December 2023 Early Retirement Replace – Joyful New Years Version

Joyful New 12 months and welcome again to a different month-to-month replace from Root of Good! We’re again residence from our Christmas cruise to South America and Central America. Proper now we’re cozied up and making an attempt to make it via one other month or so of winter climate. Luckily it’s by no means that chilly in North Carolina, so I can’t complain an excessive amount of! 

Now that we’re residence, we’re busily planning some journeys for 2024. Now we have two cruises deliberate for the autumn and we’re about to ebook a bunch of lodging for our 9 week journey to Poland this summer time. 

On to our monetary progress. December was one other phenomenal month for our funds. Our web value skyrocketed by $149,000 to finish the month at $2,966,000. Our earnings totaled an unimaginable $26,305, whereas our spending was in-line with our month-to-month finances at $3,428 for the month of December. 

Let’s bounce into the main points from final month.

 

Earnings

Funding earnings totaled $24,907 in December. Our fairness index funds and ETFs pay dividends quarterly on the finish of March, June, September, and December. The fourth quarter is all the time the most important quarterly distribution by far. In consequence, we had a a lot bigger than regular quantity of funding earnings final month. Right here’s extra on our dividend investments.

Weblog earnings totaled $560 for the month. That is the “new regular” for weblog earnings since I solely put up on right here about as soon as monthly. As you may see, our funding earnings dwarfs my meager weblog earnings. Luckily I don’t must be a full time blogger and I can benefit from the early retired life as an alternative! 

My early retirement way of life consulting earnings (“consulting”) was $555 in December which represents three hours of consulting. That’s not dangerous contemplating I used to be on trip half the month. I simply added a 3% inflation increase to my charges for 2024. 

 

 

Tradeline gross sales earnings totaled $200 in December. It’s good to see this earnings stream come again after a number of gradual months. I ramped up my tradeline gross sales a number of years in the past and mentioned it in a bit extra element in my October 2020 month-to-month put up and in my July 2021 month-to-month put up. 

For December, my “deposit earnings” of $32 got here from money again and incentive bonuses from the Rakuten.com and Mrrebates.com on-line buying portals (a few of which was earned from you readers signing up via these hyperlinks). 

If you happen to join Rakuten via this hyperlink and make a qualifying $25 buy via Rakuten, you’ll get a $10 join bonus (or extra!). 

In December, I gained $50 from a bank card cashback promotion for a journey reserving. I ended up cancelling the journey reserving however the $50 cashback stayed in my bank card account. Fortunate me! 

Youtube earnings was $0 in December. Youtube solely pays out if you hit $100 in accrued income. Lately, my Youtube earnings have been just below $50 monthly on common, so I solely receives a commission each two or three months.  

Right here is the Youtube channel for the curious. It’s random journey movies, birds, youngsters, and a few DIY movies. There are only some primary movies that herald many of the site visitors (and income!).

 

 

If you happen to’re desirous about monitoring your earnings and bills like I do, then try Empower Private Dashboard, previously often known as Private Capital (it’s free!). All of our financial savings and spending accounts (together with checking, cash market, and 5 bank cards) are all linked and up to date in actual time via Empower Private Dashboard. Now we have accounts everywhere, and Empower Private Dashboard makes it very easy to examine on the whole lot at one time.

Empower Private Dashboard can be a stable software for funding administration. Maintaining monitor of our complete funding portfolio takes two clicks. If you happen to haven’t signed up for the free Empower Private Dashboard service, test it out right this moment (overview right here).

Monitoring spending was one of many essential steps I took that allowed me to retire at 33. And it’s now simpler than ever with Empower Private Dashboard.

 

 

 

Bills

Now let’s check out December bills:

In complete, we spent $3,428 throughout December which is about $100 greater than our commonly budgeted $3,333 monthly (or $40,000 per 12 months). Taxes and groceries have been the 2 highest classes of spending in December. 

 

Detailed breakdown of spending:

 

Taxes – $1,779:

My annual property tax invoice got here due in December. I really paid about $2,200 in property taxes however $450 of that was paid utilizing a rewards debit card from our medical health insurance firm. So the online out of pocket for the tax invoice was $1,779. 

 

Groceries – $735:

Grocery spending was barely lower than regular as a result of we have been gone on trip for 2 weeks. I additionally purchased $280 value of Lidl present playing cards since I had some promotions on my bank cards the place I get 10% off purchases at Lidl (as much as $7 per card, occasions 4 playing cards). So I’ll be spending that Lidl present card over the subsequent month or two. 

