≡ Menu

June 2020 Goals and Financial Update

{ 35 comments }

June 2020 Goals and Financial UpdateHey everyone, 2020 is halfway done! I can’t wait until this year is over with. It’s been a difficult year for everybody and it is really dragging. At this point, I just want to survive 2020 with minimum damage. Many of my New Year goals are way behind. That’s alright. Some years, you just have to get through the best you can.

This summer is different than past summers too. All the fun (mostly free) things we used to enjoy are mostly canceled or closed down. Luckily, we can still enjoy the great outdoors. We’ve been visiting various parks and trails nearby. It’s fun to explore these out of the way places more. Usually, we’re too busy for that. So I guess slowing down a bit isn’t such a bad thing. The image to the left was taken at Kelley Point Park. This is the confluence of the Willamette River and Columbia River. It’s pretty crazy that we lived here for 25 years and didn’t visit before. There are nice places everywhere. I hope you enjoyed exploring locally too.

On the personal finance side, we did okay last month. My income decreased again. Fortunately, our spending was also low. We spent more than usual due to pent up demand, but it is still lower than normal. All our son’s clothes were too small so we went shopping for bigger stuff and spent almost $200. We also spent more on takeout from our friends’ restaurants. Small businesses are really struggling right now. We want to help as much as we could.

Okay, I’ll go over my goals first and then share the details of our net worth, cash flow, and savings.

2020 Goals

Here is my goal scheduling spreadsheet. It works really well. Try it out if you can’t keep up with your New Year goals. The key is to go over the spreadsheet at least once a month to track your progress. That way, you’ll see which goals need extra attention.

June New Year Goals progress

Many of my goals are screwed up this year. I started out with reasonable goals and I won’t be able to accomplish many of them. That’s life, though. There will be setbacks and some years will be harder than others. We need to survive 2020 and hope for better days ahead. It’s okay to have lower expectations for 2020.

Financial Goals

  • Real Estate Crowdfunding $150,000.Earlier this year, I added $25,000 to our RE crowdfunding investment with CrowdStreet. This will be it for a while because we’re low on cash now. During this pandemic, it’s best to conserve cash. I plan to complete this goal by the end of 2021.
  • FI Ratio > 110%. This is my main goal for 2020. The FI ratiois passive income divided by expense. Once we reach 100% consistently, then we’ll be set to retire in style. This goal is good so far. Our expenses were low so it isn’t too hard. We’re at 121% for 2020 so far. I think we’ll be okay with this one.
  • Saving rate > 50%. This one is really tough because I use gross income. If you make a lot of money, your tax rate is higher. If you don’t, then your expenses overwhelm the income. I’m sure only a few people can reach 50% saving rate. We’re at 61% this year. That’s really good. Let’s hope it holds up for the rest of 2020.
  • Side hustle income > $5,000. Side hustling income is way down this year. Scooter sharing companies are shuttered and I don’t want to do it anyway. A lot of people need the extra income more than we do. We’ll put off all side hustles until the COVID-19 pandemic is done. Last month, I got $200 refund from a conference. That counts, right?

Branding (by 40)

  • Content creation > 178 blog posts and videos. This is a huge amount, but we’re ahead of the pace. In June, I posted 9 blog posts and 2 videos. We’re slowing down because it’s harder to create content in the summer.
  • Refresh RB40. This one is on hold for now. I’ll get back to it when I’m up to it.
  • 1,000 subscribers on Eat by 40! Currently, we have 90 subscribers. This is a slow process that will probably take way more than one year. We’ll keep working on it.

Personal Goals

  • Visit Thailand. It looks like we won’t be able to visit my parents this year. I’ll put this off until 2021.
  • Travel hack 200,000 points. My Alaska Airlines points came in. I’ll probably apply for a new card in a few months. I don’t think we’ll accomplish this goal in 2020. There are too many other problems to deal with this year.
  • Update our Will. I haven’t started this one yet. I’m still looking for an affordable option. The lawyers I talked to asked for over $2,500. That seems really high to me, but we really need to get this done soon.
  • Happiness level > 9. My happiness level was good in June. Homeschooling is over so we’re a lot more relaxed at home. I gave June an 8.5. Life is good even with all these problems.
2020 happiness level

Net Worth (-2.5% YTD)

I’ve been tracking our net worth since 2006 and it is very motivating to see the progress we made. 2020 is a tough year for investors. 2020 is a strange year. The stock market crashed in March, but came back most of the way in April and May. I don’t understand how it can come back so quickly with 40 million workers unemployed and the economy in shamble. But I’m very glad I’m an investor. For 2020, our net worth is down 2.5%. That’s not bad at all. I just hope we get back to even by the end of 2020. I’m going with a modest goal this year.

