts: 1500
Joined: Tue Nov 12, 2013 10:23 pm

Re: Gilberto de Piento's Journal

Post by Gilberto de Piento »

Bored, bored, bored at work today.

Gilberto de Piento
Posts: 1500
Joined: Tue Nov 12, 2013 10:23 pm

Re: Gilberto de Piento's Journal

Post by Gilberto de Piento »

January 2020

Expenses were high. The still recent feeling decision to include a portion of my annual property taxes is adding $200 while my brain hasn't mentally adjusted for that when I consider my overall spending number. Even without including the taxes my spending is historically high.

This month the high expenses were due to automotive maintenance. Hopefully this is going to taper off soon though it might require replacing the car which will be a huge hit. It also is due to home repair costs which will also hopefully wind down soon (and are a good investment anyway, assuming the housing market doesn't tank).

The high spending was offset by a three paycheck month so I still have a good savings rate. I'm still putting away a lot of money and am currently on track to put away enough to meet my $30,000 per year goal (not including the house payment which is kind of savings too).

Expenses
Alcohol & Bars 9.39
Auto & Transport 362.63 (fixes, maintenance, car is in the part of the lifecycle where the things that wear out are doing exactly that)
Bills & Utilities 125.92
Business Services 27.98
Charity 25
Doctor 30
Gas & Fuel 30.75
Groceries 251.87 (not bad)
Gym 46.95
Home Improvement 125.35 (still getting the house up to speed)
Mortgage & Rent 790.73
Parking 35 (parking ticket!)
Public Transportation 65
Restaurants 28.83
Shopping 20.52
Taxes 200 (annual property taxes broken out by month)
Total -FI 2175.89

Income

Paycheck 3892.67
Amazon 21.58
Internet Ads 29
Checking 6.47
457b 2250
Total +FI 6199.72

Savings 4023.83
Savings wo 457b 1773.83
% Spent 35.1%
% Saved 64.9%

SWR 8.1%
SWR with Internet Income 8.1%

Years Remaining 8.9
Years Remaining with Interest 5


Teachers open the door. You enter by yourself.
Chinese proverb

Image

Image

Image

Image

Gilberto de Piento
Posts: 1500
Joined: Tue Nov 12, 2013 10:23 pm

Re: Gilberto de Piento's Journal

Post by Gilberto de Piento »

I got through my winter list of house repair projects today! :D There is always more to do but a while back I made a list and told myself I am done until spring once I got through it. If nothing comes up that should allow me to avoid house expenses and free up time for other things for the next couple of months. I am trying to maintain a healthy work/life/working on the house balance. :roll:

Gilberto de Piento
Posts: 1500
Joined: Tue Nov 12, 2013 10:23 pm

Re: Gilberto de Piento's Journal

Post by Gilberto de Piento »

I did my taxes. I owe the feds just under $1000 (just under the threshold for getting a penalty I think) and the state about $100. I increased the amount taken out last year but it still almost wasn't enough. It is a good problem to have as it means I am making extra money. I should look into paying quarterly.

When doing my taxes I got confused about how to report a tiny amount of foreign taxes paid as reported on my vanguard 1099 div. TurboTax gave me two options for how to handle it. I did some research and just guessed. It was a hassle over $3. I should have asked here but I wanted to get it done while I had momentum.

LiberateMind
Posts: 144
Joined: Fri Oct 26, 2012 8:18 pm

Re: Gilberto de Piento's Journal

Post by LiberateMind »

Nice progress. Congrats on hitting 300K networth

Gilberto de Piento
Posts: 1500
Joined: Tue Nov 12, 2013 10:23 pm

Re: Gilberto de Piento's Journal

Post by Gilberto de Piento »

LiberateMind wrote:
Wed Feb 26, 2020 11:28 am
Nice progress. Congrats on hitting 300K networth
Thank you!

Gilberto de Piento
Posts: 1500
Joined: Tue Nov 12, 2013 10:23 pm

Re: Gilberto de Piento's Journal

Post by Gilberto de Piento »

February 2020

Huge spending this month due to income taxes. Without taxes it was a normal month.

