Month-end: August 2021

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.

Income

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

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.

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.

Side Hustle

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.

Net Worth

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.

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!

How things might pan out…

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).

Blogging

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.

Thanks, GFF.

4 Comments

  1. It’s nice to get to the work optional point and be able to worry a little less about those child based issues. This year and last year I needed and wanted to take unpaid leave in order to cover the school holidays. The financial aspect of 2 months unpaid leave was considerably less problematic than getting work to approve my requests.

    Many blogs die down after a while because as we all know getting rich slowly is pretty boring after you hit a couple of key milestones. Mortgage paid off, it’s a nice feeling for a bit. Hit 7 figures net worth, that’s nice but there’s always the feeling is it enough. Day to day sending met by investment income – great now all the employment income can be invested.

    Getting to the point where you believe you now have enough does pose some issues. In my case it makes me a pretty terrible employee as I can turn overtime down and request additional time off.

    Anyway, it’s nice to have choices isn’t it.

    As for your side hustle, I’m still intrigued but those sniffer dogs are becoming much better aren’t they.

    Enjoy time with your children whilst they are young. My son is now 7 and time really does fly by.

    Liked by 1 person

    1. Funny you say that, we have 2 weeks holiday for school and we booked two trips away with a few days at all home in between.
      My boss has asked me to work the two days when I’ll be back and available – coinciding with the Master’s 5th birthday.
      I said yes, maybe I should not have.
      But it’s nice to be needed and to know that there is paid work once I come back from holidays. 😁

      Like

      1. I’d have thought that it’s prudent to do a little work from time to time just to keep yourself employable. Insurance, if you will.

        Like

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