November 2023 Early Retirement Replace – Fall Colour Explosion

Welcome again to a different month-to-month replace from Root of Good! Right here we’re midway between Thanksgiving and Christmas having fun with the previous couple of weeks of the yr. As this put up goes stay, we’re days away from crusing on a cruise to South America and Central America the place we’ll have a good time Christmas. We return house simply earlier than New Yr’s so our 2023 is quickly drawing to a detailed! 

Despite the fact that we didn’t actually do any touring this fall, we nonetheless saved busy with different each day routines round house. Wanting forward, 2024 is shaping as much as be a busy yr for journey, with just a few home journeys deliberate within the first few months of the brand new yr. In the summertime, we head to Europe the place we’ll spend a few months street tripping round Poland. 

On to our monetary progress. November was an ideal month for our funds. Our internet price skyrocketed by $134,000 to finish November at $2,817,000. Our revenue totaled $1,992, whereas our spending was a bit extra at $2,682 for the month of November. 

Let’s leap into the main points from final month.

Earnings

Funding revenue totaled $512 in November. Our fairness index funds and ETFs pay dividends quarterly on the finish of March, June, September, and December. In consequence, we had a smaller than regular quantity of funding revenue final month. However we must always get an enormous payday in December! Right here’s extra on our dividend investments.

Weblog revenue totaled $654 for the month. That is the “new regular” for weblog revenue since I solely put up on right here about as soon as monthly. 

My early retirement way of life consulting revenue (“consulting”) was $179 in November which represents one hour of consulting. Issues are lastly choosing up on this division within the early a part of December, with two new shoppers booked to date. We’ll see how 2024 goes! I believe I’ll give myself a small inflation increase on my charges for subsequent yr. However nothing loopy. 

Tradeline gross sales revenue totaled $500 in November. It’s good to see this revenue stream come again after just a few gradual months. I ramped up my tradeline gross sales just a few years in the past mentioned it in a bit extra element in my October 2020 month-to-month put up and in my July 2021 month-to-month put up. 

For November, my “deposit revenue” of $14 got here from money again and incentive bonuses from the Rakuten.com and Mrrebates.com on-line procuring portals (a few of which was earned from you readers signing up via these hyperlinks). 

If you happen to join Rakuten via this hyperlink and make a qualifying $25 buy via Rakuten, you’ll get a $10 join bonus (or extra!). 

Youtube revenue was $131 in November. Youtube solely pays out if you hit $100 in collected income. Just lately, my Youtube earnings have been just below $50 monthly on common, so I solely receives a commission each two or three months.  

Right here is the Youtube channel for the curious. It’s random journey movies, birds, youngsters, and a few DIY movies. There are only some principal movies that herald many of the visitors (and income!).

If you happen to’re concerned with monitoring your revenue and bills like I do, then try Empower Private Dashboard, previously often called Private Capital (it’s free!). All of our financial savings and spending accounts (together with checking, cash market, and 5 bank cards) are all linked and up to date in actual time via Empower Private Dashboard. We have now accounts everywhere, and Empower Private Dashboard makes it very easy to test on all the pieces at one time.

Empower Private Dashboard can also be a stable software for funding administration. Retaining observe of our whole funding portfolio takes two clicks. If you happen to haven’t signed up for the free Empower Private Dashboard service, test it out in the present day (evaluate right here).

Monitoring spending was one of many important steps I took that allowed me to retire at 33. And it’s now simpler than ever with Empower Private Dashboard.

Bills

Now let’s check out November bills:

In whole, we spent $2,682 throughout November which is about seven hundred {dollars} lower than our usually budgeted $3,333 monthly (or $40,000 per yr). Groceries and insurance coverage have been the 2 highest classes of spending in November. 

Detailed breakdown of spending:

Groceries – $1,190:

The grocery spending is barely inflated as a result of I purchased $400 price of Walmart present playing cards at a reduction throughout November, however I spent a few of these through the month as effectively. We nonetheless had just a few hundred {dollars} remaining on the present card that we are going to spend all through December. 

One other issue driving grocery spending in November was an enormous Thanksgiving day celebration. We had an enormous household gathering at our home this yr and cooked quite a lot of the meals ourselves. Many within the household get pleasure from cooking, so that they introduced quite a lot of potluck type dishes too. 

Insurance coverage – $736:

I paid our six month auto insurance coverage invoice throughout November. With a teen driver on the coverage, the insurance coverage nonetheless feels fairly low-cost. I all the time assumed we’d pay much more for auto insurance coverage for a teen driver. Since she has over a yr of driving expertise with no wreck, they lowered the premiums for her a bit. Including our second automobile in September elevated our premiums a small quantity as effectively.

Utilities – $261:

We spent $148 on our water/sewer/trash invoice. 

