Race to 100% FI (ONLY if below Median Household Income!!!)

[SwordGuy]

Update your status for the start of 2020!

[APowers]

Update your status for the start of 2020!

Mine hasn't changed much yet. My goal this year is to purchase at least two more cashflowing rental properties, which should push me over the 100% mark. I'm excited and terrified at the same time, lol!

[SwordGuy]

Update your status for the start of 2020!

Mine hasn't changed much yet. My goal this year is to purchase at least two more cashflowing rental properties, which should push me over the 100% mark. I'm excited and terrified at the same time, lol!

Oh, that's great!    What % of your FI income will come from rental properties?    The rest from stocks/bonds?

[APowers]

Update your status for the start of 2020!

Mine hasn't changed much yet. My goal this year is to purchase at least two more cashflowing rental properties, which should push me over the 100% mark. I'm excited and terrified at the same time, lol!

Oh, that's great!    What % of your FI income will come from rental properties?    The rest from stocks/bonds?

Currently, all my passive income is from one single-family rental and my basement/MIL apt that I rent on airbnb. I find it hard to justify putting my meager cash savings into stock/equities when the returns on rental real estate are so much greater, especially when multiplied by my ability to stretch that monetary value with sweat equity and personal involvement.

If I achieve my goals, by end of 2020, I should be at 110-130% of FI through rental income. I almost certainly won't be able to stop all earned income, because if I'm not working on something, I'm sure I'll go crazy-- my goal is to integrate that with involving my kids, teaching them life skills and general knowledge and personal development stuff which heretofore has been very much sidelined by "working for a living".

[TacheTastic]

Update your status for the start of 2020!

Not really much to update here. I did put myself in the 0-5% bracket, but I have realised that I should have been counting all the money I have in my pension pot. That probably takes me nearer to 10%, but it is not actually a material change, just the correction of a mis-calculation. Basically what Moonwaves said.

I have had an increase in income though. In late October my professional registration came through, so my income jumped by about £5k per year. Combined with the overtime I do that brings things closer, and when I rent out my spare room again I might even be within touching distance of the median, although I only plan to do that for another year or so to finish saving my house deposit.

I am being realistic. If I can be looking at retiring at age 60, then I think that will be a pretty fantastic achievement for me. Anything sooner than that is pretty unlikely.

[SwordGuy]

Update your status for the start of 2020!

Not really much to update here. I did put myself in the 0-5% bracket, but I have realised that I should have been counting all the money I have in my pension pot. That probably takes me nearer to 10%, but it is not actually a material change, just the correction of a mis-calculation. Basically what Moonwaves said.

I have had an increase in income though. In late October my professional registration came through, so my income jumped by about £5k per year. Combined with the overtime I do that brings things closer, and when I rent out my spare room again I might even be within touching distance of the median, although I only plan to do that for another year or so to finish saving my house deposit.

I am being realistic. If I can be looking at retiring at age 60, then I think that will be a pretty fantastic achievement for me. Anything sooner than that is pretty unlikely.

Sounds like you're doing the right things to make good results happen!

[Imma]

I'm still as far away from FI as ever, but we're doing fine. I'm working from home fulltime due to Corona now and I've noticed commuting and office life takes up 90% of the energy I spend on working, and actually doing work is 10%. Which means that for as long as I'm at home I'm spending a lot less money because I have energy to food-prep and DIY. Also, my partner will get less hours at work due to the virus if this lasts any longer. They are going through a hard time now. Instead of being worried about money we've talked about how this might be a great opportunity for us to paint the house together! He does the sanding and the heavy lifting, I do the painting. If we each spend an hour a day we'd have 10 doors done in a week. Maybe we'll also be able to plant more in the garden this year.

[SwordGuy]

I'm still as far away from FI as ever, but we're doing fine. I'm working from home fulltime due to Corona now and I've noticed commuting and office life takes up 90% of the energy I spend on working, and actually doing work is 10%. Which means that for as long as I'm at home I'm spending a lot less money because I have energy to food-prep and DIY. Also, my partner will get less hours at work due to the virus if this lasts any longer. They are going through a hard time now. Instead of being worried about money we've talked about how this might be a great opportunity for us to paint the house together! He does the sanding and the heavy lifting, I do the painting. If we each spend an hour a day we'd have 10 doors done in a week. Maybe we'll also be able to plant more in the garden this year.

That's so much better off than a lot of folks are.   Kudos to you!

[MudPuppy]

Damn we miss this by 3k because of my side hustle income. Look forward to following along, though!

[Imma]

It feels like a lifetime ago that I wrote that. A couple of days later a close relative was diagnosed with Covid and they died in late March. Another was seriously ill and has recovered, but not completely. We don't know yet if that will be permanent.

We haven't been doing any painting, but I did eventually get a veggie patch started mid-May. My partner's job is still affected but they are going better now. My company is really struggling and I will lose my job when my contract ends this autumn, but I've got an appointment to sign a contract for a new job this week.

So, from a material perspective we are still doing fine and will most likely continue to be fine, and in our country, if my partner or I would get infected, it would not have financial consequences. But we started this decade feeling very optimistic and then we had a funeral in Q1 of the 20s.

