Case Study: 36yo planning his vacation of a lifetime

[shrimpwd]

Life Situation: 36 y.o. male filing single LCOL in rural Georgia, US
No expected dependents

Gross Salary/Wages: ~24350/yr or 2030/mo

Pre-Tax deductions: 200/mo
Health, Life, Disability Insurance: 80/mo
401K: 120/mo (6% income, matched)

AGI: 21950/yr

Taxes: 3291/yr
Social Security: 1450
Medicare: 339
Federal: 832
State: 670

Net Pay: 1555/mo (18659/yr)

Current Expenses (per month):
House Payment: 250 (19.5K @ 0%; 11000 remaining)
Property Tax: 15
Home Insurance: 50
Car Loan: 258 (2011 Prius. 10154 @ 10.1%; 7671 remaining)
Car Insurance: 60
Car Maintenance: 10
Clothing: 10
Restaurants: 40
Food/Toiletries: 200
Cat: 10
Phone: 38
Water: 25
Electric: 90
Hobbies: 50

Total Expenses per month: 1136 (13632/yr)

$419/mo “Slush”

Assets:
Savings: 2500
401K: 12k
Small Business Bond: 2k
Collectibles: 7k
Home Value: ~35k
Car Value: ~8k

Total Assets: 66.5k

Liabilities:
Home: 11000  (19.5K @ 0%; 44 months remaining)
Car: 7671 (2011 Prius. 10154 @ 10.1%; 34 months remaining)

Total Liabilities: 18,671

Net Worth (approx): 48k

I need to increase my Efund and create a sunk fund for home repair.

Questions:
1. I've always been frugal with my spending, but I would love any insight you might offer! Still fairly new to FIRE, and hope to work much less than 30+ more years!
2. I 've wanted to hike the Appalachian Trail for over twenty years. I'd like to make that happen in 2021. I expect it to cost less than 9k, (most spend ~1k/mo plus normal expenses) but don't want to put myself on a tight budget during my dream vacation. I'm thinking I'll sell the car before the trip to mitigate costs and storage. What else can I do?
3. When I get back, I'm be hunting for a better paying job. Rural areas have limited  options. I have an AS degree being wasted by mu current job. I may relocate, but won't be selling the house. House-hacking in a higher COL area is a possibility. I will definitely be wanting to build a stronger FI base. Will FIRE in 2033 be a reasonable goal to work towards? What sort of budget should I be trying to hit?

Regarding #2, should I look into reallocating my 401k into an IRA in a year that I only work 3-5 months?
RE #3, know I want to “quit” in 18 months...Face punch for waiting until after the hike to look for a new job?

Thanks all! Hopefully I can create a clearer path for the near future.

[Fru-Gal]

Can you turn your job skills into a freelance business?

[ysette9]

I think your plan to hike sounds great. Bulk up your cash on hand in anticipation. Is there a reason why you have a relatively expensive car at a really high interest rate? I’d encourage you to get something cheaper for cash and wipe out that debt: the monthly car payment savings could go towards your trip instead.

[Tass]

Assuming everything you don't spend goes toward investments, your current savings rate is about 27%. Based on MMM's Shockingly Simple Math post, that leads you to being able to retire in 30 years (very slightly sooner, since you're starting with 12k invested). Post ref: https://www.mrmoneymustache.com/2012/01/13/the-shockingly-simple-math-behind-early-retirement/

If you want to retire in 14 years, you need a savings rate of around 55%. To achieve that and maintain your current spending, you need an after-tax income of just over $30k. If you don't get a higher salary until after your hike and still want to retire in 12 years, the after-tax income you're shooting for is $34k.

You haven't said what industry you work it, but that should be doable. What I wonder is why you want to spend another 18 months making a pittance if you're confident there are better options out there? Absolutely, go on the hike - but why not look for a new job NOW instead of waiting for that? You'll be able to save up for the hike faster, if nothing else.

Other than that, your expenses are pretty low, but I also question the high-interest car loan. Can you get rid of that? And what are your $7k of collectibles? Those aren't an asset unless you're willing to sell them.

