Retirement

Update March 2024 FIRE – Retire at 40

Hello, everyone. It’s April and spring is here. Where is that bright ball in the sky?! Oh, it’s the sun. That’s what Portlanders are saying after a long, dark winter. Finally, we have a beautiful spring weekend. People go out in shorts and t-shirts. Ahhh… Good because we just got back from spring break in Southern California. The weather was perfect there. We visited Griffith Observatory, Santa Monica, Venice, and Palm Springs. We had a great time as guests. Me and Mrs. RB40 We grew up in Southern California, but we didn’t appreciate all the things it had to offer. It was also nice to visit with families and friends.

On the financial side, we had a very good month. Because of the stock market, our value has reached a high. The S&P 500 rose more than 10% in the first quarter of 2024. It was so amazing. Our cash flow was a little rough, but I’m not worried at all. It’s easy to be optimistic when the stock market is going up.

Ok, I’m going to share how I’m doing with my New Year’s resolutions. Then, I’ll look at our net worth and cash flow. Let’s go!

2024 Terms

Here is my goal spreadsheet for 2024. It works well. Try it if you can’t keep up with your New Year’s resolutions. The key is to review the spreadsheet every month to track your progress. That way, you can see which goals need more attention and work on them.

Financial Terms

FI ratio > 100%

The FI ratio is revenue divided by expenses. If you can generate enough income to cover your expenses, you’re good to go. By 2024, I have reduced this goal to 100%. After 3 months, our FI rate is 82%. That’s small, but we’ll catch you.

*FI rating = income / expenses

3% Law

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% by 2024. This is a great way to assess your retirement readiness. We will put everything together by the end of the year. Looks good so far.

Track net worth and hope by +10%

I have been tracking our value since 2006. Nice to see progress. This year, I would like to see 10% gains. At this point, everything depends on the stock market and there is not much I can do to influence this goal. I will track it down and keep my fingers crossed.

Our total has gained 8.3% since the beginning of the year. Wow, the stock market is doing very well this year. We’re almost there. I have high hopes for this year.

Health Goals

Exercise 3 times a week

Now that I am 50 years old, health is a job 1. I need to exercise regularly to stay healthy for a long time. I joined a gym and plan to exercise at least 3 times a week. March was a good month. I’m on my way. However, my right elbow is starting to work. I will adjust my workouts to reduce stress on my joints.

Health check

Equally important is going to the doctor. In these years, we have more care and prevention. Here is my list for 2024.

  • Colonoscopy. Done!
  • Physical year.
  • Dental examination.
  • Glaucoma screening. I have a family history.
  • Immunization. Tdap booster Done! Flu vaccine and later Covid.

Happy goals

International travel

Mrs. RB40 turns 50 this year and wants to go on an unforgettable adventure. We are planning to visit Japan for 3 weeks in the summer. I bought plane tickets and already booked a 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 good these past few years.

March was a big month. We had a great uneventful month and capped it off with a great vacation trip to Southern California. It was a ton of fun.

Help RB40Jr start a YouTube channel

RB40Jr wants to start a YouTube channel. I’ll help her get through the summer. I believe you want to make gaming videos. No progress here.

Net Profit (+8.3%)

I have been tracking our value since 2006. It is very encouraging to see the progress we have made. The power of compounding is unbelievable. For many years, our investment returns far exceed our income. This is why you need to start investing early and stick with it.

The first quarter of 2024 was fantastic. The stock market went up a lot. Investors are very optimistic. I enjoy riding, but I’m also nervous. This is starting to feel like 1996. The AI ​​bubble is still young so I think the market has a lot of room to work.

The key is to keep investing whether the market goes up or down.

***Important*** My best advice is to stay with the lesson. Don’t stop investing. You should keep investing when the stock market goes up. You may think stocks are expensive, but they will look cheap in 10 years. Keep investing and you will be fine.

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

March 2024 FIRE Cash Flow

This FIRE cash flow chart includes my online income, side gigs, and taxable income. Mrs. RB40’s salary is not there because she will retire soon.

March was a good month for us. Travel expenses were high because we flew to LA for spring break. Everything else made sense. Our income wasn’t great, but it wasn’t too bad. We will host in the coming months.

March 2024 FIRE Income: $4,056

Our FIRE money was ready in March. Online income was low, but okay. It’s part of the transition. In 5 years, I will stop working completely and start withdrawing from more savings.

  • Real Estate crowdfunding: $0. We had no payment from real estate crowdfunding last month. You can read more on the RE Crowdfunding Passive Income page.
  • Dividend IncomePrice: $1,813. March was a good month for benefits.
  • Rental Fee: $665. We’ve had an uneventful month in rentals.
  • Blog income: $981. Blog revenue was down in March.
  • Unusual activities: $375. I spent about 4-5 hours a week delivering.
  • Miscellaneous: $200. Mrs. RB40 received a good settlement in the Safeway BOGO class action lawsuit.
  • Interest: $22.

Cost: $4,914

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

Here are some details.

  • HousesPrice: $1,361. This includes mortgage, utilities, furniture, repairs, and maintenance. Our housing costs are very low because we live in a duplex. We split most of the costs with our tenant.
  • TransportationPrice: $377. Gas and insurance. I changed the lights and got the oil.
  • WalkingPrice: $1,407. We had a great time in southern California. It was worth it.
  • Entertainment: $171. Mrs RB40 was sick so we ordered take out a few times when it was her turn to cook.
  • GroceriesCost: $339. We spent less than usual on food in March. This was for our spring break vacation. Also, Mrs RB40 cooked a few times last month due to illness.
  • LifePrice: $268. Health-related expenses increase as we age.
  • A childPrice: $647. Unfortunately, the cost of children also increases as the RB40Jr grows. Last month, we paid for his karate classes and training equipment.
  • A parent: $250. My brothers and I send $250/month to my dad to help with expenses. He lives in Thailand so their cost of living is much lower than in the US

It saves:-$857

Completion March 2024

Okay, let’s wrap it up. March was great and I’m ready for spring. Our net income was negative in Q1, but should be flat by the end of the year. I am not worried because our number has increased a lot already. At this point, stay the course and we’ll be fine.

That’s it for today. Did you have a good month?

A minimum wage is the key to early retirement. These days, I invest in commercial properties with CrowdStreet. They have many projects throughout the United States. Go check it out!

Disclosure: We may receive referral fees when you sign up for a service through the links on this page.

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Joe started Retire at 40 in 2010 to find out how to retire early. After 16 years of investing and saving, he achieved financial independence and retired at the age of 38.

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

Joe also highly recommends Personal Capital for DIY investors. They have many useful tools to help you achieve financial independence.

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