Poll

What's your CURRENT % of your Target Passive Income as of now?

< 0%: I'm Bleeding Money
1 (0.3%)
0 to 5%
15 (3.8%)
5.01 to 10%
12 (3%)
10.01 to 20%
42 (10.5%)
20.01 to 30%
29 (7.3%)
30.01 to 40%
33 (8.3%)
40.01 to 50%
36 (9%)
50.01 to 60%
43 (10.8%)
60.01 to 70%
30 (7.5%)
70.01 to 80%
22 (5.5%)
80.01 to 90% and FIRED
4 (1%)
80.01 to 90% and NOT FIRED
25 (6.3%)
90.01 to 100% and FIRED
1 (0.3%)
90.01 to 100% and NOT FIRED
21 (5.3%)
100.01 to 110% and FIRED
11 (2.8%)
100.01 to 110% and NOT FIRED
17 (4.3%)
110.01 and up, and FIRED
21 (5.3%)
110.01 and up, and NOT FIRED
32 (8%)
FIRED, other %
5 (1.3%)

Total Members Voted: 400

Author Topic: Race to 100% FI! (With a Poll added to track your progress!)  (Read 23318 times)

maisymouser

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Re: Race to 100% FI! (With a Poll added to track your progress!)
« Reply #200 on: May 08, 2021, 06:20:57 PM »
At ~22.2%, but am BURNING to get to 30%. That 100% feels so far away when I put it in % form, but hopefully compounding works in my favor within the next decade (the working-to-earn-and-save and frugality are a given). I am stretching for FI by 2029.

LETS DO THIS...!

Came back to update, a little over two months later I am surprised to find I went quickly to 26.0%. A modest bonus helped, and I was promoted recently and am earning ~8% more. When we send our son back to preschool things are sure to slow down, but I am feeling good today about where I'm at.

SwordGuy

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Re: Race to 100% FI! (With a Poll added to track your progress!)
« Reply #201 on: May 08, 2021, 07:20:26 PM »
At ~22.2%, but am BURNING to get to 30%. That 100% feels so far away when I put it in % form, but hopefully compounding works in my favor within the next decade (the working-to-earn-and-save and frugality are a given). I am stretching for FI by 2029.

LETS DO THIS...!

Came back to update, a little over two months later I am surprised to find I went quickly to 26.0%. A modest bonus helped, and I was promoted recently and am earning ~8% more. When we send our son back to preschool things are sure to slow down, but I am feeling good today about where I'm at.

I know it's frustrating at first because the progress seems so slot and a big market drop makes one feel like all the contributions just got lost, too.

But historical average market returns on $100,000 are a bit over $10,000.   If someone is contributing $10,000 a year they are now growing at twice that rate, or 20% increase in savings that year.   If the next year also provides average returns, the growth rate is 22%, because the growth is on $120,000, for $12,000 in earnings.   And it grows more every year even though the contribution stays the same.

Compound growth supplemented by regular contributions is an awesome force!

MudPuppy

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Re: Race to 100% FI! (With a Poll added to track your progress!)
« Reply #202 on: May 08, 2021, 08:14:45 PM »
Up to 15 now!

alcon835

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Re: Race to 100% FI! (With a Poll added to track your progress!)
« Reply #203 on: May 09, 2021, 07:46:08 AM »
At ~22.2%, but am BURNING to get to 30%. That 100% feels so far away when I put it in % form, but hopefully compounding works in my favor within the next decade (the working-to-earn-and-save and frugality are a given). I am stretching for FI by 2029.

LETS DO THIS...!

Came back to update, a little over two months later I am surprised to find I went quickly to 26.0%. A modest bonus helped, and I was promoted recently and am earning ~8% more. When we send our son back to preschool things are sure to slow down, but I am feeling good today about where I'm at.

I know it's frustrating at first because the progress seems so slot and a big market drop makes one feel like all the contributions just got lost, too.

But historical average market returns on $100,000 are a bit over $10,000.   If someone is contributing $10,000 a year they are now growing at twice that rate, or 20% increase in savings that year.   If the next year also provides average returns, the growth rate is 22%, because the growth is on $120,000, for $12,000 in earnings.   And it grows more every year even though the contribution stays the same.

Compound growth supplemented by regular contributions is an awesome force!

