Hey Everyone! Did you have a good month? February was another hectic month at the RB40 household. I was busy fixing up our rental condo. That’s done and it’s listed for sale. Unfortunately, the housing market is very slow. It’ll probably take a while to sell. Now it’s a waiting game.
On the personal finance side, we had a rough month. I spent about $2,200 to fix up the condo and our cash flow was negative. The rental condo willl be a drag on our cash flow until it is sold. Our net worth held steady in February. I’m very pessimistic, though. The stock market probably will crash and burn soon.
Alright, I’ll share how I’m doing with my New Year goals. Then, I’ll go over our net worth and cash flow. Let’s go!
2025 Goals
Here is my 2025 goal spreadsheet. It works well. Try it out if you can’t keep up with your New Year goals. The key is to review the spreadsheet monthly to track your progress. That way, you can see which goals need extra attention and work on them.
Financial Goals
Sell Rental Condo
This is my main goal for 2025. Our tenant moved out of our rental condo in January. I fixed it up and listed it for sale. Unfortunately, the housing market is terrible right now. It might take a while to sell. If it doesn’t sell in 6 months, I might have to look for a new tenant.
I don’t want to be a landlord anymore. I’d rather invest in real estate crowdfunding.
Prep duplex for sale
Along the same lines, I plan to sell our duplex after RB40Jr finishes high school in 2029. We need to move to southern California to be closer to families. Mrs. RB40’s parents are getting older and they need help.
This year, I will meet with our realtor and figure out what we need to fix. The siding needs repair and repaint. I’d be happy if we can get at least that much done. I plan to hire this out. These days, I try to avoid the ladder as much as possible. I also want to remodel the kitchen and bathroom.
The duplex is on the back burner for now.
Max out my Roth IRA
The Roth IRA is the best investment account you can have. You don’t have to pay tax on the gains when you withdraw. This is huge. If you start young and max out your Roth IRA every year, it’ll be a great resource in retirement.
I’ve maxed out my Roth IRA contribution for over 20 years. But that streak will end sooner or later. The reason is simple. You can only contribute to the Roth IRA with earned income. My earned income is dropping like a rock and I might not make enough this year. In 2025, the contribution limit for a Roth IRA is $8,000 if you’re 50 or older. We’ll see if I can earn enough to max it out.
So far, I made $1,401. Not too shabby!
*You can contribute to the Roth IRA if your spouse has earned income. Mrs. RB40 has earned income, but I prefer to use my earned income to contribute to my Roth IRA.
Track net worth and hope for +10%
I’ve been tracking our net worth since 2006. It’s great to see the progress. This year, I’d like to see 10% gains. At this point, it’s all dependent on the stock market and there isn’t much I can do to influence this goal. I’ll track it and keep my fingers crossed.
I’m very pessimistic about the US economy right now. Comrade Trump will bankrupt the country like he did with his businesses. He is alienating all our allies and licking Putin’s boots. Every country will suffer from the trade wars. China is emboldened and will invade Taiwan soon because they know Trump won’t do anything. Democracy is in decline and oligarchy is rising. If you’re rich, you’ll be richer. If not, get ready for hard times. I hope you have a nice tent and plenty of ammo.
We are up 2.3% so far.
Health Goals
Exercise more than last year
Last year, I set a goal to exercise 3 times per week. However, I developed elbow pains and I had to scale back a bit. The result – I exercised 120 times in 2023. That wasn’t bad, but I’d like to do more this year.
Things are not going well. I got sick in January. After that, I spent a lot of time fixing up the rental. Anyway, I made it to the gym 9 times in February. It should be better this month.
Win claim denial
Last year, RB40Jr got a Cochlear Implant to improve his hearing. He has 50%-80% hearing in his left ear. He tried a hearing aid for a few years, but it didn’t help much. He can hear a little with his left ear, but he can’t understand speech on that side.
Recently, the FDA approved Cochlear Implant for children. At first, I thought we could wait until RB40Jr is an adult. Then he can decide for himself. However, our audiologist said the earlier you get the implant the better. If you wait too long, the brain might not be able to adapt.
Anyway, he got the implant last year. However, the insurance denied the claim. They said Cochlear Implant is experimental and doesn’t improve overall health. This is ridiculous. The device has been used since the 80s to improve lives. I’m fighting this denial. I think health insurance companies are denying as many claims as possible to improve profits. A lot of people get too sick to fight the denials. No wonder everyone hates health insurance companies.