Are you getting 401k matching at your current job? Where is your surplus $5k going each year?

[RWD]

Assets:
Savings: 2500
Small Business Bond: 2k
Collectibles: 7k

Liabilities:
Car: 7671 (2011 Prius. 10154 @ 10.1%; 34 months remaining)

Take some of your assets and pay off this car loan ASAP. Interest at 10.1% is robbery!

Questions:
1. I've always been frugal with my spending, but I would love any insight you might offer! Still fairly new to FIRE, and hope to work much less than 30+ more years!
2. I 've wanted to hike the Appalachian Trail for over twenty years. I'd like to make that happen in 2021. I expect it to cost less than 9k, (most spend ~1k/mo plus normal expenses) but don't want to put myself on a tight budget during my dream vacation. I'm thinking I'll sell the car before the trip to mitigate costs and storage. What else can I do?
3. When I get back, I'm be hunting for a better paying job. Rural areas have limited  options. I have an AS degree being wasted by mu current job. I may relocate, but won't be selling the house. House-hacking in a higher COL area is a possibility. I will definitely be wanting to build a stronger FI base. Will FIRE in 2033 be a reasonable goal to work towards? What sort of budget should I be trying to hit?

Regarding #2, should I look into reallocating my 401k into an IRA in a year that I only work 3-5 months?
RE #3, know I want to “quit” in 18 months...Face punch for waiting until after the hike to look for a new job?

1. Your spending is very low. It would be more effective to focus your attention on your income.
2. Saving all of your $419/month for ~2 years will result in about $10k. I personally wouldn't spend nearly two years of savings on one trip.
3.a. You absolutely should consider relocating for better pay.
3.b. If you relocate I recommend asking questions about your current house and the possibility of renting it out on the real estate section of this forum.
3.c. FIRE in 2033 is difficult with your current income. I was able to make the numbers work if you assume that after the trip and the house and car are paid off that you put everything into investments. And nothing goes wrong and you don't have any optional/unexpected spending along the way (unlikely as your car will be 22 years old in 2033). If everything goes well you'd have around $200-250k invested which will cover your current expenses (assuming the house and car payments are gone).
3.d. If you don't want to go for super lean FIRE (your current expenses level) then you will need to increase your income to save more money. The amount needed to FIRE without worry varies from person to person.
3.e. Yes, you should look for a higher paying job before the planned hike.

Assuming everything you don't spend goes toward investments, your current savings rate is about 27%.

Debt repayment is savings. I calculate the savings rate at 56%.

[Tass]

Assuming everything you don't spend goes toward investments, your current savings rate is about 27%.

Debt repayment is savings. I calculate the savings rate at 56%.

Ah, you're right.

[Watchmaker]

I second the notion of looking for a better job now. Why wait?

Also, hiking the AT doesn't have to be all or nothing. Hike it a week or two at a time. Then when you FIRE you can finish it off, walk it again, on move on to another trail.

And why does this hike need to cost $1000/month? You're here, I'm sure you can figure out ways to cut that cost in half.

[Sanitary Stache]

Hi @shrimpwd !

Hiking the Appalachian Trial was the event that broke me out of a real stagnant and unhealthy period of my life.  I hope you do it and find a similarly rewarding experience.     

Have you found the forums at Whiteblaze.net?  You'll be able to figure out less expensive hike than $1,000/month.  I did about $800 per month for 5 months for all my trail related expenses.

If you start in the South you may have a hard time breaking the "trail party" mentality.  Does your "dream vacation" include finishing the AT?  If it does, then a tight budget will be helpful.  Trips to town and zero days will end a thru-hike goal.  Budget your miles per day average, budget your dollars, budget your trips to town, budget your rides, budget your days in town.  Keep them all on a tight budget and you'll finish the trail (assuming no major injuries or family emergencies).

If you do think section hiking would work for you, I would recommend hiking between 3 weeks and 3 months at a time.  Three weeks lets you enjoy the long term backpacking mind frame (probably achieved after 5 days) and my hike was much less fun after 3 months, when my feet hurt constantly.

