I work in IT with a well-paying job at a gigantocorp. The money is nice but spending all my time in an office on a computer (60+ hours a week) is not my idea of a good time. My goal is to attain a degree of financial independence doing the only thing I know how - trading my time for salary and investing in index funds. I am not the typical corporate worker drone and I recently discovered that many of my goals are quite Mustachian (though some of my habits could use some work).
I have been employed full-time for a bit over a decade, since finishing my undergrad. Around 2008 I became serious about saving but with no real goal in mind. I few years later I took a long sabbatical, half of which spent abroad. It was great.
The single most important thing I learned is that time is the greatest luxury. I want my time back. I'd take my 3% draw-down and spend my time in 2-3 locations per year (often abroad for both adventure and cost savings). I have lived, worked and travelled in many parts of the world and am confident I would like to make that part of my future strategy. I want to reach my goal as soon as I can manage, and then be free to work contracts or pursue hobbies and earn or not earn as whimsy dictates.
I am currently single, no kids. No particular plans in that regard but who knows what may happen.
Savings Balances -
14x projected retirement expenses distributed as follows:
- 401(k) - 53%
- Roth IRA - 2%
- Stocks/Bonds (taxable) - 42%
- Cash - 3%. I'm dollar-cost averaging most of this into stocks/bonds.
Debt -
$0. I paid off my student loans early and never borrowed a dime for anything else. Credit card paid off monthly.
Figures below are monthly.
Investments deducted from pay:
- 401k - Maxed, plus 3% company match
- ESPP - $1.3k of discounted stock
Fixed Bills are
$165.
- car insurance - $100
- cell phone - $65
Variable Expenses (average over last 6 months) are an astounding
$3.5k according to mint. I should work on this.
- rent - $375
- Food & Dining - $940
- Travel - $500
- Shopping - $450
- Fuel & Auto Service - $440
- Other - $280 (fees, healthcare, laundry, etc)
- Unspecified cash withdrawals - $470
The remainder of my income goes into a savings account and I periodically shift it into Vanguard funds or charitable donations.
My situation is a bit unusual in that I have no roots anywhere. This means my fixed costs are very low but my "other" budget varies wildly. I haven't had a representative month in several years as my lifestyle and location have shifted from small towns in cheap countries abroad to metropolitan cities in the states. Previously I spent years travelling for work and only going "home" on the weekends.
Currently I am telecommuting and staying in various locations around the states. Sometimes I am paying a friend to rent a spare room. Sometimes I'm on AirBNB. Sometimes I'm house-sitting. Sometimes I am being reimbursed by work. Sometimes I am staying with people that go out a lot and I spend more in restaurants. Sometimes I am cooking from home. Some of the places I stay in have a high cost of living. Often I am simply not tracking my spending very well.
My possessions, including one car, are stored with friends. I have the things I need for daily life in my other vehicle, which I use for long roadtrips. I will continue that for the next several months at least but given that this is somewhat unsustainable, I will probably settle down and rent something somewhere soon.
I would like to cut my spending back further and increase my savings such that I could hit my goal as soon as humanly possible.
I don't have a good handle yet on future expenses, but like many, $1M seems like a good round number to shoot for. I'm not sure how realistic my projections are. I'm not sure how much the last 6 months cash flow will predict future cash flow. I'm not sure if I will work full-time for the next 5 years or if I'll take another sabbatical. The wanderlust and desire to pursue my hobbies is strong - it is both my biggest motivation for working (delayed gratification) and the biggest risk that I'll quit my job and go play.
It's been an interesting journey, and thanks to this and other sites, I think I'm well on my way to getting free. Please criticize, prompt, suggest, etc.