Hello everyone! Very new Mustachian here. Been lurking for only a couple of weeks; wish I found this site earlier! I’m 38, single, mom lives with me. I would like to achieve FIRE in 5-7 yrs!
Income: Annual Gross: $130k + 20k bonus
Monthly: Gross: 10890; Net after taxes: $7825
Current monthly expenses:
Rent: $1400 (Junior 1BR in SF Bay area)
Food: $450 (Groceries + Eat out)
Car Insurance/gas: $105+ $110 = $225
Cellphone: $140 (2 lines)
Insurance: Health/Life/Vision/Dental/HSA/FSA: $479 (no more FSA next year)
Timeshare Maint: $50
Misc (household supplies/entertainmt, clothes, gifts, etc): $400
Parcel of land (in home country): $840 (Owner-financed, 0%); will finish by 8/2016
Hair on Fire Payment: Car: $440 (2.29%, $15913 balance)
Charity: $525 (10% of net paycheck)
Vacation: $550 (I go to my home country every year. Airfare $1500/Vacation Exp: $5000 – I pay for 6 for our family)
Total: $5499
Assets:
401k - $174k; now contributing 14% to max out + 6% from company so 20% total
Investmt acct - $10k
ROTH IRA - $1500 (just started)
Savings - $18k
1BR condo unit in my home country (paid), worth $85k – siblings staying there, so no incoming $
1700sqft parcel of land in my home country (paid), worth $15k
10500sqft parcel of land in my home country (still paying, balance $15287), worth $50k
Liabilities:
As mentioned above: Car: $440 (2.29%, $15913 balance). Mustachian Plan: payoff by end of year!!
Parcel of land (in home country): $840 (Owner-financed, 0%); will finish by 8/2016
Questions:
1. Immediate Plans: Buy a rental home in Lake Tahoe (with 5 other friends), $15k each outlay; $200 monthly (if needed, no rentals). When it’s rented at 25%, we’re looking at getting $200 each in income per month. Great, good, or bad idea?
2. Future plans: When “retired,” build a small B&B on the 10500sqft parcel of land. It’s located a mile or so away from a popular beach destination in my home country, so I want to manage it. My sister, who is an architect, did the costing and it’s at $108k at current prices. Question: should we build it as soon as we have funds for it (my sis will manage first) or later when I’m ready to move back?
3. How to achieve FIRE in 5-7yrs?? I want to spend half a year here, half a year in my home country.