Been in the tech industry for nearly 20 years… burned out is a massive understatement. (I'm 46 btw)
- 1.5M in investments (401ks, ROTHs, HSA, HYSA, ect)
- 200-300k windfall coming over the next few months
- House paid off -> ~8k/yr property tax. Equity is around 700-800k, I do not include this in my fire number
- 2 good cars, no payments (values not include in my fire number)
- No CC debt, or any kind of debt
Then 2 kids, 6 and 9. Wife has a simple job for the schools at ~36k/year. This is where I will transition for health care. 2 cats, 1 large dog, and good health. I effectively built our house (which has a metal roof), so maintenance is not a concern, same for the vehicles
I've ran the numbers over and over again, average annual expenses including property taxes are around 40k. My real fire number where I'd feel better is at 2.5, where at 4% is ~100k… more than 2x what we use today.. and we're not really "Saving"… just kids in school, school activities… I have a plethora of hobbies.. I avoid going out much cause of how expensive everything is… Now I'm just trying to get fired or laid off… .but with all this… in today's world, is this me just being dramatic with the burnout? or does this sound reasonable? Like I've said, I've ran the numbers over and over again.. have a financial adviser as well who is aware of my my goals here. Just hard wired to stress about this..
Thinking about/about to pull the trigger on Barista FIRE with Family of 4 in HCOL area
byu/Tdawg90 infinancialindependence
Posted by Tdawg90
9 Comments
If the $200-300K windfall is critical to your Barista Fire do nothing until you get it. Otherwise GTFO if that is what you want.
If you’re avoiding going out much bc of how expensive everything is, what do you think you’re going to do once you make a lot less money?
Go for it. You don’t sound like the type that will go idle for long. Your family can “almost” live on your wife’s income. Take some time and then pick up a contract or side gig to close the gap on the day to day spend. Your family needs you alive, you are burned out, stress kills.
The $36k your wife brings in covers most of your expenses if they’re truly only $40k per year.
My concern is your kids are at that age where activities can get really expensive. Also, are you planning on funding their post high school education?
My hunch is to first wait on the windfall then reassess
What about education for the kids?
Numbers are fine, you’re good, especially if your wife is going to continue to work. Its kinda only Barista FIRE in the sense that your wife will keep working. But with your house paid off, you’re good.
Congrats, go fuck yourself.
I’m really not a fan of barista fire unless you have a very obvious next career lined up. I think a lot of people in white collar jobs fantasize blue collar work as being easy and fun when it’s nothing of the sort for most people.
Even if you had the same “simple job for the school” do you really want to clock in to work 40 hours a week for probably 1/3rd-1/4th the paycheck your making now?
I think for most people it makes the most sense to grind out your FIRE number then retire instead of working a bunch of extra years.
There is a wide gap between 1.5 and 2.5 MM if your current expenses are 40K and you are already living frugally. You said nearly 20 years in the tech industry, so you are likely 40, or early 40s. Personally, I wouldn’t feel comfortable calling it quits on just 1.5 MM at that age, but your expenses seem really low for a HCOL, especially if your home is truly 800K.
As a point of comparison, I am also in the tech industry, sitting on 2.7 MM and still planning to put in another year (my wife will likely keep working a few more years, as that is her preference) and we are both 51, about to turn 52. By my calculations, we should be at just over 3 MM by the end of 2027.
It’s not earth shattering money, but certainly enough for a couple with a young kid with no concerns about health care costs. We recently (a year ago) relocated to Europe and have access to the national health service, and have also hired private medical insurance (includes dental insurance) which covers us nicely. The annual cost for a family plan with no deductibles or copays is about $225 per month.
But, if you are truly burnt out, maybe try to find a way to release some of that stress. I find that whenever I am in a rut, decision making is badly impacted.
529? To find fully 4 year college in about 9 and 12 years? what type of college do you want your children to go to?