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Financial Freedom Update: June 2017

Welcome to my monthly financial freedom report. This is where I go back over the numbers from the past month and see how things went. I realize that what you focus on expands. So I am making a point to introduce a few new parts of my financial update. They are:

Net worth

Expenses

Financial Freedom Factor

Let’s get started and see what happened this month.

 

Changes in Total Net Worth

(As I mentioned in the inaugural net worth update. When it comes to monthly reports I’m going a different route than a lot of others. Instead of going through the nitty-gritty of every detail on my net worth statement. I’m taking a macro view so we don’t get bogged down by the details.)

 

Increase:

%

of Earned Income For The Month

 

The growth in our net worth this month really came saving our paychecks and our investments going up.

This site is also turning a profit every month so that helps. It’s not huge but it’s amazing what a year can do with consistent work. If you are interested in starting your own blog I highly recommend it. You can read up on it here. 

Expenses for June

 

I’m going to appreciate June’s expenses because July and August are going to be like a blow to the stomach with the big Disney trip coming up.

It’s been over a year since we started saving our $20 a day towards our big trip to the Magic Kingdom and it will soon be time to pay the piper (or mouse as it were).

Luckily the money was available thanks to our money system. Which you should totally sign up for, because it’s free, and it changed my life, and others too. 

 

Compare June Spending to June of Last Year

One of the great things about tracking your finances for years with Personal Capital or Mint, is that you can go back and see how you did from one year to another.

Unfortunately I’ve run into a problem with Mint so comparing my spending from this year to last year isn’t available. I’ve been holding off hoping that it would fix itself but it isn’t. Here’s hoping Personal Capital comes to Canada quickly.

 

Financial Freedom Report

 

Total Expenses / Passive Income

This is the most important part of my financial plan. My net worth can go up and down, or stay flat. I don’t care. What concerns me more is my financial freedom factor.

This is when you take your expenses for the month and divide it by the income you are earning passively such as income through investments, real estate and business systems.

The idea of this number is that once it equals 1, you are financially free. Anything larger than 1 requires that you either increase your income or reduce your expenses. If the number is below 1, then you are doing even better, because you are taking in more income than you spent in the month.

Based on this month my Freedom Factor is

This means I have a long way to go before I reach financial freedom. If you are looking at your freedom number and thinking “There is no way I can do this!” You aren’t alone.

The nice part about this is that we had our biggest month of passive income ever! Which was really nice. The growth from our stocks is slow but as long as they keep paying us I’m a happy camper.

 

Financial freedom doesn’t happen overnight. It happens a little bit at a time. Take continuous action towards your goal and give yourself time and permission to achieve it.

One Last Thing

 

If you would rather track your net worth with software Personal Capital or Mint.com are good choices. Both are completely free. 

If you are wanting to track your net worth either one is a good place to start. Personally, I absolutely love being able to see my net worth every day as it’s a huge motivator to keep making smart financial decisions.

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If you are needing a primer on net worth, you should sign up for our newsletter and get the Net Worth Template I have used for 10 years. It’s  absolutely free, plus I’ll throw in some other goodies too.

 

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