Hey, everyone! Do you have a good month? May is another busy month for RB40 families. I feel like I am a full-time driver for the family. There are activities or dates almost every day. I need a retirement leave. Fortunately, summer is coming. I look forward to having less on our schedule. The weather is also very warm. The sun is great after a long winter in the Pacific Northwest.
In terms of personal finance, things are on the rise. Our net worth has improved because the stock market has a good month. Our cash flow was negative, but it improved a lot compared to last month. I found a new tenant for our rental apartment! Vacant units have a lot of cash flow to us. It should be better next month.
Well, I'll share my New Year's goals. I will then browse our net worth and cash flow. let's go!
2025 Target
This is my 2025 target spreadsheet. it's great. If you can't keep up with your New Year's goals, give it a try. The key is to check the spreadsheet monthly to keep track of your progress. This way, you can see which goals require additional attention and work on them.
It seems that most of my goals are normal.
Financial goals
Rental apartments for sale
This is my main goal for 2025. Our tenant moved out in January. I fixed it and listed it and sold it soon. Unfortunately, the apartment market is terrible in Portland. We only watch once in 4 months! I think buyers are afraid to buy now. The economy is too certain. I decided to rent an apartment for the time being. We will try to sell again within 4-5 years.
Anyway, I plan to travel more and don’t want to be a landlord anymore. I would rather invest in real estate crowdfunding. This is much easier.
Duplex for sale
Along the same line, I plan to sell our duplex* after the 2029 RB40JR is finished with high school. We need to move to Southern California to get closer to families. Mrs. RB40's parents are getting older and they need help.
*We live in one unit and then rent another unit.
This year, I want to meet with our real estate agents and figure out what we need to fix. The first thing on the list is siding repairs and exterior repainting. I would be happy if we could at least do so much. I plan to hire this. These days, I try to avoid ladders as much as possible. I also want to remodel the kitchen and bathroom.
The biggest Ross Ella
Roth IRA is the best investment account you can have. When you exit, you do not have to pay taxes on your gains. This is very big. If you start young every year and issue a Roth IRA to the greatest extent possible, it will be a great resource for retirement.
I have made the most of Roth IRA contributions of over 20 years. But this streak will end sooner or later. The reason is very simple. You can only contribute to the Roth IRA that earns income. My income has dropped like a rock and I may not have enough income this year. In 2025, if you are over 50, the Roth IRA's contribution limit is $8,000. We'll see if I can make enough money to make the most of it.
So far, I've only made $3,275. That's really sad.
Track net worth and hope +10%
I have been tracking our net worth since 2006. It's great to see the progress. This year, I hope to see a 10% return. At this point, it all depends on the stock market and I can't do anything to affect that goal. I'll track it and keep my fingers crossed. This is a stretch goal.
At present, I am very pessimistic about the economy. Tariffs have wreaked havoc on global transactions. Shipping volumes have dropped sharply and we will see higher prices soon. The stock market was volatile and improved in May. I don't think it will last. Consumers have extended it.
Our net assets have increased by 1.2% since the beginning of the year.
Health Goals
Exercise more than last year
Last year, I set a goal of exercising 3 times a week. However, I developed elbow pain and had to reduce it a little. Results: I exercised 120 times in 2023. This is not bad, but I want to do more this year.
I exercised 15 times in May. That's really good. However, I need a break. My joints are terrible. When I attend the annual visit, I talk to my doctor about joint pain.
Win a claim deny
Last year, RB40JR obtained a cochlear implant to improve his hearing. His left ear has 50%-80% hearing. He tried hearing aids for several years, but that didn't help much. He could hear a little with his left ear, but he couldn't understand the speech over there.
Recently, the FDA approved cochlear implants in children. At first, I thought we could wait until the RB40JR was adult. Then he can decide for himself. But, our audiologists say the sooner you get the implant, the earlier you get it. If you wait too long, your brain may not be able to adapt.
Anyway, he got the implant last year. However, the insurance rejected the claim. They say cochlear implants are experimental and cannot improve overall health. This is ridiculous. Since the 1980s, the device has been used to improve life. I'm fighting this denial. I think health insurance companies are denying as many claims as possible to boost profits. Many people are sick and cannot fight against denial. No wonder everyone hates health insurance companies.