I saved $8,000 for my hike which was enough to cover my truck loan payments, school loan payments, dog and cell phone service, on top of hiking expenses including new backpack, tent, hiking poles, cook stove, cook pot (it is not necessary to cook food on the trail), steel mug, bear hanging food bag and line (I hung my food in the South but not in the North where I am more familiar with the bears), clothes (new clothes are not necessary), shoes (3 pairs), body glide (to reduce the friction rashes), deodorant (to stand the smell of myself at night in my tent), sleeping bag (don't start in March and a light bag from Walmart is fine), all the food I ate, all the hotel rooms I stayed in (~2 per month split with 3 other people usually), all the laundry mats I visited (wash your socks every night), all the showers I took, all the hostels I stayed in, all the cars I rode in, and all the beer I drank for 5 months.  The AT was the first thing that motivated me to save that much money. I took two extra jobs, sold unnecessary purchases and stopped eating out.

It feels much better to have a job lined up for your return.  It helped me finish the thru hike to know that I had work at the end and could run out all of my savings.  I went back to the job I was unhappy with before I left though which was not a great time.  The hiking partner I started with had job applications pending when we started and only completed half of the trail in order to take a job offer.

Good Luck completing the AT and good luck on your FI path.

[shrimpwd]

but I also question the high-interest car loan. Can you get rid of that? And what are your $7k of collectibles? Those aren't an asset unless you're willing to sell them.

Are you getting 401k matching at your current job? Where is your surplus $5k going each year?

Five years ago, I had no income, no assets, and 2k in CC debt. The car loan was required when my previous car died, I still hadn't saved enough Efund, and I'd dinged my limited-history credit score by applying for 2 new CCs. I knew I would need better credit in the future, but two weeks was a bit too soon. Since then, my credit score has gone from low 600s to 785...

The collectibles are purchases made with the intent of selling in the future. Most have been purchased below market value, and have appreciated since. I was also using this as a way to curb spending on unnecessary items. I've sold and reinvested a few times within the category already.

401K match is 100% up to 6% income, which is fully invested each paycheck.

The surplus mostly went into paying off the previous debts and buying collectibles. I also purchased a washer/dryer and other household appliances. In addition, I gave up one hobby that used to run me 1-200/month...

[shrimpwd]

Hi @shrimpwd !

Hiking the Appalachian Trial was the event that broke me out of a real stagnant and unhealthy period of my life.  I hope you do it and find a similarly rewarding experience.     

Have you found the forums at Whiteblaze.net?  You'll be able to figure out less expensive hike than $1,000/month.  I did about $800 per month for 5 months for all my trail related expenses.

If you start in the South you may have a hard time breaking the "trail party" mentality.  Does your "dream vacation" include finishing the AT?  If it does, then a tight budget will be helpful.  Trips to town and zero days will end a thru-hike goal.  Budget your miles per day average, budget your dollars, budget your trips to town, budget your rides, budget your days in town.  Keep them all on a tight budget and you'll finish the trail (assuming no major injuries or family emergencies).

Good Luck completing the AT and good luck on your FI path.

Congratulations and thanks! I really hope that the trail helps me along my future path as it did yours.

I have an account on Whiteblaze.net, but have not posted there in some years. I have a planned expense and know what it averages per month, but also want to make sure that I leave myself plenty of room for unknown situations/opportunities.

My budget for the hike would no longer have a car payment or insurance, and the food/restaurant/hobby money would be part of the cost to hike. At 800/mo + remaining expenses at home, I'm looking at 1300/mo. If it took me 6 months, 7800 is less than 9k. Going to 1k/mo + home expenses, I'm right at 9k.

I am giving myself a 6 month window more so that I can hike slower, rather than take more zero days. I don't plan to be a trail partier, since I don't really do much of that off-trail. I do expect my food expenses to skyrocket...

I've gone on a few 30 mile trips in the past, but never anything longer. I always came back wanting more. The lack of stress is amazing, and I only push as hard as I want. I know certain sections push back!