Here is a chart of our investment from Personal Capital.

*Sign up for a free account at Personal Capital to help manage your net worth and investment accounts. I log in almost every day to check on our accounts. It’s a great site for DIY investors.

2020 investment

2020 Passive Income ($16,513 YTD)

Here is a quick summary of our passive income. You can see all the details on my Passive Income page.

2020 passive income

Fortunately, our passive income is holding up pretty well. The payout lags the economy a bit so we might have some bad news in the future, but for now, it isn’t  too bad.

  • Real Estate Crowdfunding– One of the apartment projects we invested in completed on 2/29. Whew! The sale went through and we got a nice payout from that one. RE crowdfunding is holding up surprisingly well. You can read more detail here on our RE crowdfunding income page.
  • Rentals– We have two rental units and both our tenants have good jobs. For now, they are both paying rent on time.
  • Dividend– This one looks good so far, but I’m sure companies will cut dividends if this pandemic sticks around much longer.

The stock market is priced very optimistically. I really don’t think the economy will recover that quickly. The number of cases is surging in the US again. IMO, there is a lot more pain to come in 2020.

Our FI ratio looks great so far at 121%. We didn’t spend much and our passive income was good.

*FI ratio = passive income/expense

June 2020 Cash Flow

Our cash flow was good in June. Our income streams weren’t great, but our spending was low. We’re spending way less than usual.

This is the Sankey diagram for June. You can get a quick overview here and see the details below.

June 2020 cash flow

Gross Income (target > $13,000/month)

This year, our gross income target increased to $13,000/month. If we make this much every month, we’ll be able to save around 50%. May marked the first time our income dipped below $13,000 and this continued in June. Our passive income and blog income decreased. Our gross income was $12,146 last month. Let’s see what went wrong.

  • Mrs. RB40’s job: $8,528. Mrs. RB40’s job continues to be the pillar of our household income. We could survive without her income, but life would be more stressful.
  • Blog Income: $1,012. My blog income continued to drop. Hopefully, it will bottom out soon. You can read more details on my Blog Income pageAlso, RB40Jr is on the payroll now as a model, YouTuber, and photographer. His income will go straight into his Roth IRA. He has about $5,000 in his Roth IRA now. That’s a great head start in life.
2020 blog income
  • Rental Income: $596. We had a good month with the rentals. I fixed a few things, but no big bills. Read more at the Rental Property Passive Income page.
  • Dividend Income: $1,761. Our dividend income was slow in June. See more details at my Dividend Passive Income page.
  • Real estate crowdfunding: $41. RE crowdfunding was slow last month as well. Three projects have suspended payout so far. We’re still doing pretty well this year because 2 projects completed on time. You can see how we’re doing at the RE Crowdfunding Passive Income page.
  • Interest Income: $8.
  • Side hustle: $200. No side hustling for a while due to COVID-19. However, I got $200 refund from a conference. I’ll take it.

Monthly Spending (target < $4,166/month)

This year, I plan to spend about $50,000 so our monthly spending budget is $4,166/month. For now, we are way under budget due to the lockdown. Like most families, we’re only spending money on basic goods and minimal luxury items. In June, we spent $3,045. That’s a bit higher than the previous months. It was due to pent up demand. We purchased new clothes for our son because everything was getting too small for him. Also, we spent some money on takeouts and travel.

  • Housing: $1,169. This category includes mortgage, home insurance, HOA fees, property taxes, utilities, home improvement, and furnishing. Our housing cost decreased significantly from previous years. We moved into our duplex and we can share some expenses with our tenant. This helps a lot.
  • Parents: $10. My parents didn’t need extra money in June. I changed the auto-transfer amount to $10 so I don’t have to set it up again.
  • Groceries: $337. Normally, we spend about $550/month on groceries. Wow, we did pretty well in June. I think I got quite a few things on sale.

Here are some of the dishes I made last month. Check them out and subscribe to our channel on YouTube!

