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Financial Freedom Update: September 2017

Welcome to my financial freedom report for September 2017. 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. Currently there are 3 parts to my monthly 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 from stock market growth and low spending. Sometimes the market smiles upon you. This month seemed to be a good one. I’ll take it!

Expenses for September

 

This month we really tried to cut back on our spending from the crazy summer months, and from our trip to Disneyworld. With kids activities starting up I figured it would be expensive, but it’s one of our cheapest month of the year. Mostly because the activities were paid in the summer.

I’ve also had to quit most of my hockey which is tough mentally. It’s been my life for over 30 years. But my head isn’t the same since the concussion and I need to take care of my brain. Still from playing less there is a cost savings, I’d rather be playing but it is what it is.

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 September Spending to September 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.

I’m impressed our spending is pretty close from last year. Looks like September may just be one of our cheaper months. We have also cut back on our spending a lot. We are budgeting like never before because we realize there are better uses for our money than spending extra on day to day items.

 

Financial Freedom Report

There are four pillars to my financial plan,

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

I’m pretty happy with this number. Our expenses have gone down, and our passive income is higher. Month by month we get closer. But it still means there are years and years before we are free.

If you are looking at your freedom number and thinking “There is no way I can do this!” You aren’t alone.

This doesn’t happen overnight. It happens a little bit at a time, month in and month out. Just like any big goal, give yourself time and permission to go after it.

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.

Have you calculated your net worth for November? I’d love to hear how your month went, post a comment below.

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