It's kind of like when I turned 18 in the summer of '08 and was off to college in the autumn and then in the meantime the economy collapsed. I really struggled to stay employed and pay the bills and I came out ok but it wasn't easy. I am noticing that I'm behaving much in the same way as I was then. On one hand, that's been good, because I had a job interview lined up before I formally knew this job was going to end (I knew I needed to find a new job ASAP instead of waiting for the economy to get even worse)  but I've also noticed that I'm hanging on to old, worn out clothes and shoes because I may need them later on. That behaviour saved me back in '08 - I may have gotten wet feet but I was never behind on rent - but at this point there's no reason to be that desperate. I'm a mustachian, I don't buy more than I need, but boots beyond repair need to go. I have 5 figures in the bank. I've promised myself that I'm getting a new coat and new boots for winter.

[Luz]

6 months later and we're at 3.3% of FI.
Family of 4 now making $37,700 per year (not including overtime and tax return).

We have 40,000 in assets but 4,000 is earmarked for birth expenses for the new baby so I'm using 36,000 at this point (not sure what to include in net worth exactly).

FI goal is now 1,090,000. We'd like 1 million with a 3% withdrawal rate. But instead of having enough to buy a house outright in retirement, we're thinking to purchase a home earlier and pay off the outstanding balance + do some renovations in retirement.

We're also upping our lifestyle to the $30,000 range.

So a bit of a moving target, but like someone posted above: focusing on moving in the right direction and doing so sustainably (for us: balancing time and money and also living in the moment with saving for greater financial freedom).

I'll try to post every 6 months or so.
Curious about other below median household people's timelines for FIRE (especially those of you at less than 200% FPL).

[SwordGuy]

6 months later and we're at 3.3% of FI.
Family of 4 now making $37,700 per year (not including overtime and tax return).

We have 40,000 in assets but 4,000 is earmarked for birth expenses for the new baby so I'm using 36,000 at this point (not sure what to include in net worth exactly).

FI goal is now 1,090,000. We'd like 1 million with a 3% withdrawal rate. But instead of having enough to buy a house outright in retirement, we're thinking to purchase a home earlier and pay off the outstanding balance + do some renovations in retirement.

We're also upping our lifestyle to the $30,000 range.

So a bit of a moving target, but like someone posted above: focusing on moving in the right direction and doing so sustainably (for us: balancing time and money and also living in the moment with saving for greater financial freedom).

I'll try to post every 6 months or so.
Curious about other below median household people's timelines for FIRE (especially those of you at less than 200% FPL).

That sounds like a decent plan for the future!   I'm glad you're not including overtime and tax returns into your planned spending -- that really gets a lot of people into trouble when it inevitably dries up.

[SwordGuy]

How is everyone doing?     Backsliding due to covid 19 damage to your plan?   Moving forward? 

[Imma]

Moving forward! I still have a job but have heard it will end on September 30. Thankfully my boss informed me as soon as they knew (the best boss I've had so far) and I had been expecting it so I had already been networking a bit. When I was called into the "I'm sorry, but we're going to have to let you go" meeting, I already had a job interview scheduled. I heard I was hired a couple of days after that interview and received the offer letter two weeks ago. I'm getting a raise and better benefits as well, and the new job also seems more in line with my talents. There's one part of my current job I'm not good at, and one task that I'm very good at. I'm basically going to do that one task fulltime from now on. My new employer is taking the pandemic very seriously so they're working from home at least until the end of the year, and when we do go back to the office, that's a 5 minute bike ride from my home.

Also, for the first time in years the booming housing market is slowing down a little bit. Right now house prices are going up, but slower than before. Rents are already going down and once the impact of this recession hits I expect purchase prices to go down a bit too. We've always dreamed of home with a bit of land - not a whole forest but more than the 40m2 back yard we have now. But land is expensive in the Netherlands because we have so little. With our higher income and lower prices we might just be able to find our dream home. That would delay our FIRE date but it would massively improve the quality of our life if we both had a studio space, a small workshop for DIY and a garden. The house itself can be quite modest, we don't need a mansion. I don't mind working parttime until I'm 50 if it means we can live the lifestyle we enjoy most.

[SwordGuy]

Moving forward! I still have a job but have heard it will end on September 30. Thankfully my boss informed me as soon as they knew (the best boss I've had so far) and I had been expecting it so I had already been networking a bit. When I was called into the "I'm sorry, but we're going to have to let you go" meeting, I already had a job interview scheduled. I heard I was hired a couple of days after that interview and received the offer letter two weeks ago. I'm getting a raise and better benefits as well, and the new job also seems more in line with my talents. There's one part of my current job I'm not good at, and one task that I'm very good at. I'm basically going to do that one task fulltime from now on. My new employer is taking the pandemic very seriously so they're working from home at least until the end of the year, and when we do go back to the office, that's a 5 minute bike ride from my home.

That's awesome!!!    Reminds me of when I got a sociopathic boss that fixated on firing me (after doing the same to 2 people prior to me).   Found a better job, more interesting work, better pay, and an extra 10 paid days off a year -- down the hall at the same organization.   