Salmon Garlic Butter Noodles

Tuna Kimchi Stew

  • Travel: $899. We purchased a voucher for a week at a resort in the Maldives… We can use it any time before 2023 and it is fully refundable. Let’s hope travel is back on by then.
  • Entertainment: $289. We relaxed a bit and ordered takeout from our friends’ restaurants. It’s really tough to be in the restaurant business right now.
  • Health: $30. Our son went to his dentist.
  • Bills: $23. My term life insurance payment.
  • Transportation: $96. Car insurance and gas.
  • Kid: $156. We got new clothes and shoes for RB40Jr.
  • Pet: $35.
  • Clothing: $0. We didn’t buy any adult clothes last month.
  • Misc: $0.

Others

I don’t count these as personal spending.

  • Taxes and deductions: $2,480.
  • 401k savings: $3,145. I contributed $1,625 to my 401k. Mrs. RB40 contributed $1,520 to her 401k.
  • Roth IRAs: $1,000. We contributed $500 each to our Roth IRAs.
  • 529 College Savings plan: $0. We contributed $4,000 earlier this year. I think we’re done for 2020.
  • Extra Savings: $2,476. I had to borrow some money from our savings account this month.

2020 Savings ($53,147 YTD)

So far, we saved $53,147. This part is going very well for us. Our expense was lower than normal and we were able to save a huge percentage of our income, 61%. That’s really good.

  • Joe’s 401k: $20,125.
  • Mrs. RB40’s 401k: $9,100
  • Roth IRAs: $6,000
  • 529 College Savings: $4,000
  • Extra savings: $13,922

YTD 2020 saving rate = 61%

June 2020 Wrap Up

Overall, June 2020 was a good month financially. Our net worth increased due to our investment. We might be able to get back to even New Year. I’m hopeful. Our cash flow was good even with reduced income. I feel very fortunate to be in this position. I keep thinking our family would have been in big trouble 30 years ago when my parents had a small Thai restaurant. Luckily, we’re in a good position in life and we are handling this crazy year pretty well. I hope you’re doing well too. 2020 is a tough year.

How about you? Did you have a good month? Take care and be safe!

The following two tabs change content below.
Joe started Retire by 40 in 2010 to figure out how to retire early. He spent 16 years working in computer design and enjoyed the technical work immensely. However, the job became too stressful and Joe retired from his engineering career to become a stay-at-home dad/blogger at 38. Today, he blogs about financial independence, early retirement, investing, and living a frugal lifestyle.

Passive income is the key to early retirement. This year, Joe is increasing his investment in real estate with CrowdStreet. He can invest in projects across the U.S. and diversify his real estate portfolio. There are many interesting projects available so sign up and check them out.

Joe also highly recommends Personal Capital for DIY investors. He logs on to Personal Capital almost daily to check his cash flow and net worth. They have many useful tools that will help DIY investors analyze their portfolio and plan for retirement.
Get update via email:
Sign up to receive new articles via email
We hate spam just as much as you
{ 35 comments… add one }
  • Sam @ Financial Samurai July 3, 2020, 8:17 pm

    Nice job staying so happy! That Has to be the biggest and most important thing right?

    My biggest fear is giving up all of our gains that we recovered from since March 2020. As a result of this fear, I continue to do risk.

    This is becoming more like a U-shaped recovery not a V-shaped anymore. It sucks and I plan to shelter in place until July 2021. Anything sooner will be an upside.

    Sam

  • Jordan July 2, 2020, 7:27 am

    Hi Joe! My husband and I are hoping to have our first baby in the next couple years. We have a few financial goals to hit before then, but we are thinking that he will be a SAHD. This is such a shocking thought to anyone in our family and friends group, so finding your blog has been encouraging. Thank you for writing about your experience – it truly is helping us navigate!

  • Jacob July 1, 2020, 12:29 pm

    Great post, iv been following you for a while now and you have inspired my to start my own personal finance blog http://planonfire.com … feel free to check out it!

  • Caroline at Costa Rica FIRE June 30, 2020, 12:31 pm

    The will is going to take time so start now. We updated our estate plan once our youngest turned 18, and we’re still at it, almost a year later. We’ve had a lot of changes in the last two decades — new residence, thankfully more assets, two businesses now, etc. So there are a lot more moving parts. But finding the right attorney took time, getting the paperwork done, even after the plan was set up (we went with a revocable living trust), takes time, etc. It is costly — we have spent over $10k so far with the plan plus the expense of retitling assets and other things.

