March 2021

Another month, another $45k increase in net worth. This is getting boring. Yawn … 😀

On a serious note, I’ll take this nicely purring along markets any day. Or month. We’ll make hay while the sun shines. And when the inevitable correction does come – in a week/month/year – we will take advantage of that too and throw more of the stockpiled cash at it.

Cash reserve increased further as W’s sizeable annual bonus came through. Quite soon we’ll be sitting on a pile of doing-no-good $100k. That’s ok. This would more than carry us for a year if all our sources of active income stopped suddenly one day. Some of it is earmarked for vacations (that we didn’t take in 2020, and some that we will take in ’21 and beyond), some for taxes (that we thought we’d owe; but no, for the first time since we got married, we’ll get a refund!), some for property taxes (escrow that has been decoupled from our mortgage, and we pay directly to the county twice a year).

Another milestone: FI funds for the first time crossed the million dollar mark. This is funds that we can literally live off. I’ll have to sit down and do an analysis on what is the optimal value of this metric for us, but I have a feeling that $1.5M should be sufficient.

Spring is here. Green is sprouting from the depths of the grey and brown. Just two more months till school wraps up and summer starts. Life is – to borrow a mechanical analogy already used in this post – purring along nicely. Cheers!

2 thoughts on “March 2021

  1. Purring along nicely indeed. Question- do you have a cash balance target, or reasoning behind holding that much? Just the security of knowing you have it “just in case”? Just wondering. When we become homeowners again, I’m going to have to decide how much of the leftover cash should stay in checking/savings, and I’m not sure how I’m going to handle that yet.

    Like

    1. Great questions! We don’t have a target but I’m pretty sure that it will be too much once, or if, the cash reserve hits a $100k. The security of knowing that we’ll be able to withstand the worst the economy, or life in general, throws at us without worrying too much about living – that’s a great sense of freedom in my book.

      It’s always a balance, isn’t it? You’ll figure it out the details when the time comes. 🙂

      Liked by 1 person

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