[Tass]

What kind of return are you getting on the collectibles? The FIRE philosophy on this forum is centered on investing in the stock market, specifically in index funds. So my inclination is to tell you to put your money there, though to be fair you haven't said enough about the collectibles for us to fairly compare. It would be an unusual investment vehicle around here, though; the Investment Order thread describes the more standard path: https://forum.mrmoneymustache.com/investor-alley/investment-order/

Are you getting the full 6% match on your 401k? Notably, your next step after that should be paying off high-interest debt. Liquidating your collectibles would just about pay off your car loan (assuming you're right about their value), which would save you a big chunk of money.

[reeshau]

Since then, my credit score has gone from low 600s to 785...

Have you looked at refinancing your loan?  Paying it off would be best, but you could get an immediate win by just leveraging your credit score for a better deal.

[Watchmaker]

Hi @shrimpwd !

Hiking the Appalachian Trial was the event that broke me out of a real stagnant and unhealthy period of my life.  I hope you do it and find a similarly rewarding experience.     

Have you found the forums at Whiteblaze.net?  You'll be able to figure out less expensive hike than $1,000/month.  I did about $800 per month for 5 months for all my trail related expenses.

If you start in the South you may have a hard time breaking the "trail party" mentality.  Does your "dream vacation" include finishing the AT?  If it does, then a tight budget will be helpful.  Trips to town and zero days will end a thru-hike goal.  Budget your miles per day average, budget your dollars, budget your trips to town, budget your rides, budget your days in town.  Keep them all on a tight budget and you'll finish the trail (assuming no major injuries or family emergencies).

Good Luck completing the AT and good luck on your FI path.

Congratulations and thanks! I really hope that the trail helps me along my future path as it did yours.

I'm going to push back a little on the idea that you need this trip to help you along. You're clearly smart. You already know how to budget like a bad ass and you know you should find a better paying job. Why not focus on doing that, and executing a plan to achieve FIRE. Then plan this trip as what it is: a super-fun, luxurious vacation. Not: the thing that will turn your life around.

[shrimpwd]

I'm going to push back a little on the idea that you need this trip to help you along. You're clearly smart. You already know how to budget like a bad ass and you know you should find a better paying job. Why not focus on doing that, and executing a plan to achieve FIRE. Then plan this trip as what it is: a super-fun, luxurious vacation. Not: the thing that will turn your life around.

I appreciate the alternative take on the situation. The only reason for a 2021 hike is self imposed, so it can be moved. I've wanted this for many years. That works towards wanting it sooner and being able to push it to the future.

No matter when the hike occurs, I can definitely see the benefits of getting rid of the car loan. I'm going to prioritize that with my current options.
I'll also start looking around for better paying opportunities. The current job got me to where I am, but won't get me to where I want. I may be glad I have a Prius, as I'm fairly certain I'll be adding 30+ minutes to my commute each day.

[Watchmaker]

I'm going to push back a little on the idea that you need this trip to help you along. You're clearly smart. You already know how to budget like a bad ass and you know you should find a better paying job. Why not focus on doing that, and executing a plan to achieve FIRE. Then plan this trip as what it is: a super-fun, luxurious vacation. Not: the thing that will turn your life around.

I appreciate the alternative take on the situation. The only reason for a 2021 hike is self imposed, so it can be moved. I've wanted this for many years. That works towards wanting it sooner and being able to push it to the future.

No matter when the hike occurs, I can definitely see the benefits of getting rid of the car loan. I'm going to prioritize that with my current options.
I'll also start looking around for better paying opportunities. The current job got me to where I am, but won't get me to where I want. I may be glad I have a Prius, as I'm fairly certain I'll be adding 30+ minutes to my commute each day.

I don't even think you need to necessarily delay the hike, I just don't think you should wait until after the hike to make changes.

If getting a better job requires a long commute, maybe you'll need to consider relocating?

Tass asked you about the return you are getting on the collectibles, have you calculated that? Also, can they be damaged (by water, for example) and are they insured?

