In August, on a family level, it’s all change here but the finances are boring – steady as she goes – or more accurately we are storming it.
Forgot to post this one earlier in the month, but better late than never.
I’ve not been over doing it at work and take home a modest salary. The Lady gets here monthly pay and that is enough to live on.
Dividends this month were around £4,300 – helped by the side hustle but also some stellar dividends from VCTs – which have been a great investment of late, gaining about £25,000 or 30% over the last year. Dividends plus income covered spending.
Outgoings were almost £6,000. WTF? Where’s the funds going? I could blame childcare but that is now lower that the Master is at school – down to only £1,200. Household costs were steady at £850, so the culprit is other spending at £3,750. We holidayed in August and the costs came in for that – eating out, entertainment & health and beauty being the main culprits. Now with the Master in school, our spending should come down. Childcare costs were £1,800+ earlier this year, now £1,200 and from January will be around £700 until the Little Lady goes to school in 2 years’ time. We are looking at after-school clubs for the Master but not decided yet on what we’ll do – at £10 a day it might be a good investment or a waste of money.
My side-hustle is still a secret but due to some changes in circumstances (which I had foreseen or at least positioned myself to benefit from the inevitable) it’s made us a lot of money in August. Somewhere in the region of a £20,000 uplift in value which is an amazing feeling to have. I’d like to think that it came from hard work, self-questioning and self-belief and all that. I’ve said that I’d never like to win the lottery as I would never feel like I’d earned it – so this uplift feels justified.
I think that now’s a good time to get out of this side-hustle as I don’t really need it and I think that I can’t make much more money with it than I have already.
Up 1.0% on the month – record net worth, pensions, FIRE funds. All indicators are positive except for our withdrawal rates – which should settle down towards the end of the year. With the master in school and our finances in the way they are, it feels like financial end-game.
We are in a very fortunate position, financially and personally, to be set for life. Looking at our numbers and modelling free-cash, spending and incomes for the next 40 or so years; we’ve done it! We are now clearly in a position to have all of our future money needs taken care of. Work is now truly optional. And even better – our pension years are even rosier.
This is important because now that the Master is in school our world has changed a little bit. I’d like to stay where we are living now for the next 15 or so years until the kids leave school, whereafter we’ll keep living here but travel more. That’ll put us up at the early access to pensions age – when we’ll have formidable spending power and the time to use it!
However, it does mean that the intervening years have less stress, worry and money problems. It means that like yesterday, when the Master vomited up his breakfast and had to take the day off from school, we could just take the day off together. We ended up all going on a 20km cycle, had lunch out and even an ice cream on the way back! You can’t do that if you are a wage slave, with a commute and a boss who expects you in work on time. From my perspective, life is very good and it feels good to choose family over work time and time again (after doing the opposite for many years).
I’ve not blogged much over the last 3 months. Partly because I did write but didn’t post (due to a new computer that we got which isn’t fully set-up and partly due to being too busy). We had a very good summer and are very happy. I did feel that there’s not always much new to say and the effort in writing posts, especially with lots of links and pictures. I’d love to have a travelling with kids blog but I don’t think it’s worth it. At least I am not trying to make a living out of this blog – it’s more of a labour of love.