Author Topic: Barebones FI?!  (Read 1088 times)

montgomery212

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Barebones FI?!
« on: October 02, 2018, 05:24:01 PM »
Looks like I'm barebones FI. Can't/won't share with anyone IRL, and there's still a LONG way to go but it feels like a milestone in a different way than when NW goes up by 100k or you hit your first million or whatever.

It's very barebones -- which is ok as I never planned to stop working asap. I need to grow the NW more now bc this figure = current monthly expenses * 12 *25. So I haven't even accounted for how to pay taxes or for rent increases (or figured out if/when to buy a place). Kinda proud that that monthly expense number does include a plug in # for health insurance (even though I have employer sponsored health insurance now) -- I used ~$730/month just for me. In times when I've had to take on COBRA for a month here or there it's been $500-700/month, so this seems like a realistic number; though of course no one knows how much more expensive that can get.

Live just outside of DC a few metro stops from the city in a rental. Coincidentally I happened to go out about 15-20 miles to Herndon this weekend to visit a distant relative and then got curious about rental prices there. While Herndon counts as commutable to the city, it's not something I want to deal 2x/day now. But just looking at rental rates -- it looks like I could cut my rent by 300+ (or even like 500+) per month out there. Not something I want to deal with right now when working, but it's like it just occurred to me that when one retires, if they don't own, they can move out someplace a bit "inconvenient" for daily commuting purposes but within the same general area (since there is no more commute) and save like $4000-6000/yr -- thus stretching out the nest egg further!

Now I'm excited to keep the progress going.

Bird In Hand

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Re: Barebones FI?!
« Reply #1 on: October 02, 2018, 06:47:56 PM »
Awesome, keep it up!  Barebones FI is a great psychological milestone IMO.  Another nice thing about getting there -- especially in a HCOL area like DC -- is that your nest egg is likely a substantial enough size that it can basically take care of itself (and grow) with minimal contributions.  This opens up the door to potentially downshifting your work hours to cover your expenses at some point and just letting your nest egg coast to a full- or even fat-FIRE with little effort.

Zikoris

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Re: Barebones FI?!
« Reply #2 on: October 04, 2018, 11:43:23 AM »
We crossed over that mark recently as well - our investments now cover our housing, food, and bills entirely. There's definitely something freeing about knowing you're only working to pay for vacations, concerts, and video games. It feels downright luxurious.

Rosy

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Re: Barebones FI?!
« Reply #3 on: October 04, 2018, 04:34:54 PM »
Yup, we are in the comfort zone for us (past bare bones) - that is a good feeling.
I'm hoping for two more good financial years for us.
The changes around the globe and in the US are anxiety-inducing for anyone thinking about retiring now. We are on the cusp of such major shifts all around the world, it feels like everyone is holding their breath.

FireHiker

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Re: Barebones FI?!
« Reply #4 on: October 04, 2018, 04:55:41 PM »
Congrats!!! We would be barebones FI if we moved to a LCOL, and it is definitely a big weight off. Now we're working for the FUN stuff, not the basic needs. :)

DreamFIRE

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Re: Barebones FI?!
« Reply #5 on: October 05, 2018, 07:17:27 PM »

Gotta love those barebones.  I'm well past BB using the 4% rule but still like to keep track of my BB multiplier.... most recently calculated my stash at 78X BB.