[shrimpwd]

I'm going to push back a little on the idea that you need this trip to help you along. You're clearly smart. You already know how to budget like a bad ass and you know you should find a better paying job. Why not focus on doing that, and executing a plan to achieve FIRE. Then plan this trip as what it is: a super-fun, luxurious vacation. Not: the thing that will turn your life around.

I appreciate the alternative take on the situation. The only reason for a 2021 hike is self imposed, so it can be moved. I've wanted this for many years. That works towards wanting it sooner and being able to push it to the future.

No matter when the hike occurs, I can definitely see the benefits of getting rid of the car loan. I'm going to prioritize that with my current options.
I'll also start looking around for better paying opportunities. The current job got me to where I am, but won't get me to where I want. I may be glad I have a Prius, as I'm fairly certain I'll be adding 30+ minutes to my commute each day.

I don't even think you need to necessarily delay the hike, I just don't think you should wait until after the hike to make changes.

If getting a better job requires a long commute, maybe you'll need to consider relocating?

Tass asked you about the return you are getting on the collectibles, have you calculated that? Also, can they be damaged (by water, for example) and are they insured?

Depending on the distance from home, perhaps relocating? Even if I spend more time working and traveling, it would provide additional income.

I would be surprised if the additional fuel & upkeep on my car ran higher than another place to stay.

I'm planning to keep my current home either way, as it is very close to family.

The collectibles I've sold previously returned 80% in about 18 months. Some have not moved much from when I purchased, but none have been below inflation.
I am already working on selling off the ~1k in easier to damage items. The rest consist of precious metals and such.

Before finding MMM, I knew I needed to combat inflation, but hadn't seen the possibility to invest to a greater extent. This is also where the excess income went.

[six-car-habit]

 ***  I'm thinking I'll sell the car before the trip to mitigate costs and storage.***

 Why would you pay to store the car ??
  Just park it next to your house under a $100 car cover, unhook the battery, drop insurance down to comprehensive only.  Its a 9 yr old prius, not a ferrari...

 edit to add ---- hmmmn , probably cannot drop to comprehensive only insurance if you have a "car loan" , but if you had a "personal loan" at 11% instead, than you could drop full coverage insurance.  Also , it might be nice to have a reliable car ready to go when you get back, rather than be searching for another 1st thing on your return - unless you immediately relocate to "big city" and start bicycling everywhere...

[A3 Life]

I have been looking at the PCT and continental divide trails. I don’t know if the Appalachian trail is significantly more expensive... but $9k seems high. I’m looking at more like $5-6k for the PCT.

Also, I’ve been thinking that it would be awesome to time my trip with the next recession then come back into the job market on the recovery. I don’t know if I’ll make it that long, but something to think about if you’re looking at the 2020/2021 timeframe anyway. If a recession hits this spring, I’d be tempted to just go.

[shrimpwd]

I have been looking at the PCT and continental divide trails. I don’t know if the Appalachian trail is significantly more expensive... but $9k seems high. I’m looking at more like $5-6k for the PCT.

Also, I’ve been thinking that it would be awesome to time my trip with the next recession then come back into the job market on the recovery. I don’t know if I’ll make it that long, but something to think about if you’re looking at the 2020/2021 timeframe anyway. If a recession hits this spring, I’d be tempted to just go.

The 9k takes into account the expenses I'll incur at home while I'm on the trip. I'll still need to pay for cell service, insure my house, keep minimal power on to make sure it doesn't get moldy, etc. Maybe when the time comes I can find someone to rent for the season?

I could see the recession hike being a good idea. I'm not financially ready for that. Maybe it won't hit until 2021?

I also checked my 401K today. Modified my allocation for better gains and lower expense ratios.

Throwing around a few ways I might be able to lower/eliminate the car payment. I know I'm going to sell 2-3k worth of non-401K investments. Might see about refinancing or just prioritizing my spending in such a way that I don't need to pay another ~1100 in interest.

I appreciate the help and suggestions. I'm learning more every day!

[shrimpwd]

I figured it was time for an update on this. Let me know if it makes sense.

