Circling back with our numbers. These are conservative in two respects: (1) they use a home value of $800k even though if we sold today we could get over $1m; and (2) they exclude some foreign properties we own which cannot be sold or rented out at the moment due to complicated family co-ownership (worth about 300k combined). Our FIRE goal had been to get to $1.2m invested so we could live off about $50k/year. But our present spending levels are much higher (even removing working-only expenses like childcare costs) so unless we can make some major cuts (working on that) we may need to aim higher. Still, once the foreign properties are sold (sometime in the next 5 years), we'll be very close to being able to FIRE, regardless.
Our joint income this year was ridiculously high (>400k) so we should be doing better than we are, but we're doing worlds better than we would be doing if we hadn't found MMM, so trying not to be too hard on ourselves.
Here are the numbers:
End of 2013 (year I found MMM):
Home equity: 390,000 (remaining mortgage: 410,000)
Student debt: -35,000
End of 2014:
Home equity: 400,000 (remaining mortgage: 400,000)
Student debt: 0
End of 2015:
Home equity: 410,000 (remaining mortgage: 390,000)
End of 2016:
Home equity: 420,000 (remaining mortgage: 380,000)
Even though we have a ways to go, it's pretty empowering to know that we could sell our house tomorrow (HCOL area), move to a LCOL area (or one of the above mentioned foreign properties), and live mostly off of 4% of our investments. We are also considering some other major life changes that I may post about in a future post - involving one of us FIREing/becoming a SAHP. Stay tuned :)