Woohoo! Blasted through the 6 figure NW mark for the first time. An absolutely huge jump this month mainly due to gains in the cryptocurrency portfolio. But first – an update about our latest holiday.
TL;DR – I spent way too much, and need a plan to budget better for future trips.
I just came back from my holiday in Hawaii with the missus. We absolutely loved it. It’s truly an amazing place. The people are very friendly, and the overall vibe on the island is so relaxed. We stayed in Waikiki on Oahu, which while very touristy, is still a beautiful place. I love how they’ve managed to preserve so much of the natural beauty on the island. Hawaii is also extremely clean – I don’t think I ever saw a single piece of rubbish on the streets in Waikiki. There’s no hustlers on the street trying to sell you stuff. A big change from what I was sort of expecting, having been to Bali and Thailand numerous times.
I’m also a big fan of Japanese cuisine, so I absolutely loved the food there. The Japanese are the second largest ethnic group in Hawaii, so there’s no shortage of great authentic Japanese food and restaurants.
To top it off, the weather was absolutely perfect. It was 28 degrees every day, but there’s a constant light breeze throughout the island to keep you cool.
As you can probably tell, we absolutely loved Hawaii. It’s somewhere we’d love to live one day once we hit FIRE. Not migrate forever, but perhaps stay for at least 6 – 12 months on the different islands. It is however, an extremely expensive place to live. The median price price for a home is $550k USD ($780k AUD), with the median monthly rent being $2,400 USD ($3,400 AUD). Ouch – not so leanFIRE friendly.
I also found how expensive Hawaii was first hand when going through my Pocketbook after returning to Australia. While I’m on holiday or travelling, I try not to worry too much about budget/spending as the primary goal is to relax and enjoy ourselves. However I feel this approach is flawed. Looking at my expenses so far in 2019 – it’s blatantly obvious that I need to tighten my spending while on holidays. Those dinners at restaurants which you thought were $60 USD end up being well over $100 AUD when you factor in the currency conversion, taxes, and a minimum 15% tip.
Here is my spending so far in 2019:
Over $10k spent on holidays and travel!
If I take out the $2k worth of expenses which were to attend an overseas funeral in February, it means the Hawaii holiday cost over $8k (the flights and accommodation were $4.5k, meaning we actually spent $3.5k while there).
$8k for 8 days – that’s $1k per day! I do love travelling and am not going to stop doing it anytime soon, but I really need to tighten my belt and stick to a budget next time I go on a trip. That’s almost 1/3 of my spending this year spent for 8 days of fun. Yikes.
Do you guys have any tips on how to budget while on holiday, yet not feel like you’re missing out on experiences by being too frugal?
I haven’t put any more of my own money into crypto for almost 6 months now. In fact I’ve actually been selling down the portfolio, cashing out $5k in Dec, $5k in Jan and $2k in Feb. Despite this, the value of the portfolio has managed to surge over $20k this month due to a few projects I invested in last year finally releasing tokens and getting listed on exchanges.
However it’s not all roses. As an early investor in these projects, similar to VC funding for startups, the tokens are subject to vesting periods. They may only release 10% of the tokens per month, therefore I am unable to sell them all now to lock in the gains. And because there is no inherent value in crypto like in shares, there really isn’t a firm price floor to support any of these valuations. It’s 100% speculation. Therefore some of these paper gains are very likely to be erased by this time next month.
I’ve learnt my lesson trying to get rich quick with high risk speculative investments, so I am sticking to my guns and continuing to sell down my crypto portfolio for cash every chance I get. I’d rather put the funds into ETFs/LICs so I can sleep soundly at night.
Thanks to the huge jump in the cryptocurrency portfolio, I’m back on track to achieve my extremely ambitious goal of a 7 figure NW before I turn 35 (Oct 2025).
Thanks again for reading – see you next month!