The pure gasoline invoice, which gives heating and sizzling water, totaled $29 for final month. We didn’t use the warmth a ton through the billing interval included in final month’s invoice. Nevertheless, it’s typically chilly in North Carolina now so we have now to make use of the warmth most days. 

The electrical energy invoice totaled $84 in November. 

Healthcare/Medical/Dental – $176:

Our present 2023 medical health insurance prices $18 monthly, because of very beneficiant Inexpensive Care Act subsidies that we obtain resulting from our low ~$45,000 per yr Adjusted Gross Earnings. 

Our 2023 dental insurance coverage value a complete of $29 in premiums monthly. 

I selected a really primary plan for $9 monthly for me that covers most preventive care however no fillings. Mrs. Root of Good has a unique set of dental wants than I accomplish that we saved the extra complete $20 monthly plan for her (similar as 2022’s plan).

By shopping for insurance coverage, we must always save a pair hundred {dollars} on my dental care. For Mrs. Root of Good, we’ll find yourself saving a internet quantity of $63 in comparison with paying money for the preventive dentist visits all year long.

In November, Mrs. Root of Good went to the dentist and the costs after insurance coverage have been $129. This included fee for the deductible and co-insurance that was owed from one other dental go to six months in the past. 

Presents – $130:

Varied Christmas presents for household totaled $130. 

Journey – $97:

We didn’t spend a ton on journey in November.

I spent $80 for a reduced $100 Airbnb present card on the grocery retailer. 

The opposite $17 in journey spending was the airport taxes for 3 one-way flights on Southwest utilizing factors. We’re tentatively planning on visiting Phoenix in January for 5 nights, with a multi-day pit cease in New Orleans on the flight again house. I’ll be incomes the Southwest Companion Cross in early January (extra on that in a minute), so Mrs. Root of Good’s flights shall be free aside from $17 in taxes we’ll pay in January. I’ve lodges booked without spending a dime utilizing Marriott factors and Chase Final Rewards factors. Our principal out of pocket value for the journey would be the rental automobile which needs to be $200-300 for 5 days in Phoenix. 

Get free journey like us

If you’re concerned with getting free journey out of your bank card like I do, think about the Chase Ink Limitless or Chase Ink Money enterprise playing cards (my referral hyperlink). Proper now, for a restricted time, the Chase Ink enterprise playing cards supply an eye-popping 90,000 Chase Final Rewards factors that may be redeemed immediately for $900 in money. Mrs. Root of Good simply picked up one other new Chase Ink card final month, and I simply received my new Ink card in October. The bonuses carry on rolling within the door!

I’m guessing the 90,000 level join bonus will solely final for just a few extra weeks, so join now in order for you the upper bonus quantity. 

Chase is fairly liberal with regards to “what’s a enterprise”. If you happen to promote stuff on eBay or Craigslist or do some odd jobs often then you could have a enterprise and will get a bank card as a “sole proprietor”. 

I exploit the 90,000 Chase Final Rewards factors by transferring them to my Chase Sapphire Reserve card (additionally providing a 60,000 level join bonus proper now). With the Sapphire Reserve card, I can get 1.5x the factors worth by reserving cruises, flights, lodges, or rental vehicles via their journey portal. Or 1.25x worth by reimbursing myself for groceries. That turns the 90,000 factors into $1,350 of free journey or $1,125 of free groceries. For instance, I booked 3 nights in a $100 per evening French Quarter New Orleans resort for a complete of 20,000 Final Reward factors. Or I can switch these Final rewards factors to over a dozen journey companions’ airline/resort packages like United, Southwest, or Hyatt. 

Southwest Companion Cross deal – time to behave now!

I additionally picked up a pair of Chase Southwest playing cards through the first a part of November. My purpose is to obtain the join bonuses within the first a part of January 2024, and thereby earn a Southwest Companion move that shall be legitimate via December 2025. The Companion Cross is legitimate for the yr you earn it plus the next calendar yr.

The Companion Cross mainly grants a free flight to your companion if you guide flights for your self (with factors OR with money). This implies Mrs. Root of Good is flying free on Southwest for all of 2024 and 2025! 

Simply bear in mind to NOT full the spending requirement till after January 1st of 2024 otherwise you’ll miss out on an entire yr of Companion Cross advantages.

Notice that these playing cards have an annual price (however they provide quite a lot of free factors every cardmember anniversary so it offsets about half the annual price). And you may apply for each playing cards on the identical day in order for you. 

Referral hyperlinks if you happen to’re :

Chase Southwest Fast Rewards Efficiency Enterprise card – 80,000 SW miles ($199 annual price) – choose the “Efficiency enterprise” card choice

Chase Southwest Fast Rewards Plus card – 50,000 SW miles ($69 annual price)

For $268 in annual charges, we’ll get ~130,000 SW miles (plus an additional 10,000 mile head begin towards the Companion Cross qualification), and the Companion Cross that gives buy-one-get-one-free Southwest flights for two years. Simply pay taxes on the free ticket (often $5.60 per a method section within the USA). That’s about $3,600 price of free flights for the 2 of us. 

