Author Topic: I invented FI/RE, a day late  (Read 1216 times)

Kem

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I invented FI/RE, a day late
« on: April 05, 2019, 02:48:45 PM »
Good day MMM formites!

I just wanted to swing by and give an update and introduction of my current standing.  This path to Independence I discovered and programmed for myself via trial and error – it was not until THIS YEAR that I happened upon MMM and FI/RE while researching for my nearly finished second book for my kids.

In the last 4 years of planning out the future I've swung from paycheck to paycheck living & massive debt to building up a buffer, defeating the net debt, and as of a few blinks back bumping through 100K in investment seeds!

What follows is the draft going into my forthcoming website (luvkem) where a landing page for my contributions to society at large shall reside (and if enough folks concur, an acceleration of my FI). 

The Short:

2015 – Planning put into Action


2020 + Projections from average market returns assuming no massive disruptive life event:


The LONG:
For those curious as to the ride, what follows is a bit of history.
***

Like many fine folks, I followed the path of the American Dream. 

For nearly 2 decades I had not the ability to cover a basic emergency, living paycheck to paycheck, taking on ever greater debts and growing poorer too in body, mind, and spirit. 

Certainly I had a whole host of great educations (on paper), a big beautiful home, a shiny new car every 4 years, 2 dogs, whatever I wanted to eat, and many toys. 

Like most Americans, I obtained the Dream by leveraging against any future happiness allotted me.  At the deepest my cesspit sunk to 25K of credit card debt, 13K in personal loans, 25K in auto loans, 106K of student debt on a degree stack in a decimated field, and a 240K mortgage upon an asset which dropped by 55K in the first year.   This was all obtained from a measly base salary of roughly $50K.
 
Upon the arrival of my firstborn in 2012 my steadfast beliefs in the societal propaganda began to lift:  I had chosen to think my way out, to culture a mindset that questioned the impact of every choice and shed those which caused despair and desperation or conflicted with a free future. 

After 3 years of research, number crunching, and planning action was taken upon my body and my use of the almighty dollar. Between 2015 and 2019 each plan was tracked, tweaked, and reevaluated monthly.

Body:  I’ve gone from 250 pounds with chronic back pain and severe depression to a 170 lean frame, zero ongoing pain, and a grateful outlook on life.

Mind:  Shedding the cable subscription has allowed my book consumption to jump from a few fantasy novels in any given year to having at least 4 streams of advancement.  Each day I make time to read at least 1 fiction, 1 personal growth, and 1 financial growth book in addition to various podcasts and audiobooks.

Wallet:  The plan has worked.  I currently have 3 years of freedom, a positive net worth, and a now vetted plan to obtaining $1 million in personal assets prior to my eldest graduating high-school (and this is not the end). 

Our future is however bleak.  You see, in the course of shaking off the dazzling American brainwash certain truths have been revealed.  The big house, the flashy car, the inflated education – these all provide joy upon initial grasp but that blip of happiness is soon goon.  The American Dream is more akin to a nightmare – it creates for those seeking its advertised glories enslavement to a system with little chance of respite.

This pain is easily preventable – given a financial education.  An education not afforded to our children by our fine intuitions. Perhaps the most taboo topic in our culture, and a cycle I strive to break, is understanding how moneys work.  From out of this frustration was born a set of guidelines which have evolved into books drafted as a gift to my daughters.

It is here that our story begins.  Welcome to my Ride.

Timeline:
2005 – Dual BS Degrees in Aviation are granted – in a post Sept 11 world.  Pickup an off the lot Scion. 
2006 – Marriage to my SO, along with the big wedding and international trip.  Pickup an off the lot Scion.
2008 – First full year in Career
2009 – House is purchased along with 2 dogs to grace the carpet with their blessings; a software degree and a post-grad business degree also are stuffed onto my shelf.
2011 - Pickup an off the lot VW TDI
2012 – Weapon of mass disruption falls in the guise of my firstborn.   Planning and research to break the cycle begins

Thanks for taking a gander
« Last Edit: April 05, 2019, 03:10:47 PM by Chris.Kem »

Kem

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Re: I invented FI/RE, a day late
« Reply #1 on: April 05, 2019, 03:30:04 PM »
Other big changes
* groceries down to $600/month (family of 4)
* restaurant cap at $60/month
* monthly funds to Ally for Home/Auto maintenance, anticipated bills, etc
* bought $1,500 190K Honda to replace $32K VW
* zero purchases not budgeted for & delayed gratification of purchases halts most from occurring anyways
* no silly subscriptions (like cable)
* budget phone / phone sub-carrier
* swapped gas mower for reel mower
* more efficient house use choices (energy conservation)
* wiped out Credit Card debt, personal loan, smaller student loan (only consumer debt is 42K at 5.01% student loan and 195K mortgage at 3.875%)

401K to employer match at 2%
IRA to $500/month
Remaining capital to 75% VTI in taxable TOD and 25% Fundrise

Finally, I must share that I'm really looking forward to walking down the next decade plus hand-in-hand with you kindly souls.

Cheers,
Chris
« Last Edit: April 05, 2019, 03:46:40 PM by Chris.Kem »

Freedom Invested

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Re: I invented FI/RE, a day late
« Reply #2 on: April 05, 2019, 06:55:09 PM »
Good work. You're moving in a positive direction and that's great.

Kem

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Re: I invented FI/RE, a day late
« Reply #3 on: April 05, 2019, 07:04:16 PM »
Thank you Freedom Invested