It’s that time of the month where I disclose my finances to you, in full and update you on my progress towards financial independence and early retirement. Following the news I gave in last months report about my increase in salary, I’m making some nice progress with my savings, and my retirement investments, both company pension and ISA are making some decent gains in this absolutely insane market we’re currently experiencing. Seriously considering selling everything and holding all my cash at the moment. Because this market has to go down at some point! Surely?! Let me know your thoughts on this in the comments.
Anyway, here’s the monthly break down:
Expenses for May:
Same as last month, really! Still in lock-down in the UK, so no major changes! Oh… except for the £552.13 bill for the car 😭. I was so grateful that we had money saved for exactly this type of event! Starting a car maintenance savings account was one of the best decisions I’ve ever made. If you don’t currently do it, you should start! Believe me. there’s nothing better than putting your car in for its MOT or service knowing that you have the money set-aside for almost any outcome should the worst happen.
Other than that, I think we spent a bit extra on takeaways than usual. Which is perfectly justifiable when you have a 7-month-old who has the ability to throw all your dinner plans out the window at any given moment by suddenly deciding they want to go from three naps per day to zero, refusing to sleep whilst moaning and screaming because they’re tired. Trust me. By the time you’ve finally got them to sleep at 9 pm on a Tuesday night, the last thing you want to do is prepare a meal from scratch. Not at all FI, I know. Stop judging me!
No updates on this tab this month!
Retirement Savings Estimate:
I’ve worked out the numbers in that table under ‘Savings’ using a compound interest calculator online using worst-case interest values. You can see that, based on the estimated expenses in retirement and the estimated savings values, there’s a nice healthy gap of £1,419.18 which is a surplus of cash. If this starts adding up over the years, I can consider bringing my retirement age forwards!
My savings are definitely moving in the right direction! Like I mentioned at the start of this post, I’m seeing some crazy gains on my stocks and pension investments which is driving this ramp-up in savings over the last two months. I’m not complaining! But I am VERY suspicious of this market right now. It’s extremely overvalued! And that’s facts, not opinion. I’m likely to take profits on a lot of my current positions at the end of June and wait for the inevitable dip that’s coming when companies start posting their Q2 earnings.
Other than that, our car maintenance fund has dropped to £0, thanks to the huge garage bill we got this month on one of our cars for its MOT, service, air-con re-gas, 4 new tyres, tracking and brake fluid replacement. But like I said, I’m SO happy we saved for this stuff! What wasn’t covered by the savings we had for this was covered by a bonus I received this month.
Equity & Assets:
No major changes on this one. Still chipping away at the mortgage which is up for renewal in September.
I wish this graph was moving downwards and fast as our savings were moving upwards 😂. However, progress is progress! I mentioned last month that my Wife got a refund on her credit card which cleared the balance and that we had to put some of our living expenses on that card. So, you can see it went to £0 last month and back up to £400 this month. Which means we actually paid £527 off of it, if you look at the balance in March. Not bad!
Net worth is also looking good and moving in the right direction! This being driven by the stock market gains we’re seeing, increased equity and savings and slowly decreasing debt!
That brings May’s report to a close. As always, let me know if you have any questions or thoughts on this post. I’d love to hear from you.
And if you’d like to receive your very own Path To FIRE Spreadsheet you see in the images above, you can purchase this below. I can’t tell you enough how much it’s helped me get a grip of our finances and better plan for our present and future!
My Path to FIRE Spreadsheet Template
There are instructions on each tab so you know what information to put where. The formulas work out everything else for you! Once your payment has been processed, you'll receive the document to your inbox within 24 hours. If you need any help with it, reach out to me via Twitter or Facebook using the links at the top of this page.
Click Here to see my full list of resources to help you achieve your financial goals.
If you’re getting value from these posts and want to support this blog, subscribe below to join the FSD notification squad to get new posts straight to your inbox! Thank you!