As a part of the “grocery” spending, we purchased six liters of liquor on the cruise final month. It was considerably cheaper than on the liquor retailer in Raleigh (and tax free!) so we stocked up on some goodies! 

 

 

Journey – $622:

We spent $363 final month on annual charges for our bank cards:

We’ll find yourself getting a number of advantages out of those three playing cards, so I don’t thoughts paying an annual charge when it results in a extremely whole lot.

I take into account these annual charges to be “journey bills” as a result of they instantly result in the factors and miles and standing that will get us “free” journey. Effectively, virtually free, aside from these annual charges. 

 

Free Cruises!

The Wyndham Earner Enterprise card will get us Wyndham Diamond standing which is a stepping stone to Caesar’s Diamond standing and an entire bunch of different advantages like free resort stays, free meals, and free-ish cruises. Nick on the Frequent Miler journey hacking weblog has a fantastic abstract of what I’ve been as much as with this new bank card. Dave on the MilesTalk weblog additionally goes in depth on these free on line casino/cruise offers from standing matches.

I simply need to warn you that for those who click on on these hyperlinks you’ll be taking place a giant deep large rabbit gap. Precisely the form of factor I take pleasure in! It’s a number of studying and a number of work however conservatively value $10,000-20,000 of free cruises and different journey perks. 

We simply booked two “free” 14-night cruises on Holland America utilizing this on line casino standing match journey hack. We saved $4,500 on the bottom fare on these two cruises. However we nonetheless needed to pay about $2,500 in taxes, charges, and pre-paid gratuities. However that’s it for these 2 cruises until we decide to pay for extras whereas on board.

I used 165,000 Chase Final Reward factors (hold studying to learn the way to get these) to pay the $2,500 in taxes/charges/gratuities, so there actually was no out-of-pocket bills for 28 days value of cruises for 2 of us. And as soon as on the boat, we get $200 in free play on the on line casino plus free drinks for each of us any time we’re taking part in (or “taking part in”) within the on line casino. Cha-ching! 

The tentative plan is to make use of United and Southwest miles to get free flights to the departure factors. And I’ll use Wyndham and Marriott factors to get a free resort night time earlier than every of the cruises. 

 

 

Different Journey Spending from December

On the 11 night time cruise to South America and Central America, we spent a complete of $248:

• gratuities (principally offset by onboard credit) – $103
• Panama Canal Entrance charges – USD $35
• Souvenirs – $20
• Rental automotive from West Palm Seaside to Miami plus gasoline – $65
• Uber in all of the ports and in Florida – $0 (I had $75 of free Uber credit from a Clear promotion)
• A rescue from a pleasant girl (mil gracias a ti, Aida!) that took pity on us when no ubers or taxis have been accessible on the Panama Canal when the guests middle closed – USD $25 money present as a “thanks” for taking us ~40 minutes again to the ship

We paid the cruise fare of roughly $2,400 for the 4 of us a few 12 months in the past utilizing Chase Final Reward factors. 

Flights have been all free utilizing Southwest factors (plus a couple of dollars in taxes we paid over the previous few months). We stayed at a Sheraton in Ft. Lauderdale earlier than the cruise (booked free of charge utilizing 14,400 Marriott Bonvoy factors). 

It goes with out saying that this was a implausible trip at an outstanding worth. I can’t describe how good it’s to be mendacity on a seaside on Christmas day whereas having fun with the peerlessly gentle Caribbean climate. It was slightly unhappy to overlook the prolonged household gathering again residence in Raleigh, however general the cruise was very fulfilling for us and the youngsters. 

In different journey spending, I spent $11 on taxes for a pair of Southwest tickets for Mrs. Root of Good and I, plus a number of thousand Southwest factors. I obtained my Southwest Companion Cross (extra on that beneath) in early January and I’m already utilizing it to get free companion tickets for Mrs. Root of Good after I ebook a paid ticket utilizing my Southwest factors. All we’ve to pay for her flights are the $5.60 airport taxes for every ticket (extra taxes for worldwide flights). 

 

 

 

 

 

Get free journey like us

If you’re desirous about getting free journey out of your bank card like I do, take into account the Chase Ink Limitless or Chase Ink Money enterprise playing cards (my referral hyperlink). Proper now, the Chase Ink enterprise playing cards provide an above common $750 Chase Final Rewards factors that may be redeemed immediately for $750 in money. Mrs. Root of Good and I every picked up one other new Chase Ink card a number of days in the past. The bonuses carry on rolling within the door!

