2-Week Challenge, Giving Thanks, and November 2021 Financial Results

Before we dive into our November 2021 financial results, here’s what the RFL Family was up to last month.

November Goals and a 2-Week Challenge

Thanksgiving is the official kick-off to the holiday season, one that’s typically filled with overeating, binge-watching holiday movies, and putting off healthy habits until the new year. After all, we have to save something for those New Year’s Resolutions.

In order to avoid some of those unhealthy behaviors, I decided to design my November goals to kick the season off right. This included a focus on adopting healthy habits and doing positive things for my body (as opposed to just deprivation). It also included a 2-week challenge, which admittedly included some deprivation, designed to get me back on the healthy living wagon I’d recently fallen off before the new year.

When I posted these goals on social media, the greatest reaction was for the 2-week TV ban. Apparently a lot of people can’t imagine going without television for 2 weeks. I had been wasting way too much time watching TV and needed to course correct. To be fair, we only lasted 12 days. But, in doing so, I saw how much more productive I am when television isn’t an option. And when I’m productive, I feel good about myself. As a result, I decided to continue banning television during the week days (except while working out) and limiting it at night.

As for the rest of my November goals? Well, as usual, they were hit or miss. The only goals I 100% met were meditating daily and writing 6 blog posts. Moving 30 minutes a day and eating more fruits and veggies were near 100% during the 2-week challenge, but both fell off significantly during the second half of the month. Oh well, on to the holiday season!

Giving Thanks

Of course, November was also filled with gratitude and spending time with family and friends. We are fortunate enough to live near my parents and were able to spend a quiet Thanksgiving with them and my 95-year-old grandma this year, as well as host a couple friends we hadn’t seen in years.

We try to remember to be grateful for all of our blessings. If you are able to share your blessings with others, this is a wonderful time of year to do so.

Regardless of what you celebrate (or don’t celebrate), the RFL Family wishes you a happy and healthy December!

Without further ado, here are our November 2021 financial results, with all the juicy details of this month’s spending, passive income, savings rate, investments, and changes in net worth.

Why share the details of our spending and finances?

Because I’m nosey and enjoy reading about other people’s spending habits and net worth.  Maybe you do, too.

Everyone’s financial situation is unique.  However, I do believe there is value in sharing information to normalize the discussion of money and provide context.

Seeing other people happily embracing simpler lives gave us the confidence to begin our own journey to financial independence and a lifestyle we believe will be healthier, happier, and more fulfilling.  I’m just trying to pay it forward.  Sharing our finances each month also helps us stay accountable.

If you’re looking for the frugalist of the frugal, you won’t find that here.  Life is short and we have no problem splurging on things that make us happy.  Although we spend freely in these value areas, we’re trying to ruthlessly cut back everywhere else.

Other information useful in reading our November financial results

Did we just buy a money pit?

We took a risk and bought a complete fixer upper in late 2018… with a toddler.  When we moved across the country for Mr. RFL’s job, we found housing costs much higher than we were used to.  So, when we found a great deal on a fixer upper, we decided to go for it.

We’ve been working on projects ever since, trying to do as much as we can ourselves to learn some new skills and save money.  Since the costs of a whole home renovation are significant and non-recurring, we don’t include them in our monthly expense budget.  However, we do share renovation costs each month for full transparency.  

How we define an “expense”

The table below shows all expenses for the month, excluding renovation costs.  Principal payments on debt are not included.  As a former accountant, I don’t view principal payments as “expenses,” since they directly reduce debt and increase net worth.  We don’t anticipate having any debt in retirement. 

November 2021 Financial Results

Net Worth

We calculate net worth by subtracting debt & other liabilities from total assets. Total assets include cash, investments, home equity, and an immaterial amount of other assets.

Our net worth barely changed this month but is up 30% from a year ago and 99% from 3 years ago.

Investments

Our Financial Independence portfolio, which consists of cash and investments, excluding our daughter’s 529 Plan, is up by 33% year-to-date.

We invested $12,445 this month, with a portion coming from existing cash. The net addition to our Financial Independence (“FI”) portfolio during the month was $7,920.

These additional investments were mostly offset by pandemic-fueled market volatility late in the month. As such, we ended November back down at 93% of our FIRE goal.

Debt

We currently have $195,069 in debt, the majority of which relates to our mortgage.

For the most part, we no longer make additional principal payments to our mortgage during the year. We shifted our priorities to investing excess cash once we got the mortgage balance below $200,000 and refinanced to a rate of 2.5%. 

Although I’m now rethinking that strategy, given the lower market returns being projected for the next 10 years.

