A new perspective on the growing stash

[anotherAlias]

After a particularly frustrating week at work last week, I poured over my spreadsheets looking for ways to speed up my FIRE date.  This time I looked at my budget and stash from  different angle and came to a surprising realization.  Next to each monthly budget line item, I calculated the stash necessary to support that budget itemm.  Then I highlighted each budget item that I had enough of a stash to cover in FIRE.  As it stands today, I have enough savings to cover all of my expenses except housing, heat, electricity and health insurance.

This puts a new perspective on my current search for a house.  I know that housing is a major chunk of anyone's budget, but this really put a spotlight on it for me.  Most of my savings from this point on is for a place to live. 

[arebelspy]

Looking at which expenses your stache covers is fun. The point at which you have housing and food covered is amazing, knowing you could  get fired and still have a place to live and not go hungry, and you're just working for all the extras. A nice feeling. :)

[Ducky]

That is an interesting way to look at it. I'm going to try it. Thanks for sharing.

[pdxmonkey]

Property tax is my largest projected "mandatory" retirement expense at present. It's followed by property-related expenses (gas/electric, water/sewer, insurance, garbage all in this category), then finally food. There are a few other inexpensive mandatory items..soap...toilet paper, clothing once in a while, although I have enough clothing to last a long long time I suspect.

Everything else gets lumped more or less into stuff I like, but could do without if it came down to it. Being able to cover that mandatory set of items to me is where I reach FI. I am unlikely to retire at that point as I want money to do stuff I like, but once those items are covered that is the point at which I will really have FU money where I could walk out and not worry about how long it takes to get another job. I have quite the backlog of things I could entertain myself with for little additional outlay as well since currently the problem is more about time to do things than money to do things. There are a ton of hikes locally that I would like to do. I also have a giant backlog of video games I would like to play someday that I already own in my Steam account which I acquired cheaply. However, there are also many things that will require some money which I want to do: visiting the rest of the states I haven't seen yet (~50%). Visiting other countries is also an expense on my future list as I have not been outside North America. I may consider working in a foreign country at some point in the future and using that country as a base to visit other nearby countries while still having an income.

[SirFrugal]

Everything else gets lumped more or less into stuff I like, but could do without if it came down to it. Being able to cover that mandatory set of items to me is where I reach FI. I am unlikely to retire at that point as I want money to do stuff I like, but once those items are covered that is the point at which I will really have FU money where I could walk out and not worry about how long it takes to get another job.

This is my exact plan as well.  I realized after a decade of living like a broke college student...I wasn't really unhappy at all living like a broke college student so a few more years couldn't hurt anything.  I'm refusing any lifestyle inflation until I'm FI, at which point I plan on basing my budget off my passive income and 100% of my pay will go to the stash.  I figure that plan will also give me a legitimate sense of whether or not I have enough to retire with a standard of living I'm good with.

Basically if the difference between FI at 36 or 38 is an extra 15k a year in passive income I can budget for fun money, I'll have to make that call when I get there.  I don't desire a millionaire lifestyle but I don't see the value in pulling the plug as early as possible if just a couple more years can literally increase my fun budget from minimal to being able to take several vacations a year and still have leftover for some nights out when I'm not traveling.

[Two9A]

Property tax is my largest projected "mandatory" retirement expense at present. It's followed by property-related expenses (gas/electric, water/sewer, insurance, garbage all in this category), then finally food.

Mm, I'm just trying this out now, and property tax is the largest expense I'll have to cover if I assume the mortgages are cleared. As of right now my stash would cover everything except food, property tax, mandatory car insurance and electricity.

Not terrible.

[steveo]

I like checking out these numbers. I just rechecked as a total and realised that what I consider my fuck you money stash is my stash that covers food, housing, internet, mobile phones (I don't even think I need this), health insurance and the kids pocket money. I have stages along the path of moving towards FI. No debt, then fuck you money and then the extra stuff that I want which will then mean I'm FI.

On the slip side I'm so sick of work and that is the only reason I check these numbers.