The path to financial independence: Sept 2016

Adding cash to the financial independence stash

During the month of September I often had to tell myself the story of the hare and the tortoise and remind myself that the tortoise did in fact come out ahead.

What caused the growth of the stash to be slower than usual in September?

  • Our 401ks are maxed out, so there were no automatic paycheck contributions to help bump up the stash.
  • My employer is still doing a true-up of my 401k, but the amount is small. Mr. BITA’s employer has already contributed the full match for this year.
  • We were unable to invest much of what we saved from our paychecks this month because we have some large expenses coming up in October.

Now that we have got the whiny ‘and this is why I didn’t save enough’ disclaimers out of the way, here is where we are on our journey to financial independence. 

monthly-progress-art-sept-2016

September brought us $12623.14 closer to financial independence and early retirement. Part of that is new investments and the rest can be attributed to the growth of our existing investments.

We added $7,535.57 in new investments to the stash.

  • I sold some of my company stock, rounded the proceeds up to $50,000 and invested in our taxable account. So, this was pretty much a wash – just moving money around to reduce overall risk. We’ll end up with the tax bill for the sale too (though all of it was long term capital gains), so our stash numbers are currently a bit inflated.
  • Mr. BITA had some RSUs vest and that constituted the bulk of our new money this month.

sept-2016-numbers

Next we look at how our existing stash grew in September. The total amount of growth is $5,087.57 and here is how that breaks down:

sept-2016-numbers-growth

The financial independence plan vs. reality

So, how are we doing with respect to the Plan?

According to the Plan, we need to save $20,000 more before the end of 2016. The Plan was created after we had already done our savings projections for September, so the $7,535.57 we saved this month does not count towards the $20,000. Oh well.  

Financial independence status: on track

 

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2 thoughts on “The path to financial independence: Sept 2016”

  1. Hey Mrs BITA, this is a really nice update – I like the picture of the stairs too 🙂

    Maxing out your 401Ks is a good achievement in itself, but all the extra investing you’ve done is fantastic. I love seeing all the growth on your graph!

    Tristan

    1. Thanks for stopping by and I’m glad you you enjoyed the update. I have extremely modest artistic skills so drawing those stairs was a bit of a challenge. Hopefully I never have to depict us climbing downwards!

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