Compounding truly is the great builder of long-term wealth.

The longer I go in finance, the more I see and understand compounding and the more impressed by the whole thing I am.

As you said, the beginning feels so tediously slow because the dollar amounts and, therefore, the percentage are increasing at small incremental rates. But each year compounds on the previous and it doesn't take long to see the snowball takeover.

"The Shockingly Simple Math to Early Retirement" is one I re-read from time-to-time just for this reason. Seeing how a person can, fairly easily, become FI if they just live below their means. And how even small increases in contributing makes a huge long-term impact.

BuffaloStache

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Re: Race to 100% FI! (With a Poll added to track your progress!)
« Reply #204 on: May 13, 2021, 02:01:47 PM »
Related to this conversation: https://fourpillarfreedom.com/why-saving-your-first-100k-is-a-big-deal/

I think this blog post does a great job of trying to visualize why the first $100k in invested assets is such of a big deal, and some of the points made above. In the "contributing $10k a year" case outlined below, getting to a $100k balance constitutes ~26% of the total duration of your accumulation phase on the path to $1Million.

 Charlie Munger is also often attributed to saying something similar. There are many different versions of his quote, but this is one of my favorite versions:

Quote
"The first $100,000 is a bitch, but you gotta do it. I don’t care what you have to do—if it means walking everywhere and not eating anything that wasn’t purchased with a coupon, find a way to get your hands on $100,000. After that, you can ease off the gas a little bit.”


Regardless, I just found this thread and am excited to join! I've really noticed a huge difference in the rate of change of my "% to FI" since I crossed over the ~25% threshold.

SwordGuy

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Re: Race to 100% FI! (With a Poll added to track your progress!)
« Reply #205 on: May 13, 2021, 02:24:20 PM »
I agree that the first $100,000 is the hardest part.

At that point, average market returns will bring in $10,000 a year.   

That's a non-trivial amount of income.   Aside from its compounding growth wonderfulness, $10,000 is enough to pay for a new HVAC system, or put a chunk on a car and pay it off the following year, or cover expenses if you get ill and can't work for awhile.    It helps protect against the dark side in the really bad years, too.

robartsd

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Re: Race to 100% FI! (With a Poll added to track your progress!)
« Reply #206 on: May 13, 2021, 04:34:39 PM »
We're right around the $100k mark in assets held across all our defined contribution retirement accounts (we have no taxable investments). If we also add in the current value of the defined benefit pension plan, we would have enough to pay off our mortgage (though not likely enough to also pay the taxes on the disbursement, but we might get there if also including our bank account balances) so our current net worth is very close to whatever the current market value of our home is.
« Last Edit: May 14, 2021, 01:52:14 PM by robartsd »

evme

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Re: Race to 100% FI! (With a Poll added to track your progress!)
« Reply #207 on: May 14, 2021, 02:01:00 AM »
Thanks for starting this thread @SwordGuy. Reading your posts reminded me that absolute total savings is not the right goal, it's how close you are to generating the passive income you want/need based on a given SWR that is important.

SwordGuy

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Re: Race to 100% FI! (With a Poll added to track your progress!)
« Reply #208 on: May 14, 2021, 08:20:19 AM »
Thanks for starting this thread @SwordGuy. Reading your posts reminded me that absolute total savings is not the right goal, it's how close you are to generating the passive income you want/need based on a given SWR that is important.

You're very welcome!    I think %FI is the right measurement too.

Tester

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Re: Race to 100% FI! (With a Poll added to track your progress!)
« Reply #209 on: May 14, 2021, 09:22:44 PM »
I am not sure what is my FIRE number but I reallly want to put my foot down and say 2 million should be enough.
If that is the case then I am a little over 25%.
Not bad starting from 0 6 years ago.
I hope to be able to get to 50% in 4 years...

Lucky Recardito

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Re: Race to 100% FI! (With a Poll added to track your progress!)
« Reply #210 on: June 03, 2021, 08:55:30 AM »
10/1/2017: 15.5%
10/1/2018: 19.6%
10/1/2019: 22.9%
01/1/2021: 36.4%

Bumped into the next rung on the poll...