I worked with the hospital to file an appeal. Now, we are waiting to hear back.
Fun goals
Sell my ceramic projects
Last year, I took 2 ceramic classes at the community center and had a blast. My projects aren’t professional level yet, but I’ll try selling a few items this summer. The community center will have several art sales this year. I’ll get my name on the list and hope for the best. My ceramic projects might not sell, though. My aesthetic is unusual… Most of my stuff are wabi sabi.
Would you buy any of these? My price would be $19.99 each. Heh heh…
More dates
This year, I plan to go out with Mrs. RB40 more often. If you’re a parent, you know how difficult this can be. Fortunately, our son is a teenager now. We can go out whenever we want. However, I need to overcome my reluctance to leave the house in the evening. We park in the street and finding a spot is a pain at night. Ugh! I’d rather hunker down at home than go out to a restaurant.
I‘ll go on date lunches with Mrs. RB40 instead. That’s way easier. Who wants to leave home after dark?
In February, we made it out for 2 lunch dates. It was a busy month.
Happiness level > 8
I’m a naturally happy guy so this should be easy. Life has been great over the last few years.
Unfortunately, things are looking grim. My plan to ignore the news for 4 years has failed completely. The world is in chaos and we need to prepare for life to get considerably worse. I am totally stressed out.
Net Worth (+2.3%)
I’ve been tracking our net worth since 2006. It is very motivating to see our progress. The power of compounding is incredible. Our investment gains far outpace our earned income last year.
2025 is off to a good start. Our net worth increased 2.3% so far. However, the stock market is priced for perfection and things are unraveling. I’m not very optimistic.
***Important*** My best advice is to stay the course. Do not stop investing. You should keep investing whether the stock market is up or down. You might think stocks are too expensive, but it’ll look cheap in 10 years. Keep investing and you’ll achieve financial independence someday. Don’t try to time the market.
This is a chart of our net worth from Empower. Sign up for a free account at Empower to help manage your net worth and investment accounts. I log in often to check our net worth and use their free tools. It’s a great site for DIY investors.
February 2025 FIRE Cash Flow
This FIRE cash flow chart includes my online income, side gigs, and taxable passive income. Mrs. RB40’s income isn’t here because she plans to retire soon.
Our cash flow will be horrible until the rental condo is sold.
February 2025 FIRE Income: $2,009
- Real estate crowdfunding: $533. You can read more on the RE Crowdfunding Passive Income page.
- Dividend Income: $580.
- Rental Income: -$3,240. We’ll have negative rental income until the condo is sold. Next month should be a bit better. I’m done fixing the place up.
- Blog income: $487.
- Odd jobs: $409. I delivered a few catering orders per week. It’s an easy gig that pays pretty well, for now. I’m sure, they’ll decrease pay soon. At that point, I’ll look for something else to do.
Spending: $4,781
Here are some details.
- Housing: $1,333. This includes mortgage, utilities, furniture, repair, and maintenance. Our housing expenses are low because we live in a duplex. We split many expenses with our tenant.
- Transportation: $152. Gas and insurance.
- Entertainment: $150. This was mostly eating out and ordering food.
- Groceries: $565. The grocery bill was about average.
- Health: $488.
- Kid: $671. Unfortunately, kid-related expenses are also increasing as RB40Jr gets older. We are making payments for his orthodontist, an international school trip, and various activities.
- Personal: $337. Clothes, home goods, and personal grooming.
- Travel: $1,034. We’re going to North Carolina to visit my brothers in March.
Savings: –$6,012
February 2025 wrap-up
Alright, February was a long stressful month. I’m glad it is over. March should be better, though. The weather is getting nicer and spring break should be a lot of fun. Hopefully, I’ll have better luck at ignoring the news when I’m out of town. We’re heading to North Carolina to see my brother.
That’s it for February. Did you have a good month?
Passive income is the key to early retirement. These days, I’m investing in commercial properties with CrowdStreet. They have many projects across the United States. Go check them out!
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Joe started Retire by 40 in 2010 to figure out how to retire early. After 16 years of investing and saving, he achieved financial independence and retired at 38.
Passive income is the key to early retirement. This year, Joe is investing in commercial real estate with CrowdStreet. They have many projects across the USA so check them out!
Joe also highly recommends Personal Capital for DIY investors. They have many useful tools that will help you reach financial independence.
Disclaimer: This story is auto-aggregated by a computer program and has not been created or edited by budgetbuddy.
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