Gross Salary/Wages: ~24350/yr or 2030/mo

Pre-Tax deductions: 200/mo
Health, Life, Disability Insurance: 80/mo Increasing $5/mo soon
401K: 120/mo (6% income, matched)

AGI: 21950/yr

Taxes: 3291/yr
Social Security: 1450
Medicare: 339
Federal: 832
State: 670

Net Pay: 1555/mo (18659/yr)

Current Expenses (per month):
House Payment: 250 (19.5K @ 0%; 11000 10500 remaining)
Property Tax: 15
Home Insurance: 50 Paid for year
Car Loan: 258 (2011 Prius. 10154 @ 10.1%; 7671 3050 remaining)
Car Insurance: 60
Car Maintenance: 10
Clothing: 10
Restaurants: 40
Food/Toiletries: 200
Cat: 10
Phone: 38
Water: 25
Electric: 90
Hobbies: 50

Total Expenses per month: 1136 (13632/yr)

$419/mo “Slush”

Assets:
Savings: 2500 1400
401K: 12k 12.5k
Small Business Bond: 2k
Collectibles: 7k 6500 I've started selling low-hanging fruit
Home Value: ~35k
Car Value: ~8k

Total Assets: 66.5k 65.5k

Liabilities:
Home: 10500  (19.5K @ 0%; 42 months remaining)
Car: 7671 (2011 Prius. 10154 @ 10.1%; 34 months remaining) 3050
Credit Cards: 2200 (0% for 15 months)

Total Liabilities: 18,671 15750

Net Worth (approx): 48k 50k

Currently working on destroying the car debt, since it's the only liability with interest.
Once that is gone, I'll be destroying the CC debt I'm allowing to grow.
At the start of the year, I'm going to increase my 401K distributions to 20%.
By the end of 2020, I'd like to be debt free (aside from mortgage) and have a $2500 emergency fund.

I'm thinking I need to push my hike back a few years. Maybe not all the way to leanFIRE, but at least until I've paid off all liabilities. Starting the hike when I'm 38 or when I'm 42 won't make a huge difference. It also gives me more time to get in shape ;P

[JGS1980]

a couple points:

1. Why not walk the trail for 1-2 weeks at a time? That might scratch that itch you have just enough.

2. At your level of income, you should invest in a Roth 401K, not a 401K Pretax -> are you doing this?

3. Way to be a badass and pay off that car loan!!!

4. The collectibles thing sounds like a fun hobby. Coins? This may be profitable, but its also an expensive hobby. If you are not getting 10% profit per year [with all the effort of keeping track of values and opportunities], then you should sell the whole lot and use your time to make more money elsewhere. Bartender? Landscaping on the side? Developing a side gig with the AS degree? If you want FIRE, that's how you will do it.

[Laura33]

So it looks like you largely swapped part of your car loan for a 0% CC loan?  That is definitely beneficial in terms of interest paid, but it is not "paying off" debt -- it's just exchanging one form of debt for another.  It's a good stopgap, but not a solution.  So my advice is to sell all the collectibles now and pay off the car loan entirely.  "Collectibles" are not investments; they have no intrinsic value in and of themselves, they do not provide a steady stream of profits to justify their price.  Rather, their value depends entirely on how desirable they are to people with that taste at a give point in time.  If buying collectibles helps you avoid spending money on disposable stuff with even less value, great -- but that doesn't justify holding on to them forever when you have debt at over 10% interest.  And it is not the foundation of a solid FIRE portfolio; that money should come from an allocated "fun money" account that you fund after you have your core investments covered.

You are doing great at keeping your expenses low.  But you can only frugal your way so far; you also have to do smart things with the money you save.  The best thing you can do right now is put as much money in tax-deferred accounts or in rental properties as you can, so that those investments can start throwing off their streams of cash as soon as possible, so that you then have more cash to put towards other things that will throw off even more cash.  That is the virtuous cycle that builds wealth.  (Also, don't chase "gains" -- that just tells you what investing style has been in favor recently.  Definitely target the low-expense options, but look for a broad market index fund as your core holding).