But land is expensive in the Netherlands because we have so little.

I used to work for Nedlloyd Lines back in the '80s and '90s and would come to Rotterdam once a year.   I remember the first time I was taking the train from Schipol (sp?) Airport into Rotterdam.    We were going thru the countryside and there were all these very tiny houses (looked to be 2 rooms at most) with small yards and well-maintained gardens.    I thought, "Wow!   These people are poor but they sure take pride in their homes!"   Then I found out they were country get-away cabins for the upper middle class.  :)

[Imma]

That area is called the Green Heart, it's gorgeous but it's one of the most expensive locations in the country. If I had a couple of millions in the bank I wouldn't mind living there! But you don't get a lot of house for your money. And our government is really strict about not living permanently in a holiday home, so these sit empty most of the time while there's a massive housing shortage.

I'm always a bit jealous of Americans who buy acres and acres of land in LCOL areas. That just doesn't exist here. We're dreaming of 0,5-1 acre. Enough space for a nice garden, a large detached outbuilding for a workshop and two studio spaces, some chickens. Small enough that we could maintain it ourselves. But land like that usually comes with a big fancypants house on it that we don't need.

In a few years we'll be able to maybe afford 300-400k but that's not going to get us close to what we want unless the housing market really crashes. If that doesn't happen, we hope to maybe one day buy some land and build a wooden home there. We're not DIY types at all and we love the look of old homes, but that's one way we could get a relatively large lot with a relatively small and cheap house on it. Building in wood rather than brick is very uncommon here, but we know someone who did that and it's quite a bit cheaper. And their home is gorgeous.

[nereo]

How is everyone doing?     Backsliding due to covid 19 damage to your plan?   Moving forward?

Honestly we have no idea.  My job was impacted by Covid-19 and that's made my future employment highly uncertain... the least certain it's ever been. Under a normal year I'd be returning to the University where I've worked on Sept 1.  Yet... the Federal UI almost completely replaced that lost income... until this week, when it expired.  Will it be reinstated and will it be retroactive (and when)?  All good questions for which I have no answer and no confidence.

Meanwhile my wife's position hit a mandatory, State pay freeze.  She was already in arbitration with her union rep in March for being required to do a job far above her pay-scale... but whether she will get her promised raise is also unknown.

In the meantime our spending has gone way down, as we had 2+ months with zero daycare and we've all but eliminated commuting expenses working from home.

Then there's our investments.  Remarkably with continued contributions to our retirement accounts (Spouse's job) they are as fat as they have ever been.  Yet... we are in a recession (?) with over 30MM unemployed (?!) and several hundred big-name companies are now in bankruptcy (?!) and the latest jobs report was trash.... so.... despite sticking to our "buy continuously and hold" approach I can't help but wonder if we'll take a big paper dip in the next few months.

Best-case scenario spouse's payscale and position will be increased, Federal UI benefits will be reinstated and retroactive and I'll return to full-time work (with a subsequent and expected raise) on September 1.  If that all happens 2020 might be financially our best year ever (so much so that I'll have to kick myself out of this 'below median household income' thread).  OR I could continued to be unemployed and my benefits could be curtailed and spouse might get furloughed (a real possibility) - in which case our income will go down the toilet, and we might have to draw down savings until we hit a new normal.

It will be interesting to re-visit this post in a few months to see how things have panned out.

[MudPuppy]

Wrong thread!

[Moonwaves]

My side-gig income seems to be levelling off at about 50% of my expenses per year, so that's good, too. The plan for next year is to save all of my side income. And I really like the job I moved to this year so I'm not so sure about cutting back to part-time anymore. We'll see. For now I'm just glad to be actually saving.

Looks like side-gig income is going to be substantially less this year as one client of an agency I have done a lot of translating for in the last few years decided to move all translating in-house. And COVID has in general meant far less demand. Still have one client that is still doing a monthly newsletter so that's good. I would normally be translating the bulk of an annual report for one institution in August/September but haven't heard yet on that. If they've had budget cuts, they may decide to do it fully in-house or it could be that budget cuts won't be felt until next year. Since life is pretty full anyway, I am sticking to my plan of only taking on work that comes to me and not going looking for any more. Much better for my mental health at the moment.

Apart from workload, my day job has not yet been affected by the pandemic and probably won't be (touch wood). 

It does feel like I've lost control of the pursestrings a bit since this whole COVID thing started. There was a pretty over-the-top consumption of sweets, crisps and takeaway in March and April - even though I wasn't locked down (still had to go in to work every day), I didn't cope as well as I might have expected. When I start the weight-loss program at the local hospital in (hopefully) October, that will easily eat up all of my side-gig income every month. I do have enough in savings to pay for it but want to try and cashflow it. Feels a lot like standing still at the moment, but that's still a hundred times better than being in debt, so I'll take it. :-)

[Imma]

In this situation standing still is a big achievement @Moonwaves ! And great that you are investing in your health by consulting professionals. I paid out of pocket for a different type of health program and that was the best money I ever spent.

