My goal this year is to save 80% of my net income. This includes income from all sources: W-2, bonuses, 401k contributions, ESPP, stock options, RSU’s, rental properties, dividends, etc.
This is my first update in a few months as I had been pre-occupied with work and trying to close Rental Property #2. My expenses were also erratic since I had so many one time expenses to account for (mostly due to the $20k rehab). As such, I never got around to running the numbers from February-April timeframe. Eventually, I’ll try to get around to calculating these numbers.
The reality, though, is after one year on this early financial independence journey, I’ve kind of just gone on auto-pilot with my monthly expenses. That is, I don’t really even feel the need to keep tabs anymore, since my spending habits are so ingrained now. I trust myself not to over-indulge, and if I do from time-to-time, I’ll know what steps I need to take to auto-correct to get things back to steady state.
May marked the first month where Rental Property #2 was ready to go and starting to collect rent. This helped provide a big boost in the savings department as I was able to clear 80% (81.45%) for the first time this year. Also, I received a nice $1000 bonus from work for doing a good job on a past project from last year. After taxes, I was left with just under $600, but hey, I’ll take it. Free money never hurts!
Other than that, most of my other expenses were inline with what I’d usually expect. One plus is that I didn’t have to fill up on gas this month! I started biking in May, and am already grateful I’m doing this. Not only b/c I’m saving a hundred bucks a month or so, but mostly for the health benefits. All that exercise is even making work a little less painful these days. We are near the half-way mark for the year, and I’m excited to be that much closer to financial freedom!
Here are the numbers for May: