by As we edge closer to our early retirement dreams, our Nuestra Casa Fund (NCF) continues its journey through the ups and downs of the market. Despite a challenging month for bonds, we’re making steady progress towards our home purchase goal. Let’s dive into our May update and see how we’re faring on this crucial aspect of our FIRE journey.
The Reality of Our Progress
Our goal remains clear: save enough to fully fund our home purchase before retirement. We’ve set a deadline of August 2018, and as we approach this target, the reality of our impending lifestyle change is setting in.
We’re already decluttering our Pennsylvania home, preparing for a warmer future elsewhere. Tatiana’s project management skills have come in handy as we tackle each room, deciding what to donate, sell, or discard. This process is more than just tidying up—it’s a tangible step towards our new life.
May’s Numbers: A Mixed Bag
Let’s look at our progress for May:
- We’re currently at 86.2% of our goal
- Our benchmark suggests we should be at 92%
- We saw a modest 0.3% increase from last month
| NCF Monthly Progress Since 2017 | |||
| Month | Percent of Goal Met | Benchmark | Percent Increase Towards 100% |
| January 2017 | 23.9% | 23.9% | N/A |
| February | 25.1% | 26.5% | 1.2% |
| March | 28.5% | 29.2% | 3.4% |
| April | 28.8% | 31.8% | 0.3% |
| May | 30.2% | 34.5% | 1.4% |
| June | 39.1% | 37.1% | 8.9% |
| July | 46.1% | 39.8% | 7% |
| August | 49.1% | 42.4% | 3% |
| September (new target) | 78% | 77.2% | 28.9% |
| October | 80.5% | 79.3% | 2.5% |
| November | 82% | 81.4% | 1.5% |
| December | 85.1% | 83.6% | 3.1% |
| January 2018 | 84.9% | 85.7% | -0.2% |
| February | 84.6% | 87.8% | -0.4% |
| March | 85.9% | 89.9% | 1.5% |
| April | 86.2% | 92% | 0.3% |
While we’re slightly behind our projections, we’re not discouraged. Here’s why:
- We’ve completed front-loading Tatiana’s 401(k)
- We’ll continue maxing out my 401(k) throughout the year
- Summer work bonuses are on the horizon, which should help us catch up
The Long-Term Perspective
Our total return for May was -$775.58, with bond funds down by $1,205.92, offset slightly by income returns of $430.34. At first glance, this might seem disappointing. However, it’s crucial to look at the bigger picture.
Since transferring some stock fund investments into our NCF last September, we’ve brought in $20,035.43 in long-term capital gains and dividends. Factoring this in, our cumulative return as of April’s end stands at a healthy $17,677.67.
This underscores a vital lesson: starting to save and invest early pays off, even if you don’t have all the details figured out initially. The power of compound interest is real, and it’s working in our favor.
Looking Ahead
As we enter the final stretch of our NCF goal, we’re cautiously optimistic. The upcoming months will be crucial, and we’re prepared to make that final push. Remember, every step towards financial independence, no matter how small, is progress.
What about you? What financial goals are you working towards this month? Whether you’re just starting out or nearing your own finish line, remember that consistency and patience are key. Start saving and investing today—your future self will thank you!
