August Recap and Even Earlier Financial Independence
I hope everyone enjoyed some time off during the Labor Day weekend, most likely spent growing a beard and saving money. I didn’t entirely plan to do a recap of August, I planned to give everyone a quarterly update on my financial independence, but something great happened that I wanted to share. Make sure to check out my first glance at Financial Independence here. Some of this is nerdy so proceed with caution.
Everything has been consistent with rental income, checks come in and checks go to pay off the mortgage as planned. The Florida rental has some minor costs including a special lawn service to keep the HOA happy, eventually the A/C will need to be updated or replaced in the next couple of months. Our Chicago rental has been business as usual, the next coming months could spark some change as both leases are coming due, both are great people and great renters we would hate to see either one of them go, but we are preparing if this does happen. We will be updating some electrical and creating a permanent entrance for privacy, so the next couple of months will be more expensive. The great news is we have an emergency house fund set up for expenses just like this.
In July I created a personal challenge to pay off all of my student loan debt by the end of April 2015, I have paid off another student loan previously, but this goal is an uber aggressive goal 9 month (now 10 month after I counted on my fingers) for my last and final student loan payment. The amount of the student loan is higher and the time frame is shorter which makes this the uber aggressive student loan payment plan. I will share the final numbers when I have made the final payment in April. My first month in July I was able to pay off 4% of the loan and in August increase the total percentage to 15%, I made a couple of XL payments. These payments included saving money from my 9-5 and my eBay side hustle. Based off of the 10 month projection I should be at 20% of my total loan balance, so I have fallen short of my goal so far. In most cases I would be worried, but my plan is back heavy as I plan to use any taxes, bonus, and raise I receive which will all come in the February-April range. All in all a little behind, but Rocky got the crap beat out of him and he still defeated the Russian in the end.
As I have begun to discuss, my side hustle is buying and selling men’s clothing on eBay. Things have been slower over the last 2 months due to vacation and not listing many items, just letting the inventory slowly go down without replenishing anything. Over the past week I have been listing more and more and have already seen a positive result, crazy how that happens, put hard work in and profits come out.
Like our rental income our investments have remained the same, I have been pushing the wife to increase her 401K percentage because we have room in our budget to do so. I have been trying for about a month to have her increase this so we can become millionaires faster, I will keep trying I promise! I expect big changes for our investments after our taxes and my student loan is paid off, but until then I’m like a grandpa wearing cool black socks telling everyone I’m Super Cool for getting the company match and investing in index funds.
Save the best for last right!?!? Every month I update our numbers to see if we are staying on track for our October 2020 goal of financial independence. It takes a pretty big change in our debt repayment to make a difference. So with great pleasure I am happy to announce our newly expected FI is July 2020, which is a 3 month difference!!! 3 exclamation points for that again!!!
A couple things happened to update our expected FI date.
- I paid off a ton of student loan debt.
- I updated the Florida rental property with the exact minimum payment and interest rate
- I work my arse off and focus on this like it’s my life because it is
What’s great about how I have our plan set up is any extra payments that I make which is from saving extra money by cutting costs, working overtime, my side hustle on eBay, only works to get to our FI date that much sooner. So I’ve built our FI date spreadsheet with our rental income doing all the heavy lifting, but when I go out and put in extra income it makes our goal happen that much sooner, so if I bust my arse, we can get to FI that much sooner. Currently we are less than 6 years away from our FI date; the manbear is slowly coming off our back and ready to fight on our side. Those of you who are new to the term Financial Independence I copied the definition below for your reading pleasure. Until then I’m going to keep, keeping on and I hope you will to.
Financial independence is generally used to describe the state of having sufficient personal wealth to live, without having to work actively for basic necessities. For financially independent people, their assets generate income that is greater than their expenses.