For a few day after this weblog put up goes dwell, you continue to might be able to get a 90,000/$900 level join bonus for those who discover a hyperlink for the upper provide. Or undergo my referral hyperlink, assured to get at the least 75k factors/$750, then ask Chase to match you to the 90,000 level provide (an additional 15k factors). 

Chase is fairly liberal in the case of “what’s a enterprise”. If you happen to promote stuff on eBay or Craigslist or do some odd jobs often then you have got a enterprise and will get a bank card as a “sole proprietor”. 

I take advantage of the 75,000 Chase Final Rewards factors by transferring them to my Chase Sapphire Reserve card (additionally providing a 60,000 level join bonus proper now). With the Sapphire Reserve card, I can get 1.5x the factors worth by reserving cruises, flights, resorts, or rental automobiles via their journey portal. Or 1.25x worth by reimbursing myself for groceries. That turns the 75,000 factors into $1,125 of free journey or $937.50 of free groceries. For instance, I used 165,000 Chase Final Reward factors to pay for the $2,475 in taxes, charges, and gratuities on my two fall cruises. Or I can switch these Final rewards factors to over a dozen journey companions’ airline/resort packages like United, Southwest, or Hyatt. 

 

 

Southwest Companion Cross deal – time to behave now!

I picked up a pair of Chase Southwest playing cards throughout November. I timed my spending on these playing cards to set off the join bonuses within the first a part of January 2024, and thereby earned a Southwest Companion move in early January that will probably be legitimate via December 2025. The Companion Cross is legitimate for the 12 months you earn it plus the next calendar 12 months.

The Companion Cross principally grants a free flight to your companion if you ebook flights for your self (with factors OR with money). This implies Mrs. Root of Good is flying free with me on Southwest for all of 2024 and 2025! 

Proper now is a superb time to get these playing cards because you’ll get virtually two full years of the Companion Cross. 

Notice that these playing cards have an annual charge (however they provide a number of free factors every cardmember anniversary so it offsets about half the annual charge). And you’ll apply for each playing cards on the identical day if you need. 

Referral hyperlinks for those who’re :

Chase Southwest Fast Rewards Efficiency Enterprise card – 80,000 SW miles ($199 annual charge) – choose the “Efficiency enterprise” card possibility

Chase Southwest Fast Rewards Plus card – 50,000 SW miles ($69 annual charge)

For $268 in annual charges, we’ll get ~130,000 SW miles (plus an additional 10,000 mile head begin towards the Companion Cross qualification), and the Companion Cross that gives buy-one-get-one-free Southwest flights for two years. Simply pay taxes on the free ticket (normally $5.60 per a method section within the USA). That’s about $3,600 value of free flights for the 2 of us. 

 

 

 

Extra Root of Good articles on cruising:

1. Occurring a Cruise Half 1 – Overview 
2. Occurring a Cruise Half 2 – Getting the most effective deal on a cruise
3. Occurring a Cruise Half 3 – Save on board and on transportation 
4. Occurring a Cruise Half 4 – The Meals

 

Utilities – $269:

We spent $186 on our water/sewer/trash invoice. A small a part of that was prepayment for the month of January.

The pure gasoline invoice, which offers heating and sizzling water, totaled $84 for final month. We used the warmth some because it began to get colder final month.

I paid the electrical energy invoice within the first few days of January so I’ll be paying two electrical payments subsequent month. 

 

Healthcare/Medical/Dental – $0:

Our present 2024 medical health insurance is free, because of very beneficiant Inexpensive Care Act subsidies that we obtain attributable to our low ~$48,000 per 12 months Adjusted Gross Earnings. 

Our 2024 dental insurance coverage plan prices about $34 in premiums monthly. We picked a plan from Truassure via the healthcare.gov alternate. The dental insurance coverage does an excellent job of protecting routine cleanings, exams, and x-rays plus most of the price of primary procedures like fillings.

I assume December was form of hectic and I don’t suppose we ever paid a dental insurance coverage invoice for January, 2024 and I’m simply now realizing that. The account is ready to auto-pay however there have to be an issue someplace within the insurer’s system. So perhaps we do have insurance coverage, and perhaps we don’t! 

 

 

 

 

Fuel – $20:

A tank of gasoline for our new automotive totaled $20. The brand new automotive is extra gas environment friendly so we should always spend rather less on gasoline.

 

Automotive – $6:

The brand new automotive’s examine engine gentle got here on throughout December. Uh oh! I purchased a bluetooth OBD2 code reader for $6 from Ebay so I may examine on the error code(s). After checking the code, I reset the examine engine gentle and it hasn’t come again on but.

