Happy New Year everyone! I hope you had a great winter vacation. We went to visit family near Palm Springs and had a great time. The weather was nice and sunny there. I don’t know how many more gloomy Pacific Northwest winters I can endure. RB40Jr After high school we will probably move to California. Ms. RB40’s parents are getting older and they need more help. Also, I think the cost of living in the California desert is actually cheaper than in Portland. Our property taxes are 6 times higher than my father-in-law’s! He had a half acre of land that when we moved to California we could build something out back. However, this could significantly increase property taxes. We’ll figure it out. Maybe I’ll buy an Airstream. He already had a large concrete pad behind him.
Okay, let’s wrap up 2024. Thanks to the stock market, our net worth has reached new highs. Our expenses are also pretty low. The only obstacle is income. Sadly, my active income continues to decrease. However, I’m not too worried. This is part of the transition to full retirement. In 5 years, I may not have any active income at all. We will withdraw funds from retirement accounts as needed. Our investments should support a comfortable retirement.
Well, I’m going to share how my 2024 goals came to fruition. Then I’ll review our net worth and cash flow. let’s go!
2024 goals
Here is my 2024 goals spreadsheet. It works great. If you can’t achieve your New Year’s resolutions, give this a try. The key is to review the spreadsheet each month to track your progress. This way, you can understand which goals require extra attention and work toward them.
I achieved most of my goals in 2024.
financial goals
FI ratio > 100%
The 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 lower this goal to 100%. We are older and can afford to spend a little more money.
The result is 121%. That’s really good, but a lot is going to change in the next few years. I will write a detailed article soon.
*financial ratios = passive income/expenses
3% rule
Everyone is familiar with the 4% retirement withdrawal rule, right? Basically, if you withdraw less than 4% of your investable assets each year, you should retire successfully. Let’s see if we can get below 3% in 2024.
In 2024, our payout is well below 3%. This will become even more important in the coming years as our passive and active income dwindles.
Track net worth and hope for +10%
I have been tracking our net worth since 2006. In 2024, I hope the increase will be 10%. At this point, returns are entirely dependent on the stock market and there is nothing I can do to influence that goal. I’ll keep track of it and pray.
Our net worth has grown by 20.1% this year! This is much better than expected. Last year I felt the market was too hot and wouldn’t perform that well. This is why you need to keep investing. Again, being an investor is a good thing.
health goals
Exercise 3 times a week
Now that I am 50 years old, health is my number one priority. I joined a gym and planned to exercise at least 3 times a week. Unfortunately, after a few months of exercising I developed joint pain in my elbow. I can no longer exercise like I did when I was younger. It’s really hard to get older
I modified the exercises but the pain never completely went away. Finally, I took a whole month off in December. Taking longer breaks helps a lot. Now, I’m ready to get back in the gym. This time, I’ll try to avoid stress on my elbows. It’s hard to keep fit after 50!
health check
It is also important to consult a doctor. At this age, we need to deal with more maintenance and preventive care. I’ve accomplished everything on my list.
- Colonoscopy. complete!
- Annual physical exam. complete!
- Dental exam. complete!
- Vision screening. complete!
- Immunizations. Tdap booster vaccine, flu vaccine and Covid vaccine. complete!
interesting goals
international travel
RB40 Ms. is 50 years old and wants to take a fun and memorable trip. We visited Japan for three weeks. marvelous. I would love to live there for a year or so.
Happiness>8
2024 is a great year. The only time I was unhappy was when I got shingles. Too bad. If you are over 50, get the shingles vaccine.
Other than that, life is great. The secret to happiness is to stay busy with activities you enjoy and stay healthy.
Help RB40Jr start a YouTube channel
We gave up on this. RB40Jr. Lost interest.
Net assets (+20.1%)
I have been tracking our net worth since 2006. The power of compound interest is incredible. In 2024, our net worth grew by 20.1%, far exceeding our revenue. That’s why you have to invest.
***IMPORTANT*** My best advice is to stay the course. Don’t stop investing. Whether the stock market is rising or falling, you should continue to invest. You might think the stock is too expensive, but in 10 years it will look cheap. Keep investing and one day you will be financially independent. Don’t try to time the market.
Here is a chart of Empower’s net worth. (Personal Capital is now Empower.) Sign up for a free account with Empower to help manage your net worth and investment accounts. I log in frequently to check our net worth and use their free tools. This is a great site for DIY investors.
I’m not sure why the chart looks like this. The August and September update intervals can be confusing.
2024 Fire Cash Flow
This FIRE cash flow statement includes my online income, side hustle income, and taxable passive income. Ms. RB40’s income and our retirement accounts are not included here.
Overall, 2024 is a great year. Our spending was on target, under $65,000. For a West Coast family of three, this is very reasonable. FIRE revenue streams are also performing relatively well.
2024 fire revenue: $62,001
- Real estate crowdfunding: $15,278. Real estate crowdfunding will be very popular in 2024, and one project successfully exited and made a good profit. You can learn more on the RE Crowdfunding Passive Income page.
- dividend income: $15,286. Dividend income is also good.
- Rental income: $7,260. I had a great year renting. We didn’t do any major repairs and the tenants paid on time. That will change next year. One of our tenants is leaving and I am planning to sell our rental apartment.
- Blog income: $12,028. My blog income has decreased again. In a few years, that number may be zero. Oh well, I had a good run.
- Odd jobs: $4,803. I deliver catering orders a few times a week. This keeps me busy. This revenue stream will also decrease in the coming years.
- other: $4,632. Tax refunds and other random stuff.
- interest: $2,714.
Expenses: $63,087
In 2024, I plan to spend about $65,000. This is how much we spent last year. We succeeded! However, I didn’t start any renovations this year. We will have a lot of repairs and maintenance to do next year.
- travel: $16,631. Travel is our biggest expense in 2024. marvelous. I think travel is going to be a big category when we’re healthy.
- housing: $15,480. This includes mortgages, utilities, furnishings, repairs and maintenance. Our housing costs are lower than most families because we live in a duplex. We share many of the costs with our tenants.
- transportation: $4,632. Gas, insurance and repairs. Our old Mazda5 is still running great and should last another 4-5 years. I don’t want to buy a better car now because we park it on the street. The cars here are all damaged.
- groceries: $5,711. We spend about $500 a month on groceries. For a family of 3 this is very reasonable.
- healthy: $3,513.
- child: $8,680. Wow, it’s true. The cost for children will be higher as they get older. RB40Jr needs braces and he participates in various activities.
- entertainment: $3,497.
- personal: $1,983.
savings: –$1,086
2024 Summary
Okay, let’s wrap this up. Overall, 2024 is a great year. We are doing well financially. Our net worth is at a new high, and our payout is less than 3%. My active income is down, but that’s just part of my gradual retirement. Ms. RB40 continues to work, but she thinks about retirement more frequently. She will probably retire when our son graduates from high school. However, the “more than one year syndrome” is very serious for her. I don’t know when she will retire.
I’m grateful for 2024. I hope 2024 is great for you too.
2024 is all over. How have you been this year?
Passive income is the key to retiring early. These days, I’m investing in commercial real estate Crowd Street. They have many projects across the United States. Go check it out!
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Passive income is the key to retiring early. This year, Joe is investing in commercial real estate with CrowdStreet. They have many projects across the United States, so come check them out!
Joe also highly recommends Personal Capital to DIY investors. They have many helpful tools to help you achieve financial independence.
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