10/1/2017: 15.5%
10/1/2018: 19.6%
10/1/2019: 22.9%
10/1/2020: 30.0%
06/1/2021: 41.9%

Fast progress in the last ~8 months due to crazy stock market, and an annual revision of target FIRE spending (lowered it a bit based on actuals from the past couple of years; might well bump it back up again in the years to come...)

Onward!

SwordGuy

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Re: Race to 100% FI! (With a Poll added to track your progress!)
« Reply #211 on: June 03, 2021, 09:53:48 AM »
10/1/2017: 15.5%
10/1/2018: 19.6%
10/1/2019: 22.9%
01/1/2021: 36.4%

Bumped into the next rung on the poll...

10/1/2017: 15.5%
10/1/2018: 19.6%
10/1/2019: 22.9%
10/1/2020: 30.0%
06/1/2021: 41.9%

Fast progress in the last ~8 months due to crazy stock market, and an annual revision of target FIRE spending (lowered it a bit based on actuals from the past couple of years; might well bump it back up again in the years to come...)

Onward!

Great news!

alcon835

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Re: Race to 100% FI! (With a Poll added to track your progress!)
« Reply #212 on: June 04, 2021, 06:37:44 AM »
Question for those who track home equity as part of Net Worth, how do you do it? Specifically, how often do you do it? My original plan was once a year when I get the taxable value of my home, but with prices skyrocketing up so much this year, I'm concerned these values won't hold and it'll lead to unrealistic home valuation.

For those who do it, what's your source of truth and how often do you update it? And, how are you handling the crazy price jumps this year?

DadJokes

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Re: Race to 100% FI! (With a Poll added to track your progress!)
« Reply #213 on: June 04, 2021, 07:02:08 AM »
Question for those who track home equity as part of Net Worth, how do you do it? Specifically, how often do you do it? My original plan was once a year when I get the taxable value of my home, but with prices skyrocketing up so much this year, I'm concerned these values won't hold and it'll lead to unrealistic home valuation.

For those who do it, what's your source of truth and how often do you update it? And, how are you handling the crazy price jumps this year?

Historically, homes appreciate by around 2-4% (although I've seen a lot of different estimates). I ignore the noise of the current craze and use a conservative 2.5%. Either we eventually sell and hopefully get a nice bonus, or we don't, and it doesn't matter.

Edit: I also don't include my home value in my "% FI" calculations, only my less useful but more ego-stroking net worth value.

SwordGuy

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Re: Race to 100% FI! (With a Poll added to track your progress!)
« Reply #214 on: June 04, 2021, 07:08:13 AM »
Question for those who track home equity as part of Net Worth, how do you do it? Specifically, how often do you do it? My original plan was once a year when I get the taxable value of my home, but with prices skyrocketing up so much this year, I'm concerned these values won't hold and it'll lead to unrealistic home valuation.

For those who do it, what's your source of truth and how often do you update it? And, how are you handling the crazy price jumps this year?

I track home equity as part of my net worth because, well, it **IS** part of my net worth.     

I don't track it as part of my FI stash because I have no intention to sell it and live off of any portion of the proceeds.

We have rental property as well and we (generally) follow the same guidelines.

I update the values at the end of the year or if something major happens that might greatly affect the value.   In the past, that has usually been when we've upgraded a property and increased its potential sale value.   This time, I updated the values at the 1/2 year mark because of the big run up in sales prices.   About 15 years ago we had a big run-up in property values in my area because the government was moving some important military assets to the nearby post and that meant more people with good jobs.

I don't take Zillow as gospel.   I'll look at some other houses that I think are comparable that are selling in the area.   If I know my property is better or worse than average for the houses around it I'll adjust accordingly.   One house is on a block where there were a lot of foreclosures.   The houses were renovated and rented out (instead of flipped and sold) so that block hasn't had its valuations properly adjusted yet, so I added some in for that.

It really doesn't matter whether I get it exactly right or not.   The purpose of tracking net worth, for us, is to look at trends over time.   If prices drop back down then, well, that portion of our net worth will drop with them.   But because most people don't buy their homes for cash, if the homes drop below what they owe on their mortgages they'll have to cough up the difference.  That tends to slow down the price drops because people can't afford to sell at the lower prices.

monarda

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Re: Race to 100% FI! (With a Poll added to track your progress!)
« Reply #215 on: June 04, 2021, 08:53:33 AM »
Question for those who track home equity as part of Net Worth, how do you do it? Specifically, how often do you do it? My original plan was once a year when I get the taxable value of my home, but with prices skyrocketing up so much this year, I'm concerned these values won't hold and it'll lead to unrealistic home valuation.