I appealed with the hospital. Now, we are waiting for the reply.
Interesting goals
For sale my ceramic project
I took some ceramic classes at the community center and it exploded. My project is not professional yet, but I will try to sell some items in the art sales in Community Center this year.
I sold about $190 worth of ceramics in spring art sales! That was incredible. I didn't expect it to sell so much. Community centers received a 35% commission. very good. I'm glad to support them.
My latest work – a small soy sauce can.
Miss's date more
This year, I want to go out with Mrs. RB40 often. If you are a parent, you will know how difficult it is. Fortunately, our son is now a teenager. We can go out anytime, anywhere. However, I need to overcome the reluctance to leave the house at night. We parked on the street and found a parking space nearby, which was a pain at night. Ah! I would rather be clumsy at home than go to a restaurant.
I will have a date lunch with Mrs. RB40. It's easy. Who wants to leave home after dark?
In May, we had 2 lunch dates. We hardly did it.
Happiness Level > 8
I'm a natural happy person, so this should be easy. Life has been great for the past few years.
I had a great month. Life in May is very busy. That is the key to happiness. You need to be busy enough to avoid boredom.
Net worth (+1.2%)
I have been tracking our net worth since 2006. It is very motivated to see our progress. The power of compounding is incredible. Last year, our investment income exceeded our income.
Our net assets have increased by 1.2% since the beginning of the year. The stock market was very volatile in May. The market fell, but recovered. No one knows where to go next because there is too much uncertainty. I adjusted our asset allocation to be more conservative and I am ready to be even more crazy next month.
*** Important*** My best advice if you are young is to keep the course. Don't stop investing. Should you continue to invest in the stock market going up or down. You might think that stocks are too expensive, but they look cheap in 10 years. Keep investing and one day you will achieve financial independence. Don't try to time the market. If you retire, you need to be more conservative and diverse.
Here is a chart of our net worth from Empower. Sign up for a free account on Empower to help manage your net worth and investment accounts. I often log in to check our net worth and use their free tools. This is a great website for DIY investors.
possible 2025 Fire Cash Flow
This fire cash flow chart includes my online income, side shows and taxable passive income.
Now that the rental apartment has been occupied, things look much better. Next month, we won't lose rent.
possible 2025 Fire Income: $2,498
My fire income increased in May. However, I'm transitioning to full retirement. This year will be our first year to reduce our retirement savings.
- Real estate crowdfunding: $563. You can read more on Re crowdfunding's Passive Income page.
- Dividend Income: $1,293. Dividends are slow.
- Rental income: – $57. The rental apartment was rented for half a month. Next month, rental income is expected to be positive.
- Online income: $236. This is disappearing quickly. This year may be the last year for my online income.
- Odd number work: $406. I send out some catering orders every week. Currently, this is a simple show. I might stop being busy within two years.
Expenditure: $4,017
Our spending was good last month.
- housing: $1,338. This includes mortgages, utilities, furniture, repairs and maintenance. Our housing costs are low because we live in duplex. We allocate many fees to our tenants.
- transportation: $388. Gasoline, parking and insurance.
- entertainment: $152. This is mainly about dining out.
- groceries: $524. not bad.
- healthy: $14.
- child: $818. Unfortunately, as the RB40JR ages, the costs associated with children are increasing. We are paying for his orthodontics, international school trips and various activities.
- Personal: $304. Lego, haircuts, clothes, art supplies, etc.
- travel: $332.
Retirement savings: –$1,576
Summary of May 2025
Plum was a good month for us. Our cash flow is negative, but it is part of our transition to full retirement. We will reduce our retirement savings and enjoy life while we are relatively young and healthy. As long as we spend less than 3% of our net worth, we can do it.
That's it. Do you have a good month?
Passive income is the key to early retirement. These days, I'm investing in commercial properties crowd. They have many projects throughout the United States. Go and check it out!
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Passive income is the key to early retirement. This year, Joe is investing in commercial real estate with CrowdStreet. They have many projects all over the United States, so check it out!
Joe also strongly recommends providing personal capital to DIY investors. They have many useful tools that can help you achieve financial independence.
