In August we took our last flight before the baby is due in October. We went to visit some friends in Colorado, and rented a car to make a roadtrip around the state visiting some areas we hadn’t been to in the past. This was our fifth time in Colorado, and we feel like there’s still so much more to see. The trip was a week and a half in total and we went to Denver, Colorado Springs, Durango, Aspen, and Glenwood Springs with a lot of other shorter stops along the way. We were a little nervous being away from home and at elevation with Whitney being over six months pregnant, but she did great even with some short hikes.
Besides the Colorado trip, August was pretty uneventful. We spent the rest of the month at home in Virginia continuing to prepare for the baby and working on business. We did our best to stay active with Whitney still going to the gym at least a few days per week and usually doing one hike each week as well. Despite some pregnancy symptoms and fatigue, she’s done really great overall with her activity and nutrition. It’s hard to believe that in just a few short months the baby will be here!
Income
Income from our business (FifthWheelPT and Travel Therapy Mentor) for August was down over 60% compared to July. While I wasn’t expecting a really high earning month, this was still low and a little disappointing. The main reason for this was that we didn’t follow up on payments while in Colorado like we normally do when at home. We’ve still earned more in total this year to date than we had at this point last year, so we are still on track to break last year’s earning record.
Expenses
August expenses were higher than normal with the trip to Colorado. We stayed with friends for the majority of the nights on the trip and used points for most of the other hotel nights, but still had rental car costs as well as gas and food costs that were much higher than when at home. We’ve also been buying a lot of baby stuff to get the nursery and house ready, and with being first time parents, we are airing on the side of over preparing.
In total, my savings rate for the month was around 60% when all was said and done.
Investments
The S&P 500 was up by about 2.3% in August. The market keeps moving higher, discounting the possibility of recession and anticipating Fed rate cuts. Rate cuts in September are all but certain at this point, and while the labor market is weakening, it’s still fairly strong overall, so investors are seeing the rate cuts as a positive.
The Bitcoin price decreased by about 8.7% during the month of August. The price continues to chop around mostly between $55k-$65k. There was a day at the beginning of August where the price dropped sharply below $50k which seemed like a squeeze/capitulation type event. I was waiting for something like that to happen and redeployed all of the rest of the profits I had taken earlier this year in the low $50k range. Although the price will almost certainly go lower if we go into a recession, I think the odds are that this was a good place to buy and that the price will be much higher in the next 12-18 months. If the price does go lower, I’ll keep buying with some of the cash I have available.
Bitcoin dominance headed even higher in August. We are probably getting pretty close to a top now though if history repeats. Usually Bitcoin dominance turns around once rate cuts happen and quantitative easing resumes. Once Bitcoin dominance does top, alt coins become much more attractive. In Q4 I plan to start buying some alt coins in anticipation of this trend shift.
Financial Independence Progress
My net assets decreased by .1% in August. This is the smallest change in net worth from one month to the next that I’ve ever had which was interesting. With this decrease in my net asset value, my assets are still equal to approximately 105.6 times my average annual expenses!
With Bitcoin dropping so much in August and it being a very low earning month, I actually expected my net worth to decrease more than this. I really can’t complain with my net assets and net worth remaining very close to all time highs. I’m optimistic that September will be a better month all around, so hopefully breaking records again next month.
Next Month
In September we have a week long family trip to the beach in North Carolina. While the Colorado trip was pretty action packed, this trip will be much more laid back and relaxing. We’ll mostly be spending time resting and going to the beach, there so it should be a great trip for us before the baby comes. Besides that we’ll still be at home continuing to prepare for the baby’s arrival!
How was August for you financially? Let me know in the comments!
Fifth Wheel Physical Therapist 