For those who do it, what's your source of truth and how often do you update it? And, how are you handling the crazy price jumps this year?

I track home equity as part of my net worth because, well, it **IS** part of my net worth.     

I don't track it as part of my FI stash because I have no intention to sell it and live off of any portion of the proceeds.

We have rental property as well and we (generally) follow the same guidelines.

I update the values at the end of the year or if something major happens that might greatly affect the value.   In the past, that has usually been when we've upgraded a property and increased its potential sale value.   This time, I updated the values at the 1/2 year mark because of the big run up in sales prices.   About 15 years ago we had a big run-up in property values in my area because the government was moving some important military assets to the nearby post and that meant more people with good jobs.

I don't take Zillow as gospel.   I'll look at some other houses that I think are comparable that are selling in the area.   If I know my property is better or worse than average for the houses around it I'll adjust accordingly.   One house is on a block where there were a lot of foreclosures.   The houses were renovated and rented out (instead of flipped and sold) so that block hasn't had its valuations properly adjusted yet, so I added some in for that.

It really doesn't matter whether I get it exactly right or not.   The purpose of tracking net worth, for us, is to look at trends over time.   If prices drop back down then, well, that portion of our net worth will drop with them.   But because most people don't buy their homes for cash, if the homes drop below what they owe on their mortgages they'll have to cough up the difference.  That tends to slow down the price drops because people can't afford to sell at the lower prices.

Exactly. This is why I track different subtotals, with and without real estate equity (in our two rentals or primary residence), on the various Races here. So many landmarks to celebrate. That's all I use these Racing threads for ... keeping track of landmarks as an excuse to celebrate.  :-)

Ladychips

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Re: Race to 100% FI! (With a Poll added to track your progress!)
« Reply #216 on: June 04, 2021, 10:13:01 AM »
Question for those who track home equity as part of Net Worth, how do you do it? Specifically, how often do you do it? My original plan was once a year when I get the taxable value of my home, but with prices skyrocketing up so much this year, I'm concerned these values won't hold and it'll lead to unrealistic home valuation.

For those who do it, what's your source of truth and how often do you update it? And, how are you handling the crazy price jumps this year?

I track home equity as part of my net worth because, well, it **IS** part of my net worth.     

I don't track it as part of my FI stash because I have no intention to sell it and live off of any portion of the proceeds.

We have rental property as well and we (generally) follow the same guidelines.

I update the values at the end of the year or if something major happens that might greatly affect the value.   In the past, that has usually been when we've upgraded a property and increased its potential sale value.   This time, I updated the values at the 1/2 year mark because of the big run up in sales prices.   About 15 years ago we had a big run-up in property values in my area because the government was moving some important military assets to the nearby post and that meant more people with good jobs.

I don't take Zillow as gospel.   I'll look at some other houses that I think are comparable that are selling in the area.   If I know my property is better or worse than average for the houses around it I'll adjust accordingly.   One house is on a block where there were a lot of foreclosures.   The houses were renovated and rented out (instead of flipped and sold) so that block hasn't had its valuations properly adjusted yet, so I added some in for that.

It really doesn't matter whether I get it exactly right or not.   The purpose of tracking net worth, for us, is to look at trends over time.   If prices drop back down then, well, that portion of our net worth will drop with them.   But because most people don't buy their homes for cash, if the homes drop below what they owe on their mortgages they'll have to cough up the difference.  That tends to slow down the price drops because people can't afford to sell at the lower prices.

Exactly. This is why I track different subtotals, with and without real estate equity (in our two rentals or primary residence), on the various Races here. So many landmarks to celebrate. That's all I use these Racing threads for ... keeping track of landmarks as an excuse to celebrate.  :-)

I track my property in my net worth, but my 'money' is a different number.  That's the one I really keep a close eye on because that's the one I have to live on. As far as property values, I generally just keep either the purchase price or the latest appraisal amount.  Mainly because I never plan to sell any of them so their 'value' is not really a number I need to track.  That could also be laziness.

