Due to this crazy market and being 98% stocks, I made it past net $100K!
My rent and living expenses doubled since my roommate moved out and I wanted to give living alone a try... So rent went from $265 to $500 a month, utilities around $175 a month with internet. So overall a shift of around +$320/mo in living expenses or nearly 20% of my target yearly budget (20K/yr). Still able to target around $50K/yr in savings pre gains counting employer match.
Hard to say if it was worth it compared to looking for a rando roommate, but overall given that I live in a LCOL it's not the end of the world if I choose to do it for now. We'll see how long it lasts, I'll enjoy the privacy for now :)
On the plus side, I switched to total wireless and only paying $10/mo for cell phone (2GB data) instead of $40 with ATT.
As for my investment choice, 100% stocks seems like an ok choice at my current stage, I feel like bonds aren't necessarily safer right now.
Date Bank Brokerage 401k roth student loans Net
4/26/2020 4,778 32,625 68,576 20,372 -20,000 106,351
12/29/2020 2,389 19,835 52,506 16,500 -20,000 71,230
7/4/2020 4,169 9,746 30,107 11,721 -20,000 35,743
12/1/2019 11,013 0 16,159 1,054 -26,500 1,726
Hi all,
New to the forum, but been working on FIRE for the past 2 years. I graduated from college in december 2018, and started an engineering job end of january 2019, I am 25 now. I started off with pretty much no savings (< $5K), around $10K in credit card debt and ~30K in student loans, and moved to a new town to start my job. Luckily I have a killer deal for rent ($265/mo + $80-100 in utilities, due to splitting with 1 roommate), paid cash for a $3.5K car in december 2018 that's been pretty reliable (on the MMM list :)). Bought a car because I live 5-10 miles from work, work is a chemical plant so I hope I get excused for not wanting to live right next to it lol, no properties for rent nearby anyways.
Since a year before graduating I knew FIRE was one of my top goals, prior to that I did not save as much as I could have in college. Even though I went to community college I kinda spent all the extra money on weed and going out, and then once I transferred I lived in a studio for 2 years instead of having roommates. But hey at least I found this path before getting a job.
I'm making good money ($75K starting, now at $82.5K + bonus ($5K this year)), and saving a lot of it. Employer matches 5% of salary plus $5K/yr on 401K. Really started buckling down this year, maxing 401K and roth IRA in addition to investing what's left over. I'd say I earn the money, technically on call 24/7 and can be a stressful job, but average <50 hr/week. Managed to invest a lot of cash right around the COVID dip, and also refinanced my 401K to be 100% VTI equivalent right around then... Sitting at around 12% ROI for the year, all stocks.
Date Bank Brokerage 401k roth student loans Net
12/29/2020 2389 19835 52506 16500 -20000 71230
7/4/2020 4169 9746 30107 11721 -20000 35743
12/1/2019 11013 0 16159 1054 -26500 1726
Target NW is $500K, goal is to live off <$20K/yr. Also planning on helping mom for her retirement (~$500/mo). Not sure what my savings rate is right now since I don't follow a budget, but I'm mostly optimized relative to my income. Based on my calculations I should reach that NW around age 30-31, but I guess a lot of things can change by then. Also goal isn't to necessary RE at that age - I'd honestly be happy doing something like baristaFIRE for a few years.
Comments on a few spending categories
- cell phone (on ATT plan,pay $40/month, in theory can cut to $20 with mint given my usage and looking at doing that soon - edit: phone isn't compatbile with mint, will probably wait for mine to be dead prior to switching)
- car use (can WFH 50% of the time, don't bike as often as I could since 5-10 miles each way is above comfort range + midwest winter). Somewhat clown, but I bike for errands ~2-3x/week in non-winter months.
-utilities: internet is $50/month for the cheapest fiber option, and then the $150 is just for electricity which is high (split between 2). It's a smallish apartment, not sure what we can do to improve significantly, but plan on doing more investigating this year. - edit: realized my electric bill is around $75/mo, remaining $75 is water, sewage and taxes.
- food: I eat a vegetarian diet which is cheap, don't eat out too frequently (~1-2x/month) since there aren't that many worthwhile options, and when I do it's fast food. My 'splurging' on food would consist of grocery store bought processed food and liquids but I've been getting better about cutting those off
- mindless consumption: I am prone to buying dumb things I don't need or will use. Getting better, and will hopefully continue being considerate for my wallet and the planet. This is where my biggest opportunity is I think (1-3K/yr), I'm going to start budgeting to better understand it.
-travel: I am sort of over travel even pre covid. I still have to travel 1-2x/yr to see family, and outside of that would probably do a vacation somewhere 1-2x/yr with my SO, but nothing expensive.
- student loans: are at 4.5%, I'd refinance but doesn't make sense with the interest/payment moratorium and political climate. As soon as those are lifted I'll probably pay off $10K and refi the remaining 10 (getting ~2.7% fixed rate refi offer on credible/MMM link), unless student loan forgiveness is picking up steam...
Pretty proud of this year, hope I can keep it up :)