Also known as every dollar I didn’t spend in 2018! One year ago I declared the following monetary goals for 2018:
- Max my 401K ($18,500)
- Max a Roth IRA ($5,500)
- Overall invest $65,000
- Decrease my spending officially to $18,360 ($18,000 + 2% inflation)
(For progress on my non-monetary goals check out my annual goals and accomplishments posts.)
Overall Goals
So let’s get into the numbers. I’m happy to report that I accomplished all these goals – and then some! I maxed my 401K and Roth IRA in March.
I got my first real raise in February and calculated that I’d take home between $814 and $2,909 extra after tax depending on performance bonuses. So I set a stretch savings goal based on the higher estimate to invest $68,000 and I’m happy to report I’ve done it! This year my savings rate was 77.5% after tax. Not bad at all.
This year I also started getting a 401K match for the first time (though I had to fight tooth and nail for it since the system didn’t register me as eligible). Here’s a recap of that debacle:
401K Issue Resolved! I mentioned a few months ago that I was told I wasn't eligible for our new 401K match this year bc I'd already maxed contributions🤨. Well after months of bothering I'm getting a true up. A whole $150 – that's a month of groceries! 🤑💪🏾 #persistenceiskey
— A Purple Life (@APurpleLifeBlog) January 3, 2019
So I’ve received $150 as a match for 2018 and in 2019 I’ll receive an extra $600. Post-tax that’s about a half month of rent!
My Salary
My annual salary is always within a range because of those performance bonuses I mentioned, but I can now confirm that I made $106,763.68 in 2018 (I’ve gotta include the cents in there obviously 🙂 ).
My Spending
I thought my 2018 spending had gotten out of control, but based on my savings it turns out that’s not the case. I spent $17,715.55 in 2018 after properly allocating taxes. I guess it’s possible to live well on less even in a relatively expensive place like Seattle!
My Net Worth
I ended the year with my portfolio down about 4%, but despite that my net worth rose $46,002 from the end of 2017 to reach $280,884 in 2018. My highest end of the month net worth throughout the year was $305,589 at the end of September. I’ll see you again one day 300s! Also for the record, exposure therapy has continued to work wonders for me. Seeing that I ‘lost’ more in the market in a month than I spend in a year hasn’t made me bat an eye so far.
My Retirement Date
Based on my new net worth, my calculations show that I can retire on April 1, 2021, but I’m currently still striving for my goal of retiring by October 2, 2020 at the latest (I’ve previously thrown around September 30th as an alternate date). We’ll see what the market and my salary do in the coming year!
Locking Myself In
August: Our Lease
Our current lease expires in August. At that time I need to decide if we’re renewing and for how long. However, renewing might not be an option because the landlord is thinking about selling our building. If we can stay here and my retirement goal looks good I’m going to ask for a 14 month lease so our contract would be over the month I quit work. This will semi-lock me into a retirement date though if necessary we can move to a monthly AirBnB or find another place depending on my retirement time horizon.
If the landlord sells our building and we have to move I have a plan! I know you’re surprised 🙂 . I’ve asked nearby friends and have a great recommendation for a well priced and reputable moving company. We moved all our stuff into and out of a truck with our own two hands when we moved from NYC to Seattle because of the crazy cost of moving in Manhattan (even just a few blocks away). Moving seems to cost a lot less in Seattle – the cost of hiring movers is less than just a truck in NYC so we’re getting fancy over here and planning to have people move our stuff like princesses!
UPDATE: We were able to secure our apartment for another year! Read about the drama here.
November: The Travel Victory Lap
This is the true moment of decision as I detailed in this post. November is when we have to decide if retirement in less than a year still looks feasible. If it doesn’t look good, my Mom and I won’t book the 1-2 month New Zealand and Australia ‘victory lap’ that I’m planning and I’ll push my retirement date based on what my calculations are saying. If it is looking good, we will book this travel as early as possible in November (since we’re using points for difficult to get First Class seats in the Etihad apartments).
If everything looks good and we book this travel, but I don’t end up hitting my retirement number by the time our plane takes off I have a few options. I would either have to quit and then find a way to make up the difference (side hustle anyone?) or ask for a 2 month unpaid vacation before heading back to work. I’m not sure my boss would go for that, but I am more confident he might compared to other bosses I’ve had. So November is the ultimate test: If it looks like I’ll hit my number we’ll book it. If not, I shall re-evaluate. Flexibility!
Looking Ahead
So there you have it: all my financial dirty details for 2018. As for 2019, my monetary goals are:
- Max my 401K ($19,000)
- Max a Roth IRA ($6,000)
- Overall invest $68,000
- Continue spending around $18,000
Let’s see what this next year brings!
How about you? How was your 2018? Did you hit your monetary goals?
You are killing it!!! Awesome year :). 2019 is full of suspense, I love it and am rooting for the numbers in November to look good enough for you to book that trip. It’s also pretty awesome to know that either way, you have many options thanks to the flexibility the FU money gives you.
