One of the main purposes of this blog is for me to track my progress to financial independence which I am well on my way to achieving. Each month I share the details of all investment accounts and the changes from the previous month.
Note: if you’re just joining us you can view my most recent net worth update here.
Last month I noted several exciting happenings in April. We had an awesome trip to Hawaii (despite the rain), I paid my taxes (and now have 140,000 American Airlines miles), we got an ebike!!! (already put 175 miles on it) and I teased that I was hoping to discuss working less with my currently employer. Working less has been on my mind for quite some time but the right time to talk about it quickly approached as we were off enjoying our vacation.
I was nervous but also realized the worst thing that they could say was no. At this point in our journey one of the most important things is health insurance and my job pays 100% of our premiums which I believe is rare. I was vague in the pay cut I was willing to take and simply explained I wanted to take every Friday off with the flexibility to go back to full time if they need an extra hand during the busy season. Four days later I got my answer and was pleasantly surprised in the offer: 15% pay cut with no other changes. In a sense I received a raise on a per hour basis. All told, I took around a $10,000 pay cut.
My compressed workweek started immediately and I enjoyed the following Friday off. At this point it still feels surreal, kind of like I am cheating or how I imagine kids felt when they skip out on school. Every week is a 4-day week, on holiday weeks I have a 3-day week and I still have 3 weeks of vacation per year – it’s still hard to wrap my head around. One of main worries is that I want to make the most out of this newfound freedom. I want to work on projects that have been on the back-burner but also make sure to carve out some time for fun activities on Fridays. What’s interesting is I’ve already noticed an increase in productivity on other nights of the week. I’m quickly working my way through things around the house that have been on my list for years. We’ll see if this continues going forward.
In May I am looking forward to paying off our first rental. We currently owe over $40,000 which means our cash balance will be significantly lower next month. This will increase our monthly cash flow by about $450. At the same time we will now be able to direct any excess funds into investments, something we haven’t focused as much on since we started building up cash in mid-2017 for the anticipated rental purchase.
Mr.QCI Net Worth
Cash: ~31,000 (+$3000)
P2P Lending: $7,368 (-$881) – I am reducing my allocation to p2p which will be directed towards paying off my new rental property)
401k: 77,203 (+$2,166)
Vanguard Rollover IRA: $85,213 (+1,156)
Vanguard Roth: $38,900 (+$580)
Vanguard Taxable: $122,894 (+$893)
Individual Stocks/Other Investments: $1,981 (-$37)
HSA (amount invested only): $21,807 (+$387)
Total Investments: $355,366 (+$4,264)
Assets: $475,000 – This is the estimated value of my four properties based on the purchase price and some appreciation our area has seen over the past few years and includes sweat equity. You can see my real estate holdings here.
Liabilities (4 Mortgages): $288,570 – (Updated: January 2018 – I plan to update this every 6 months or so, but I pay down about $10,000 of debt every year)
Net Worth: $572,796 (+$7,264)
Miss QCI Net Worth
Cash: ~$27,000 (+$4,000)
Vanguard Roth IRA: $49,043 (+$769)
Rollover IRA: $103,243 (+$8,627)
Vanguard Taxable: $78,163 (+$1,116)
Total Investments: $230,449 (+$10,512)
Net Worth: $257,449 (+$14,512)
Investments (what really matters): $585,815 (+$14,776)
Projected retirement income (assuming 4% rule): $23,432/year
Net Worth: $830,245 (+$21,776)