I also spent some money to buy food and other things for the coronavirus. Hopefully I won't need any of it but having extra food on hand seems like cheap insurance. :oops:

Expenses
Auto & Transport 153 (Car registration)
Bills & Utilities 103.29
Business Services 27.98
Charity 90 (Donated to a few causes, trying to do more this year)
Clothing 63.29 (Needed new shoes for exercising, wore the tread off of the old ones)
Doctor 30
Gas & Fuel 45.39 (Filled up the tank early due to coronovirus prepping)
Gift 98.01
Groceries 329.95 (High due to coronavirus prepping)
Gym 46.95
Home Improvement 37.46
Internet 23.73
Mortgage & Rent 790.73
Pharmacy 47.43 (High due to coronavirus prepping)
Public Transportation 65 (The bus, probably where I will contract coronovirus)
Restaurants 32.27
Shopping 6.95
Taxes 1390 (Had to pay taxes on my extra income, plus the usual monthly property taxes)
Total -FI 3381.41

Income

Paycheck 2590.82
Amazon 40.9
CafePress 26.3
Internet Ads 123.7
Checking 6.31
457b 1500
Total +FI 4288.03

Savings 906.62
Savings wo 457b -593.38 (Negative means that if you don't count the 457b savings I didn't save anything at all)

% Spent 79%
% Saved 21%

SWR 14%
SWR with Internet Income 13%

Years Remaining 39.3 (Don't be alarmed, this swings wildly when there is high monthly spending)
Years Remaining with Interest 11 (Same here)


Life is hard. It’s harder if you’re stupid.
John Wayne?

Image

Image

Image

Image

Gilberto de Piento
Posts: 1500
Joined: Tue Nov 12, 2013 10:23 pm

Re: Gilberto de Piento's Journal

Post by Gilberto de Piento »

March 2020

I've been quarantined for about two weeks and taking it very seriously. I know a few people who have had the virus but thankfully everyone is OK.

My only direct contact with another person has been with my partner, though I am holding calls and web conferences with friends and relatives like everyone else. I've also been working remotely. Quarantine actually hasn't changed my life much which is kind of sad, need more friends and things to do when things go back to normal, but I already knew that I am isolated.

My laptop is warning me that the hard drive is failing. Files are backed up and I have a rescue disc but I need to decide if I want to get a new drive or a new computer. The computer is 10 years old so it has some other problems. It could be upgraded with an ssd and more ram but there are other issues. Probably better to start over. I think I'm going to get a desktop but I don't want to spend much on it.

Expenses
Alcohol & Bars 12.97
Bills & Utilities 95.65
Business Services 27.98
Charity 205 (donations to services for people affected by coronavirus and a political campaign)
Doctor 15
Groceries 332.94 (stocked up for quarantine)
Gym 46.95
Home Improvement 51.46 (seeds and soil for garden)
Internet 23.73
Mortgage & Rent 790.73
Pharmacy 22.14
Taxes 200 (monthly portion of annual property taxes)
Total -FI 1824.54

Income

Paycheck 2590.82
Amazon 91.07 (nice!)
Internet Ads 119.7 (even better!)
Checking 2.68
457b 1500
Total +FI 4304.27

Savings 2479.73
Savings wo 457b 979.73

% Spent 42%
% Saved 58%

SWR 8%
SWR with Internet Income 7%

Years Remaining 6.6
Years Remaining with Interest 4


One of the best pieces of advice I’ve ever heard goes something like this: If you want success, figure out the price, then pay it. It sounds trivial and obvious, but if you unpack the idea it has extraordinary power.
Scott Adams

I made a new chart (design stolen from someone else's journal but I can't remember which one, sorry!). It shows spending smoothed across 12 months and a point in time of total FIRE assets (the assets are not smoothed) by three different withdrawal rates. Just another way of looking at the same data.
Image

This chart shows FIRE assets. The market drop took a big chunk out of the value of my investments.
Image

Image

Image

Image

Image

singvestor
Posts: 145
Joined: Tue Jul 21, 2015 12:48 am

Re: Gilberto de Piento's Journal

Post by singvestor »

Love the charts.

For replacing the laptop used, refurbished thinkpads are a great choice. Easy to fix and maintain if something fails, which rarely happens

Zanka
Posts: 93
Joined: Tue Aug 01, 2017 2:33 am

Re: Gilberto de Piento's Journal

Post by Zanka »

Nice graphs, I very much enjoy reading your journal.

2Birds1Stone
Posts: 1044
Joined: Thu Nov 19, 2015 11:20 am
Location: Earth

Re: Gilberto de Piento's Journal

Post by 2Birds1Stone »

I too have been enjoying very much.

Post Reply