My main goal* was to build an investment and cash portfolio of $1,120,000* in 1500 days**, starting from 1/1/2013 and ending in February of 2017. I made my goal in 2016, my 1500 Days are over, and I’ve left my job. In the interest of openness, I’ll continue to share my numbers.
The year is off to a great start. The portfolio is up $138,086:
During the same period, we’ve spent $12,675:
Without the three mortgage payments ($4,281), our spending would have been $8,394. But even with the mortgage, the portfolio increase was more than 10x our spending. Financially, we have nothing to worry about. However, I
Every. Single. Damn. Dollar.
Buy The Burrito?
A couple of weeks ago, I was lamenting a purchase:
lunch
I was out on the town but had forgotten my lunch at home. It was a busy day and my house was a 30-minute walk away. Since I don’t eat breakfast, I was extremely hungry. Should I:
- Skip eating? *groan*
- Walk home and eat? This would disrupt the work I had planned.
- Buy a burrito. There is a hole-in-the-wall Mexican place I enjoy a couple of blocks away.
I’ll tell you what I did in a moment.
It All Goes Back To Efficiency
Living an efficient life is what makes financial independence possible. A simple, lightweight, thoughtful existence can take you far. And it goes beyond money.
- Food: I cringe when I see food being thrown out. There is no shame in leftovers.
- Fuel: I live next to a big hill with a stop sign at the top. After stopping, drivers routinely stomp on the gas, only to slam even harder on the brakes 10 seconds later. Why not just accelerate gently and let gravity do your work? Don’t turn that beautiful kinetic energy into heat!
Time is a resource too:
- Driving: Whenever I have to go somewhere, I plot the most efficient route beforehand. I also try not to drive unless I have at least a couple of destinations.
- Avoiding lines: I plan shopping trips when there aren’t 5,000,000 other people at the store. Home Depot and IKEA are tolerable at 11
am on Wednesday; not so much on Saturday at 1 pm. Also, at least one of the self-checkouts is almost always open. Why wait in a line when I can just scan my purchases myself?
I apply efficiency to money as well. Just like food, fuel, and time, money is a resource that I don’t waste. No matter how much I have, I like to think that I’ll always use money thoughtfully. Why should I spend more just because I have more? If a purchase will bring value to my life or give me real happiness, I go for it. Otherwise, I put the money to work.
And in a related note, even though I’ll never go back to a full-time job, making money is more fun than spending it. I have no clue what I’ll spend the surplus on, but it’s exciting to have a big powder keg at the ready. And if I end up never spending it on anything, I’ll be able to leave the pile to a worthy organization after I croak.
Lunch
I decided to stay put and ate lunch when I got back home. I feel silly spending $10 when my meal at home costs less than $2. I was pretty hungry when I finally ate my first meal at 2:30 in the afternoon, but in addition to saving money, exercises like this increase the mental toughness game too.
March Spending: $4,867
Despite my frugal ways, March was an expensive month. We spent $4,867. Without the mortgage, we would have spent $3,440. This month was more expensive because we’re getting our home ready for a possible sale.
Why sell? We live in a pricey part of town and all of the families we knew have moved away, so there isn’t much reason to stay. Also, I’m itching to remodel another home. I won’t approach this one in the same batshit crazy way that I did the last one. I’ll do the work only when the girls are in school and won’t be in any hurry.
The Mrs. and I have a house in mind and are negotiating the purchase now…
After the mortgage, our largest expenses were:
House stuff ($889.89): We’re still tying up loose ends from our remodel. I’m currently finishing off the shower in the master bathroom:
Groceries ($503.32): Our cheapest month yet for groceries!
Tattoo ($250): I’ll never get a tattoo, but Mrs. 1500 loves them:
Most Fun Expense: Spring Break!
During the girls’ spring break, we spent a night in Denver. We used points for the hotel and used a local program called Discovery Pass to get into museums for free. While we didn’t pay for the lodging and amusements, we still spent money on food and fuel.
