July is in the books. I’m going to go on record and say that July was the best month of my life. I did have a pretty stressful stretch of a couple weeks where my work/life balance was pretty bad (and led to writing this), but that just reinforces the big plan. All that said, the baby is entering Toddlersville, and that means it’s open season on previously banned activities like going on stroller walks when its dark out, wrestling on the floor, and giving her all sorts of new foods.
I fully understand those folks who choose not to have kids, but dang man, kids are just fantastic. And so far, they’re like a fine wine; they just get better with age.
August is bringing with it so many other great things. While I still try to live in the moment, I can’t help but get excited for the return of Fantasy Football, slightly cooler weather, a trip back to Minnesota, and a junket up to NYC tomorrow to finally clear the lease on the NYC apartment.
The Path to Financial Independence
The ultimate graph of financial independence (above) shows that my forward passive income plus side hustles covered 15.3% of our expenses in July.
I’ve come to the realization of how long this is going to take. We’ll be seeing small little increases every month, along with step-ups after we sell each of the cars, and then one major step-up when we relocate in retirement transition. However, the month-to-month is sort of like watching the hour hand go around. At least it’s going in the right direction.
Passive Income
Dividends
See Investment Portfolio for Full List of Holdings and Details
Paid In July: $573.93
Previous Forward Dividend Income: $750.36
New Forward Dividend Income: $762.95 (+1.7%)
Man, July sucked!. Not really. The first month of the quarter is never very good. On a positive note, dividends paid in July were 23% higher than dividends paid in the comparable month of April–so that’s nice. Unilever increased their dividend slightly, although UL tends to adjust their dividend (up and down) every quarter–but up is always nicer. I also bought another tranche of muni bonds. I also reinvested dividends, but that’s old news.
All told, the projected salary that my clones make after I fall asleep increased 1.7% over last month–I’d love to get a 1.7% raise every month at my day job! The fourth quarter will be very strong in boosting forward income, as I’ll be investing my IRA contributions, I’ll be able to re-up on my covered calls, and I’ll have a nice cash balance to invest that I’m currently just building up in the IRA.
Interest
Paid In May: $0.00
Previous Forward Interest: $41.99
New Forward Interest: $42.24
My annual interest payment for my annuity occurs in April. I’ll continue contributing a little bit each month to this account.
Side Hustles
Retire29 had its best month ever!!! Not only in terms of income, but also in terms of page views (12,483). I’m getting the impression that Retire29 is where I really like to do my writing, so SeekingAlpha will be a backburner type thing for now.
I finally set up a Twitter account and Facebook page, and I’m working on a new theme that will hopefully look a little more professional. I like looking at my Alexa ranking, and it currently stands at 826,013th worldwide. That’s like a 1.5M improvement from 90 days ago, at this rate, I’ll be bigger than Google in like six weeks (jk). Improvements from here on out will only get more difficult, so I’ll just have to keep writing decent stuff, networking with other bloggers, and trying to make Retire29 a little better every day.
My goals for the blog this year were 5,000 views/month and $10/month. I’m right on pace for the views, but the trend is strongly up, so I think that won’t be a problem. The revenue side of things is slightly behind schedule, but only on a linear basis. This summer has been great, so I think that will be no problem, either.
Expenses
The two big line items on top are really a drag. What’s more, August will have a $1700 car repair bill (another reason not to own expensive German engineering). One car will be paid off in January, and the other shortly after that. Cash flow is still very tight, otherwise I’d just do it now. Once paid off, they’ll get sold and used to pay down debt and buy a car befitting a growing family.
Part of me wants to just stop looking at expenses for a year or so, since there really isn’t much change. But, it’s probably a good idea to keep tracking, so I can see where other improvements can be made throughout.
Net Worth
Net Worth is a rather poor proxy for financial independence, however, people like using it for comparative purposes, so I oblige. My net worth rose 2.25% this month to $350,083. That is a $7.7k increase. The market had a good month with the S&P up 2%–although AAPL took a bath toward the end, so I did about what was expected. I paid off about $3.5k of consumer debt (now at $27.4k), which was pretty cool. I’ll try to keep that pace up.
I have no specific net worth goals. I reckon my Net Worth will be somewhere around $700k by the time I retire, however, that is just an approximation. Far more important is that little line chart at the very top, showing my passive income as a percentage of my expenses.
Thanks for reading and following along, as always!
Eric
Previous Financial Reports:
2014: Dec
Looking good Eric!
