Pleased New Yr everybody! Whew, I’m so glad 2022 is over. Let’s wrap it up and ship it on its approach. 2022 was a tricky 12 months for the RB40 family. Truly, it was a combined bag. We had some wins and a few losses. Our web price decreased considerably, however our money move was fairly sturdy. Mrs. RB40 took a sabbatical and we had a whole lot of enjoyable in the summertime. My mother had some critical well being points and that made me really feel unhealthy. Mrs. RB40 additionally had some minor well being points. See, we had ups and downs in 2022. I’d like 2023 to be a 12 months with all wins. I’ve had sufficient of the unhealthy information.
As we speak, I’ll share how I did with my 2022 New Yr objectives. Then, I’ll share how we did with money move and web price. Let’s go.
2022 Targets
Right here is my 2022 purpose spreadsheet. It really works very well. Attempt it out should you can’t sustain together with your New Yr objectives. The hot button is to go over the spreadsheet at the very least as soon as a month to trace your progress. That approach, you’ll be able to see which objectives want further consideration and work on them.
I didn’t do very effectively on my objectives in 2022 since I failed half of them. The opposite half was okay, although. For 2023, I’ll attempt to simplify the objectives and do higher.
Monetary Targets
- Actual Property Crowdfunding $200,000. This one is just too tough. We simply don’t have sufficient further revenue to extend our funding this a lot. In 2022, I invested in an condo renovation in North Carolina so we’re slowly getting there. Lately, the tasks on CrowdStreet end their funding section in a short time. Many traders are taking cash off the inventory market to diversify. Actual property is doing significantly better than the inventory market. It’s a good way to generate passive revenue.
- FI Ratio > 110%. This was my primary purpose for 2022. The FI ratio is passive revenue divided by expense. In 2022, our FI ratio was 146%! It was our greatest 12 months but. Let’s see if we are able to repeat it in 2023.
- Promote rental rental. Our tenant determined to remain for an additional 12 months. He’s a fantastic tenant so I’m okay with it. The value isn’t nice in that space anyway. Portland continues to be fighting a whole lot of points. Anyway, I failed this purpose.
- Speculate crypto $10,000. I offered off my Crypto holding in November. The craziness is just too scary for me. All in all, I misplaced about $1,000. I would get again in subsequent 12 months.
Well being Targets
- I bought a brand new health tracker! Subsequent 12 months, I’ll set an achievable month-to-month step purpose.
Enjoyable Targets
- Journey 180 days – I spent 193 days touring this 12 months. This complete journey factor is exhausting. We spent the entire summer time on the highway whereas Mrs. RB40 was on a sabbatical. She may retire if she needs, however she is again at work. Additionally, I spent a whole lot of time with my mother and father this 12 months. That half isn’t a lot enjoyable as a result of my mother is sick. The largest lesson is journey isn’t a lot enjoyable with out my spouse and child.
- 1,000 subscribers on my YouTube channel. At the moment, now we have 1,445 subscribers on our YouTube channel. I don’t assume I’m lower out to be a YouTuber. I simply don’t have the persona for it. However we gained some subscribers this 12 months so I met my purpose.
- Scorching air balloon trip, zipline, and Disneyland. Horrible. We didn’t do any of those actions in 2022. I’ll attempt to get hit considered one of these in 2023.
- Happiness > 8. 2022 was up and down for me. The primary a part of 2022 was nice as a result of we traveled loads and life was clean. The second half was tough as a result of my mother was hospitalized. It was traumatic. Mrs. RB40 and her dad additionally had some well being points. All in all, 2022 was good. My common happiness rating was 8.3. I suppose that isn’t too unhealthy. Let’s hope 2023 might be uneventful.
Web Price (-12.5%)
Oof! Financially, 2022 was a horrible 12 months for our web price. It decreased by 12.5%. Virtually every little thing in our web price took a dive this 12 months – shares, bonds, home, rental rental, Thailand condos, and weblog. All these decreased in worth in 2022. (I worth Retire by 40 at 3x annual earnings. The weblog revenue decreased so the e book worth additionally dropped.) These are the one exceptions.
- Actual property crowdfunding – We did fairly effectively with actual property crowdfunding in 2022. Nonetheless, I don’t know the way the upper rates of interest will have an effect on future earnings.
- I bonds – It is a excellent spot to stash some money. The rate of interest is significantly better than our financial institution accounts.
I’ve been monitoring our web price since 2006. Often, it is extremely motivating to see the progress. The ability of compounding is unbelievable. Nonetheless, 2022 was demoralizing. I’m simply glad it’s over. Seeing our web price lower isn’t a lot, however we are going to proceed to speculate for the longer term.
***Vital*** My finest recommendation is to remain the course. Don’t cease investing. It’s essential preserve investing when the inventory market is down. Ultimately, the inventory market will recuperate and you’ll do very effectively so long as you retain investing via the downturn.
