Author Topic: 2022 FIRE cohort  (Read 56702 times)

Classical_Liberal

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Re: 2022 FIRE cohort
« Reply #350 on: August 18, 2017, 09:15:44 PM »
@ TempusFugit... Awesome!

I don't know your situation specifics, but I think your hurdle to FIRE isn't further accumulation, rather its making a few personal changes in thought processes.  For example, your current cash burn rate is about the take home pay of a median US household.  So, as a single person, you spend about as much as 2.5 average people in one of the richest, most consumerist societies in the richest time in human history.  Makes you think a little, no?  I'm not judging, I've been in the same spot. 

Generally, the progression can go something like this...  Get a bit disgusted with your spending and simply optimize (coupons for eating out, get better deals on stuff your do, reward credit cards, etc) and save 15-25% with no discernible change to your life.  Then, realize that you can actually make better choices for less spending (walk or ride bike places, eat less meat, enjoy free neighborhood social activities outdoors, de-clutter your life, ect).  Suddenly you're saving anther 15-25% from the new baseline and begin to see very large lifestyle IMPROVEMENTS.  The rabbit hole can get much deeper, but you'd be FIRE at this point alone, even on your current stash. 

If you focus on those changes (examples of them abound through this entire forum), you'd have no need for further accumulation.  Take the red pill!

Welcome!

TempusFugit

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Re: 2022 FIRE cohort
« Reply #351 on: August 19, 2017, 01:01:22 PM »
Thanks for the encouragement. "...spend about as much as 2.5 average people..."   -   I've always thought I was above average!  : )


atreechange

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Re: 2022 FIRE cohort
« Reply #352 on: September 13, 2017, 04:53:16 AM »
My wife and I are targeting Feb 2022 as our FIRE date.

Networthify currently estimates 5.5 years but we think cutting back our expenses by living in regional Australia (currently living in Sydney) will help materially.

Net assets are currently $750k with another $1m in debt across 4 investment properties. Goal is to pay off 2 properties in the next 5 years to get mortgages down to $570k.

SnufferBottle

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Re: 2022 FIRE cohort
« Reply #353 on: September 24, 2017, 01:26:58 PM »
Count me in! Planning to retire by end of 2022.

If anything I'm already ahead of schedule, I'm 28 now and plan to be retired by 33. If I continue to find RE deals at same CoC ROI as my first two then it'll be closer to 2020 :P

TempusFugit

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Re: 2022 FIRE cohort
« Reply #354 on: September 30, 2017, 04:38:56 PM »
So, 2022 cohortians,  is there anything specific that you are doing now to make this date a reality? Something like trying to get to a specific saving rate goal this year, or trying to reduce your spending this year to match your projected FIRE spending number? 

I am working to reach a 50% savings rate.  September is not helping my averages, unfortunately, because of some unexpected expenses ($1K for car repair and $400 vet bill for my furry roommate).  I also purchased a bicycle, which is a good thing to do, but still a drag on my monthly numbers.  But I'm tracking my other 'normal' expenses and seeing how they look relative to previous months.

I've set up another auto invest for my taxable vanguard account (VTSAX).   I'm also making some smallish adjustments to my spending, specifically working on my restaurant budget.  I'm taking an incremental approach and 'nibbling at the edges' so to speak, in an attempt to reduce my spending in ways that don't really reduce my enjoyment. 

My annual raise should be next month, so I'll take a look at the numbers and see what adjustments I need to make to the 401K contributions to be sure I max that out.   I'll also see how that additional income affects my savings rate, since I plan to save the entire delta.

50% is aspirational, but I think I can get pretty close and then I hope to find that extra motivation to close the gap.   

2Birds1Stone

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Re: 2022 FIRE cohort
« Reply #355 on: September 30, 2017, 08:04:40 PM »
Shooting for a 75% net savings rate, which is a bit of a stretch for me. I will likely be closer to 70%.
"A small house can hold as much happiness as a big one." - Fortune Cookie

29 Months till FI - Stop by, or stay a while.....
https://forum.mrmoneymustache.com/journals/fire-by-thirty-five-chronicles-36-months-till-sabbatical!/

Playing with Fire UK

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Re: 2022 FIRE cohort
« Reply #356 on: October 02, 2017, 02:28:51 AM »
I'm shooting for a 100%* savings rate this year. My plan (which I'm slightly behind on), is to save the equivalent of my entire regular net salary from my main job. So I'm aiming to only spend money from secondary sources (which includes for my purposes bonuses, my pay rise, credit card points and my secondary income and side hustles). I have two leads on work that will give me the extra ~£3k that I need to make this happen by the end of the year.

