Author Topic: Headed over the edge...  (Read 1324 times)


  • Stubble
  • **
  • Posts: 116
  • Age: 40
  • Location: New York City
Headed over the edge...
« on: May 25, 2017, 10:42:29 AM »
10 years ago (EOY 2007)
  • Net Income (Monthly): $5k
  • Spending (Monthly): $5k
  • Savings Rate/Amount: 2% / $100
  • Net Worth: $-220k
2 years ago (EOY 2015) - Start of our FIRE Journey!
  • Net Income (Monthly): $15k
  • Spending (Monthly): $12k
  • Savings Rate/Amount: 20% / $3k
  • Net Worth: $100k
6 months from now (EOY 2017)
  • Net Income (Monthly): +$17k
  • Spending (Monthly): $2k
  • Savings Rate/Amount: 88% / $15k
  • Net Worth: $420k

My wife and I have been on quite the financial journey since we got married almost 13 (!!) years ago. Before we started our FIRE journey (thanks to MMM), we spent almost everything we earned, and only really saved because we thought we needed to (no actual goal in mind). Our 401ks were our main savings, although we only contributed the minimum. Investing our money was considered gambling, so we had no reason to save beyond a meager emergency fund.

Since that time, we've not only gone spreadsheet-crazy to dial down our expenses (spending habits), but we've gotten smart about investing and saving for retirement. We actually have a retirement goal which is in sight. The me from 10 years ago could have never imagined that would be the case.

This year, we've taken it to the next level. To eliminate our $3400/month rent and reduce our overall cost of living, we shopped around and purchased a cheap fixer-upper house outside of the city (with cash!) and have been plowing our money and time (DIY!) into it to get it move-in ready. Based on our project plan, we should be able to move out of the city in October, and immediately begin reaping the benefits. Not only do we have a couple of $0-debt assets on the books (the house and a used Toyota Prius), but our spending will drop to $2k-3k/month. That means we can save (read: invest) up to $180,000 annually. That's CRAZY.

Plus, we're learning all these amazing skills as we DIY restore this house. We're enjoying this process so much, in fact, that we may want to just do house flipping as a side gig (or even day job). Living the dream!

So, thanks MMM community, for helping us on the road from no savings, crazy debt, spendypantsness to awesomeness.

EDIT: Oh, and this means we can declare ourselves FI within the next 4 years! Who knows if we'll RE soon, but we have the flexibility to do so! :D
« Last Edit: May 25, 2017, 11:30:15 AM by Drakmon »


  • Bristles
  • ***
  • Posts: 378
  • Location: HCOL - USA
Re: Headed over the edge...
« Reply #1 on: May 26, 2017, 03:30:03 PM »
That's quite a turnaround.  Congrats!


  • 5 O'Clock Shadow
  • *
  • Posts: 46
  • Location: Utah
Re: Headed over the edge...
« Reply #2 on: May 26, 2017, 03:52:10 PM »
Way to go!