July was spent almost completely at home after we wrapped up our Travel PT contracts in Charlottesville and moved back. We were mostly busy working on the business and preparing for the baby, but we also squeezed in some family time, home projects, and hiking. Whitney was hard at work creating a baby registry, planning for the baby shower in August, and getting some other baby preparations in place like scheduling a birth class, finding a pediatrician, hiring a doula, and more. So far we got a crib, a car seat, stroller, and a ton of clothes for the baby, so we’re feeling pretty good about the preparations. She will be here in no time, and we’re getting very excited!
As far as business goes, we started a new initiative to increase revenue which was very long overdue. It will take a couple of months at least to get everything set, but we made a lot of progress on it already. I think this could be our ticket to breaking our prior year’s profit and revenue record again for the 8th year in a row! We’ve certainly not been the most savvy business people over the years, but we’ve done a very good job of gradually refining and honing our processes to make things as efficient and profitable as possible over time. Although not the quickest, it’s been a very fulfilling and sustainable way to grow and evolve.
Income
Income from our business (FifthWheelPT and Travel Therapy Mentor) for July was up 30% compared to June. It was actually our second highest earning month of the year and the third highest earning month of all time. Right now we’re still on track to earn more than we did last year, which is wonderful.
Expenses
July expenses were very low. We did a lot of hiking and going to the gym but very little in the way of expensive activities. We also didn’t have any travel costs or additional rent payments once we left our Travel PT contract at the end of June. The only minor expenses were things bought in preparation for the baby. Business expenses were bare minimum as well, but they’re usually pretty consistent and low each month.
In total, my savings rate for the month was around 90% when all was said and done.
Investments
The S&P 500 was up by about 1.1% in July. The stock market has just been relentlessly going higher for nearly two years now. While the unemployment rate is starting to get closer to more worrying levels, the market is certainly not pricing in any potential hard times ahead. I remain skeptical… but also wrong so far. I’ve kept my asset allocation conservative with a lot of cash and Bitcoin with limited equity exposure.
The Bitcoin price increased by about 3.0% during the month of July. Overall the Bitcoin market as been pretty unexciting since March. Likely the calm before the storm in Q4 of this year and Q1 of next year. After taking some profits at the end of February and in April of this year when the price was jumping rapidly and risk was high, I’ve been putting those profits back into Bitcoin when the price drops into the low $50k range. Sentiment and risk both feel much more reasonable now, and I’ll buy a lot more if the price happens to drop below $50k. I’m still expecting much higher prices a year from now unless the recession fears are realized. Even if so, I think any drops will be temporary like in March of 2020.
Bitcoin dominance, the Bitcoin value relative to alt coins, has continually increased since the end of 2022. This is what I thought was most likely to happen since it’s always happened in the past during crypto bear markets and recovery years. Most likely this trend will reverse in the next six months or so once the Fed eases monetary policy. Around the beginning of 2025, I plan to start accumulating a relatively small position in a few alt coins to hopefully ride that trend back the other way. While I’m not at all optimistic about alt coins over the long run, there’s no denying that with some good timing and luck, fortunes can be made. I look at them like a lottery ticket with slightly more favorable odds.
Financial Independence Progress
My net assets increased by 3.9% in July. With this increase in my net asset value, my assets are now equal to approximately 105.6 times my average annual expenses!
Although there have been some minor negative months, my net assets and net worth have both been consistently trending upward for over two years now. Selling some Bitcoin in 2021 and buying back near the lows in 2022 gave me a massive tailwind over the past two years as the market recovered. My net worth has actually doubled since July of 2022, which is pretty crazy considering I’ve had more than 30% of my portfolio in cash equivalents that entire time. The barbell strategy of high cash and high Bitcoin continues to work very well for me.
Next Month
In August we have a week and a half trip to Colorado planned to do a roadtrip all over the state and meet up with friends along the way. We also have our baby shower and even more nursery prep and baby planning to do.
How was July for you financially? Let me know in the comments!
Fifth Wheel Physical Therapist 