Awesome recap!
Thank you!! And yes I’m feeling a little at the whim of the universe, but even worse case scenario I’m still out of the rat race in my early 30s so I have nothing to complain about ☺️. So nice to hear you’re rooting for the November numbers!
Congrats on making your goals. Glad moving isn’t expensive there. 🙂 Hope to see you booking the victory trip in. November.
Thank you!! Yeah I think Manhattan brainwashed me with their prices so anything less seems really cheap to me. Moving there a few blocks cost $800+ and here we were quoted $250-300 to move anywhere in this area. I also hope to book the victory lap trip ☺️ hopefully your positive vibes make it happen! We shall see!
Wow!!! That is some expensive moving. The $250-$300 range is all I’ve ever know. LOL You have cemented that I cannot move to New York. 😀
Yeeeah – it’s crazy. And crazier that we moved almost every year because the rent increases were even MORE than the moving cost amortized. New York was a good way to jumpstart my career, but when I look back at what I spent on rent in crappy apartments with roommates I shudder because I could have bought a house free and clear in a MCOL area instead. Oh well – what’s done is done! I think NYC is a better place to visit than to live honestly. You’ll see a lot more of it than the workaholics that live there (such as myself). I saw more of it in the month before we moved than in the previous 4 years because I was funemployed.
well done. i’ve only maxed roths in the past. looks like you’re crushing it. do you plan to keep an apartment while you travel? good luck with the goals. it’s smart to make hay while the sun shines and you’re making money.
Thanks so much! Any interest in maxing a 401k in the future? The tax savings are almost addictive for me. Saves about 25% of my tax bill. I don’t plan to have an apartment when I travel the first few years. I want to be a vagabond and live out of a 30-40L backpack like Millennial Revolution. And if I don’t like that lifestyle I’m open to having a home base. We’ll see what Future Me wants to do.
Awesome work and congrats on reaching all of your goals. I had a successful year on the goal front as well, and therefore am challenging myself to set the bar higher in 2019.
All the best with the milestone decisions coming up later this year, and that victory lap trip sounds amazing!
Thanks so much! Congratulations on reaching your goals – setting the bar higher sounds awesome! It’s shocking what kind of stretch goals people can accomplish. Thanks so much for the encouraging words. We’ll see when the victory lap trip happens. My fingers and toes are crossed 🙂 .
Ugh, I know what you mean about seeing investments drop. I probably need a bit more exposure therapy, as seeing the total drop definitely still spikes my anxiety 🙄
Oh no – I’m sorry it spikes your anxiety! I think the reason exposure therapy has helped me is not just doing it, but having done it since the beginning because I would see 2 digits drops, then 3 digit drops and now 5 digit drops so it kind of felt like wading into water – I don’t notice if I do it slowly. If you want to try it I would recommend dipping your toe in 😉 – let me know if it helps after a while.
Wow, 77,5 % savings rate! So impressed! I’m barely over 60 %.
How much do you plan to retire on when you leave october next year?
60% is super impressive! I’m trying to have $500,000 to cover my $18-20K/year expenses. Thank you for stopping by!
Nice job on your goals! I used to live in Seattle, but at a time (late 90s) when it was a LOT more affordable, although inventory was SUPER low. I’ve also been to NZ! You’ll freaking love it. Everyone who visit is charmed! Can’t wait to see how this year unfolds for you!
Thank you! And aaah yes I’ve heard of the affordable days of Seattle. The ‘good ole days’ 🙂 . So glad you loved NZ! I’m super excited to go – it looks gorgeous. And thanks so much – fingers and toes are crossed! Thank you for stopping by.
Awesome photo and amazing job this year, APL! The 77.5% savings rate is incredible! Congratulations on your impressive salary and raise. My portfolio was down slightly in 2018 as well. Hopefully the lower market prices now help you reach your retirement goal sooner in the long run. Sidenote: sorry about my Instagram struggles today lol. I just got a new phone and accidentally pressed enter a couple times. Have a nice day!
Thank you so much! That means a lot. I love taking pictures – it’s nice to have some purpose to them these days 🙂 . And yes – hopefully the lower market prices help us out in the long run – great perspective! And haha – no worries about the Instagram struggles. I’ve been there. Good luck with your new phone! 🙂 Hope you’re having a nice day too!
Please tell me you will write a post on your experiences in the Etihad apartments! New Zealand and Australia are both amazing places and a great way to start an early retirement.
Congrats on a great year and here is to another successful 2019!
You better believe I’m writing a review with lots of pics! Super excited to explore Down Under for the first time! Glad you agree with the choice 🙂 . And thank you! I hope you have a great 2019!
Sounds like a great financial year! I haven’t done my official review yet but know I hit the big ones! Maxed out ROTH, HSA and an extra $5000 to Vanguard. Your savings rate is awesome!
Congratulations!! That’s amazing. And thank you so much!