@monarda you've helped me clarify my thoughts about the 'Race to' threads.  I too have enjoyed using the racing threads for tracking and celebration.   I just hit a milestone but don't want to move to the next thread because I'm not sure it's healthy for me.  I always want to keep in mind the concept of enough, not what's the next huge amount of money I can strive for.  Now I'm sad because I don't know if I'll move to the next thread but if I don't, will tracking be the same...

BuffaloStache

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Re: Race to 100% FI! (With a Poll added to track your progress!)
« Reply #217 on: June 08, 2021, 06:31:17 AM »
...
Edit: I also don't include my home value in my "% FI" calculations, only my less useful but more ego-stroking net worth value.

Ditto here. Just chiming in to state the (perhaps obvious) thing that I do count my mortgage against me in my "% FI" calculation. In my mind, you'll always need a place to live, but you have to account for the mortgage payment (and/or paying off the mortgage completely) somehow even after you FIRE and/or retire.

alcon835

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Re: Race to 100% FI! (With a Poll added to track your progress!)
« Reply #218 on: June 08, 2021, 07:32:11 AM »
I really appreciate all the feedback (and I'm always open for more). I think I'm going to follow @DadJokes method of setting a yearly % increase.

MudPuppy

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Re: Race to 100% FI! (With a Poll added to track your progress!)
« Reply #219 on: June 08, 2021, 07:59:19 AM »
Question for those who track home equity as part of Net Worth, how do you do it? Specifically, how often do you do it? My original plan was once a year when I get the taxable value of my home, but with prices skyrocketing up so much this year, I'm concerned these values won't hold and it'll lead to unrealistic home valuation.

For those who do it, what's your source of truth and how often do you update it? And, how are you handling the crazy price jumps this year?
For % FI I count mortgage but not home (or car, etc) value. Only dollars v debt. For NW I count the house value, using whatever the zestimate is on the yearly anniversary of our purchase. We don’t intend to sell when we retire, but you never know!

SwordGuy

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Re: Race to 100% FI! (With a Poll added to track your progress!)
« Reply #220 on: June 28, 2021, 09:41:23 PM »
We're at the halfway mark for the year, everybody update their FI%! :)

diapasoun

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Re: Race to 100% FI! (With a Poll added to track your progress!)
« Reply #221 on: July 20, 2021, 03:20:00 PM »
From 11% in October 2020 to 16% as of right now.

SwordGuy

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Re: Race to 100% FI! (With a Poll added to track your progress!)
« Reply #222 on: July 20, 2021, 05:12:29 PM »
From 11% in October 2020 to 16% as of right now.

That's great!

diapasoun

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Re: Race to 100% FI! (With a Poll added to track your progress!)
« Reply #223 on: July 21, 2021, 04:28:22 PM »
It turns out that plonking money into investments over time works! ;)

(Considering that at the start of 2016 I had no investments and a -$40k net worth... behold the power of plonking money into investments! And I've got a pretty "standard" MMM fire target number, too, not anything ERE.)

pasadenafr

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Re: Race to 100% FI! (With a Poll added to track your progress!)
« Reply #224 on: July 21, 2021, 05:11:25 PM »
I voted a little while ago, but I'll officially enter the race. I'm currently at 40.8% FI (was 34% at the end of 2020).

Target for 100% and RE is sometime in 2029, at age 55. Daily prayers to the market!

SwordGuy

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Re: Race to 100% FI! (With a Poll added to track your progress!)
« Reply #225 on: July 21, 2021, 08:20:40 PM »
I voted a little while ago, but I'll officially enter the race. I'm currently at 40.8% FI (was 34% at the end of 2020).

Target for 100% and RE is sometime in 2029, at age 55. Daily prayers to the market!

34% is great and 40.8% is even better!    You have the financial stability to recover from a host of problems that would really mess up others.

pasadenafr

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Re: Race to 100% FI! (With a Poll added to track your progress!)
« Reply #226 on: July 21, 2021, 08:31:47 PM »
I voted a little while ago, but I'll officially enter the race. I'm currently at 40.8% FI (was 34% at the end of 2020).

Target for 100% and RE is sometime in 2029, at age 55. Daily prayers to the market!

34% is great and 40.8% is even better!    You have the financial stability to recover from a host of problems that would really mess up others.