Clothes/Footwear – $60:

Some new shirts and different objects.

Schooling – $18:

Two transcripts that have been despatched to East Carolina College for $18 whole.

Thrilling information: our oldest daughter simply graduated from neighborhood school this fall! She begins at East Carolina College in just a few weeks within the on-line Enterprise Administration bachelor’s program. Monetary support just isn’t finalized but, however it seems that our out of pocket prices shall be $0 after the varied grants, with our daughter getting a good residing stipend every semester. 

Fuel – $16:

A half tank for our new automobile got here to $16. The brand new automobile is extra gas environment friendly so we must always spend rather less on gasoline.

Cable/Satellite tv for pc/Web – $0:

We typically pay $18 monthly for a neighborhood lowered price bundle resulting from having a decrease revenue and having youngsters. 30 mbit/s obtain, 4 mbit/s add. Proper now the price of the web service is quickly lowered to $0 because of the “Inexpensive Connectivity Program”. 

Yr to Date Spending – 2023

 
We spent $34,437 through the first eleven months of 2023. This annual spending is about $2,000 lower than the $36,667 we budgeted for eleven months of spending in our $40,000 annual early retirement finances.

It seems that our new automobile buy didn’t throw our annual spending off by very a lot. We’re nonetheless working a small finances surplus with solely two months of spending remaining within the yr.

December is sort of half over at this level, so I don’t foresee any sudden bills arising earlier than year-end. So we must always end off 2023 barely under our annual spending goal of $40,000 per yr. 

Month-to-month Expense Abstract for 2023:

• January – $3,423
• February – $1,675
• March – $1,679
• April – $1,566
• Might – $2,976
• June – $1,536
• July – $2,064
• August – $2,615
• September – $12,714 (we purchased a brand new used automobile)
• October – $1,513
• November – $2,682

Abstract of annual spending from all ten years of early retirement:

• 2014 – $34,352
• 2015 – $23,802
• 2016 – $38,991
• 2017 – $31,708
• 2018 – $29,058
• 2019 – $25,630
• 2020 – $28,466
• 2021 – $31,740
• 2022 – $29,449
• 2023 – $34,437 (Yr to Date via November 30, 2023)

Internet Price: $2,817,000 (+$134,000)

Our internet price recovered remarkably in November to finish the month at $2,817,000. This represents a $134,000 (!!!) achieve from the October internet price determine. That’s an enormous sum of money to realize in a single month, however doesn’t actually change something with our present spending. That’s all long run cash. I’ll depart it within the portfolio to maintain on rising. And to insulate towards future months of six determine losses! 

For the curious, our internet price reported above contains our house worth (which is absolutely paid off). Nevertheless, please notice that I don’t think about my house worth as a part of my portfolio for “4% rule” calculation functions. I notice people ask me about that each month so I simply wished to state that right here for readability.

Life replace

As 2023 attracts to a detailed, I’m feeling grateful for one more good yr of early-retired life! It took us a decade to save lots of and make investments our method towards this way of life. And now I’ve loved an entire decade of being retired. That feels fairly nice!

This yr introduced quite a lot of adjustments. Our son graduated from elementary faculty and began center faculty within the fall. Our center little one simply graduated from highschool this previous spring and can graduate from neighborhood school subsequent spring (at age 17!). Our oldest daughter simply graduated from neighborhood school this week and is beginning at a 4 yr college in January. 

Onward and upward, proper? 

The children’ altering schedules imply our schedules change, too. Our days used to have two built-in each day walks – one within the morning to stroll our son to the elementary faculty and one within the afternoon to select him up. Now he carpools to center faculty within the morning with a pal. We opted to proceed the morning stroll routine to maintain getting some train. We handle about two miles across the neighborhood and thru the park every morning (aside from just a few days the place it was actually freezing outdoors). Plus a shorter afternoon stroll to select him up from the bus cease. 

All this strolling is sweet for us. It makes exploring numerous ports, cities and mountain climbing trails much less exhausting since we’re accustomed to strolling just a few miles a day already.

A number of days after this put up goes stay, we’ll be hopping on a airplane to Miami the place we’ll spend the remainder of December on a cruise destined for South America, Central America, and the Caribbean. On Christmas Day, we shall be docked at an island about thirty miles off the coast of Honduras. We’ll test off just a few new international locations and benefit from the hotter climate within the tropics alongside the best way. 

Okay people, that’s it for me this month. Glad Holidays! 

Who’s prepared for some enjoyable over the winter break??!!

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