Retirement

FIRE Update April 2024 – Retire by 40

Hello all! Wow, it’s May. The months fly by very quickly. This is what happens when life is good. April was a busy month for me. I went to the gym, made some lunches, worked on the blog, took the RB40Jr to all of his activities, and had fun learning how to make ceramics. Whew! This is the key to a satisfying retirement. You’ll be a little busy. Well, I had plenty of time to relax too. I read a few books, watched a bunch of movies, and came up with Ms. RB40. It was a good balance.

On the personal finance side, we had a good month. Our net worth decreased slightly due to the stock market decline. The stock market rose significantly in the first quarter of 2024, so a pullback is healthy. That’s what I tell myself anyway. On the other hand, our cash flow was great last month. One of our real estate crowdfunding projects was successfully exited and received significant compensation. The additional passive income increased our FI ratio to 138%. This is great because we had negative cash flow for several months prior. Whew!

Well, I’ll share with you what I’m doing with my goals for the new year. Next, I’ll talk about our net worth and cash flows. Let’s go!

2024 goals

Here’s my goals spreadsheet for 2024. It works well. Try it if you can’t keep up with your goals for the new year. The key is to review the spreadsheet monthly to track your progress. This way, you can see which goals need more attention and work toward them. time is running out!

Financial goals

FI ratio > 100%

The FI ratio is passive income divided by expenses. If you can generate enough passive income to cover your expenses, then you’re set. For 2024, it lowered that goal to 100%. After 4 months, our FI was 138%. Yes! I think we’ll be fine this year.

*phi ratio = Passive income/expenses

3% rule

Everyone is familiar with the 4% retirement withdrawal rule, right? Basically, you should have a successful retirement if you withdraw less than 4% of your investable assets annually. Let’s see if we can spend less than 3% in 2024. This is a good way to test how prepared you are for retirement. We will add everything at the end of the year. She looks good so far 4 months later.

Track net worth and hope +10%

I’ve been tracking our net worth since 2006. It’s great to see the progress. This year, I would like to see a 10% gain. At this point, the gains are completely dependent on the stock market and there is not much I can do to influence this target. I’m just going to track it down and keep my fingers crossed.

Our net worth has increased by 4% since the beginning of the year. We will have to wait and see how the stock market performs.

Health goals

Exercise 3 times a week

Now that I’m 50, health is job number one. I need to exercise constantly so that I can stay healthy longer. I joined a gym and plan to exercise at least 3 times a week. April was a good month. I’ve trained 15 times and I’m on track. However, my elbow hurts. Getting fit after the age of 50 is difficult!

medical examinations

It is equally important to go see doctors. In this day and age, we have more maintenance and preventative care to deal with. Here’s my list for 2024.

  • Colonoscopy. Finished!
  • Annual physical.
  • Dental examination.
  • Glaucoma screening. I have a family history.
  • immunization. Tdap booster done! Flu vaccine and Covid later.

Fun goals

International flight

The RB40 turns 50 this year and wants to go on a fun and unforgettable trip. We are planning to visit Japan for 3 weeks in the summer. I have already purchased the flight tickets and booked the hotel. I can’t wait for this trip.

Happiness level > 8

I’m a happy guy by nature so this should be easy. Life has been great these past few years.

April was a good month. I’ve been busy and haven’t had any major problems. Ceramics lessons are so much fun. I’m glad I signed up for it.

Help RB40Jr start a YouTube channel

RB40Jr wants to start a YouTube channel. I will help him do this in the summer. This doesn’t look good. RB40Jr lost interest in starting a channel. Maybe we can revive his interest this summer. He’ll have more free time then.

Net worth (+4%)

I’ve been tracking our net worth since 2006. It’s very motivating to see the progress we’ve made. The strength of the compound is incredible. The first quarter of 2024 was great. The stock market rose significantly. However, it declined slightly in April. This is healthy because technology stocks have been extremely hot. I’m optimistic for the rest of the year. The economy remains in good shape. The stock market should benefit when the Fed later cuts interest rates.

***Important*** My best advice is to stay the course. Don’t stop investing. You have to keep investing whether the stock market is going up or down. You may think stocks are very expensive, but in 10 years they will look cheap. Keep investing and you will achieve financial independence one day. Don’t try to time the market.

This is a chart of Empower’s net worth. (Personal Capital is now Empower.) Sign up for a free Empower account to help manage your net worth and investment accounts. I log in to check our net worth and use their free tools. This is a great site for DIY investors.

April 2024 Fire Cash Flow

The FIRE Cash Flow Chart includes my online income, side gigs, and taxable passive income. Ms. RB40’s income is not there because she is retiring soon.

April was a great month. We didn’t have any major expenses and our passive income was higher than usual. Wow, what a relief. We had several months with negative cash flow previously. This month has erased all that and put us first.

Fire income for April 2024: $16,270

Our fire income was great in April. Real estate crowdfunding gave us a big boost. My online income was good, but that was due to a one-time cash out event. Blogging income is still trending downward. It’s part of the transition. Within 5 years, I will stop working completely and start withdrawing from our investments.

  • Real estate crowdfunding: $13,253. We didn’t get a boost from real estate crowdfunding last month. You can read more on RE Crowdfunding’s passive income page.
  • Dividend: $947. Good month.
  • Rental income: $465. We’ve had a quiet month for rentals.
  • Blog income: $899. Blog income continues to decline.
  • Odd jobs: $676. I spent about 4-5 hours a week delivering orders. These days, I focus on lunch catering orders.
  • interest: $29.

Spending: $3,613

This year, I plan to spend about $65,000. This is the amount we spent last year. However, we are also planning to update the kitchen this year. Maybe I should increase our budget to accommodate this. We’ll see how it goes.

Here are some details.

  • Living: $1,382. This includes mortgage, utilities, furniture, repairs and maintenance. Our housing expenses are very low because we live in a duplex. We split many expenses with our tenant.
  • communications: $377. Gas and insurance.
  • entertainment: $401. I spent $360 to take an introduction to ceramics class. It’s fun to learn something new. I enjoy it very much. See the first few pieces below.
  • grocery shop: $563.
  • health: $222. Health-related expenses increase as we age.
  • child: $138. Unfortunately, child-related expenses also increase as the RB40Jr ages. We pay for his orthodontist and an international school trip.
  • Parents: $250. My brothers and I send $250 a month to my parents to help with expenses. He lives in Thailand, so his cost of living is much lower than in the United States

savings: +$12,657

April 2024 summary

Well, let’s wrap it up. April was a great month for us. Our net worth went down a little, but it wasn’t a big deal. The stock market rises and falls. It doesn’t change anything if you’re investing long term. I’m optimistic for the rest of 2024.

That’s all for April. Did you have a good month?

Passive income is the key to early retirement. These days, I invest in commercial real estate with… Crowd Street. They have many projects all over the United States. Go check them out!

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Joe started Retire by 40 In 2010 to learn how to retire early. After 16 years of investing and saving, he achieved financial independence and retired at 38 years old.

Passive income is the key to early retirement. This year, Joe is investing in commercial real estate with CrowdStreet. They have many projects all over the USA so check them out!

Joe also highly recommends Personal Capital to DIY investors. They have many useful tools that will help you reach financial independence.


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