I'm also in the process of clarifying what our spending is likely to be going forward. Our inflation / cost of living in the UK has jumped around a lot in the past year, so I expect that I'll have to increase our target amount well beyond the official inflation measures. I have an epic spreadsheet that is helping me analyse all of this.

* By my definition, which is clearly cheating a bit: you may keep any judgement about this to yourself.

homestead neohio

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Re: 2022 FIRE cohort
« Reply #357 on: October 02, 2017, 07:16:56 AM »
We've set our savings goal higher than ever before and are on track to save that amount.  We did this last year as well and it was so satisfying, we just keep bumping it up.

MrThatsDifferent

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Re: 2022 FIRE cohort
« Reply #358 on: October 13, 2017, 07:46:41 AM »
Originally I was aiming for 2022, then I worked out I could probably achieve this in 2021, but now Iím back to 2022.  Whatís changed? People keep freaking me out! I keep reading about people who have a shit ton of money, being scared to pull the trigger and Iím wondering, am I under-estimating everything, do I need a cushion?  2022, still has me retiring more than 15 years earlier than most and it gives me a 5 year plan to put things into action. Thatís exciting. I have definite financial goals that my guesstimates say should be reached in 2022, but if I reach them earlier, Iíll pull the trigger. So iím back here, even though 2021 is far sexier.

middo

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Re: 2022 FIRE cohort
« Reply #359 on: October 23, 2017, 02:50:29 AM »
I've crunched the numbers a few times and we should be able to FI by 2022.  RE is maybe not that accurate at 52, but with retirement age in Australia now at 67, I'm happy with the extra 15 years.  There are so many things that we have to do before then though.  Selling a property, developing another one into two, selling one (or both) of them.  And ensuring all the kids are financially viable on their own.

Sometimes it seems a big ask, but we are currently saving around 50% of income, soon to boost to 60% if things pan out the way we hope.  We are paying too much interest at the moment and working on getting rid of debt, even if it was for purchasing assets.

rachaelandthegoose

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Re: 2022 FIRE cohort
« Reply #360 on: October 24, 2017, 09:15:33 AM »
Originally I was aiming for 2022, then I worked out I could probably achieve this in 2021, but now Iím back to 2022.  Whatís changed? People keep freaking me out! I keep reading about people who have a shit ton of money, being scared to pull the trigger and Iím wondering, am I under-estimating everything, do I need a cushion?  2022, still has me retiring more than 15 years earlier than most and it gives me a 5 year plan to put things into action. Thatís exciting. I have definite financial goals that my guesstimates say should be reached in 2022, but if I reach them earlier, Iíll pull the trigger. So iím back here, even though 2021 is far sexier.

I'm right there with you! I started out with a very simple 4% calc and I keep being forced to face all the many variables that can affect things - sequence of returns risk, health care (that's the big one!), etc... We've set our sites firmly on May 2022 (coincidentally my husband's 40th birthday month as well) and have told ourselves this: Even if we don't feel 100% comfortable retiring "forever" at that point, we should have PLENTY socked away to justify a year long sabbatical, switching to part time work, and/or relocating for some geo-arbitrage. So we're sticking to 2022! :)

skip207

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Re: 2022 FIRE cohort
« Reply #361 on: November 02, 2017, 02:00:15 PM »
As the year comes to an end I am starting to review my progress.  Put around £90k on the NW so far this year which is not bad given we saved about £40k from income, the rest is growth.  If we can do the same for the next 3 years we will be just under £800k at the end of 2020 / early 2021.  Just hope brexit does not cause any wobbles...

MrThatsDifferent

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Re: 2022 FIRE cohort
« Reply #362 on: November 02, 2017, 03:16:29 PM »
Originally I was aiming for 2022, then I worked out I could probably achieve this in 2021, but now Iím back to 2022.  Whatís changed? People keep freaking me out! I keep reading about people who have a shit ton of money, being scared to pull the trigger and Iím wondering, am I under-estimating everything, do I need a cushion?  2022, still has me retiring more than 15 years earlier than most and it gives me a 5 year plan to put things into action. Thatís exciting. I have definite financial goals that my guesstimates say should be reached in 2022, but if I reach them earlier, Iíll pull the trigger. So iím back here, even though 2021 is far sexier.

Good on you! At 40 is still pretty damn good!
I'm right there with you! I started out with a very simple 4% calc and I keep being forced to face all the many variables that can affect things - sequence of returns risk, health care (that's the big one!), etc... We've set our sites firmly on May 2022 (coincidentally my husband's 40th birthday month as well) and have told ourselves this: Even if we don't feel 100% comfortable retiring "forever" at that point, we should have PLENTY socked away to justify a year long sabbatical, switching to part time work, and/or relocating for some geo-arbitrage. So we're sticking to 2022! :)