Thanks. Amazing what knowing that does to my sleep pattern :)

JAYSLOL

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Re: Race to 100% FI! (With a Poll added to track your progress!)
« Reply #227 on: July 24, 2021, 03:37:38 PM »
Just crossed over 10% of the way

SwordGuy

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Re: Race to 100% FI! (With a Poll added to track your progress!)
« Reply #228 on: July 24, 2021, 08:43:39 PM »
Just crossed over 10% of the way

10% is awesome!   It's enough to cover a month or so without pay.   It's enough to cover a major repair.

And it's enough to jumpstart that climb to 100%!

Congrats!

JAYSLOL

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Re: Race to 100% FI! (With a Poll added to track your progress!)
« Reply #229 on: July 25, 2021, 12:06:23 AM »
Just crossed over 10% of the way

10% is awesome!   It's enough to cover a month or so without pay.   It's enough to cover a major repair.

And it's enough to jumpstart that climb to 100%!

Congrats!


Thanks!  10% of our FI number is actually enough that we could probably live on it for 3-4 years without making any sacrifices, of course then we’d be broke and back to square one, haha, so definitely trying to leave it invested.  Definitely enough that I don’t have to stress about repairs or inconsistent income (which I have since my job is seasonal)

alcon835

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Re: Race to 100% FI! (With a Poll added to track your progress!)
« Reply #230 on: July 25, 2021, 08:01:48 AM »
Speaking of how long that money lasts, one of my favorite yearly trackers is the Financial Freedom Calculator (https://engaging-data.com/freedom-calculator/)

Basically, it calculates how far into a year your nest egg would get you based on your planned future withdraw rate and current nest egg. 10% puts you at February 5th, I believe. Which is BONKES AWESOME!

I add my "Current Freedom Date" to my yearly tracking, and it is so rewarding to see the days grow year-over-year. My dates over the last four years break down like this (as of January 1st of each year):

2017: Jan 17th
2018: Jan 19th
2019: Feb 13th
2020: Mar 20th

I think the really cool thing about the Freedom Calculator is it really shows the power of compounding. I gained 2 days in 2018 (when I didn't invest just saved for a down payment), 25 days in 2019, and 35 in 2020. My Goal for 2021 will put me past April 20th. Maybe I can push my way into May if I'm extra aggressive the second half of the year!

JAYSLOL

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Re: Race to 100% FI! (With a Poll added to track your progress!)
« Reply #231 on: July 25, 2021, 04:28:30 PM »
Speaking of how long that money lasts, one of my favorite yearly trackers is the Financial Freedom Calculator (https://engaging-data.com/freedom-calculator/)

Basically, it calculates how far into a year your nest egg would get you based on your planned future withdraw rate and current nest egg. 10% puts you at February 5th, I believe. Which is BONKES AWESOME!

I add my "Current Freedom Date" to my yearly tracking, and it is so rewarding to see the days grow year-over-year. My dates over the last four years break down like this (as of January 1st of each year):

2017: Jan 17th
2018: Jan 19th
2019: Feb 13th
2020: Mar 20th

I think the really cool thing about the Freedom Calculator is it really shows the power of compounding. I gained 2 days in 2018 (when I didn't invest just saved for a down payment), 25 days in 2019, and 35 in 2020. My Goal for 2021 will put me past April 20th. Maybe I can push my way into May if I'm extra aggressive the second half of the year!

That’s cool, I like the idea of breaking it down into how much of a year I could cover indefinitely.  Hopefully I can cover until close to mid-February by the end of the year, Feb 11 or later would be awesome

SwordGuy

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Re: Race to 100% FI! (With a Poll added to track your progress!)
« Reply #232 on: July 25, 2021, 07:32:39 PM »
Just crossed over 10% of the way

10% is awesome!   It's enough to cover a month or so without pay.   It's enough to cover a major repair.

And it's enough to jumpstart that climb to 100%!

Congrats!


Thanks!  10% of our FI number is actually enough that we could probably live on it for 3-4 years without making any sacrifices, of course then we’d be broke and back to square one, haha, so definitely trying to leave it invested.  Definitely enough that I don’t have to stress about repairs or inconsistent income (which I have since my job is seasonal)

Ah, yes, that way it would.

