The Summer is over and the days are getting shorter. It’s now feeling like Autumn. How’s the Family Office looking?
From a family point of view, things have been changing a bit here. The Little Lady is becoming more and more fun and enjoys a good laugh. The Master is becoming clingy (to his mother – not so much me) and is developing signs of OCD! Not good.
The Lady is back in work again in a month’s time after 12 months on maternity. My job situation is… mmm… fluid I would say. Watch this space!
Income – Steady
More or less steady. The Lady got another surprise £150 from work as the company is doing well – although her maternity pay is Zero. We also made another £50 from AirBnB which was swallowed by investing in new sheets to make the turnaround betweeen guests easier.
Dividends – Super
Total dividends of around £2300 including £1200 from P2P lending (thanks Abundance) and £750 from VCTs, £50 from AirBnB was nice. ISA dividends are too low but I expect to top-up my ISAs this month/next to boost them up in coming months.
Besides movement in P2P investments, no investments were made in August. I will invest some of the pent up dividends in our ISAs/SIPPS this month using the regular investment costs of £1.50 with HL & Youinvest.
Outgoings – Not too bad but too high!
We had an expensive month with spending above the 6 month average but about £900 less than July. The heavy hitters were the cost of our recent holiday in Ireland and also some forward spending for a trip to Italy in September we are taking. Other items including some personal goods (clothes, shoes, phones) – one offs you could say.
Outgoings were more than dividends – meaning we need the income from work to fund our lifestyle.
Savings Rate, SWR & Budgeting – So so
Savings rate of around 45% – which is good considering our dropped income due to maternity leave.
Our average dividends made up 94% of our average spending – which is a bit of a record. That’s probably the high-water mark as having kids saves you money! But once you get back to your old habits, life becomes as expensive as usual.
SWR sits at 4.0% and for FIRE funds it’s 9.0% – meaning that we still need to work to maintain our lifestyle or achieve a comfortable 9.0% + inflation return on investments (which I’m not doing right now).
Assets, Net Worth & FIRE funds – Steady
Networth dropped 1.4% moth on month and is up 6.3% year on year. FIRE Funds were DOWN on the month and only up 5% y/y. This is concerning stuff because if we are spending less than we earn and our net worth and funds are not increasing – then our investments are doing badly. When I look at where our money is invested – it seems hard to say much other than the markets have moved against us – but that’s a shit excuse.
My god, I do focus a lot on money. The more money you have the more boring it all becomes. There’s more important things going on with our lives at the moment.
How was your August?