Naked With Cash is an ongoing series at Consumerism Commentary in which readers share their households’ finances with other readers. These participants benefit from the accountability that comes from tracking their finances publicly and the feedback of the four expert Certified Financial Planners (CFPs).
This year, we have four participants who will share their financial reports, exposing the results of their financial choices. Each participant is paired with one of our Certified Financial Planners. The experts will provide insight and guidance that will help our participants take their finances to the next level by the end of 2014. Learn about this year’s participants and experts.
Jake and Allie are animal lovers who enjoy their pets and have no plans for children. Both are committed to early retirement. Jake and Allie are both interested in owning side businesses, even though they plan to use their nest egg for living expenses. The couple enjoys travel and make it a priority to take trips throughout the year. They believe that it makes sense to use part of their combined $140,000 income to enjoy life now. (Read their update from last month.)
After reading Jake and Allie’s comments, you can watch a Google Hangout they participated in with Financial Planner Neal Frankle. Neal Frankle appears courtesy of Wealth Pilgrim and MCMHA.org. This month’s Naked With Cash focus is on emergency preparedness.
Jake and Allie’s Net Worth Statement
Jake and Allie’s Income Statement
Comments and analysis from Jake and Allie
There was very little change in our balance sheet from June to July. There was some cash moved to brokerage accounts and the house value went up again on Zillow. I sure hope their estimates are correct. It accounts for a 25% increase since December!
Our July expenses were about what we expected. Jake received a bonus this quarter and we also received our quarterly match on our 401(k). Allie did some extra work that will show up next month. We are still making some purchases for the home improvements. We also had around $600 in vacation expenses for our summer vacation (in addition to airfare, lodging, and city activity passes that had been paid for in advance), plus $480 for pet boarding for our five furry friends. The gambling expense was a little trip to a local casino while we were on vacation.
Emergency preparedness: this is not something that we’ve given a great deal of though to, but probably should. We have cash saved should there be a health emergency, a job loss, or something of that nature. As far as a natural disaster is concerned though, we do not have food stored, nor do we have an emergency plan.
That wraps up July. Not a lot to report.
Hangout with Neal Frankle, CFP
Neal continues to guide Jake and Allie through their finances, talking about their plans for the future, and making sure they have what they need to make it all happen.
Feedback from Luke Landes
Jake and Allie are in excellent financial shape. These monthly reports present a great example of some of the things a family can accomplish financially with a six-figure income and no children. With more than $200,000 in cash-like accounts, the chance that an emergency would create a hardship is extremely low. The couple’s dream of early retirement is in sight.
I don’t have much else to add.
Updated June 22, 2016 and originally published August 26, 2014. If you enjoyed this article, subscribe to the RSS feed or receive daily emails. Follow @ConsumerismComm on Twitter and visit our Facebook page for more updates.