4th Quarter Update 2018

End of December means the end of the 4th quarter of 2018, which is a good chance to look over our spending.

We had a bit of a bump in income due to Mrs FMT’s small business.

 

Total Income $28,344 Oct to Dec

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Photo by Pixabay on Pexels.com

We continue spending extra on the planned necessary house repairs this quarter. Now with the repairs out of the way we can continue increasing savings as of 2019

 

Total Spend on Home Repairs $7,690.83 Oct to Decimg_7988 (1)

Even with the home repairs we managed to pay down some extra money on the home loan.

Total Extra Payments on Home Loan $6,074 Oct to Dec

Current Home Loan balance at $-279,357

Just beating our target we set last quarter for end of 2018, to pay down the home loan to under $280,000

Travel for 2018 $2,406

We had two family holidays in 2018 a interstate holiday to South Australia and a trip to the South Coast in Albany. img_7733 (1)

Goals Update

  • Hit 50% savings rate – We have not hit a 50% savings rate yet, December was close at 40% but on average with home repairs was around 25%
  • Under $299,000 Home loan – Done $279,357
  • Essential house repairs that had been put off – repairs are now done

New Goals for 2019

Under $260,000 Home loan

Home repairs to only come from Home repair fund. ($208/fortnight transferred to a offset account for use on future home repairs)

Earn 100,000 frequent flyer points. (in 2018 120,000 qantas points and 65,000 virgin points were earned) Virgin points were used for South Australia Holiday.

Overview

At start of 2018 we had sold one investment property but still had one investment property loosing money monthly and no idea on what our monthly expenses were.

Fast forward to today and we have

  • 9 months of expenses tracked
  • a separate 6 months emergency fund
  • budgeting for future months
  • sold investment property
  • carried out outstanding home repairs
  • have a clear view of where we will be in the coming months and years.

This has not only helps us sleep well at night but to make plans ahead into the future.

Which is handy as the FMT family is growing from 3 to 5 in 2019 with twins expected in May 2019.

How was your 2018? and what goals are you planning for in 2019?

 

 

Change of Plans for the Blog

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Even though I have a number of unpublished posts ready to go, I haven’t posted in the last few months because I have been thinking about what type of site I want this to be.

I didn’t want to end up with another page of copy/paste FIRE related content. There is already a wealth of great content out there, written and presented a lot better then I could of done.

The blog will only focus on my own progress towards goals and FIRE as well as travel updates.

In the coming days I will have my 4th Quarter update published and go over our goals for 2019.

Photo by rawpixel.com on Pexels.com

Introduction to FI

FI or FIRE stands for Financial Independence/Financial Independence Retire Early.

The concept is spending less and saving more, investing the savings to create income to live on in the future.

One of the original bloggers in this space is Mr Money Mustache, in his post Shockingly Simple Math Behind Early Retirement he explains how easy it can be by spending less and investing to retire in under 10 years.

50% savings rate is the target for most FI people.

This seems huge compared to the 10% most average people save. Though it can be done by cutting a lot of the waste and unnecessary crap out of our first world lives.

Cost cutting ideas:

  • Cooking at home
  • Packing lunches for work
  • Buying cheap used cars opposed to loan or leasing new
  • Buying or renting affordable houses instead of million dollar mansions
  • Biking occasionally instead of driving car
  • Swapping Netflix for Foxtel
  • Optimizing mobile phone plans
  • Travel hacking holidays with points

More reading on FI can be found at links below –

Bogleheads Australia

Barefoot Investor

Aussie Firebug

Strong Money Australia

Vanguard Australia

USA based content

ChooseFI

Jim Collins Stock Series

Mr Money Mustache

Millennial Revolution

Share your favourite FI content in the comments below.