Another month has passed, and I have just a little more money and a couple fewer teeth. Before we get into that, here’s my balance sheet for the month:
This included my stipend and a little bit of side income. Despite its inconsistency and relatively low amount, I’m really starting to appreciate side income. $200 or so a month will add up over time, and when there are months with a lot of unexpected expenses, side income can be the difference between investing a little bit versus nothing at all. I’m reminded of JL Collin’s observation that a $130/month investment in the stock market from 1975-2015 would’ve turned into nearly $1,000,000. Sometimes it’s nice to remind yourself of the big picture when you’re struggling to save more than a couple hundred dollars each month.
Things were a little pricey across the board this month, but medical/dental bills is what really tipped things over the edge. I had a tooth extracted last week, and found out less than 2 days before (and only because I called them) that the cost would be over $700. Of course, when you’re accustomed to spending a good chunk less than you earn you don’t usually need to dip into an emergency fund. Fortunately, I was able to convince them to at least let me pay half now and half when I get the bill (apparently the standard method is to pay it all right when you get there), so I could still save a few hundred this month. Of course, the whole bill could have been easily managed right now, but a month of almost no saving would really put a downer on things.
A few days ago I was in the lobby of my building and saw a for sale ad for the unit identical to ours two floors down. The price was $499,000. I don’t ever claim to know a lot about home buying, but the generic 1% rule says that this unit should rent for somewhere in the ballpark of $4990/month. Well, we rent the same unit with a slightly better view for $1659/month, not including the $250/month discount we’re getting in June and July for renewing our lease (that’s why my rent was lower than the usual $600 this month). Anyway, this made me feel quite good to be a renter :).
You can browse the summary and rolling 11 month average below. Next month, I’ll post a more extensive summary of my first full year of tracking expenses, thoughts on the exercise, and whether or not I’ll continue to track in this way.
|Categories||June||May||Rolling 11 month Average|
|Time to Financial Independence1Based on this. Assumes a starting net worth of $0, so actual numbers are a little better than what’s shown.||42.4 years||45.7 years||28.3 years|
|$ Required to be Financially Independent2Multiply the above by 300||$684,627||$683,466||$581,893|
See you next week!