Here’s a chart of our web price from Private Capital. Join a free account at Private Capital to assist handle your web price and funding accounts. I log in virtually every single day to test on our accounts. It’s a fantastic web site for DIY traders.
2022 Passive Revenue: $82,086 YTD
Here’s a fast abstract of our passive revenue. You possibly can see all the main points on my Passive Revenue web page.
Our web price carried out horribly in 2022, however our passive revenue was very sturdy. It stored me optimistic about FIRE. That is the primary time we’ve actually been examined since I retired in 2012 and we survived. I’d be much more apprehensive if our passive revenue took a dive too. Particularly, actual property crowdfunding did fairly effectively. Additionally, our leases generated extra revenue than the previous couple of years. It’s good to be diversified. Truly, every little thing did fairly effectively.
*FI ratio = passive revenue/expense
2022 Money Movement
I eliminated Mrs. RB40’s revenue from this Sankey chart. It will make it simpler to see if we’d be okay when she retires. General, 2022 was a superb 12 months. The money move reveals that we are able to dwell comfortably with out Mrs. RB40’s revenue.
Right here is the Sankey diagram of our money move. You may get a fast overview from the diagram and see the main points under.
FIRE Revenue: $71,246
Our FIRE revenue was adequate in 2022. The one drawback was my weblog revenue. It’s lowering yearly. I’ll attempt to complement it with some aspect hustles in 2023. Fortuitously, our passive revenue was fairly good in 2022.
- Actual property crowdfunding: $22,980. Our actual property crowdfunding revenue hit an all time excessive in 2022. It was nice. You possibly can learn extra on the RE Crowdfunding Passive Revenue web page.
- Dividend Revenue: $14,271. Our dividend revenue stayed at about the identical degree because the earlier 12 months. That can do for now. We’ll focus extra on dividends after Mrs. RB40 retires.
- Rental revenue: $8,632. 2022 was a fantastic 12 months with our rental properties as effectively. We didn’t have a whole lot of repairs and that made life a lot simpler.
- Weblog revenue: $19,373. My weblog revenue is lowering. I’m unsure if it’ll ever recuperate.
- Curiosity Revenue: $2,434. We now have about $55,000 in I-bonds.
- Aspect hustle & Misc: $3,555. This was from numerous sources together with tax refund, items, bank card bonuses, and aspect hustles.
Annual Spending: $54,608
In 2022, I plan to spend about $50,000. We went over funds a bit, however $50,000 was only a guess. I feel it’s okay to go over funds a bit. So what did we spend cash on? We traveled loads in order that class was approach greater than standard. The father or mother class was additionally a lot greater than standard. My mother has dementia and we’re serving to with the hospital bills. Mrs. RB40’s dad additionally was hospitalized for a bit. We flew down to assist him transition again house. Mrs. RB40 additionally had some well being points. The opposite classes had been fairly affordable.
Listed here are the main points. Truly, I’ll solely deal with a couple of classes to maintain it easier.
- Housing: $15,173. This class consists of mortgage, house insurance coverage, HOA charges, property taxes, utilities, house enchancment, restore, and furnishing. The value of utilities elevated just a little this 12 months.
- Dad or mum: $11,007. We helped out greater than standard in 2022. This 12 months needs to be simpler.
- Journey: $15,699. We spent some huge cash on journey in 2022. This class needs to be approach decrease this 12 months.
- Groceries: $4,283. Not unhealthy for a household of three. This was decrease than standard as a result of we had been on the highway loads.
- Payments: $297
- Child: $1,096
- Well being: $2,510.
- Transportation: $2,147. This class in all probability will improve in 2023. I have to take our automobile (2010 Mazda) to do some upkeep.
- Leisure: $1,389. Not too unhealthy. Most of this was restaurant spending.
- Clothes: $619.
- Misc: $388.
- Taxes and Investing: $16,638.
2022 wrap up
Bye bye 2022! We survived and we’ll do higher this 12 months. Life is unsure, however we’ll preserve preventing. I’m optimistic for 2023. The inventory market in all probability will go down for a bit, however I feel it’ll be on the mend by the tip of the 12 months. Let’s get this recession over with so we are able to all have a pleasant profitable 12 months.
All proper, that’s it as we speak. Did you’ve got a superb 12 months in 2022? Are you optimistic concerning the coming 12 months?
Passive revenue is the important thing to early retirement. Lately, I’m investing in business properties with CrowdStreet. They’ve many tasks throughout america. Go test them out!
Disclosure: We might obtain a referral payment should you signup for a service via the hyperlinks on this web page.
Passive revenue is the important thing to early retirement. This 12 months, Joe is investing in business actual property with CrowdStreet. They’ve many tasks throughout the USA so test them out!
Joe additionally extremely recommends Private Capital for DIY traders. They’ve many helpful instruments that may enable you to attain monetary independence.
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