The Hoard: July 2016

The Dragon's Hoard

Every good dragon has a hoard.  You know.  The collection of gold, jewels, and other valuables that the dragon guards in his or her cave.  For me, The Hoard is what I call my assets.  The collection of stocks, bonds, and other income producing assets that Mrs. Dragon and I have collected thus far.

Mythological fire breathers have to protect their hoard from knights seeking glory, wizards wanting power, etc.  Real-world FIRE breathers have more mundane, but very real dangers to their own hoards: the tax man, the cable company, lifestyle inflation, high-fee brokers, and many more.

This is one post in a series that documents my progress towards financial independence.

You might recall that I don’t include our primary residence in the assets (it doesn’t produce income) and I don’t include our primary mortgage against the assets.  If we had a rental house, I would include it in both parts of the equation, but I’ll address the primary residence in a separate category.

I do not differentiate between tax-advantaged accounts and taxable ones in the number for The Hoard.  Assets are assets.

We use the excellent (and free!) service Personal Capital to keep track of how The Hoard is coming along.  It lets you view all your accounts on a single homepage for a convenient snapshot of your financial life.  It is a top-notch service.  Highly recommended.

Mrs. Dragon and I want $600,000 in liquid assets and a paid-off house to consider ourselves financially independent. We’re hoping to accomplish this by February of 2025.

How are we currently doing?

The current market value of the hoard is $183,376 (vs $161,997 last month).  This is about 30.6% of our $600,000 goal.

Primary residence: The mortgage is $94,143 (vs $94,396 last month), which means it’s about 3.91% paid off.

I can’t help but laugh at the huge increase in The Hoard this month.  We had a couple thousand extra dollars in income last month because I’m teaching an online summer class, but the VAST majority of the increase is because of an uptick in the market.

This is why you don’t time the market, people. There was a lot of doom and gloom about Brexit last month, and the markets took a little dive. If you were silly enough to sell anything then you missed a substantial rebound for both US stocks and foreign stocks.

Of course, we’re just chugging along. Our investments are automatically deducted from our paychecks so the wheels keep turning without any help from us.

The huge jump means that it’s possible that we will break $200,000 this year! That would be incredible!

It’s just one more number on the way up, but it would be awesome to hit 200k in 2016.

In other news, we are adjusting to our new life with Baby Dragon.  There are already a few ways that our monthly spending will increase with the new addition to the family.  Most notably: increased health insurance costs and childcare costs.

Naturally I’ll be giving you the full rundown on these in the expense reports.

I hope your summer is going well, and you didn’t sell during the Brexit downturn!

Expenses: June 2016

ExpensesExpense report!  Since I’m a total voyeur for finance, these types of details are exactly the kind that I love to read on other people’s blogs.

Don’t get me wrong though, these numbers are primarily written for me and Mrs. Dragon.  Every good FIRE breather knows that to be successful, you have to track your expenses. You have to track them like Mrs. Dragon tracks US gymnastics.

How else will you know when your Hoard is big enough?

Without further ado, here are the numbers for June (rounded to the nearest dollar):

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