Savings Rate

Our after-tax savings rate was 66.6% for the month, which is a few points above our budgeted rate for the month.

November 2021 Financial Results: Monthly spending

Ok, full disclosure time! The table below shows our expenses for the month, along with some additional thoughts (or excuses).

*Does not include monthly spending for home renovation of $347, or charitable contributions made (which we don’t share publicly).

Housing-Related – $860

Housing-related costs include mortgage interest paid, and a monthly allocation for property taxes, insurance, and HOA dues. 

Insurance – $464

This category includes our premiums for auto, term life, personal liability, and health insurance.

Health insurance premiums are withheld from Mr. RFL’s paycheck, but all our other insurance plans are paid annually or biannually.  We allocate an amount for auto insurance each month since the cost is high, but other insurance premiums are included here only when they’re actually paid.

Food – $800

Grocery spending was right on budget. We tend to spend a little more around the holidays, so I build this into the budget.

Our restaurant spending was higher than normal, but I’m okay with that. We purchased a discounted gift card on Cyber Monday and dined out a few times this month.

We’re planning to increase this category in our 2022 budget by quite a bit, as we aim to enjoy more of our money while Mr. RFL is still working.  Much of this additional money will go towards the weekly “day dates” that Mr. RFL and I recently began having. Our dates won’t always involve dining out, but I expect they will a couple times a month.

Alcohol – $167

Picked up a few bottles of wine during Fry’s 25% off wine & spirits sale, including a couple nice bottles for the holidays. We also bought an assortment of local craft beers for everyone to enjoy during a visit with some old friends who were in town.   

Household Consumables – $92

This category includes most of the non-food consumables used in our household, such as toilet paper, shampoo, skincare, laundry detergent, cleaning products, batteries, etc. 

Nothing exciting here. Just loading up on some toilet paper and paper towels from Costco, and a few beauty products from my new favorite clean-brand (affiliate links).

Utilities – $198

Utilities includes electric, water, gas, and security. 

After what felt like a never-ending summer, we are FINALLY into the milder part of the year here in Arizona!  We should be able to keep our utility bills reasonably low over the next few months.

Home Maintenance – $67

This money was mostly spent on gardening and painting supplies.

Medical – $97

We restocked probiotics (affiliate link – but usually a bit cheaper at Costco), which helped with my digestive issues earlier this year, so are worth every penny.  We also paid co-pays for Mr. RFL’s annual eye appointment.

Entertainment – $57

This category is for television, streaming music, books, games, concerts, and other family activities. 

This month I renewed my annual membership to a local mom’s group, and we paid for Spotify.  My Hulu cancellation last month paid off, because we were able to sign up for another year at $0.99 per month as part of their Black Friday promotion.

Clothes – $161

Don’t worry, I’m still going strong on my no spend clothing challenge. In fact, I just publicly extended the challenge to 2-years on social media (which makes it official).

However, Mr. RFL was in desperate need of some new shoes for work and a few polo shirts.  

Child Activities & Other Purchases – $293

This month we paid $94 for swim lessons and bought all of our daughter’s presents for Christmas (and a couple for her birthday next year).  We try to keep holiday spending minimal, to set expectations while she’s young. However, we decided to splurge a bit on a kid tablet this Christmas, which will come in handy on the longer road trips we have planned for next year.

Other Shopping – $147

I caved and bought a cute holiday mat and pillow from Costco last month.  I’m only human, and it was $20. 

This category also includes a Christmas gift I bought for Mr. RFL, and one I bought for myself for him to give me. Shhh… it’s still a secret.  

November 2021 Financial Results: Other Income

While the majority of our income comes from W-2 wages and related employee benefits (i.e. 401k match), we continue to build on our passive and other income streams.

The total non-employer related income either earned (or gifted to us) this month was $338.

Interest

We earned $95 in interest this month, primarily from our high-yield savings account and interest earned on Mr. RFL’s deferred compensation investments.  

Dividends

It was another low-paying dividend month, with only $125 received this month.  December should be one of the biggest payouts of the year, so I’m looking forward to seeing that passive income roll in!

Reselling

I’ve made literally no effort in this category for the last two months, with only $1 in commissions from selling unwanted clothes and kid gear on the secondhand market.  I’m currently focused on getting ahead in my blogging, and hope to return some focus to decluttering in January.

Cash Back Rewards

We earned $117 in cash back rewards this month, primarily from our credit cards.  We charge everything we can on our cards to maximize cash back, but always pay the full balance off each month.

Those are our financial results for November 2021. How did your month go?

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