Tuesday, August 4, 2015

Financial Freedom - July 2015

I recently (better late than never!) came across a couple of blogs that I really enjoyed on personal finance:  Root of Good and Mr. Money Mustache.  Both blogs focus on early retirement and different techniques to become financially independent - my goal numero uno.  Mr. Money Mustache has a way of conveying to readers the proper mindset one needs to go down this path and the differences between those who achieve this goal and those who do not.  My favorite part of Root of Good is the financial update and transparency he provides into his family's financials with monthly updates. 

After being inspired by these two blogs of men who have successfully obtained financial freedom, it occurred to me that, while it is extremely beneficial to read about the reflections of those who have succeeded, it may be even more beneficial to document the journey as it unfolds.

I have made a number of financial mistakes throughout my life and, while I am not proud of them, I have learned many valuable lessons along the way.  I was determined to get out of the hole and resolved to reach financial freedom and obtain the life free of the chains of money I dream about.  I began reading everything I could about investing and personal finance, studied successful people and their habits, and began reforming my lifestyle.  Check out my "Good Reading" page for some suggestions.

Even though I've been in the workforce for some time, I have finally reached the point where I need to make a change - hence, the beginning of my quest.  With a child due in the coming weeks, my priorities are completely with my family.  I want to be able to spend as much time with them as possible and working 10 hour days for someone else is not the answer.  Here's a quick rundown of where I sit from a savings standpoint.

We are currently saving approximately 27% of our take home income and I am constantly tweaking this to increase it.  We have recently bought a house and used the majority of our hard earned savings on a down payment.  I have mixed feelings on this cash utilization; we felt we bought at the lower end of the market cycle, with a good interest rate, and we hope for appreciation on the asset, but we do not view this as an investment - it is our forever home.  On the other hand, it is difficult to park so much of your money into a somewhat illiquid asset at one time - especially for someone more used to stock investing where your money is at your fingertips.

Regarding other expenses, we like to go out to dinner occasionally on weekends, but are very frugal with what we purchase at the grocery store each week.  We only buy what we can/should eat!  This is good for our pocketbooks and promotes healthy eating habits, as well.  We rarely buy snack food, which minimizes the unnecessary downtime munching.  We have two vehicles, one paid off and one leased.  This will be an ongoing expense.  And, once the student loans are paid off, that would add another 4% monthly savings.  The small ones add up!

Speaking of small ones, we have a few other items that we hope to cut in the future.  Lawn care?  We pay someone to mow our lawn currently, as neither of us has the time or inclination with a child on the way.  At some point, we hope to purchase a mower and eliminate this recurring cost - even though it is a reasonable price, only for half of the year, and negotiated so that it is only done on demand.

While budgeting is great and necessary, my main focus is on increasing income through additional streams.  The "Afford Anything" blog is a great resource for this mentality.  I focus heavily on investments.  I spend a lot of time studying the stock market and other investment ideas.  I'm not a huge Jim Cramer fan, but in his "Real Money" book, Cramer points out that you should spend at least an hour per week per stock that you own on research.  I think this is a great rule.  I will write more about this later, but the point is, if you can't spend enough time to properly research your investments, you shouldn't be doing it yourself.

This is a work in progress, but I feel with some tweaking and wise investment decisions, I can use this plan to reach financial freedom at some point down the road.  The obvious ultimate goal is to have a monthly investment income greater than monthly expenses - with a combination of budget cuts and income growth.  Investing 27% of our take home income won't ultimately cut it, but it's a start! 








23 comments:

  1. DP,

    This is a very good start! Those pesky student loans. Even though they aren't too much, it is necessary to pay that down as fast as possible. I hope to have mine gone by the end of the year!

    27% is a great place to be at starting off on your journey to financial independence.

    Have a great day!
    Erik

    ReplyDelete
    Replies
    1. Thanks Erik! As I mentioned, I'm mainly focused on income growth - which a lot of my writing will revolve around - but plan to keep paring down the expenses as much as I can, as well. Thanks for the comment!

      Delete
  2. Hi DP

    I can't see how 27% savings are bad at all :)

    It's a rate in progress and as long as that can be sustain, I think you'll see really incredible goals.

    ReplyDelete
    Replies
    1. Thanks B! I hope to keep chipping away at it to reach over 40% at some point, but again, hopefully a lot of that comes from income growth as well as savings. Thanks for the comment.

      Delete
  3. Hi DP

    I can't see how 27% savings are bad at all :)

    It's a rate in progress and as long as that can be sustain, I think you'll see really incredible goals.

    ReplyDelete
  4. Keep it up DP, you got this! 27% savings rate is great!

    Just as a thought have you considered boosting your income through other means? I'm just about to finish my internship up with NoHatDigital, they've got some killer material on building and monetizing niche sites was also looking at e-commerce on storecoach!

    ReplyDelete
  5. Thanks Nick! I'm open to suggestions . . . I appreciate the feedback and the tip. I'll be sure to check it out.

    -DP

    ReplyDelete
  6. Your content is nothing short of bright in many forms. I think this is friendly and eye-opening material. I have gotten so many ideas from your blog. Thank you so much. KETQUAMOINHAT

    ReplyDelete
  7. 한국 대표 먹튀검증사이트 다음드 추천 안전공원 메이저놀이터 배팅사이트 최고의 검증사이트인 다음드에서 인정한 안전공원을 만나실 수 있는 챤스가 여러분에게 주어집니다 지금 확인하실 수 있습니다 다음드 강력 추천 안전공원들입니다 메이저놀이터들입니다

    ReplyDelete
  8. We help people get $5000 loan online. Unsecured personal loans that can be approved today and you could have the money as soon as tomorrow. Safe and convenient with monthly installment payments. Get a 5000 dollar loan now!

