To me, FIRE looks like not working a full-time job and having more time to spend with my 10 yo son and husband and more time for myself for reading, exercising, music, travel, and hobbies. I will definitely work part time side hustles for at least a while.
Life situation:
Married (file joint), one 10 yr old kid. I'm 42 and spouse is 50. Kid’s college and dorm is paid for with a pre-paid college program.
Gross wages:
last year we brought home $130,000. I work full-time and bring home the large bulk of this amount. Spouse doesn’t work full time but wants to work more. With our part time jobs, we’ll continue to make at least $2000 per month.
pre tax deductions
I have always maxed my work retirement plan at approx 18k this year (employer matches about 5%)
medical insurance is pretty cheap at $200 through part time employer
adjusted gross income
I expect that this year we'll take home less than 100k per year after deductions because I plan to FIRE soon
Other income
About $3000 per month in rental income
Current expenses
Here's is the average monthly spending so far for 2019:
Rent/Mortgage $1,650
Water $59
Electric And gas $150
home maintenance $50
dining out $200
Groceries $500.00
internet and cell phones $300 (written off as small business expense)
pets $300 (we have lots of them)
gasoline $200
auto insurance $150
auto Maint. $100
life insurance $50
Misc $200
entertainment $100
Vacation $400
Assets
4 rentals paid for total value $860,000
Owe $60,000 on rental that’s probably worth about $100,000
we have a home we are paying for. Mortgage is down to $272,000 @ 3.5 interest. We bought in 2015 with a 30 year mortgage
in total we have $60,000 cash and just over 1 million in various retirement accounts.
Liabilities
we owe
$272, 000 on the house
$60,000 on rental
no other debt
Even after I quit my full time job, we’ll have at least $2000 coming in from guaranteed part time jobs plus rental income, and spouse wants to work more. After spouse quits work but before I’m 60, I plan to use a GI bill which will provide an extra $1700 per month for 3 years. At 60, we’ll both draw pensions. Spouse’s will be about $1,000. Mine will be over $3,000.
My biggest concerns are the big whoopsy moments life throws at you. In 2017 alone, I had to replace a car I totaled, buy another vehicle for the spouse, make an expensive foundation fix that wasn’t covered by insurance on a rental property, and a car crashed on a rental and damaged it. We’ve also survived 2 natural disasters in the last 5 years. I often wonder if a dark cloud is following me around, but I guess that’s just life.
What do you think? Am I ready to FIRE?