by As we welcome the new year, we hope you’re making progress on your financial goals. We’ve been quiet here on the blog, fully immersed in the joys and challenges of raising our now five-month-old daughter, Yuna. Time truly flies!
It’s time for another One Life to Live (OLTL) update, our quarterly recap on how financial independence fuels our pursuit of true happiness. Let’s dive into how we fared during the last quarter of 2018 and explore the adventures that defined this period.
A 5-Week Florida Road Trip Adventure
The highlight of Q4 was undoubtedly our extended trip to Florida. With Tatiana on the tail end of her 6-month maternity leave and my combination of paternity leave and paid time off, we embarked on a 5-week journey to the Sunshine State.
Why drive instead of fly? Two main reasons:
- We needed to transport a lot of baby gear, which was more manageable by car.
- We wanted to minimize our infant’s exposure to germs on a plane.
To make the most of our journey, we took a leisurely approach, stopping at several locations along the way. Our itinerary included:
- A scenic drive down I-81 along the mountains
- A memorable two-night stay in Savannah, GA
- Family visits in Gainesville, FL
- Our final destination: North Port, FL
During our stay in North Port, we enjoyed:
- Daily walks in the pleasant Florida weather
- Visits to the Warm Mineral Springs Lake (potentially the legendary Fountain of Youth!)
- A family reunion in Sarasota
- House hunting for potential future moves
Culinary Adventures at Home
With a young baby, we’ve been cooking at home more than ever. Here are some of our recent culinary experiments:
- Homemade quiche: A new addition to our brunch menu
- Moist banana bread: The secret is adding dairy like yogurt or milk
- A memorable first Thanksgiving dinner for our baby girl
Financial Update: Q4 2018
Now, let’s dive into the numbers for those who love the financial details.
Expenses
Our bare-bones spending for Q4 2018 totaled $6,722, bringing our yearly total to $26,119.42. Here’s the breakdown:
| Category | Quarter Amount | YTD Amount |
|---|---|---|
| Auto & Transportation | $472.20 | $2,259.48 |
| Bills & Utilities | $694.10 | $2,280.00 |
| Groceries | $1,976.39 | $7,054.06 |
| Home Supplies | $129.31 | $725.88 |
| Rent | $3,450.00 | $13,800.00 |
| Total | $6,722.00 | $26,119.42 |
Portfolio Income and Performance
We received an unexpected boost in dividend income this quarter:
- Q4 dividend income: $22,477
- Total 2018 dividend income: $40,568
This significant increase was partly due to a $9,300 long-term capital gains distribution from one of our 401(k) funds.
Our Freedom Fund Portfolio returned -10.17% for the quarter, reflecting the market volatility. However, our 2018 annual return was -6.02%, slightly better than the S&P 500.
Net Worth Update
Despite market fluctuations, we managed to increase our net worth in 2018, thanks to our consistent savings efforts. Our savings rate has remained above 70% for the past few years.
Living Life While the Market Tanks
How do you enjoy a 5-week road trip while the market is in decline? The key is to focus on living in the present. While equities were losing value, we were:
- Taking walks
- Swimming in lakes
- Cooking delicious meals
- Enjoying time with family and friends
Remember, market volatility is normal. As long-term investors, we don’t lose sleep over short-term fluctuations.
Looking Ahead
As we move forward on our journey to financial independence, we’re excited about the possibilities that lie ahead. Our daughter, Yuna, is growing rapidly, trying solid food for the first time, and reminding us daily to appreciate life’s simple joys.
Remember, we have one life to live. Let’s make the most of it by balancing financial responsibility with the pursuit of happiness and memorable experiences.
So different with a child right? Everything takes more time and you are forced to slow down. It’s a great thing! Enjoy the little moments, they are so fleeting! Question: have you thought about investing your NCF in a savings account or CD that pays a little more than a money market? We have our cash fund earning almost 2% in a savings account. It’s safe, insured (till a certain amount) and it provides extra income that a money market is not providing right now.
Hi Jana,
Yes! It’s no longer about getting everything on the list done. There are days that if I get to one thing on the To Do list, I’m happy! 🙂
About the NCF, we have it in the Vanguard PMM which is earning 2.48% as of now. We avoid CDs since we don’t know when we’ll find our dream home and want the flexibility to withdraw without penalty. And yes, even though it’s not “insured”, I’m not too concerned because it all hell breaks loose and such a huge money market fund loses money, I’m sure there’ll be a government bailout. 😉
The PMM fund also holds treasury bills, CDs, and other insured vehicles. Great question and good hearing from you!