[Luz]

How is everyone doing?     Backsliding due to covid 19 damage to your plan?   Moving forward?

We're moving forward at the moment, which I'm shocked by and grateful for.

 I collected unemployment for the few months I lost side gig income. My partner was paid to stay home and even received a raise during shut down. He was also able to take paternity leave and receives additional covid wages through the next few months.

We reduced our spending quite a bit to prepare for the worst and were able to extend the lease of our tiny apartment despite being over max capacity laws now with the new babe. By some magic, his crying at night doesn't wake the toddler!

We've been able to put our stimulus check and my unemployment check in savings and will do the same with our tax refund (I hear they're paying interest on it since it's late?) and a second stimulus if that happens (I hope it will because now we have an additional member of the family who qualifies for a payment). I wasn't sure if I'd have work for the rest of the year, so I didn't count on it starting up again (it did) and I'm earmarking everything I make in 2020 for savings as well.  My husband also received automatic pandemic tuition assistance based on our 2019 AGI so his summer and fall semesters are paid for.

I opened a ROTH IRA finally and we're now using our HSA as an investment vehicle. It feels good to be more set up in terms of the investment order. We're getting the full match on my partner's 401k and I'm hoping to fully fund our ER fund this year. In 2021 we'll focus on maxing the HSA and maybe even have some left over to put in the ROTH. By the time my partner graduates and we've completed our family, I'm hoping our networth will be double the amount from when we started MMM last year ($30,000).

We will have extra medical costs this year above the amount I set aside for the baby's birth since he has a few health issues. I'm determined to keep momentum though, and may just have to get creative with cutting costs/finding extra income sources to pay the extra amounts.

During the uncertainty, when my husband and I were looking at all our options, we also realized that retiring at least part time in Mexico (where he's from and where I've lived) is a very viable option and would reduce our FI number dramatically. We could even retire early! I'm not sure what will be the best fit and it's overwhelming for me to think about not working since I get a lot of meaning from my work. But it's kind've fun to have that option!

[APowers]

Just popping in to say that I've changed my vote from 70-80% to 90-100% and FIRED. I mean, not like, never-work-again FIRED, but close enough that the money I end up earning because I can't help myself will cover the difference.

I think mostly, the difference is in my mindset from "gotta workworkwork while I can/also accomplish all these projects that I have designed for myself" to "I'm gonna do what I want, and also these projects along the way". Mentally, it means a lot more space for being involved with my kids (especially needed during this whole online-grade-school crisis), and a lot more space to be involved with helping my immediate neighbours with stuff (for example, as part of the ginormous landscaping project that is my back yard, I've been available enough to help the neighbour tear down/regrade/rebuild her fence/yard).

But it's also "official" in that I tell people that I'm no longer taking new customers when they call for estimates, and I refer even current customers to my friend's business (he's in the same industry).

I started this shift early this year (mostly pre-pandemic), but I was very unsure. However, I figured that I could at least take off the summer, while my airbnb was bringing in the $$; I kept watch on my main checking account (I keep a main budgeting account that all expenditures and income flow through) and to my great surprise, it wasn't depleting the way I expected! In fact, even though I blew nearly $4k on a retaining wall project and $1300 on an epic month-long camping road trip, as of the beginning of Sept, I am nearly $5k UP from my baseline at the beginning of the year. I expect airbnb income to drop off around Oct/Nov, but I have work lined up and planned that will cover part (if not all) of that missing revenue, in addition to enough cash reserve to last for at *least* 6-10 months if something dire were to happen in the job/rental market (not counting reserves specifically designated for each rental property and some reserved business capital/funds/wages).

ETA: For reference, my highest wage-rate has been around $30/hr (though as a handyman, I'd bill out at $50/hr; due to unbilled time spent, I'd generally average in the $30/hr range pre-tax).

[SwordGuy]

Just popping in to say that I've changed my vote from 70-80% to 90-100% and FIRED. I mean, not like, never-work-again FIRED, but close enough that the money I end up earning because I can't help myself will cover the difference.

I just want to say that I love your story.

[APowers]

Just popping in to say that I've changed my vote from 70-80% to 90-100% and FIRED. I mean, not like, never-work-again FIRED, but close enough that the money I end up earning because I can't help myself will cover the difference.

I just want to say that I love your story.

Thank you! I don't really feel like I've done anything special, but I'm glad some folks appreciate the story.

I've got a ton of remodeling and landscaping on my project list, but every improvement I make just boosts my home value (in a hot market neighbourhood where I'm the ugliest house on the block); in addition, once it's fully remodeled, I can airbnb the whole house instead of just the basement, and that will boost that income stream by at least 1.5x if not double (at whatever point I may move out of the house). So even my non-income generating "work" increases my overall net worth.

One of the goals that I have in shifting to FIRE is to build up my social network (covid has put quite a damper on this, but I'm working on it). Being able to actually interact in a greater way than waving as I drive past with the neighbours has been great. I've also joined a business networking group on behalf of my friend's business (he gets the business, I get the networking face time)-- this is currently via Zoom, so not great, but better than nothing.

