Time is Flying and November 2023 Financial Results

Welcome to Rich Frugal Life’s November 2023 financial results! Before we get into the numbers, here’s what we were up to last month.  

Can you believe it’s already the last month of the year?!

I can’t. This year feels like it has gone by so quickly, and I’ve only accomplished a fraction of what I had intended.

Perhaps it’s true what they say. “Time flies when you’re having fun.”

We’re gearing up for the end of the year in typical nerdy fashion… with financial forecasting, budgeting, tax planning, and setting financial and personal goals for 2024. I still love a good spreadsheet!

If you haven’t completed your preparations for the end of the year, it’s not too late! Check out my year-end financial review checklist to make sure you aren’t missing out on any important employment benefits or tax savings. This blog post is from a couple years ago, so any contribution limits included may be dated, but the tasks to consider at year end are still relevant and a part of our regular year end review process.

I’m taking a holiday hiatus

Unfortunately (for several reasons), I wasn’t able to find the time and/or motivation this year to blog as much as I had originally planned.

I’ve been trying to just go with the flow and do what feels right in the moment more often. This year, that felt like slowing down, working on my health, volunteering in my community and being more present at home.

While I hope to finally get my writing groove back in 2024 and post more frequently again, I’m not ready to make any promises. But, I still feel like I have so much to say.

Until then, I’ve decided to take a brief hiatus from the blog and social media for the holiday season to work on my December goals.

Wishing you and your loved ones all the best this time of year! I’ll be back in January 🙂

Without further ado, here are our November 2023 financial results, with all the juicy details of this month’s spending, passive income, savings rate, and investments.

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 believe there is value in sharing information to provide context and normalize the discussion of money.

Seeing other people happily embrace 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.

Other information useful in reading our monthly financial results

Did we just buy a money pit?

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

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 an 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 2023 Financial Results

Investments

We made a net investment in our Financial Independence (“FI”) portfolio of $4,040 this month.

Our reported investment number includes employer matches but does not include reinvested dividends and interest.

We also cashed out approximately $6,500 of Mr. RFL’s company stock options this month; however, this money has not yet been reinvested. I omitted the decrease in “other stock” from the pie chart below because negative values skew the presentation.  

Here’s a break-out of investments we made this month:

Debt

We currently have $155,200 in debt, all of which relates to our mortgage.

Our mortgage has a fixed interest rate of 2.5%, which is a lot less than the 4.35% our high-yield savings account currently pays.

We’re taking advantage of the interest rate arbitrage while it lasts, so won’t be making additional principal payments anytime soon.  

Savings Rate

Our after-tax savings rate this month was 80.8%. This is just slightly above our normal savings rate.

We calculate our savings rate after taxes, because we believe this gives us the best insight into our true cost of living.

Including taxes would skew our expenses and savings rates when comparing over a period of time. Although we currently pay a lot in taxes each year, that’s because we are still earning a high income. We expect to earn and pay much less in early retirement.

November 2023 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 charitable contributions made, as we don’t share that information publicly. Although we budget for donations each year, we don’t like to treat charitable giving as an “expense” against our budget (to encourage more giving).

Housing-Related – $791

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

We’ve refinanced our home several times over the past few years down to a rate of 2.5%. Because of this, and since we had been paying extra all along, our loan-to-value ratio and mortgage payment are now quite low.

Insurance – $451

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 – $827

Food spending remained pretty close to our budgeted amount this month, with restaurants being a little over and groceries being a little under.

We spent $583 of this money on groceries in November, which included one trip to Costco and a few smaller trips to the grocery store. I may have also purchased several bags of holiday candy… most of which has already been eaten.

This month we also spent $244 at restaurants, which included a sushi lunch date, a family dinner out, and $150 for discounted gift cards to one of our favorite local restaurants.

Household Consumables – $134

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

Utilities – $262

Utilities include electric, water, gas, and security. We’re still in the “cheap” season.

Fuel – $68

Only one car needed a fill up this month, discounted using Fry’s fuel points.

Medical – $327

About half of our medical spending in November was for my annual eye exam and a year’s worth of contacts (after applying the insurance credit).