Just ditch those car loans and you’ll be set… How is the progress on downsizing your cars? Your blog is starting to take off-
Keep up with the grind- slow and steady wins the race.
Chef
Man, I wish I could just ditch ’em. Gimme three months and at least one will be gone.
The blog is doing way better than I thought it would at this point–which is super exciting for me. Thank you for noticing!
Eric
Retire29 recently posted…July 2015 Financial Reports
Eric,
Great month, congrats! The numbers look good, you seem in an excellent spirit… what more could you want?
Enjoy the time with your kid, nothing beats that!
Cheers,
NMW
No More Waffles recently posted…The Grass is Always Greener
NMW,
I am in pretty decent spririts. I just read your “Grass is Always Greener” post–very nice piece of work. Thanks for stopping by!
Eric
Retire29 recently posted…July 2015 Financial Reports
Very strong numbers during a month that the stock market really didn’t do a lot! Congrats on the great month of July for the blog too! I’m looking at beginning my dividend income strategy here soon so I look forward to looking back at all the information you’ve written about on here in the past.
I’m also looking forward to being able to do more with my daughter as she gets older. She just hit 4 months so we are still limited but it keeps getting better each day!
Thias @It Pays Dividends recently posted…Do You Know Your Future Self?
Thias,
Yah, Dad’s can really start shining once the kids start getting a bit older. I know I love it.
July turned out to be not so bad. I’m not doing a whole lot of reinvesting right now of my dividends paid, so cash balances are starting to pile up (waiting for stronger opportunities). However, I still got some reasonable growth in income–which was a nice surprise.
Eric
Retire29 recently posted…July 2015 Financial Reports
Great month! Get those cars paid off and your investments will really take off! Keep up the great work
ADD
American Dividend Dream recently posted…Dividend Income – July 2015 Update
ADD,
You’re right about that. Once those are paid off things should be so much easier on a cash flow and monthly expense basis.
Not long now…
Eric
Retire29 recently posted…July 2015 Financial Reports
Looking very good Eric. Always nice to see the increases.
Tawcan recently posted…Dividend Income – July 2015 update
I’m not quite at your level, Tawcan. Somehow July dividends must be different up in Canada, as I believe you hit an all time high. Nicely done.
Eric
It looks like you had another great month and congratulations on the continued increase on your website traffic!
This a very astute and accurate statement you made: I’ve come to the realization of how long this is going to take.
It can get frustrating sometimes with some set backs. You will have to keep the long view in mind – believe me it comes faster then you think!
Bryan@Just One More Year recently posted…Step 2: Create a Passive Income Stream
Hey Bryan,
I really appreciate those encouraging words. It really is a two steps forward, one step back sort of deal. The underlying trend is certainly upward, this is why monthly updates almost seem too frequent. In 2016 I might decide to switch to quarterly…
Eric
It looks like you had a pretty solid month for dividends. Ouch that repair bill trumps mine, I have to shell out 700 bucks for a new water pump and timing belt. Good luck in 2015.
EL @ Moneywatch101 recently posted…Creative Ways to Save Dollars
Repair bill in August. October is personal property tax on the cars. November is 6-month insurance premiums. It really just goes on and on with these cars. Amazing that what was once so great becomes a burden so quickly. Just like with the NYC apartment that we had, though, in a few short months, these car issues will be a distant memory.
It’s a long journey, for sure.
Wow Eric! Great job on the monthly visitors, that’s amazing!
What do you feel has been the biggest contributor to your visitor increase?
It’s cool to see you enjoying family life so much.
Jonny recently posted…July 2015 Net Worth Update
Hey Jonny,
Biggest reason was the featured spot on 1500 Days. That pulled over maybe 3-4k views over the course of a few days. Other than that, finally setting up my RSS feed was pretty big. August, so far, is even stronger–mostly due to just putting out good content…or so I’d like to think.
Eric
I just found you from a comment by Eric at Retire29. How could I have missed you after all those years of us both reading similar sites?
It appears we have something in common – I lived for years south of you off of I-25. I am guessing there is something in the Colorado water that breeds early retirement sites. It has been a while since I lived there, however I do travel there often visiting family.
I look forward reading your articles.
Bryan@Just One More Year recently posted…Discovering new adventures in Williams Arizona
Erick, that’s a very noble idea. The story that you have recounted has made me revisit my financial plans and goals for this financial year. Your strategy is quite interesting and I cannot wait to test it and see whether it will work out for me. Please, wish me luck.