[Dicey]

@APowers, could you move into the (presumably smaller) basement space and rent out the rest of the (presumably larger) house as an interim step?

And thanks for a great update!

[DesertRatNomad]

I’m at about 60-70%. Wife is at about 10% 

I’m 40, wife is 34, we’re both teachers although I’m probably getting out soon or at least for a couple years (Side note that should surprise no one but this year is a shitshow so far).  I expect to drop down to part time and coast once I hit about 80% although I’ll probably work on fun side hustles  or real estate to help my wife catch up. If I were to receive the size inheritance I think is likely I would be far past my FI number.   Strategically, I could probably coast now but I feel the need to do it on my own and don’t like to rely on things outside my control.  I’ve done 2 House flips (split with partner) 5 years of bus route, motorcycle flips and part-outs, eBay sales, and some credit card churning to help speed things up.

[APowers]

@APowers, could you move into the (presumably smaller) basement space and rent out the rest of the (presumably larger) house as an interim step?

And thanks for a great update!

Yes, but...

The main level of the house isn't yet finished being remodeled, so it'd be a tough sell as a vacation rental space. Once it's all finished, we totally could, but I'm not sure we really need to. Also, for once, I'd like to get to live in one of my finished spaces, lol! First house was a fixer, and by the time I got it all nice, we moved out; this house, I got the basement all nice and then rented it; I work hard to make the upstairs a nice place, I want to get to use it, haha. Eventually, I'm sure we'll move again, but for now, I have no plans to.

[Dicey]

@APowers, could you move into the (presumably smaller) basement space and rent out the rest of the (presumably larger) house as an interim step?

And thanks for a great update!

Yes, but...

The main level of the house isn't yet finished being remodeled, so it'd be a tough sell as a vacation rental space. Once it's all finished, we totally could, but I'm not sure we really need to. Also, for once, I'd like to get to live in one of my finished spaces, lol! First house was a fixer, and by the time I got it all nice, we moved out; this house, I got the basement all nice and then rented it; I work hard to make the upstairs a nice place, I want to get to use it, haha. Eventually, I'm sure we'll move again, but for now, I have no plans to.

I hear you! I'm a huge believer in doing the renos first, enjoying them while you live there, then billing the property as "tastefully updated" when you sell. I was referring to your comment about renting out both. My suggestion is to rent out the part that will generate the highest revenue as an interim step before moving out entirely.

[APowers]

@APowers, could you move into the (presumably smaller) basement space and rent out the rest of the (presumably larger) house as an interim step?

And thanks for a great update!

Yes, but...

The main level of the house isn't yet finished being remodeled, so it'd be a tough sell as a vacation rental space. Once it's all finished, we totally could, but I'm not sure we really need to. Also, for once, I'd like to get to live in one of my finished spaces, lol! First house was a fixer, and by the time I got it all nice, we moved out; this house, I got the basement all nice and then rented it; I work hard to make the upstairs a nice place, I want to get to use it, haha. Eventually, I'm sure we'll move again, but for now, I have no plans to.

I hear you! I'm a huge believer in doing the renos first, enjoying them while you live there, then billing the property as "tastefully updated" when you sell. I was referring to your comment about renting out both. My suggestion is to rent out the part that will generate the highest revenue as an interim step before moving out entirely.

I'll consider it. :)

[APowers]

Just popping in to say that I've changed my vote from 70-80% to 90-100% and FIRED. I mean, not like, never-work-again FIRED, but close enough that the money I end up earning because I can't help myself will cover the difference.

I just want to say that I love your story.

One of the things my mind keeps coming back to is the idea that "you can't frugal your way to FIRE". I literally had this thought as I went through with my home refinance that saved me nearly $200/month, and very likely was a thing that pushed my finances over the edge from 80% to "yeah, I think this can work". I remember uncontrollably grinning to myself and thinking "they say you can't frugal your way to FIRE, and yet, here I am." Being able to live frugally has been an absolute godsend in my ability to FIRE, probably the single biggest factor by a WIDE margin.

[SwordGuy]

Just popping in to say that I've changed my vote from 70-80% to 90-100% and FIRED. I mean, not like, never-work-again FIRED, but close enough that the money I end up earning because I can't help myself will cover the difference.

I just want to say that I love your story.

One of the things my mind keeps coming back to is the idea that "you can't frugal your way to FIRE". I literally had this thought as I went through with my home refinance that saved me nearly $200/month, and very likely was a thing that pushed my finances over the edge from 80% to "yeah, I think this can work". I remember uncontrollably grinning to myself and thinking "they say you can't frugal your way to FIRE, and yet, here I am." Being able to live frugally has been an absolute godsend in my ability to FIRE, probably the single biggest factor by a WIDE margin.

I was 55 when I learned about the FIRE concept and how to do it.   We frugaled our way to a very high savings rate.  Part of that we funneled into our 401Ks, the other part we funneled into rental property to increase our income.   We would never have been able to FIRE in 5 years if we hadn't done that.   So I get it!