    ReplyDelete
  9. Summer is that period of the year when the majority of people decide to take a vacation. Even if a person doesn’t travel anywhere, they will do their best to spend as much time as possible outside enjoying those hot summer days. However, summertime is one of the most difficult work periods when it comes to human resources management essay and their responsibilities. Looking for new talent during the summer is particularly hard as pretty much everyone wants to take a break and relax. Here are a few tips for HR teams to take into account to organize their work in the summer in a more efficient way.

    ReplyDelete
  10. Learning English on the Plane: Top Three Apps That Work in Airplane Mode
    When you have a long flight ahead of you, you should come up with a few entertainment options not to get bored during your flight. Surely, you can get some sleep, watch a movie or listen to music. However, what should you do when the flight is very long and you have already done all those things? Well, the most reasonable answer will be to do something productive. reliable service with extensive expertise in academic writing

    ReplyDelete
  11. In case you are currently trying to come up with a sociology paper outline, keep in mind that having a plan will help you submit an impressive sociology paper that will be easy to read. Surely, there are tons of sociology topics for essay to choose from. Yet, dealing with the problems described in Stendhal’s ‘The Red and The Black’ will provide you with a solid background for your sociology paper.

    ReplyDelete
  12. VMware Workstation Pro 15 license key is the industry standard for running multiple operating systems as virtual machines (VMs) on a single Linux or Windows PC. IT professionals, developers and businesses who build, test or demo software for any device, platform or cloud rely on Workstation Pro. Workstation Pro Delivers a Data Center in Your Laptop. Run Multiple OSs on a Single PC. vmware workstation pro 15

    ReplyDelete
  13. MyDriverParis are Paris based premier chauffeur company providing professional executive driver services and affordable luxury chauffeur car hire in Paris and France. private driver paris

    ReplyDelete
  14. ¿Queriendo comprar camisetas NBA baratas? Entonces accede a la página web TusCamisetasNBA.com, la tienda online con las camisetas NBA al mejor precio posible. Además, si tienes cualquier duda acerca de la tienda, puedes contactarnos a través de correo electrónico o WhatsApp. ¿No es genial?

    ReplyDelete
  15. Best buy Thai Buddhist Amulets, for Wealth, Health Luck Gambling money business , Love sex , and Happiness. Thai amulet, Buddhist Amulet Magic Charms, Tiger Talismans.

    ReplyDelete
  16. Latiesha (Evangelist Royal Free) Brown is a passionate life and Self Development Coach empowering viewers all over the world to break free from UNHEALTHY RELATIONSHIPS - La UNHOLY SPIRITUALITY - CHURCH RED FLAGS - VIOLENCE AGAINST WOMEN and everything in between.

    On this channel, I help you reflect, learn and breakthrough toxic relationships. If you're ready to create a new path for yourself, Latiesha Brown Joshua Brown hit that subscribe button.

    ReplyDelete
  17. InDesign's comprehensive course training teaches you how to master the features of this page layout software: create a template, add pages, blocks, text variables, format text using style sheets, and heal. graphics. Adobe Indesign Classes

    ReplyDelete
  18. InDesign's comprehensive course training teaches you how to master the features of this page layout software: Adobe Indesign Classes create a template, add pages, blocks, text variables, format text using style sheets, and heal. graphics.

    ReplyDelete
  19. "Hire an IT Department Starting at $99/month

    Text or Call us at (888) 778-9532

    Our Website: Rootpal.com

    Build your business with a dedicated IT team to help manage, grow, and secure your company.

    How Does Rootpal Work?

    Rootpal gives you a dedicated IT team that helps you set up your business computers, servers, website, SEO and much more.

    Every business small or large needs an IT team

    Every business needs guidance on how to grow their IT infrastructure and we're your solution to making it all come together.

    The Rootpal Services

    Here are just a few of the services that we provide and assist with setting up for your business at Rootpal.

    Unlimited Remote Support
    Virus & Malware Protection
    Backup & Disaster Recovery
    managed IT support
    Web & Hosting Solutions
    Business Email
    SEO & Backlink Building
    Server Setup & Maintenance
    Remote Monitoring

    Increase your business revenue through IT

    Rootpal increases your business growth by increasing your business's tech through our services.
    "

    ReplyDelete
  20. SUDwell™ - Winners of BUILD UK / Global 100 Best Paving & Stone and Resin Provider 2018 & 2019 for Resin Bound Paving Resin Bonded Driveways Resin Bound Driveways Resin Bonded Car Parks Permeable Driveways Permeable Paving Slabs Resin Driveways

    ReplyDelete
  21. L'importance du trafic organique
    La différence du trafic organique, qui sont affichés sur la page d’accueil dans leur ordre de publication, la position sur les moteurs de recherche est une des principales sources de création de trafic sur un site web aujourd’hui (dit trafic organique) qu’il soit toujours facilement accessible, comme votre présentation ou les informations pour vous contacter. trafic organiqueCliquez sur le lien de modification pour modifier cette page ou référencement. Prévu et le travail programmée requiert la capacité d’observer et d’essai. Les gens qui se spécialisent dans les moteurs de recherche SEO et améliorer continuellement leurs algorithmes est difficile à suivre. Parce que les moteurs de recherche changent algorithmes dans une certaine période et peuvent apporter des changements dans les critères de classement. Aller à la page des moteurs de recherche dans le but de moteur de recherche SEO résulte fou artificielle du système plutôt que l’application que l’utilisateur veut suivre, rempli avec du contenu qui attire l’attention est de promouvoir le site. Ces informations peuvent varier d’un outil à l’autre, certaines indexations sont trofanic.blogspot.com et annuaires pour qu’ils indexent la page ou le site qui intéresse le demandeur.google

    ReplyDelete