I was referring to just using the extra income to cover problems without touching the investment proper.   Communication is such a chancy thing!

JAYSLOL

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Re: Race to 100% FI! (With a Poll added to track your progress!)
« Reply #233 on: July 26, 2021, 07:22:58 AM »
Just crossed over 10% of the way

10% is awesome!   It's enough to cover a month or so without pay.   It's enough to cover a major repair.

And it's enough to jumpstart that climb to 100%!

Congrats!


Thanks!  10% of our FI number is actually enough that we could probably live on it for 3-4 years without making any sacrifices, of course then we’d be broke and back to square one, haha, so definitely trying to leave it invested.  Definitely enough that I don’t have to stress about repairs or inconsistent income (which I have since my job is seasonal)

Ah, yes, that way it would.

I was referring to just using the extra income to cover problems without touching the investment proper.   Communication is such a chancy thing!

Ah, got it!  Yeah I could 4% my way out of a lot of stuff like a month off or a repair bill, cool way to look at it. In fact I guess I already did that this year, DW got a new job a few months ago and needed a separate car for commuting, so we spent ~3.5% to get her a good little car and barely felt it

SwordGuy

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Re: Race to 100% FI! (With a Poll added to track your progress!)
« Reply #234 on: July 26, 2021, 08:20:14 AM »
...

Ah, yes, that way it would.

I was referring to just using the extra income to cover problems without touching the investment proper.   Communication is such a chancy thing!

Ah, got it!  Yeah I could 4% my way out of a lot of stuff like a month off or a repair bill, cool way to look at it. In fact I guess I already did that this year, DW got a new job a few months ago and needed a separate car for commuting, so we spent ~3.5% to get her a good little car and barely felt it

THAT's why I cheer people on so much when they reach the 10% mark.     The psychological stress difference between "OMG!  What are we to do?" and "Meh.   It's no big deal." is IMMENSE.

JAYSLOL

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Re: Race to 100% FI! (With a Poll added to track your progress!)
« Reply #235 on: July 26, 2021, 08:46:34 PM »
...

Ah, yes, that way it would.

I was referring to just using the extra income to cover problems without touching the investment proper.   Communication is such a chancy thing!

Ah, got it!  Yeah I could 4% my way out of a lot of stuff like a month off or a repair bill, cool way to look at it. In fact I guess I already did that this year, DW got a new job a few months ago and needed a separate car for commuting, so we spent ~3.5% to get her a good little car and barely felt it

THAT's why I cheer people on so much when they reach the 10% mark.     The psychological stress difference between "OMG!  What are we to do?" and "Meh.   It's no big deal." is IMMENSE.

And the answer that people in that situation come to often ends up being “finance the replacement car”, or “put the water heater replacement bill on the credit card and make minimum payments”.  I’ve got a long road still ahead to get to 100% FI, but I feel really fortunate that I’ll likely never be forced to choose those kinds of options.  I had been keeping an eye out for a good used car for about a month, and was able to jump on a wicked deal that popped up on Facebook Marketplace literally minutes after it was posted because I was ready with cash in hand

alcon835

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Re: Race to 100% FI! (With a Poll added to track your progress!)
« Reply #236 on: July 27, 2021, 07:28:09 AM »
...

Ah, yes, that way it would.

I was referring to just using the extra income to cover problems without touching the investment proper.   Communication is such a chancy thing!

Ah, got it!  Yeah I could 4% my way out of a lot of stuff like a month off or a repair bill, cool way to look at it. In fact I guess I already did that this year, DW got a new job a few months ago and needed a separate car for commuting, so we spent ~3.5% to get her a good little car and barely felt it

THAT's why I cheer people on so much when they reach the 10% mark.     The psychological stress difference between "OMG!  What are we to do?" and "Meh.   It's no big deal." is IMMENSE.