[nereo]

Just popping in to say that I've changed my vote from 70-80% to 90-100% and FIRED. I mean, not like, never-work-again FIRED, but close enough that the money I end up earning because I can't help myself will cover the difference.

I just want to say that I love your story.

One of the things my mind keeps coming back to is the idea that "you can't frugal your way to FIRE". I literally had this thought as I went through with my home refinance that saved me nearly $200/month, and very likely was a thing that pushed my finances over the edge from 80% to "yeah, I think this can work". I remember uncontrollably grinning to myself and thinking "they say you can't frugal your way to FIRE, and yet, here I am." Being able to live frugally has been an absolute godsend in my ability to FIRE, probably the single biggest factor by a WIDE margin.

Who says you can't frugal your way to FIRE (or retirement)?  That's literally how my grandparents did it.  Granted he retired in his mid 50s, which might not qualify as "early" around here, but was a good decade earlier than his peers, adn they did it without ever having a particularly large income.  By being frugal in their 20s, 30s and 40s they lived some pretty amazing lives, and had the enviable position of having more money than they knew what to do with in their 60s, 70s and 80s.

[APowers]

Just popping in to say that I've changed my vote from 70-80% to 90-100% and FIRED. I mean, not like, never-work-again FIRED, but close enough that the money I end up earning because I can't help myself will cover the difference.

I just want to say that I love your story.

One of the things my mind keeps coming back to is the idea that "you can't frugal your way to FIRE". I literally had this thought as I went through with my home refinance that saved me nearly $200/month, and very likely was a thing that pushed my finances over the edge from 80% to "yeah, I think this can work". I remember uncontrollably grinning to myself and thinking "they say you can't frugal your way to FIRE, and yet, here I am." Being able to live frugally has been an absolute godsend in my ability to FIRE, probably the single biggest factor by a WIDE margin.

Who says you can't frugal your way to FIRE (or retirement)?  That's literally how my grandparents did it.  Granted he retired in his mid 50s, which might not qualify as "early" around here, but was a good decade earlier than his peers, adn they did it without ever having a particularly large income.  By being frugal in their 20s, 30s and 40s they lived some pretty amazing lives, and had the enviable position of having more money than they knew what to do with in their 60s, 70s and 80s.

I don't know, but I am certain that I've read it at least once. I thought it was on the forum here somewhere, but I can't remember where.

[ixtap]

Just popping in to say that I've changed my vote from 70-80% to 90-100% and FIRED. I mean, not like, never-work-again FIRED, but close enough that the money I end up earning because I can't help myself will cover the difference.

I just want to say that I love your story.

One of the things my mind keeps coming back to is the idea that "you can't frugal your way to FIRE". I literally had this thought as I went through with my home refinance that saved me nearly $200/month, and very likely was a thing that pushed my finances over the edge from 80% to "yeah, I think this can work". I remember uncontrollably grinning to myself and thinking "they say you can't frugal your way to FIRE, and yet, here I am." Being able to live frugally has been an absolute godsend in my ability to FIRE, probably the single biggest factor by a WIDE margin.

Who says you can't frugal your way to FIRE (or retirement)?  That's literally how my grandparents did it.  Granted he retired in his mid 50s, which might not qualify as "early" around here, but was a good decade earlier than his peers, adn they did it without ever having a particularly large income.  By being frugal in their 20s, 30s and 40s they lived some pretty amazing lives, and had the enviable position of having more money than they knew what to do with in their 60s, 70s and 80s.

I don't know, but I am certain that I've read it at least once. I thought it was on the forum here somewhere, but I can't remember where.

The mentality is certainly in line with all the side hustle talk. Uh, uh, I come from a world where the first level of financial independence is that you pay your own bills, the second level is that you pay your own bills with only one job...

[TacheTastic]

How is everyone doing?     Backsliding due to covid 19 damage to your plan?   Moving forward?

Covid has been a financial blessing for me. My employer decided to offer the cost of travel to work to anyone who couldn't work from home for March 23rd until the end of July, which was about £200 a month. I did loads of overtime and didn't do any socialising or travelling. As a result I completed the purchase of my home the other day, which is a really significant milestone on my FIRE journey, as well as in my life. I have rented this house from my brother for 7.5 years, so I know I love it. Now it is actually mine I have the chance to start changing it to the way I really want it to be.

I am now rebuilding my savings and will be able to look at investments outside my pension in a year or so. Exciting!

[Dicey]

How is everyone doing?     Backsliding due to covid 19 damage to your plan?   Moving forward?

Covid has been a financial blessing for me. My employer decided to offer the cost of travel to work to anyone who couldn't work from home for March 23rd until the end of July, which was about £200 a month. I did loads of overtime and didn't do any socialising or travelling. As a result I completed the purchase of my home the other day, which is a really significant milestone on my FIRE journey, as well as in my life. I have rented this house from my brother for 7.5 years, so I know I love it. Now it is actually mine I have the chance to start changing it to the way I really want it to be.

I am now rebuilding my savings and will be able to look at investments outside my pension in a year or so. Exciting!

Congratulations! That is so exciting!