I also purchased two at home lab tests from Everlywell during a Black Friday sale in order to check in on my hormones and nutrient levels not typically included with annual exam lab work. I haven’t done a home lab test in a while, but had a positive experience with their tests when I was experiencing gut-health issues back in 2021.

Interested in investigating your health at home? You can save 25% off Everlywell home lab tests using my referral link above. This is not sponsored, but for full disclosure, I’ll also receive a $35 gift card if you use my link to purchase any tests. Thank you for supporting this blog.

Alcohol – $161

This month we paid for our Cooper’s Hawk wine club membership and purchased some wine and bourbon during a 25% off sale at our grocery store sale.

Entertainment & Learning – $34

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

This month we paid for streaming services from Spotify, Netflix, and Amazon Kids+. We saved a few bucks off our Amazon Kids+ subscription since we are now Prime members again.

Self-care – $53

I purchased a deluxe teeth whitening kit during a Black Friday sale, as well as some home pedicure supplies (affiliate link).

Clothes – $35

I treated myself to a new (heavily discounted) bathrobe from Target on Black Friday. Their affordable “Stars Above” PJ line for women is pretty great!

I also bought another set of no-show socks from Amazon in different colors (same brand as before).

Kid Activities & Other Purchases – $212

This month we paid for gymnastics lessons. I also bought our daughter some new winter clothes, since she’s finally out grown her hand-me-down wardrobe, and a couple small presents for Christmas.

Furniture, Tools & Other Home Purchases – $563

Some women love to collect jewelry. But this woman collects Le Creuset cookware (and Vuori sweatpants).

What can I say? Kitchenware and cozy clothes are the way to my heart.

Although I’ve collected my fair share of Le Creuset over the years, most were gifted to me and not in colors that I would pick out if buying today. There are also a couple sizes that I’d been eyeing for a while. So, when I found them heavily discounted on Black Friday in my favorite color, I bought them… both. (affiliate links).  

There were a couple other small purchases this month as well.

Gifts – $126

Christmas presents (shh… it’s a secret).

Fees – $150

We cancelled our Amazon Prime membership back in 2020 and haven’t had it since. Other than the occasional annoyance at having to spend a little more to get free shipping, it hasn’t been that bad. This year I received a free trial for 60 days, that turned into an annual purchase.

We’ll save $36 with Prime on the Amazon Kids+ subscription we already use, which somewhat lowers the effective price, but it’s still kind of pricey. I also have already purchased way more things than I did when we didn’t have prime.

We’ll give it a try for this year, including checking out Amazon music (potential Spotify replacement?) and Prime TV and decide if we think it’s worth the cost before it renews.   

Cash Back Rewards

We received $173 in cash back rewards this month.

Since these ultimately represent reductions in the purchases we make, I decided to reflect them as a reduction of expenses this year, rather than as income. Travel hackers are always bragging about how little they pay for vacations, but the reality is that they are making a trade-off between earning cash back and earning points with their purchases. That’s not to say that the trade-off isn’t better for anyone who travels a lot (it appears to be for skilled travel hackers). It’s just different, so this is how I like to view the trade-off for our personal finances.

We strategize the timing of expenses and charge everything we can in order to maximize credit card rewards. However, we always pay the full balance due each month.

November 2023 Financial Results: Other Income

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

Our total non-employer-related income earned this month was $1,046.

 Here’s a breakout of how that money was earned:

Our income from dividends and interest hovered a little below $1000 this month, which seems to be our new norm for non-quarter-end months. December is the big one though, and I can’t wait to see where we land this year!

This month I earned $29 from selling a couple things on Poshmark. I also earned $66 from reselling in October but forgot to include it in the break-out of passive income… for anyone who noticed that my math didn’t work last month. 

As expected, the referral credits from my ButcherBox review have continued to decline. It’s disappointing to see, but it was exciting while it lasted. I only earned $50 this month. Maybe it’ll pick back up in the new year, but we’ve got enough meat for now.

I show referral credits here in the “Other income” section for transparency. However, since they are paid out as discounts off future orders (which reduces our grocery expenses), I don’t treat them as income within our budget or for calculating our savings rate.

That’s all for our November 2023 financial results.

Are you as excited for December dividends as I am?

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Featured image by Pexels from Pixabay

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