November Freedom Fund Update: Progress is Not Always Visible
Welcome to the monthly update of our journey to financial independence, where we report on the progress of our FI tree, aka Freedom Fund. Our mangoes are almost ripe and we’re projecting to reach our goal by July 2017. This means that we’ll have enough investments to live off of without ever having to work again to pay for living expenses. We’ll consider ourselves financially independent when our Freedom Fund is able to support our lifestyle indefinitely. Our Freedom Fund is comprised of mutual fund investments, short-term reserves and a real estate property.
Freedom Fund Progress
Percentage of Freedom Fund reached in November
Our Freedom Fund stayed at 91% from the previous month. If we were to retire today, our investments could cover annual expenses up to $32,035 a year. That puts us $2,965 shy of our annual income goal of $35,000!
Year to date gains
Progress is not always visible
One of the world’s most ambitious and challenging projects took approximately 10 years and, unfortunately, over 22,000 lives to build: The Panama Canal. The 50-mile-long passage created an important shortcut for ships. While working on this project, workers encountered a series of problems such as disease and equipment issues, among other things.
They were many other setbacks, but the truth is that they were moving forward. They were getting closer to the finish line. Every day, month and year that passed meant that progress was being made. The progress that we’re making on our journey might not be visible to us because it’s happening in real time. However, we notice how far we’ve come when we look back.
As we mentioned on our previous FF post update, gaining the last 10% could be a challenging milestone. Our formula for investment success still hasn’t changed. We’re still following the same saving and spending patterns that has gotten us to this point. However, the market is kind of in a wait-and-see mode and that holds our Freedom Fund down for a bit. It also provides opportunities to buy lower than last month.
We had a spectacular spending month in October: $3,006.66. That was our second lowest spending month of the year! What helped to keep it down? No travel, zero drinking and very low dining out expenses. These are the kind of things that you wouldn’t know from looking at our progress chart, which has been stuck in the 90-91% for four months.
On another note, I’m so excited that the elections are over next week. The great thing about elections is that they don’t impact long-term investing, no matter which party wins. Happy investing!
What were your financial goals for the month? Did you meet them?
Risk disclosure: All investing involves risk, including the possible loss of principal. The material contained on this website is for discussion purpose only and should not be misconstrued as financial advice.