[dizzy]

Interesting way to look at things as far as replacing monthly income and also how much of a percentage towards FIRE.
What is my income...yeah, IDK.
2 years ago it was $8-10k for a couple years
Last year, $21.5k (after contributions)
This year, um...$40k before contributions?  Or 50?  it's really not clear yet.  The joys of being self-employed, with significant unexpected cash under the table gigs.  I'm definitely doing better this year though, by far.

Trad IRA #1, SEP IRA, and solo401k will yield $60/mo as of now on average.
I am not sure for my other accounts, where can I check on M1 and fidelity?  The fidelity is all in a zero fund yielding 2.55%, there is $3870 in it as of today.

I have been doing tradelines and hope to do $500 a month as I build my portfolio there.  I'm doing every other month for now as I season cards, between $4-500 a month. 

My other investment is about $6500 in kickfurther projects, will be more end of year.  I'd say I'm getting 15-20% annual returns there.  Plan to contribute extra funds each year here.

Just passed $50k in savings, after only 1 year of saving.  Frugaled my butt here, yup.  Probably about 20% to FIRE.  My goal is 5 years I am out of the game and back to a thru hiking and music gigging lifestyle again, with whatever side hustles I feel like (provided music gigs come back more in the future)

[SwordGuy]

Let us all know how you're doing at the end of this crazy year!

[Imma]

We are doing fine! Our finances are the only thing that have improved significantly this year.

In my country, the median income for a 2-income family is €65k. In November I accepted a new job for more hours + higher wages. I went from working 60% to working 100% and with the 15% higher wage I'll earn about €45k. Our household income should be around the median next year! I say should because my partner's job is extremely insecure and affected a lot by Covid, and so are all companies in his field, so if he loses his job it will be a challenge to find a new job. But we could live off my income alone indefinitely if we had to.

I have health issues and always worked parttime, but due to 100% work from home I'm able to work many more hours now. If/when we go back to the office, my commute will be a 15 minute walk instead of 1,5 hours walk+bus so that will save a lot of time, and we probably won't go back to the office 100% of the time.

[nereo]

I’ve enjoyed being a part of this thread, but [un]fortunately, I’m going to be kicked out in early Feb.

Plan to hold on to our frugal ways, though...

[SwordGuy]

I’ve enjoyed being a part of this thread, but [un]fortunately, I’m going to be kicked out in early Feb.

Plan to hold on to our frugal ways, though...

@nereo, don't forget the companion thread you still qualify for.   What % of FI have you gotten to so far?

https://forum.mrmoneymustache.com/throw-down-the-gauntlet/race-to-100-fi!/

[nereo]

I’ve enjoyed being a part of this thread, but [un]fortunately, I’m going to be kicked out in early Feb.

Plan to hold on to our frugal ways, though...

@nereo, don't forget the companion thread you still qualify for.   What % of FI have you gotten to so far?

https://forum.mrmoneymustache.com/throw-down-the-gauntlet/race-to-100-fi!/

THanks for the reminder of the other thread.

Ooph:  ‘what % of FI have we gotten to so far” - that was a much simpler question pre-Covid and pre-toddler.  Honest answer is: I’m not sure.  Best guess is somewhere between 50-75%.  A big challenge is that we have waaaay too much (for my comfort) of our NW tied into two homes - now both on the market. And moving from a LCOL area to a MCOL means we are uncertain how much of an outlay we’ll have for our next place and what child-care will look like.   

Frustratingly there’s almost nothing on the rental market in our area right now... seems no one wants to move i) around the holidays ii) during a pandemic iii) as winter sets in. Our state has renter-protection during the winter months too, so landlords can’t evict for non-payment until spring.

There’s some irony that it’s far easier and cheaper for us to buy another home than to start a rental.  I honestly don’t understand how low-income people who aren’t dedicated savers can afford to move for better job prospects - most places want First + Last + Deposit with a credit check and employment verification.  In our area that means having $4k accessible if you want a family home or 2+ bedroom apartment.

[shrimpwd]

I know I changed my response at some point this year, but looks like I never wrote down when it was.

I went from 5-10% to the 10-20% category, but only managed to get to ~17% for end of year. I suppose that means I'll have an easier time next year getting into the 30-40% category by end of 2021.

Yay for extremely low leanfi number?

[SwordGuy]

I know I changed my response at some point this year, but looks like I never wrote down when it was.

I went from 5-10% to the 10-20% category, but only managed to get to ~17% for end of year. I suppose that means I'll have an easier time next year getting into the 30-40% category by end of 2021.

Yay for extremely low leanfi number?

An extremely low leanFI number means not having to worry much about telling bosses "No." when they get up to jackassery.   That's always a win.

[nereo]

The power of “no” is an amazing thing.  Reason to celebrate

[Tigerpine]

I’ve enjoyed being a part of this thread, but [un]fortunately, I’m going to be kicked out in early Feb.

Plan to hold on to our frugal ways, though...

@nereo, don't forget the companion thread you still qualify for.   What % of FI have you gotten to so far?

https://forum.mrmoneymustache.com/throw-down-the-gauntlet/race-to-100-fi!/

THanks for the reminder of the other thread.

