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.
How are we currently doing?
The current market value of the hoard is $79,035 (vs last month’s $61,435). This is about 13.17% of our $600,000 goal.
Primary residence: The mortgage is $97,227 (vs last month’s $97,486), which means it’s about 0.79% paid off.
Woah. I knew the numbers going in, but I am still floored by the progress this month. Our net worth is up $17,600 from just last month!!! And the vast majority of that gain is due to fresh money added, rather than capital gains.
As I mentioned in the last update, Mrs. Dragon and I got an opportunity at work to put in extra hours for more money. We already save a healthy chunk (50+%) of our regular income, and all the extra money we earned went straight into tax-deferred accounts, which means we didn’t get much siphoned off in the way of taxes.
We will get a little more extra work this month, and an even smaller amount in August, so the numbers should continue to be better than average for the next two updates before returning back to normal.
I was originally thinking that $100,000 in liquid assets by the end of the year would be a stretch goal for us, but it seems very doable now thanks to the extra hours at work.
We continue to invest heavily while only paying a little extra on the mortgage. My last post discusses all the reasons for this in detail.
That’s all for now. The Hoard is morphing from a few scattered coins into a smallish pile of cash. Hopefully we can keep our momentum going.