You are definitely on the right track and doing much better than most who make your income.  But your income doesn't leave you much margin for error; you need to optimize everything to get ahead, and so even seemingly small decisions (like how fast to get rid of a car loan, and how long to hold collectibles) can make a big difference. 

[shrimpwd]

a couple points:

1. Why not walk the trail for 1-2 weeks at a time? That might scratch that itch you have just enough.

2. At your level of income, you should invest in a Roth 401K, not a 401K Pretax -> are you doing this?

3. Way to be a badass and pay off that car loan!!!

4. The collectibles thing sounds like a fun hobby. Coins? This may be profitable, but its also an expensive hobby. If you are not getting 10% profit per year [with all the effort of keeping track of values and opportunities], then you should sell the whole lot and use your time to make more money elsewhere. Bartender? Landscaping on the side? Developing a side gig with the AS degree? If you want FIRE, that's how you will do it.

1. I can definitely hike a week or two a year without much issue. It's a good form of exercise and doesn't really cost more than some PTO and food. It doesn't have the same accomplishment as Thru-hiking, though. I suppose saving the next 5k vs finally hitting FI would be a good analogy?

2. Ah, right. Roth is definitely the better option. Thanks for pointing that out.

So it looks like you largely swapped part of your car loan for a 0% CC loan?  That is definitely beneficial in terms of interest paid, but it is not "paying off" debt -- it's just exchanging one form of debt for another.  It's a good stopgap, but not a solution.  So my advice is to sell all the collectibles now and pay off the car loan entirely.  "Collectibles" are not investments; they have no intrinsic value in and of themselves, they do not provide a steady stream of profits to justify their price.  Rather, their value depends entirely on how desirable they are to people with that taste at a give point in time.  If buying collectibles helps you avoid spending money on disposable stuff with even less value, great -- but that doesn't justify holding on to them forever when you have debt at over 10% interest.  And it is not the foundation of a solid FIRE portfolio; that money should come from an allocated "fun money" account that you fund after you have your core investments covered.

You are doing great at keeping your expenses low.  But you can only frugal your way so far; you also have to do smart things with the money you save.  The best thing you can do right now is put as much money in tax-deferred accounts or in rental properties as you can, so that those investments can start throwing off their streams of cash as soon as possible, so that you then have more cash to put towards other things that will throw off even more cash.  That is the virtuous cycle that builds wealth.  (Also, don't chase "gains" -- that just tells you what investing style has been in favor recently.  Definitely target the low-expense options, but look for a broad market index fund as your core holding).

You are definitely on the right track and doing much better than most who make your income.  But your income doesn't leave you much margin for error; you need to optimize everything to get ahead, and so even seemingly small decisions (like how fast to get rid of a car loan, and how long to hold collectibles) can make a big difference. 

3. I'm both converting the car loan to the 0% CC balance and paying it off. I've increased net worth nearly 2k in the past 2 months, so I'm making progress towards reducing liabilities. I don't plan on keeping the CC balance any longer than necessary.

4. I was definitely using collectibles as a way to "spend" money without losing all value. I've been selling as the opportunity arises. The bolded statement is proving a slower liquidation than I would prefer.

I knew I wasn't in horrible shape before I found MMM, but I didn't know quite how much better I could be with the knowledge here. I'm learning and growing!

[JGS1980]

a couple points:

1. Why not walk the trail for 1-2 weeks at a time? That might scratch that itch you have just enough.

2. At your level of income, you should invest in a Roth 401K, not a 401K Pretax -> are you doing this?

3. Way to be a badass and pay off that car loan!!!

4. The collectibles thing sounds like a fun hobby. Coins? This may be profitable, but its also an expensive hobby. If you are not getting 10% profit per year [with all the effort of keeping track of values and opportunities], then you should sell the whole lot and use your time to make more money elsewhere. Bartender? Landscaping on the side? Developing a side gig with the AS degree? If you want FIRE, that's how you will do it.

