First, please accept my apologies for the long, unexpected hiatus from this weekly book club. Life trumped blogging for so long, that I thought it was pointless to continue, at least until one of you inquired about it and I thought, might as well finish eh? So, on with the show.
Step 8: Capital and the Crossover PointEach month, apply the following formula to your total accumulated capital and record the result on your wall chart:
capital x current long-term interest rate / 12 months = monthly investment income
After you begin investing your money, start entering your actual interest income on your wall chart. After trends become clear, project that line to the crossover point; you will then have an estimate of how much time you will have to work before reaching financial independence.
I have to admit, I've totally fallen off the YMOYL wagon. Being in the midst of several home improvement projects made tracking every expense cumbersome and depressing. These are definitely not typical spending months.
What about the rest of you? Are you still tracking every expense? Are you updating your wall chart regularly? If so, do you find that worthwhile?