    • retirebyforty July 2, 2020, 8:18 am

      Thank you for your input. Our estate is somewhat complicated, but it will get simpler later.
      I’m planning to sell our rental. Other than that, they are just investment accounts.

  • drplasticpicker June 30, 2020, 11:31 am

    Wow that’s a phenomenal savings rate esp using gross income.

    • retirebyforty June 30, 2020, 12:00 pm

      Thank you! That saving rate also includes passive income. I think all income should count.

  • FITrailHiker June 29, 2020, 7:25 pm

    Our grocery and utilities bill are up by almost 25%. I guess we are eating more . Lol.

    • retirebyforty June 30, 2020, 12:02 pm

      I heard the grocery price is up too. Surprisingly, our bill was low in June. I must have done pretty well with the sales.

  • mary w June 29, 2020, 2:03 pm

    Two of three rentals are vacant as of this week. One was a normal 30 days notice.

    The other emailed around the 20th that she had moved out and had a probably BS story why she did it with no notice. She was paid through the end of this month so I’ll refund her security deposit minus a small for things that needed fixing. No need to ding her for less than 30 day notice. She had been a good tenant for 4+ years and left the place in good shape. Especially with the pandemic tenants aren’t willing to have you show a place while they are still in it. Much rather a tenant do what she did than one who squats without paying rent. These days you can’t even evict them for non-payment of rent in California.

    • retirebyforty June 30, 2020, 12:06 pm

      Oh no! It’s tough time right now. I hope you find new tenants soon.
      I think that’s a good move with the tenant that moved out. At least she left the place in good order.
      Best of luck.

  • Jim @ Route to Retire June 29, 2020, 12:11 pm

    Looks like you’re making the most of things, Joe, and still doing well overall. I don’t know much about the Maldives so I just Google’d it – that should be a fun trip once you can make it happen!

    We’re heading back to the U.S. on a humanitarian flight tomorrow night. Probably a horrible move, but the girls are homesick beyond belief. Once we get back, we’re going to try to get tested and then go camping for a few days while we wait for the results. Might as well enjoy the outdoors while in quarantine! 🙂

    • retirebyforty June 30, 2020, 12:07 pm

      I heard about the Maldives from friends when I was young. It sounds amazing but really expensive.
      I was going to put it off until we’re old. However, we found a great deal so why not. 🙂
      Have a safe trip!

  • Lazy Man and Money June 29, 2020, 8:52 am

    We’ve been getting some exploring in, but the kids mostly want to watch Cartoon Network (which only has 5 shows) and play video games.

    Things have gotten to the point where the kids can’t even put on their clothes without doing it inside out and backwards. I just have to laugh.

    The good news is that finances are still good. I hope your blog income comes back. You’re doing some amazing saving this year with that being down.

    • nicoleandmaggie June 30, 2020, 11:33 am

      With the clothes! I thought that was just my kids!

    • retirebyforty June 30, 2020, 12:08 pm

      My son is getting way too much screen time, but it’s summer.
      We also spend more time outdoor since the weather is nicer now. It’s all good.
      I hope my blog income recovers too. It might take a while.

  • [email protected] June 29, 2020, 7:37 am

    Well done!

    So far as the Will, have you looked at something simple like Quicken’s WillMaker? You may need something more robust if you’re looking at the need for a professional, just double-checking. 🙂 It was enough for our needs.

    Wild to see how fast net worth has recovered. June was good in that regard. We’ll see if it sticks, though.

    • retirebyforty June 29, 2020, 9:07 am

      We did one with WillMaker years ago. We need to make a new one. There have been many changes since then.

  • Brittany June 29, 2020, 7:26 am

    Can you share more about finding a travel voucher? That sounds like a great way to save on future travel.

    • retirebyforty June 29, 2020, 9:06 am

      I head about it from GenYFinance on Twitter. But you can find some good deals on TravelZoo.
      Google Travelzoo vacations. I just saw one for the Maldives for about $2,000. That’s including airfare so not a bad deal. There are other deals too.

  • Lauretta Scribner June 29, 2020, 4:53 am

    Hi, I have used this DIY source: Suze Orman’s Will & Trust Kit. It’s not for complicated estate planning but probably suffices for most people. It also includes access to her lawyer for advice for a small fee. I have not needed it but nice to know it’s available. Let me know your thougthts on a DIY approach, thanks.

