In the spirit of sharing FI journeys, I started mine in 2023 when I formalized my FI strategy as part of my New Year Resolutions.
- 2023: Cut costs. Eliminated unnecessary recurring expenses to lower living expenses. COMPLETED
- 2024: Plug the leaks. Paid off all debts to lower living expenses. COMPLETED
- 2025: Secure housing. Paid off the mortgage early & invested the surplus. (Year 12 of 30yr mortgage). COMPLETED
- 2026: Secure Transportation. Buy 2 brand new cars and pay off. Drive the cars for 10-15yrs. (Scheduled for 2026 after taxes completed).
- 2027: Generate cash flow. Diversify by adding to the current taxable brokerage investments (60% returns in last 12 months) by investing in additional assets for cash flow. Earn enough cash flow to fully cover monthly living expenses.
Part 2: RE
Travel the world and enjoy life once I’ve secured my Retirement funds (achieved), Housing (achieved), Transportation (scheduled for 2026) & W2 replacement cash flow (TBD).
I’ve met my FI number this month (taxable brokerage + retirement funds = 25 x annual living expenses) only because my extrapolated monthly living expenses have dropped after debts & the mortgage were paid off.
That’s it in a nutshell. Somehow writing about my goals helps solidify my FI plan in my mind better.
Thanks to everyone who’ve shared theirs in the past!
Does your FI plan have similar elements?
My FI Strategy – 2023 and beyond
byu/Square-Shock-9206 infinancialindependence
Posted by Square-Shock-9206
4 Comments
I’m new here. I don’t know why your post got downvoted. Congratulations on your accomplishments. The car thing seems weird to me, but whatever—maybe that’s your rich life??
Makes sense to me. My order is slightly different: save enough to retire assuming paid off house, then pay off house, then buy new car and finish any remaining house projects, then retire!
I think folks can be a bit tough on this sub so no downvote from me. That said, I would share that I see some red flags. Here are some thoughts:
1) We’re missing a lot of info overall which may be okay since it sounds like your more interested in a conversation about overall goals, but I’m personally reluctant to share similarities without knowing more about your situation. I’d hate to encourage you or anyone on here if I thought it could hurt their retirement ability. For example, I’m a huge fan of travel. But without knowing more I question if that’s a good finanicial decision.
2) You said 60% returns in the last 12 months. That screams to me either higher risk investments or very little diversification.
3) You said buy two brand new cars. New car part aside, does that mean you have a partner or do you drive two cars?
I could pick more but hopefully you can see why it gives me pause. Hopefully your numbers are solid in which case congrats!
It’s good to have a plan and great to accomplish it. Personally, paying off a low-interest mortgage and buying a brand new car (or two) wasn’t part of mine. I’m also not sure what you mean about the cashflow part, I just stayed invested in what got me here.
I saw in some other posts that you think having a mortgage payment cuts into the amount you can invest every month. I think that’s flawed thinking. Putting extra investable money into paying down your mortgage gives you less money to invest overall because now it’s tied up in home equity instead of other investments. But lots of people make the reasonable decision to pay off the mortgage anyway, so you do you.