Expenses for Oct 2022 - "Profit" Warning!
In the financial reporting world, this post would have deserved a big "PROFIT WARNING" announcement.
As you can see in my Oct expenses summary, my spending has surged by close to 100%, totally breaking my monthly FIRE budget of 5k.
In the 2nd picture, you can see the breakdown. There's a big increase for family bucket and recurring bucket. I started on marketing for my real estate business and that cost me 1.7k. yes, you see it correct. 0 returns as of now. After all it's just my first month as a rookie realtor and the projects I'm working on are all launching only 6-12 months down the road.
The big increase in W4 oct for family bucket is due to a 1 off healthcare related purchase.
Am I stressed now and is my FIRE plan failing? I cant say I am delighted to see my numbers in the red but it's something that the shareholders (just myself and wife) are aware of way before this "announcement". The real estate business is going to bleed money from the start. I went into it with eyes wide open.
I am not exactly stressed out as there's contingency built into my budgeting. This is part of my stress testing. The expenses for the family bucket has to be split 50/50 with my wife if I want to do a correct budget expenses report. I have been taking on the full 100% of the Family bucket expenses for the previous 3 months as well.
If I do that, my total spending would have been $4969 in the month of October. Just below the 5k mark. 😮
I will need to refine my marketing cost to bring it down by 30% and cut out the excess. Technically speaking, if I stop my Realtor work, things would have normalized. I am literally "asking for it" in this case I guessed.