March Performance Update
We started the month with a net worth of $2,173,864 and ended at $2,202,256 for a gain of $28,392:
2019 (as of 3/31/2019)
- Days elapsed: 90
- March gains: $28,662
- 2019 gains: $138,086 (including 401(k) and HSA contributions**** of $6894.34)
Since the start (1/1/2013)
- Days elapsed: 2280
- Gains since 1/1/2013: $1,101,483
- Investment portfolio and cash value: $1,687,526
- Net worth (investment portfolio plus home equity, a silly toy car (Acura NSX!), bikes, and dinosaurs): $2,202,526
Portfolio Breakdown
We have a diverse portfolio (full listing here) that includes real estate:
- Mobile home park (elevated home living to the easily offended/politically ultra-correct)
- Coworking space: We own a building/small business in Longmont
- Private loan ($40,000)
- Syndication deals (six)
And stock market holdings:
- Individual stocks (old thinking)
- Index funds (most money goes here now)
Both sides of our portfolio saw increases:
- Stock market: $779,364
- February appreciation: $27,193
- Real estate: $868,162
- March income from mortgage notes, syndications, and private loan: $793
- 2019 income (doesn’t include VNQ): $7440.14
- Cash reserve: $40,000
Frugal Forever?
Spending money on a bigger house, new car, shiny gadgets or fancy meals would certainly bring happiness, but it would be temporary and actually lead to unhappiness long term. The bigger house would come with a bigger tax bill and more stuff to take care of. The new car would come with a higher insurance bill and the worry about someone dinging it in parking lots. New gadgets tend to become a time suck (hello iPad). Fancy meals bring a bigger gut.
It sounds cliche, but it’s true; the simple things bring happiness:
- biking
- walks with the family
- cooking a great meal at home
- good conversation with friends over a beer
Life is good.
*My goal wasn’t to have $1,120,000 at the end of 1500 days, but at any time before the day count was up. Why? It all goes back to the 4% Rule. Remember that our little friend, Mr. 4%, is nothing more than the most conservative safe withdrawal rate. Since my investment portfolio now sits at $1,550,000, I can spend about $62,000 in my first year of retirement.
**My original goal was $1,000,000 and no debt, I later raised the goal by $120,000 to $1,120,000 because I will have debt in the form of a mortgage and I firmly believe in not paying it off. My compromise was to have enough money put away to cover the mortgage at the time of retirement.
***This is an affiliate link. If you sign up, the blog (me) makes some cold, hard, beautiful, cash. Personal Capital is a totally free and awesome way to keep watch over your investments. It’s worth it for the fee analyzer alone. I would never recommend anything that I don’t personally use and completely believe in, so give it a try. If you’ve already signed up through the link, please know that you are a fine person of above-average intelligence.
****My 401(k) contributions include my own, Mrs. 15oo’s, and the contributions from my corporation. Self-employment with a solo 401(k) is a very powerful savings tool. I should have done this years ago.
Join the 10s who have signed up already!
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*Only if your life is pretty bad to begin with.
Yeah, I’m the same way Carl — inefficiency still bothers me. Even when it’s only a couple of dollars for something like lunch.
Old habits die hard I guess. We probably wouldn’t have gotten to where we are today without ’em.
“We probably wouldn’t have gotten to where we are today without ’em.”
Yep.
And I bet that 2:30pm lunch tasted awfully good!
Best ever maybe!
Same as you and Tako. I’m well-beyond financially independent but still scrutinize every dollar. I guess it’s just ingrained in my brain. There are worse things for sure. 🙂
“…it’s just ingrained in my brain. ”
Interesting that you used the word “ingrained.” I’ve always been this way. Siblings, not so much. I believe that there is a genetic component to it.
I think you were perilously close to the line between frugal and cheap with that lunch decision. One reason to be financially free is to not have to go hungry for hours because you forgot lunch. Maybe I just feel that way because I’m starving right now, or maybe it is because most of my eating out is paid for with other people’s money. But get the burrito! My net worth is higher but I drive a $7,000 car with nearly 200k miles on it, so I’m no big spender, but even spending 10 seconds pondering the burrito was wasted time.
“I think you were perilously close to the line between frugal and cheap with that lunch decision.”
I’d say that I totally crossed over the line if I wasn’t practicing time-restricted eating. I like the challenge of not eating until after noon. But yeah, I’m probably a cheap bastard regardless!
Love the way you think about bathrooms- when I go to open houses with the house all done and fancy…it bores me. I want ugly stuff! (not unsafe stuff like rotted out floors and blown plumbing…just ugly avocado colored floors or shag carpet).
The bathroom reno looks like its going to be really nice when its done!
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Bring on the pink toilets and green tubs!
But please try to restrain yourself from adding the unnecessary accent tile in the future. IMO simpler is better and more timeless and therefore…efficient.
Haha, correct! But kinda boring too!? How does one strike a balance between beauty and function?
how can an accent tile be unnecessary? That’s pretty much how houses are held up, isn’t it?