1. I can definitely hike a week or two a year without much issue. It's a good form of exercise and doesn't really cost more than some PTO and food. It doesn't have the same accomplishment as Thru-hiking, though. I suppose saving the next 5k vs finally hitting FI would be a good analogy?

2. Ah, right. Roth is definitely the better option. Thanks for pointing that out.

So it looks like you largely swapped part of your car loan for a 0% CC loan?  That is definitely beneficial in terms of interest paid, but it is not "paying off" debt -- it's just exchanging one form of debt for another.  It's a good stopgap, but not a solution.  So my advice is to sell all the collectibles now and pay off the car loan entirely.  "Collectibles" are not investments; they have no intrinsic value in and of themselves, they do not provide a steady stream of profits to justify their price.  Rather, their value depends entirely on how desirable they are to people with that taste at a give point in time.  If buying collectibles helps you avoid spending money on disposable stuff with even less value, great -- but that doesn't justify holding on to them forever when you have debt at over 10% interest.  And it is not the foundation of a solid FIRE portfolio; that money should come from an allocated "fun money" account that you fund after you have your core investments covered.

You are doing great at keeping your expenses low.  But you can only frugal your way so far; you also have to do smart things with the money you save.  The best thing you can do right now is put as much money in tax-deferred accounts or in rental properties as you can, so that those investments can start throwing off their streams of cash as soon as possible, so that you then have more cash to put towards other things that will throw off even more cash.  That is the virtuous cycle that builds wealth.  (Also, don't chase "gains" -- that just tells you what investing style has been in favor recently.  Definitely target the low-expense options, but look for a broad market index fund as your core holding).

You are definitely on the right track and doing much better than most who make your income.  But your income doesn't leave you much margin for error; you need to optimize everything to get ahead, and so even seemingly small decisions (like how fast to get rid of a car loan, and how long to hold collectibles) can make a big difference. 

3. I'm both converting the car loan to the 0% CC balance and paying it off. I've increased net worth nearly 2k in the past 2 months, so I'm making progress towards reducing liabilities. I don't plan on keeping the CC balance any longer than necessary.

4. I was definitely using collectibles as a way to "spend" money without losing all value. I've been selling as the opportunity arises. The bolded statement is proving a slower liquidation than I would prefer.

I knew I wasn't in horrible shape before I found MMM, but I didn't know quite how much better I could be with the knowledge here. I'm learning and growing!

In regards to the collectibles, I find it helpful to always consider your time, also known as "Life Energy". At the end of a long day, do you want to spend your life energy finding buyers for what you are selling? Same for Real Estate.  Contrast this to buying some VTSAX Index Stock, which gives you 2% yield per year, is up 13% per year in the last 10 years, and year-to-date is up over 21%........... with no added Life Energy Drain (i.e. work) needed whatsoever.

At your stage, if you are spending money on collectibles to avoid wasting money on other things, and if you are serious about FI... I would just get a second "fun" job doing something you enjoy. You will make more money AND you will not have time to blow money on things you may not value later on.

[Watchmaker]

1. I can definitely hike a week or two a year without much issue. It's a good form of exercise and doesn't really cost more than some PTO and food. It doesn't have the same accomplishment as Thru-hiking, though.

This is a mindset you're adopting, not an objective truth.

Hiking sections can be just as meaningful and impactful as thru-hiking, if you want it to be.

[Sanitary Stache]

1. I can definitely hike a week or two a year without much issue. It's a good form of exercise and doesn't really cost more than some PTO and food. It doesn't have the same accomplishment as Thru-hiking, though.

This is a mindset you're adopting, not an objective truth.

Hiking sections can be just as meaningful and impactful as thru-hiking, if you want it to be.

I agree regarding the accomplishment being a mindset.  My goal for hiking the trail was specifically to achieve something that I knew was a success.  But I was also the person that determined what that was.  If I had set a different definition of success, for instance, a 250 mile section.  Then it would have been just as meaningful.  I do recommend staying on the trail for at least 3 weeks at a time, but I also think more than 3 months is excessive.  Now that I am thinking about it, a month long hike every year sounds like a dream scenario.