Google says the issue is perhaps nothing and by no means come again, or a defective $100-200 oxygen sensor alternative, or a model new $1,000 catalytic converter. The automotive simply ticked over 100,000 miles so it’s in all probability due for some random main failure by this level in its lifespan. 

 

Cable/Satellite tv for pc/Web – $0:

We usually pay $18 monthly for a neighborhood diminished charge package deal attributable to having a decrease earnings and having youngsters. 30 mbit/s obtain, 4 mbit/s add. Proper now the price of the web service is quickly diminished to $0 because of the “Inexpensive Connectivity Program”. 

 

 

 

Spending for All 12 Months of 2023

 

 
We spent $37,865 all through 2023. This annual spending is about $2,100 lower than our $40,000 annual early retirement finances. One other nice 12 months! 

The largest single buy of 2023 was our new (to us) 2017 Hyundai Accent that was over $9,000. It seems that our new automotive buy didn’t throw our annual spending off by very a lot since we ended 2023 slightly below our annual finances goal. 

Wanting again at our 2023 spending, I see that our in depth travels didn’t value as a lot because it does some years, despite spending roughly three months in a foreign country through the 12 months. We spent the summer time in Argentina and Brazil, two nice budget-friendly journey locations.

Journey hacking effectively over $10,000 value of advantages yearly actually helps hold journey spending to a minimal. The flights and Airbnbs for our 2024 summer time journey would have been virtually $15,000 if we paid money. As a substitute, I used a combo of airline and Chase Final Reward factors to get almost free flights (simply pay slightly taxes) plus 1000’s of {dollars} value of Airbnb present playing cards free of charge. 

 

Month-to-month Expense Abstract for 2023:

• January – $3,423
• February – $1,675
• March – $1,679
• April – $1,566
• Might – $2,976
• June – $1,536
• July – $2,064
• August – $2,615
• September – $12,714 (we purchased a brand new used automotive)
• October – $1,513
• November – $2,682
• December – $3,428

 

Abstract of annual spending from all ten years of early retirement:

• 2014 – $34,352
• 2015 – $23,802
• 2016 – $38,991
• 2017 – $31,708
• 2018 – $29,058
• 2019 – $25,630
• 2020 – $28,466
• 2021 – $31,740
• 2022 – $29,449
• 2023 – $37,865 (full 12 months)

 

 

 

Web Value: $2,966,000 (+$149,000)

December introduced us one other six determine acquire of $149,000 which provides to a six determine acquire in November to deliver our 12 months finish 2023 web value complete to $2,966,000.

The $3 million mark stays elusive however I believe 2024 is perhaps the 12 months we lastly cross that threshold. We acquired very shut throughout December 2023 however couldn’t fairly make all of it the best way. 

In actual phrases, we’re nonetheless down barely from a few years in the past after adjusting out web value for inflation. Nevertheless, we’re objectively doing very effectively. Our annual spending is simply over 1% of our complete funding portfolio. We may double our spending and be completely okay long run. I don’t have any plans to take action instantly, however I’m additionally not in tremendous frugal mode like I used to be 10 years in the past. 

 

 

For the curious, our web value reported above contains our residence worth (which is absolutely paid off). Nevertheless, please observe that I don’t take into account my residence worth as a part of my portfolio for “4% rule” calculation functions. I understand of us ask me about that each month so I simply needed to state that right here for readability.

 

 

 

Life replace

Wow, what a 12 months! We had a fantastic one right here on the Root of Good home. Loads of journey and good occasions. Plenty of rest, studying, reflection, and Netflix. Nothing actually dangerous occurred. No complaints from me! 

Our youngsters are rising up shortly, with the oldest two youngsters roughly midway finished with school. Our center child simply handed her drivers license examination and now she will be able to drive to school as an alternative of getting her dad and mom take her there every day. She has a full day of courses on Tuesdays and Thursdays so she camps out in school for about 11 hours whereas attending her courses scattered all through the day. That new automotive buy final 12 months is proving very useful for our household! 

For us dad and mom, this newfound mobility means our schedule simply acquired freed up slightly bit extra through the week. Up to now we’ve a gradual spring scheduled with out a number of journey however I believe we’ll find yourself taking a number of journeys earlier than our large June to August summer time journey. We simply cancelled our tentatively deliberate journey to Phoenix and New Orleans for subsequent week as a result of we’re all recovering from some form of sickness that was in all probability the flu. It looks as if everyone seems to be catching this bug this winter. Not enjoyable! 

I’m excited to see what 2024 has in retailer for us and our household. Cheers to all my readers and finest needs as we make our method via the brand new 12 months! 

 

Who’s prepared for one more month of chilly climate?!

 

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