Andy Hough

June was another bad month on my progress towards financial independence.  My SWR has increased to 59.41% from 55.15% the month before.  Some of that is because I am setting money aside for my hiking expenses and another reason is I haven’t been saving much.  And in June my investments actually lost money to make things even worse.

My goal is to save 50% of my income each month and I didn’t come close to meeting that goal in June. I made $1902.65 and managed to save $100. That amounted to a 5.25% savings rate.  My June expenses were once again too high.

The 4% SWR translates into having 25x your annual expenses in savings or 300 months of expenses in savings. I have 20.19 months of living expenses saved now. I had my monthly expenses up to 24 months earlier this year, but the combination of higher monthly expenses and low savings has caused me to go backwards. I probably won’t be able to reverse this trend until I return from my hike.  My monthly expenses should go way down though so maybe that will help reverse the backwards trend.

Here is a breakdown of my income for June.

My June income was a little better than in May.  The online income was surprisingly strong.  I’m hoping that will continue while I’m hiking.  The bank bonus of $150 also helped out a bit.  I planned to sell a lot of stuff in June but I didn’t get around to listing much for sale and ended up only selling one item.  I can work more on selling stuff when I get back from my hike.  It was a decent month for income although I didn’t make much from my job. Having various sources of income is helpful.  Although my expenses were high in June my income was still more than my expenses so that was good.  I don’t expect to make a lot in July but hopefully my income will at least be higher than my expenses.

Here is a breakdown of my expenses for June.

My June expenses were much higher than I’d prefer. I missed my goal of keeping my monthly expenses under the minimum wage level of $1274 a month for the first time this year.

My food bill was under my $100 goal. Even though it was pretty low it could have been a lot better.  The total includes over 20 fast food meals.  The only reason the bill was lower than normal was because I ate a lot of the food I had previously purchased.

My transportation expense were the budget buster. I spent a little over $500 in repairs. I went ahead and replaced my catalytic converter which was a little over $500.  That was a lot less than the $1000 I was quoted at the first repair shop but still a lot more than I liked spending.  I also had my six month auto insurance bill which was about $200.  I’m looking forward to having transportation expenses of well under $100 in July.

I’m making a stretch goal of keeping my total expenses under $500 in July.  That will be pretty hard to do but it isn’t impossible.  My expenses should definitely be a lot less than they have been the last couple of months.