And the answer that people in that situation come to often ends up being “finance the replacement car”, or “put the water heater replacement bill on the credit card and make minimum payments”.  I’ve got a long road still ahead to get to 100% FI, but I feel really fortunate that I’ll likely never be forced to choose those kinds of options.  I had been keeping an eye out for a good used car for about a month, and was able to jump on a wicked deal that popped up on Facebook Marketplace literally minutes after it was posted because I was ready with cash in hand

When this happened for me, it was when I finally felt like financial independence was possible. Having enough to survive tragedy is so freeing! As everyone has already said...when something breaks, it's not a big deal! When tragedy strikes, money isn't a concern. It's such a different mindset to living and it's WONDERFUL

mizzourah2006

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Re: Race to 100% FI! (With a Poll added to track your progress!)
« Reply #237 on: July 27, 2021, 09:39:20 AM »
Speaking of how long that money lasts, one of my favorite yearly trackers is the Financial Freedom Calculator (https://engaging-data.com/freedom-calculator/)

Basically, it calculates how far into a year your nest egg would get you based on your planned future withdraw rate and current nest egg. 10% puts you at February 5th, I believe. Which is BONKES AWESOME!

I add my "Current Freedom Date" to my yearly tracking, and it is so rewarding to see the days grow year-over-year. My dates over the last four years break down like this (as of January 1st of each year):

2017: Jan 17th
2018: Jan 19th
2019: Feb 13th
2020: Mar 20th

I think the really cool thing about the Freedom Calculator is it really shows the power of compounding. I gained 2 days in 2018 (when I didn't invest just saved for a down payment), 25 days in 2019, and 35 in 2020. My Goal for 2021 will put me past April 20th. Maybe I can push my way into May if I'm extra aggressive the second half of the year!

This is a pretty cool idea. I started tracking in 2016.
End of:
2016: February 14th
2017: March 5th
2018: March 23rd
2019: May 9th
2020: June 27th

Right now we are right at about 50% of the way to our #.

alcon835

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Re: Race to 100% FI! (With a Poll added to track your progress!)
« Reply #238 on: July 27, 2021, 04:33:36 PM »
Speaking of how long that money lasts, one of my favorite yearly trackers is the Financial Freedom Calculator (https://engaging-data.com/freedom-calculator/)

Basically, it calculates how far into a year your nest egg would get you based on your planned future withdraw rate and current nest egg. 10% puts you at February 5th, I believe. Which is BONKES AWESOME!

I add my "Current Freedom Date" to my yearly tracking, and it is so rewarding to see the days grow year-over-year. My dates over the last four years break down like this (as of January 1st of each year):

2017: Jan 17th
2018: Jan 19th
2019: Feb 13th
2020: Mar 20th

I think the really cool thing about the Freedom Calculator is it really shows the power of compounding. I gained 2 days in 2018 (when I didn't invest just saved for a down payment), 25 days in 2019, and 35 in 2020. My Goal for 2021 will put me past April 20th. Maybe I can push my way into May if I'm extra aggressive the second half of the year!

This is a pretty cool idea. I started tracking in 2016.
End of:
2016: February 14th
2017: March 5th
2018: March 23rd
2019: May 9th
2020: June 27th

Right now we are right at about 50% of the way to our #.

WOW!!! One thing that's amazing about having a June date...you could technically go six months without income or tapping your emergency fund.

Six months. Every Year. Forever.

That's awesome

beedub

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Re: Race to 100% FI! (With a Poll added to track your progress!)
« Reply #239 on: July 29, 2021, 03:33:20 PM »
I'm at 25.93 as of my last spreadsheet update. This past year has been bonkers. It's got me to a point where I should really be starting to notice the compounding, and I am, but it's currently going at what is likely an unsustainable rate, so I fear my view of compounding will eventually look like a slowdown. 

Either way, can't complain, I'm in a better spot than I was 6 years ago, that's for sure.

For those of you liking the days of freedom method, there's a tracking thread for that in the Share Your Badassity forum.

https://forum.mrmoneymustache.com/share-your-badassity/i-just-bought-2-days-per-year-of-free-life-indefinitely-363-to-go/

Both cool ways of tracking, and my spreadsheet has both metrics.
« Last Edit: July 29, 2021, 03:39:27 PM by beedub »

pasadenafr

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Re: Race to 100% FI! (With a Poll added to track your progress!)
« Reply #240 on: July 31, 2021, 09:36:59 AM »
I voted a little while ago, but I'll officially enter the race. I'm currently at 40.8% FI (was 34% at the end of 2020).

Target for 100% and RE is sometime in 2029, at age 55. Daily prayers to the market!

41.36% at the end of July :)