Ugh! Food waste drives me INSANE!!! I feel a piece of my soul go anytime I run across something in my fridge that has to be tossed. One of my most prized realizations is that when produce is reaching that “1 more day” stage, I just cut it up and toss it in the freezer and use it in a smoothie later on. It avoids the waste and I’m not stuffing myself unnecessarily to avoid the extra compost! 🙂
Funny story, on our flight home this weekend, we had a layover in SLC where a good friend of mine lives that I don’t see often. We had enough time to leave the airport, but with the SLC traffic on a Friday, not enough time to go far so we ended up at a fancy gas station with a Costa Vida inside it. I got that burrito. 3 of them actually (1 for each, I didn’t actually eat 3 burritos). And even with the bloated gut about 30 minutes later, I didn’t second guess it once. I think it’s as much about the situation as the “thing.” Had I been alone, I would have read a book in a corner of the airport and asked for an extra granola bar on the plane. But getting to spend time with a good friend had no comparison to the cost of a burrito. And it was delicious.
Good luck with the house! If you don’t keep the turquoise counter in the bathroom, I hope you make a shelf out of it or something. You just don’t find em like that much anymore!
Financially Fit Mom recently posted…That Time Tim Ferris Created my Mid-Life Crisis
The smoothie tip is a good one!
“I hope you make a shelf out of it or something.”
Part of remodeiling fun is finding a use for the old stuff! My garage is filled with my old kitchen cabinets and counters!
That’s called a hoarder! 🙂
Great month! We seem to have similar spending patterns.
Food waste gets me as well! Our whole house feels the wrath when I start tearing through the fridge asking why we have “two of these” or why “is this green”? Spaghetti is a good landing place for aging but not spoiled vegetables but I also like the smoothie idea mentioned above.
I love how you used the fact that you were intermittent fasting to strengthen your frugality position in the moment. We’ve been working on getting synergy with our finances and other areas of life and it’s amazing how easily the same principles applies across various spectrums.
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I would have spent money on that burrito. I’m starting to loosen up a bit now on spending.
Although, I don’t really have many chances to buy lunch. Usually, I just eat at home. I only purchased lunch once in 2019 so far. I was fixing up our old condo.
Good luck with the home sale/new home. It sounds exciting.
i would have bought the burrito. i rarely eat at work but once every month or two i’ll show up hung over on a monday and head to the store for 2 nasty tina’s burritos. i’m sure they ought to come with a warning from the health department but they’re 2 for a buck when they’re on sale. they’re a weak spot.
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That’s why I love intermittent fasting! Forgot my lunch.. no problem, I just continue my fast, heck what’s another 1-3 hours when you haven’t eaten anything in the last 16-8 anyways? I usually just do 18 hour fasts, but sometimes I get so busy at work I accidently hit 20 hours. I don’t really notice because I have learned some serious discipline just to get to the 18 hour point.
I admire your ability to move and fix up a house. I hate moving so much I really only want to do it maybe one more time in my life when I am ready to downsize to a smaller house when the kids have moved out.
Yeah, I’ve had the same experiences. There have been a couple of days when I’ve almost hit 24 hours.
Moving! It does suck, but I’ve always thought that it’s exciting too. But then again, I don’t like to sit still.
I love the trip inside your mind when it comes to efficiency Carl. I am similar but I still drive like a maniac (kinetic energy be damned). Congrats on a solid performance YTD with the disciplined portfolio
Would love to hear your thoughts on this piece John Oliver did on mobile home park ownership and investors and how it relates to your own experience investing there. I’m sure not all investment groups are the same and there’s a good chance he chose his facts carefully for shock value and entertainment purposes so I’m not trying to point a finger or anything, just interested in your reaction: https://www.youtube.com/watch?v=jCC8fPQOaxU
Keep up the great work with the blog!
I am 100% with you on just putting off eating. Going and waiting in that line would waste your time AND your money! BOOO!
Except….
Burritos are my kryptonite. I would have bought that burrito. A burger never.
Actually a burrito place opened up near my house years back and that was probably the biggest set back I ever had in my FIRE plans.
I. Kept. Going.
It was horrible. And amazing.
I then grew my definition of financial independence to include eating burritos whenever I wanted and now my life is gloriously burrito filled.
Anyways have fun starting a new reno.
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Can’t wait to get to numbers like these. Your growth in retirement is crushing my growth with three jobs.
Goals:
1. Front-loading my working career
2. Join Mr. 1500 for a beer
Beer? Anytime! I’ll even buy so that your retirement isn’t postponed!