    Her website is SuzeOrma.com for kit at regular price of $199 and lots of financial information. And here’s link for kit at $69.

    Lauretta

    • retirebyforty June 29, 2020, 9:02 am

      I’ll check it out. Thank you! I removed the link. Readers can just google it.

  • Dave @ Accidental FIRE June 29, 2020, 2:48 am

    With everything going on,you still have the happiness level up at 9. In the end, that’s the only score that matters 🙂

  • Chuck Fulco June 29, 2020, 1:43 am

    Joe, I am a long time fan of your website and look forward to your posts. With regard to setting up a will and estate plan, this is what I have done and have told my friends to do. Years ago, I purchased an excellent integrated and interactive will/trust /estate planning software package from Nolo Press (Will Maker and Trust 2020, current price is less than 100.00), and have updated my family’s financial and personal information as major changes occur in my family’s life. After going over the information and making changes as appropriate, I tell people to take the completed package, which also include important forms such as healthcare proxy, etc, to a lawyer to look it over and provide suggestions, if necessary. Because he/she is not having to take the time sit down with you for time consuming interviews or have to wait until you, for example, re-title property or provide account numbers to generate forms from scratch, the fee is generally a lot less. But I think the most important point is that by you and your wife sitting down and being made to think about what you want to do (the software is excellent about asking questions and providing suggestions), you will be made to think of issues that perhaps you didn’t consider before. I know such an approach will help you. Take care

    • retirebyforty June 29, 2020, 9:00 am

      Thank you for your input. I will check out the Nolo software. That might be good enough for now.

  • David @iretiredyoung June 29, 2020, 1:32 am

    A week in the Maldives will be something to look forward. It sounds like unusual destination for someone from the US, is that the case and what made you choose it? (By the way, we had 5 days in the Maldives some years back and it was a great place to relax).

    • retirebyforty June 29, 2020, 8:57 am

      Some of our friends visited and the pictures were great. I think it’s a dream destination for many but usually too expensive. I was going to put it off until we’re older but we found a great deal so we took advantage of it.

  • Hi Joe. Have you considered resetting your goals for the second half of 2020? With all the impact that covid19 is having on people’s lives, it seems pretty hard (yet realistic) to expect things to continue as always and try to check these goals off. Something healthier (at least from my perspective), would be to focus on new goals that would reflect the new reality. We actually did just that back in March when it comes to our financial target for 2020 to take into account our new reality. (https://www.nomadnumbers.com/pivoting-as-nomads-living-on-20k-a-year-in-time-of-crisis/). Just some food for thoughts! And well note on the Youtube videos. You did put a lot of them out there this year!

  • Ernie Zelinski June 29, 2020, 12:13 am

    You seem to be doing quite well despite the challenging times. Great work.

    You mention, “Update our Will. I haven’t started this one yet. I’m still looking for an affordable option. The lawyers I talked to asked for over $2,500. That seems really high to me, but we really need to get this done soon.”

    Wow, $2,500 is a lot to update a Will. I keep updating mine myself. I started with an online package and have used the format to place it in a Word document. I update it about once a year because I keep changing the friends and charities that I want to leave money to.

    Insofar as my financial status for June, it’s better than it was in April and May. The print edition of my book “How to Retire Happy, Wild, and Free” sold better than in the previous two months and my ebook sales are coming up a bit. I am still saving money from what I earn from my creative works and don’t have to touch my Retirement Account or my Prosperity Account.

    • retirebyforty June 29, 2020, 8:55 am

      I think we’ll go with online as well. Lawyers are so expensive.
      Congratulations on the improving book sale. That’s great news.
      Hopefully, this means the economy is starting to improve.

  • Mr. Tako June 28, 2020, 11:31 pm

    You guys seem to be doing just fine Joe! Don’t sweat missing your goals this year, everything is in disarray. 2020 is a year of incredible change, and it will take awhile for confidence to rebuild in the economy.

    This turbulence might even continue into 2021, so keep plenty of cash on-hand!

    • retirebyforty June 29, 2020, 8:53 am

      I’m not stressing about my goals at all. Some years are harder than others and this is one of them.
      We just have to get through it and refocus next year.

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.