The Hoard: July 2015

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.

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.

Do you think we are on track for FIRE by February 2025?  How is your own progress coming?

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6 thoughts on “The Hoard: July 2015

  1. Hey Dragon, I just came across your site from seeing a few comments on other blogs. Good stuff! I really like the financial update. It is inspiring to see others working so hard towards the same goal. I just started documenting my journey, as well. Good luck with your goal! I’ll be digging through your blog for more interesting articles.

    • SomEx,

      Thanks for stopping by and taking the time to comment. I agree that it’s very motivating to see other people’s progress, which is why I share my own. It’s always good to find another person on the path to wealth. I see you’re trying for FI by 2020. I’m shooting for 2025, so we’re on similar-ish timelines. Cheers!

  2. Wow! Almost a $18K increase, that’s absolute astounding!

    What’s your take on aggressively paying down the mortgage vs. saving in retirement accounts?

    Keep up the amazing work!

    USSFI

    • USSFI,

      Yeah, I was really pleased with the progress here. I actually wrote a post about mortgage vs savings. You can find it here. Essentially, for now, we are paying only a little extra on the mortgage and pumping the rest into investments, but I think it really depends on your circumstances. Cheers!

  3. You crushed it this month, this is an impressive addition to your hoard!
    I read on an earlier post about your expenses, which are quite low incl. your mortgage payments, you should have a rather high savings rate.
    Is this something that you track, to link your expenses to your income?
    Nick

    • Hey Nick, thanks for stopping by and taking the time to comment! Yeah, July was rocking on the income side of things thanks to extra summer work. We do have a high savings rate, but it’s not something that I actively compute every month. At a guess I would say it averages to about 70% this year. Another reader suggested that I start tracking it. Maybe I should give the people what they want 🙂 Cheers!

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