Hi great mustachians,
i've been following the MMM blog for about a year now and also tried setting up my own plan for early retirement in 10-12 years.
Little background:
- I live in Sweden so it's not always easy to use the same advice since we have different taxes, 401k and such things... though I try to implement the idea and find the best tips working here in Sweden as well.
- I'm 30 and single with no plans for kids nor wife.
- I work with IT (Tester, been in the business for soon 2 years).
- For simpler math when I talk about the values I consider 1 USD = 10 SEK (our currency, it's actually about 8,5sek now).
- I've set my living budget to 1500/month which is probably a bit too high right now (a lot of after works and still eating out at work).
- I've calculated my living budget at FIRE to be between 850-1000/month = I need roughly 200k for FIRE
- Got a rental appartment and no plans of buying property as the swedish housing market is insecure and many thinks it's very inflated.
- With my calculations I will be able to go FIRE in 9 years, but I will probably go the full planned 10 for some leaway
My take home income is 2500 USD/month (expecting around 3-6% salary increase each year) and I've saved 500 each month for a year now, but doubling it this year to 1000$ and living on 1500$
I've calculated alot with excel with the 4% rule to manage worst case scenario.
I am investing all the savings in Stockmarket Index funds (25%), gold ETF's (25%), long/slow interest fund(25%) and bonds(25%) (not sure if translations are correct) and expecting an avarage annual ROI of 6-8%
I've got a student loan 27000usd (the annual interest is really low for swedish student loans at 0,6% right now),
The plan for this one is not to pay back quickly as I see that I've more to gain in ROI (The debt has a payback plan of 25years but when i am FIRE i plan to pay back all that is remaining (or is it smarter to pay it back over the 25years with low interest? If the return of investment is greater than the loan interest i mean.)
I've got a salary account with 0,6% interest up to 10k$ and also a credit card that i get 1% bonus/pay back on everything i buy (If i pay the bill in time every month).
The retirement plan is different than yours i think but I've picked my own indexes and such for that as well to insure it will follow the plan (16% of my salary is put to this each month)
The plan is to increase the monthly savings each year roughly 10% but this will probably be depending on salary increase.
Just wanted to share after such a long lurking period and wanted to say thanks since I am so greatful to have found this community, my 10 year older me thank you all :)
