November 2019 Financial Update

Here we are, heading into the final month of 2019. It’s amazing how time flies by when you are busy and focused.

Business continues to pick up and there were only a few days in the beginning of November where we didn’t have any appointments booked. Since that time we have received a steady flow of business and increased billing for services. On paper we already have enough revenue in billed services to cover all of the start up costs and expenses up to this point. So after a little more than two months we are at break even which is a nice accomplishment.

Another positive was actually receiving our first payment for services. And just in time too, because the business account we opened was getting very low on funds and I didn’t want to dip into our personal account again. We wanted to do the old frame and hang your first dollar tradition, but how do you do that with a check? I just made a copy and quickly deposited it so we had some funds in the account. Continue reading “November 2019 Financial Update”

Happy Thanksgiving!

We would like to take a moment to wish all of our readers a happy Thanksgiving.

We appreciate your support and taking time to follow our journey.

Joe

Lifestyle Deflation

Recently some of my fellow bloggers have written some excellent posts about lifestyle inflation and the impact it has on savings and finances over time. My friends over at moneyonfire.blog have a great write up on the subject which you can find here.

This got me thinking about the subject and I came to the realization that over the next year we will be entering a period of significant lifestyle deflation. This has always been the plan as you can’t live full time in an RV and have a lot of stuff. However, the fact that we are now within a year of making this dream a reality is very surreal.

This realization is already starting to impact our decision making and spending habits. Several times this past week we passed on purchases because it wouldn’t fit our future lifestyle. We have had more discussions about things that we need to figure out how to make work in the RV, like computer equipment, as well as things we are going to need help getting rid of.

Then you have those personal moments that come up such as this will most likely be our last Thanksgiving and Christmas in our home. Well, at least Christmas since we have spent the last three Thanksgivings on the road. We are staying home for Thanksgiving this year, but that is not by choice. It will also be our son’s last holiday season before he leaves for college and we become empty nesters. After that is when the lifestyle deflation wheels really go in motion.

So what does lifestyle deflation look like for us? Well, first we will be selling most of our personal possessions. If it can’t fit in the RV it goes in the sell stack. Then we have another car that will be sold since it will no longer be used by our son. With that comes lower insurance rates and one less car to register. And of course we have the house and all of the expenses that come along with owning it. Once sold, there will be no more bills for gas, electric, homeowners insurance, mortgage payment, HOA fees, property taxes or other house related maintenance bills that might pop up. We will also no longer have any RV storage fee since we will be living in it.

Now on the flip side there will be some new expenses that come along with our new lifestyle. However these expenses are all subjective and controllable. We will have to pay a monthly fee wherever we stay. But that amount is something we make the decision to incur or not. And no matter what we choose it will be much cheaper than all of those bills I just listed above. Some places choose to charge electric fees for long term stays so we could have that expense as well. We will have to fill a propane tank every once in awhile and we could see an increase in fuel costs. Not for the RV, but for our daily driver since we are probably going to be a little farther from places we need to get to.

We plan to continue working while our son is in school so we can help him with expenses. We also have our goal to reach of $1.5M in cash and investments to achieve F.I. Once we sell our home and most of our possessions that money will take a nice bite our of the remaining $500k we need to save. Additionally, a preliminary budget I created for our future lifestyle reflects nearly a 50% decrease in expenses from our current lifestyle. Hopefully this decrease in spending and market increases over the next 4 1/2 years will allow us to hit our goal so we can enter the R.E. side of the plan.

The next year is going to be a whirlwind and filled with challenges and obstacles. Lifestyle deflation is a key component in achieving our goals and obtaining long term stability. Once we reach F.I.R.E. it is what will allow us to be more mobile in our travels and provide us peace of mind in our finances. For us, lifestyle deflation is the path to, and the lifeblood of, our future.

What are you doing to control lifestyle inflation? Or are you like us and looking to move into a phase of lifestyle deflation? Leave us a comment with your ideas or any plans you have to downsize your lifestyle.

Thank you as always for reading our blog. If you are not already following us please start by clicking the follow button.

Until next time………..

Joe

This and That……

It has been a few weeks now since our RV was damaged in a incident at a truck stop. You can read up on that here if you missed it. This has been a major bummer for us as we have had to cancel two trips now and have been stuck at home on weekends. The good news is that we finally got word this week that the repairs are completed and our RV is ready to be picked up.

