FI Goal

[prognastat]

I was wondering what everyone's FI goal is, how much you are looking to build in your accumulation phase, and what the reasons for this particular number are.

I'll start with my own. Although I'm currently practically FI with $250,000 in investments and about $700 a month in minimum costs, but I eventually want to have a house and family so this would require a decent bit more. I'm shooting for $20,000 a year and a house. This would mean I would need $500,000 at 4% SWR though at that point I'd like to coast to 3% SWR, which would require $660,000, while doing jobs that may not be as lucrative, but will allow me to learn and practice skills I would like to acquire.

$20,000 a year should cover a 3 person family's expenses when combined with a paid off house in most areas of the US outside of the HCOL ones. I'm also open to moving from my current location which I would say is high middle COL to low COL which should add some flexibility though this of course depends on whether I actually am in a relationship by then and whether they are open to this too.

[gocurrycracker]

Our initial goal was to have 25x+ our target cost of living in Seattle. We were spending less than $20k/year at the time but intended to ramp that up to $80k/year or so once I was no longer working.

I worked longer than originally planned so we saved a ton the final 3 years, and then we intentionally traveled in low COL countries so we could allow the portfolio to continue to grow.

[prognastat]

While travelling the low COL countries did your spending trend closer to your 20k/year while in Seattle or your 80k /year goal?

[gocurrycracker]

Somewhere in the middle.

We spent about $40k our first year out
https://www.gocurrycracker.com/reflections-of-2013-a-year-on-the-road/

[bbates728]

We are aiming for around $1M for a 40k withdrawal. I think that gives us plenty of leeway in regards to spending as we currently spending 38,400 in Seattle while working (though now that I see it like that maybe I want it higher...)

We are flirting with the idea of doing extended slow travel through LCOL areas for the first little while or even returning to Okla where we are both from.

OTOH if we don't go for the lower expenses through travelling approach, I doubt that my wife will be able to go for very long without wanting to make some $$$ through teaching and I would be happy ramping up my tutoring side hustle in retirement as a way to stay active socially and stay sharp.

We are about a year into our FIRE journey (just reached the $0 net worth mark!!!) and have some time to ponder and craft what our immediate plans will be.

[prognastat]

Congrats on passing a neutral NW, if you're in debt at the start of your journey it's a big one as it's the moment when your net worth stops working against you and instead starts working for you accelerating your progress.

There are definitely a lot of options even more so if you are used to a relatively HCOL area(Seattle). One thing to keep in mind is that as you stop working some costs are reduced as you are no longer having to go to work. Stuff like no longer needing to commute, possibly needing fewer/no vehicles, maybe no longer needing to maintain a professional wardrobe etc.

However things like either temporarily or permanently moving to a lower cost area can definitely increase the bang for your buck.

[gocurrycracker]

We are about a year into our FIRE journey (just reached the $0 net worth mark!!!) and have some time to ponder and craft what our immediate plans will be.

congrats!

I like how prognastat phrased this... your net worth is now working for you instead of against you. I sometimes think of it as being on a river... once your net worth is positive and you start getting income from non-job sources, you no longer have to try to row upstream.

[bbates728]

Congrats on passing a neutral NW, if you're in debt at the start of your journey it's a big one as it's the moment when your net worth stops working against you and instead starts working for you accelerating your progress.

Stuff like no longer needing to commute, possibly needing fewer/no vehicles, maybe no longer needing to maintain a professional wardrobe etc.

Thanks!! And yeah, I am looking forward to no more suits and ties or commutes. We are already down to one car and I think we will end up staying with one car indefinitely or until we FIRE and can travel like GCC. It will definitely be nice not having to pay for my CPA licensing fees and such.

We are about a year into our FIRE journey (just reached the $0 net worth mark!!!) and have some time to ponder and craft what our immediate plans will be.

congrats!

I like how prognastat phrased this... your net worth is now working for you instead of against you. I sometimes think of it as being on a river... once your net worth is positive and you start getting income from non-job sources, you no longer have to try to row upstream.

Thanks!! Yeah, I gotta say, I think this and when all of my student loans are done in November are going to be two of the three most exciting days in this journey. Now that I think about it, that is rather bleak isn't it? from November on, it is just staying the course for eight or nine more years...

[prognastat]

Plus of course make sure you are still enjoying the journey. When you cut things you do that cost money make sure you replace them with cheaper/free fun activities that meet a similar need such as entertainment, socialising etc.