Author Topic: Advice on my Situation  (Read 2110 times)

historyman

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Advice on my Situation
« on: January 04, 2017, 01:16:16 PM »
I found MMM about 3 years ago and he was saying some of the things I've been thinking/feeling for a while.  Anyways, I was looking for some advice on my progress to FI and when I could realistically quit working my day job.  I am 35, my wife is 34 and we have two boys who are 6 and 2.

Some details:

My income: 80k/year from day job + 100k/year from online-home business
Wife: 65k/year day job

-91k in investments (Mostly indexed ETFs)
-100k in pension which I would recieve back as a lump sum should I quit
-50k in wife's pension

-I have 2 years of payments left on an SUV (560/month) but it was purchased with a 0% financing deal
-other car is owned outright
-$287,000 left owning on my house with monthly payments of $1630/month
-all other debts have been paid off and we do not carry a balance on our credit card

-I estimate our yearly expensed as 70k/year (all in), we gross 240k as a couple.
-recently dropped out tv/internet/phone packages for cheaper options and saved $150/month.  Working on dropping other expenses, including groceries which is huge for us.  (~$1000 to ~$1500 per month).  We have to kids, 6 and 2.

Should I pay down my mortgage asap or should I keep building my savings which is only 91k?

I would obviously continue with my 100k/year home business if i quite my day job so i would still have that.  Struggling to wrap my head around a lot of my options and how close I am realistically am to FI.

Appreciate any insight people can give.  Thanks!
« Last Edit: January 04, 2017, 01:18:58 PM by historyman »

plog

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Re: Advice on my Situation
« Reply #1 on: January 04, 2017, 01:22:04 PM »
100K > 70k =  You're there

 Bleeding a ton of money which you can't account for, but you are there.  I suggest you fill out a full case study and really nail down your expenses though.  Seems like you are using your large income to not care about the outgo.  Not a bad thing, just saying you don't sound like you have a good handle on what your money is going to a year.  The difference between your 70k expense estimate and what you detailed is enormous.
« Last Edit: January 04, 2017, 01:25:20 PM by plog »

Cwadda

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Re: Advice on my Situation
« Reply #2 on: January 04, 2017, 01:23:41 PM »
From the info you've provided, it sounds like you could quit your day job. You'd save money if you took care of the kids, too. This might not be the fastest path to FIRE, so we'd need a breakdown of your expenses to calculate FIRE date and such.

boarder42

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Re: Advice on my Situation
« Reply #3 on: January 04, 2017, 01:25:15 PM »
yeah you make 100k at a home business and spend 70k you're done with your day job and so is your wife if you so choose.

rubybeth

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Re: Advice on my Situation
« Reply #4 on: January 04, 2017, 01:46:59 PM »
I would say you could be done with the day jobs with the online business making that much, but how secure is that $100k? Is it likely to stay at that amount for the foreseeable future? If not, I'd suggest doing some additional saving/investing until you have at least your basics covered (maybe that's $40-50k per year), and then look at quitting. The general rule is to be able to live on a 4% withdrawal rate on investments, so you need 25x your annual spending. You could also practice being more frugal in the interim before quitting.

boarder42

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Re: Advice on my Situation
« Reply #5 on: January 04, 2017, 01:53:50 PM »
with 241k right now and saving 140k per year you could have enough to sustain your 70k lifestyle and have no income from you at home business in 7.5 years.

but there are lots of things you could do ... you could quit your job and just use the at home business.  save say 20k per year and let your 241k grow. in 20 years you'd have what you needed.  you can slide the quitting your day job scale however you like.

With This Herring

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Re: Advice on my Situation
« Reply #6 on: January 04, 2017, 04:11:54 PM »
Please read the "How to Write a Case Study" topic and update the first post you made.  Without more information, we can't give advice on paying off a mortgage, etc.  Thanks!

Retire-Canada

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Re: Advice on my Situation
« Reply #7 on: January 04, 2017, 04:39:05 PM »
100K > 70k =  You're there

 Bleeding a ton of money which you can't account for, but you are there.  I suggest you fill out a full case study and really nail down your expenses though.  Seems like you are using your large income to not care about the outgo.  Not a bad thing, just saying you don't sound like you have a good handle on what your money is going to a year.  The difference between your 70k expense estimate and what you detailed is enormous.

Yup quit the day job tomorrow and then run the online business and optimise your expenses.You should be able to save/invest the entire income from the home business and live off your wife's salary. With some work you can save a portion of her salary as well.