The worry however, as with any vehicle, is that there will be additional issues that need to be worked out or that some things will not work the same as they did prior to the accident. I guess we will cross that bridge when we get to it. Also, our insurance waived our deductible so we are not out of pocket for any money. In the end, we got the best results out of a bad situation and we are grateful for that. Continue reading “This and That……”

College Road Trip 2020

This past Summer we enjoyed a wonderful family adventure. We visited Yellowstone National Park and a whole host of other states and campgrounds. It was our assumption that this trip would be the last time our son would join us in the RV as he would be heading off to college next Fall. Well, it looks like we will be doing a little family road trip next year after all.

Now that our son has accepted admission to a big east coast U we started discussing the logistics of getting him and his stuff across the country. Our first thought was for us to fly there and ship all of the necessary items to him. This was going to be very expensive as flying is not cheap and neither is shipping. Our son is also a student athlete so we are not just talking about shipping some clothes and some bedroom items. We need to bring his gear also, which is a big and heavy bag. Continue reading “College Road Trip 2020”

October 2019 Financial Update

Another month down and it feels like the year is flying by. October was an exciting month right up to the point that our RV got smashed by a trucker that apparently doesn’t value the use of his mirrors.

The month started out slow after I left my job. As I wrote about in my blog post titled “Two Weeks In” I didn’t get any work or even a single phone call for the first two weeks. I was getting kind of worried that I might be stuck without any income for a long time and that wasn’t going to cut it. Luckily I was able to get a connection with a company and they started sending steady business my way. It’s not paying me a lot at this point, but it’s a start and also gives me something to build on. Continue reading “October 2019 Financial Update”

Milestone Reached And A Huge Bummer

Today I was expecting to write about how exciting it was to finally see our portfolio cross the seven figure mark, at least for now. But on Friday, as we were in line to fuel our RV for a weekend getaway, our joy and excitement took a pause when a trucker backed up into our coach and caused some significant damage.

Now, I know the natural reaction from people will be that it was an accident and accidents happen. Or that it’s just some damage that can be repaired and it’s more important that we are ok. And I agree with these sentiments. They are true and correct. However, the feeling we have goes beyond a vehicle repair because this is not just a vehicle to us, it’s our home. And when you are sitting in your home and see a truck coming and then hear and see your home being destroyed before your eyes the feeling cuts a little deeper than a car accident. It was a very upsetting moment for us. Continue reading “Milestone Reached And A Huge Bummer”

What A Difference A Week Makes!

In our last blog update, read it here, I discussed that two weeks into our new business venture we hadn’t had a single job come our way which was a little disappointing. I also discussed how I have been working a side gig job to try and see if it was a viable way to earn some cash while building some business relationships. This past week everything changed.

After spending time going business to business, meeting people and handing out business cards I decided to do a cold call of a large agency. The response I received was the usual “we will have someone contact you about getting your business set up in our system” which I agreed to but didn’t think much about. About two hours later my phone rang and it was an associate calling to take down my business information. Again, I didn’t think much about it because I’ve already been down this road many times in the last two weeks. But this time, as we grew close to ending our conversation, the associate stopped and asked “do you want your first assignment right now?” My stomach sank and I paused because I couldn’t believe what just happened and I didn’t know if I was ready to answer yes at that very moment. So in a complete haze I answered “sure”. Continue reading “What A Difference A Week Makes!”

Two Weeks In……………………

I never thought for a minute that this transition would be easy. I also didn’t think it would be this hard.

Here I am, two full weeks into my new business and I have yet to land a job. Now, I wasn’t naive to the point that I thought a sudden avalanche of business would just magically flow my way from the day I opened the doors. However, I did think that within two weeks I would have landed at least one job. Not a big job, but something small to at least get me moving in the right direction. But so far, zero, zip, nada! Continue reading “Two Weeks In……………………”

September 2019 Financial Update

September was a month of change and closure. Once the month ended so too did the third quarter of the year, along with my full time employment in the corporate world. I’m not sad to see either one of them go.

As we start a new month and a new quarter I am also officially self employed. That has a great ring to it, and it makes me proud to be able to say it. However, saying it and doing it are two separate things and it didn’t take long for this new reality to set in. Continue reading “September 2019 Financial Update”