It’s time to update my glorious early retirement chart for the last four months of 2016. I do it three times a year because I don’t like to think about it more than that. Thinking about money is boring. I’d rather think about burritos.
Here’s where I sat at the end of August 2016.
The red line represents my expenses. The green line represents my theoretical monthly projected passive income and is based on my net worth and guesswork. I hope that my precious VTSAX investment will increase 7% per year and inflation will top out at 3% per year. That means I can take out 4%. 4% of my net worth divided by 12 gives me my monthly projected passive income. The green line. Get it?
As long as the green line is higher than the red line, my net worth will continue to grow while I take a nap.
All of this is theoretical at this point. I haven’t touched any of my investments and am still living off my cash that I stockpiled from my corporate lawyer job. I’m almost out though, so I’ll start to pilfer from my VTSAX soon and tell you about it. That’ll be a fun adventure.
Three months later, at the end of December 2016, this is what my chart looks like.
I’m actually surprised the latest red expenses dot is so high. I spent the time almost completely in the United States, mostly California. A bit of time in Alaska. Some time in the United Arab Emirates. Oh, also Chicago, I guess.
My darling green line struggled upwards. The market is surprisingly chill despite the end of the world and common sense. My net worth increased almost $20k even though I didn’t do anything.
That’s a lie. I did try monetizing my blog through Amazon links. Of that nearly $20,000 increase, I made $49.20 from my brain juice. My blog. My writing. The rest came from my capital working hard for me through dividends and the increased price of VTSAX. My money can perform better than I can.
But you know what? I’m actually ridiculously proud of that $49.20. I made money doing what I love!
You’re not very impressed with that number though. I know. I can sense the smirk. You’re saying that I could buy maybe six burritos with that. Maybe. If I declined the guacamole. Who wants to forgo guacamole though? Nobody. That’s who.
This earning money through writing thing is a lot harder than I thought. The good news is that the readers I do have are the best of the best.
That’s me flattering you. I love you guys.