Hey everyone! This FIRE update is going to be short because I’m on vacation in Japan. We’re exhausted from walking all day. Luckily, I got us a room at Dormy Inn. This hotel has an onsen (hot spring) facility, massage chairs, and free ice cream, yogurt, and ramen. It’s my favorite work hotel ever. Soaking in the hot springs after a long day of walking really helps. Japan is amazing. We love it here. Public transportation is great. The food is delicious and eating out is cheaper than in the US. This trip is completely different from the last time we visited in 2010. Back then, everything seemed expensive. Today, I think Japan is a great deal. The strong dollar makes a huge difference. I’ll write more about our trip next time.
Personal finance wise, we had a good month. Our net worth is at an all-time high because of the stock market. The stock market took a bit of a dip at the end of June, but we still made money. However, our cash flow has not been great. We are spending a lot of money on this vacation… I will postpone our cash flow until next month. I am having a lot of fun working on my cash flow spreadsheet. Our net worth looks good so I am not worried.
Well, I’ll share with you what I’m doing with my goals for the new year. Next, I will talk about our net worth.
2024 goals
Here’s my goal chart for 2024. It’s working out 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 extra attention and work on them. Time is running out!
Financial goals
Financial funding ratio > 100%
FI ratio is passive income divided by expenses. If you can generate enough passive income to cover your expenses, you’re set. For 2024, I’ve lowered that goal to 100%. We’re getting older and feel like we can spend more. Last month, our FI ratio was 123%. I need to update the number when I get home. It’s very hard to do that while we’re on vacation.
*Phi ratio = Passive income / expenses
3% rule
Everyone knows the 4% retirement savings withdrawal rule, right? Basically, you should have a successful retirement if you withdraw less than 4% of your investable assets each year. Let’s see if we can spend less than 3% in 2024. This is a good way to test your retirement readiness. We’ll add it all up at the end of the year. So far, so good.
Track net worth and hope for +10%
I have been tracking our net worth since 2006. It is great to see the progress. This year, I would like to see a 10% gain. At this point, the gain is entirely dependent on the stock market and there is not much I can do to influence that goal. I will just track it and keep my fingers crossed.
Good! Our net worth is up 9.6% year-to-date. Wow, we’re almost there.
Health goals
Exercise 3 times a week
Now that I’m 50, health is job number one. I need to exercise constantly so I can stay healthy. In June, I only went to the gym 3 times. My elbows and knees were hurting. However, I walked more than 20,000 steps every day in Japan. This matters in exercise. Things look fine. I hope my joints will be fine when I get back.
medical examinations
It is equally important to visit the doctors. At this age, we have to deal with more preventive and maintenance care. This is my list for 2024.
- Colonoscopy. Done!
- Annual physical examination.
- Dental checkup. Done!
- Glaucoma screening. I have a family history.
- Vaccination. Tdap dose completed! You will later get the flu and Covid vaccine.
Fun goals
International flight
Mrs. RB40 turns 50 this year and wants to take a fun and memorable trip. We’re in Japan! It’s been a great trip so far.
Happiness level > 8
I’m a naturally happy guy so this should be relatively easy.
June was the best month I’ve had in a long time. We had so much fun on vacation. I thought I’d give June a 9.5 because nothing is perfect. But let’s give it a 10. If I had a better month, I’d give it a higher score. Life is beautiful.
Help RB40Jr start a YouTube channel
RB40Jr wants to start a YouTube channel. I’ll help him launch it in the summer. That doesn’t sound good. RB40Jr has lost interest in starting a channel. Maybe we can revive his interest this summer. He’ll have more free time then.
Net worth (+9.6%)
I’ve been tracking our net worth since 2006. It’s very motivating to see the progress we’ve made. The power of compound interest is incredible. The stock market did well in June. Our net worth has increased by 9.6% since the beginning of the year. Things are looking good.
***Important*** My best advice is to stay the course. Never 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 our net worth chart from Empower.
(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 my net worth and use their free tools. It’s a great site for do-it-yourself investors.
June 2024 Fire Cash Flow
Sorry! I wasn’t motivated to work on a cash flow spreadsheet while I was on vacation. I’m pretty sure we had negative cash flow in June because we spent too much money. It’s a lot of fun, though. We don’t mind showing off once in a while.
That’s all for June. Did you have a good month? Are you doing anything fun this summer?
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Passive income is the key to early retirement. This year, Joe is investing in commercial real estate with CrowdStreet. They have several projects across the USA so check them out!
Joe also highly recommends Personal Capital for DIY investors. They have many useful tools that will help you reach financial independence.
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