Ooph:  ‘what % of FI have we gotten to so far” - that was a much simpler question pre-Covid and pre-toddler.  Honest answer is: I’m not sure.  Best guess is somewhere between 50-75%.  A big challenge is that we have waaaay too much (for my comfort) of our NW tied into two homes - now both on the market. And moving from a LCOL area to a MCOL means we are uncertain how much of an outlay we’ll have for our next place and what child-care will look like.   

Frustratingly there’s almost nothing on the rental market in our area right now... seems no one wants to move i) around the holidays ii) during a pandemic iii) as winter sets in. Our state has renter-protection during the winter months too, so landlords can’t evict for non-payment until spring.

There’s some irony that it’s far easier and cheaper for us to buy another home than to start a rental.  I honestly don’t understand how low-income people who aren’t dedicated savers can afford to move for better job prospects - most places want First + Last + Deposit with a credit check and employment verification.  In our area that means having $4k accessible if you want a family home or 2+ bedroom apartment.

I also read somewhere....Washington Post perhaps?.... that some landlords are not putting vacant units on the rental market because they're concerned about bringing in new tenants who may or may not pay due to the eviction moratoriums.  So that could possibly be another contributing factor as to why it's so hard to find an apartment right now.

[nereo]

I’ve enjoyed being a part of this thread, but [un]fortunately, I’m going to be kicked out in early Feb.

Plan to hold on to our frugal ways, though...

@nereo, don't forget the companion thread you still qualify for.   What % of FI have you gotten to so far?

https://forum.mrmoneymustache.com/throw-down-the-gauntlet/race-to-100-fi!/

THanks for the reminder of the other thread.

Ooph:  ‘what % of FI have we gotten to so far” - that was a much simpler question pre-Covid and pre-toddler.  Honest answer is: I’m not sure.  Best guess is somewhere between 50-75%.  A big challenge is that we have waaaay too much (for my comfort) of our NW tied into two homes - now both on the market. And moving from a LCOL area to a MCOL means we are uncertain how much of an outlay we’ll have for our next place and what child-care will look like.   

Frustratingly there’s almost nothing on the rental market in our area right now... seems no one wants to move i) around the holidays ii) during a pandemic iii) as winter sets in. Our state has renter-protection during the winter months too, so landlords can’t evict for non-payment until spring.

There’s some irony that it’s far easier and cheaper for us to buy another home than to start a rental.  I honestly don’t understand how low-income people who aren’t dedicated savers can afford to move for better job prospects - most places want First + Last + Deposit with a credit check and employment verification.  In our area that means having $4k accessible if you want a family home or 2+ bedroom apartment.

I also read somewhere....Washington Post perhaps?.... that some landlords are not putting vacant units on the rental market because they're concerned about bringing in new tenants who may or may not pay due to the eviction moratoriums.  So that could possibly be another contributing factor as to why it's so hard to find an apartment right now.

I've talked to a few friends who are all in real-estate, and everyone concurs that they've never seen the rental market so out-of-whack in our area as it is right now.  Prices are high, quality and supply is low, and most of the normal players (e.g. property management firms) seem to be sitting on the sidelines for whatever reason.

It also doesn't help that our region has - until very recently - been a perceived 'safe-haven' from the virus and the sky-high infection numbers in the metropolitan cities a few hours away.  A record number of out-of-staters have moved here in the last 6 months.  Seems if you can work remotely, many have decided they'd rather go someplace with fewer people, lower rents and more scenery.

[SwordGuy]

Ok, the final numbers can now be calculated!   

Get busy!   Update your FI % in the poll and tell us a bit about it in the comments!

[SwordGuy]

It's been a crazy year.   How is everyone doing on their progress!

[Jenny Wren]

Just discovered this thread thanks to another thread. We are in the 5-10% bracket (8% to be exact).

Two earners, self employed, age 40 & 45: Variable income but has averaged ~$40k over the last 5 years.
Median household income in my county is $63k
FI #: $350K

Caveats: Our goal is to get into some cheap property in the next year (likely through non-traditional means) and pay it off in <10 years. We hope to hit FI around the same time using our current savings rates and current efforts to increase variable income. The money we have for the down payment on the housing goal is not included in our 8% savings toward FI. With that money, we have >20% toward the above FI number, but then that number would be without adjusting for the addition of housing costs in retirement.

Our version of FI includes:
* No mortgage
* off grid activities (permaculture gardening, alternatives to municipal water/sewer, that sort of thing.)
* Government insurance (Our state has decent expanded Medicaid which we have qualified for and used for 10 years, guilt-free, and we will continue to do so until we qualify for medicare. I am pro-health insurance for all.)

Honestly, $350k is kind of chubby fire compared to how much we spend right now minus housing costs, even when leaving a generous housing allowance in it for taxes/upkeep. I assumed as we age and phase out of work, we will want a bit more cash in our general fund for hobbies, trips to the city, that sort of thing. BUT, we will also have one less mouth to feed as our youngest will likely be fully launched or at least an adult and contributing to the ol' homestead finances at that point.