Rebel Finance School Week 2 Homework

 Dear Faithful Reader, 

Back so soon? I'm surprised as well.

I will continue recording my homework for the Rebel Finance School here. 

Here is Week 2: 

Open a savings account. I have a HYSA open already so I'll be using that. I recommend keeping your money there since rates are quite good right now for HYSAs compared to regular accounts.

Calculate your net worth: Luckily I have just done this for July 1st. $739,859.16

Keen-bean homework: 

Work out how much you've earned over your lifetime: I have done this as well with PsyFIRE's cool template. So the total give or take some money is $685,628. Not bad. Technically these are Social Security earnings so it's missing the three years I spent in Japan at about $30k each so you would add maybe about $90k to that total. So we could say $775,628.

Compare lifetime earnings with net worth: Not too shabby. I would say the net worth is due in large part to investments growing. I've been quite lucky. Also thanks to my partner, as well as our owning a home together.

Discuss with your partner: My partner is currently sleeping (due to the new child and him taking the night shift) but I look forward to discussing this with him when he wakes up. I think he'll be excited to compare his lifetime earnings with his net worth as well (we calculate our net worths separately).

More discussion questions:

Direction and tracking net-worth

• What direction are your finances heading? Do you know with certainty if they are improving or not? - I think they are heading in a positive albeit slow upward trend. I think they are improving.
• How do you feel about your financial direction? Are you positive and happy? Are you feeling apprehensive? How do you feel about the direction of your finances? - I feel relaxed. I'm just clocking in my hours until I reach 55, which should be in about 17 years or so.
• Where will this direction leave you at retirement age? - Everything looks quite positive at the moment. I'd love to max out my 457 but it's all a delicate balance.
• What do you think the main benefit of tracking net-worth is for you? - I like tracking net-worth since it gives me a positive feeling.

Gap between earning and spending

• Do you have an emergency fund? - Not really. I started saving a bit but I think I've spent most if not all of it.
• Have you had times where the car/washing machine broke down and you were scrambling for money? - No, I haven't but there have been times when I spent a bit too much and was depositing change into my account to pay my credit card off in full.
• Do you have a gap between your income and expenditure? - Right now it's a bit of a negative gap but I had money saved up to cover it. I'm trying to watch my spending so I can keep paying off my credit card in full.
• Is there money left over at the end of the month? If so, what do you do with it? - I leave it in my HYSA. I'm trying to pay back loans that my partner and my parents have lent me.

Thank you again for reading.

I remain,

Into the FIRE