TLDR: 80% of the way to FI and working on mindset shift: actually building the life I want instead of just saving for it. The focus is now on well-being despite stressors (work) as opposed to just trying to cut out the stress.
Hi all, when I posted last (around 15 months ago), I was burnt out and thinking about stepping away. I thought I'd provide an update. Previous posts are below in case you are interested.
34M and 33F. Burnt out. Grind it out to FIRE or CoastFIRE now?
33M (and 32F), NW $1,100,000, Update
30M, NW $400,000, My FIRE experience so far
FI Progress
Cash and investments reached $2.07m. We have a little in home equity ($80k?) and some other investments ($10k?, $20k?) that I don't track (HSAs mainly). Expenses are around $85k per year (not counting taxes). HHI income is around $350k/year. I am a former engineer in manufacturing now doing marketing in manufacturing sector. FI target is $2.5m especially since a fair amount of that spending is "stress spending" (extra coffee here, buying lunch there, etc).
Updates
When I last posted 15 months ago, our investments were at $1.4m. This was staggering. And now they are even higher. It doesn't feel real. Another year like this, and we will be FI. But I was burnt out then, and I am still burnt out (albeit less burnt out now). I was considering stepping away but am glad I did not.
I'm glad I have kept grinding for a couple of reasons despite the feedback from my last post telling me to quit (which was good advice).
- Financial: Most obviously, there is the financial benefit. Right now we are saving probably $150k to perhaps up to $200k when you include things like employer matches.
- Stress Mindset: I am also learning to change my mindset and get out of the stress mindset. Getting close to FI means I don't need to push the extra mile at work or be concerned when something isn't perfect. This keeps me less upset at work which has helped me respond in a more level-headed way. Despite working fewer hours and doing less, my stock has gone up. This isn't office space as I still do a lot, but I am less stressed than before.
- Mental Health: This is related to 2, but I was assuming all of my issues would go away when I stopped grinding so much. To some extent that is true. But issues that are there will likely follow me even when I have more time. I have begun working through them now instead of putting off dealing with them. Understanding (and improving) my relationship with money has been part of this as well.
- Relationships: I have become a lot more intentional about my relationships. Most of all with my wife but also with my friends. Focusing more on this despite still working has helped me not take these for granted.
- Physical Health: This is very similar to 3, but I am prioritizing my physical health. I have been running consistently for several years. But I am making it more a priority. I am working on cutting down on my alcohol consumption and making some decent progress there. I have gotten disciplined about adding a gym workout to my running. Learning to make time for this in spite of work has again been important for me.
What is next?
I am in the semiconductor supply chain and things are wild this year with demand through the roof. This means there is even more financial incentive to stay. I am also up for a promotion to senior leadership. Not sure that will happen though. I am still doing part time work, but have scaled back a bit to make more time for other focuses. Will I get "one more year"-ed to death? I don't think so, but I do want to understand more of what I want and why I want it before taking a one-way exit from my role. But…while I am less burnt out. I am still burnt out and have trouble focusing on complex tasks. My wife wants to continue to work for the forseeable future.
Lifestyle inflation
Since my post in 2020, our FI number has doubled. Using CPI, it seems inflation has been 25% since then. Back then we were strictly budgeting and spending probably $45k/year. A good chunk of our increased spending has been housing, which has doubled (one BR renting at $1450/mon vs 2 BR owning at $3000/mon) and added a yearly vacation as well as not sweating social spending and the stress spending that I mentioned earlier. Keeping overall lifestyle inflation in check has been pretty key to making sure that as our income has increased, our savings rate has also increased.
The Numbers
Notes: Salary is $157k. Wife's is $115k. Side gig is $75k. A little bonus is included. We own a condo, which we purchased in 2021 for $425k and is now worth…$430k? No idea but we overpaid. Investments are all passive funds: some total market, some SP500, some target date (only tax advantaged accounts), slowly adding international. About 50% is in Roths and 401ks; the rest in taxable accounts.
| Year | Cash and Investments | Household Income | Notes |
|---|---|---|---|
| 2012 | $ (5,000) | $ 54,600 | 52k base out of school. Rent was $400/month. Included student loans here. |
| 2013 | $ 20,000 | $ 59,850 | |
| 2014 | $ 50,000 | $ 66,150 | Bought a house. |
| 2015 | $ 75,000 | $ 69,300 | Got married! |
| 2016 | $ 100,000 | $ 73,500 | Promoted |
| 2017 | $ 140,000 | $ 80,850 | |
| 2018 | $ 175,000 | $ 91,350 | |
| 2019 | $ 220,000 | $ 102,500 | Sold the house. |
| 2020 | $ 300,000 | $ 186,000 | I negotiated a 30% raise. Wife entered workforce. |
| 2021 | $ 400,000 | $ 257,000 | Changed jobs. Started side gig. Bought a condo. |
| 2022 | $ 625,000 | $ 287,500 | Changed jobs again. |
| 2023 | $ 690,000 | $ 316,500 | |
| 2024 | $ 960,000 | $ 310,500 | |
| 2025 | $ 1,400,000 | $ 321,800 | |
| 2026 | $ 1,870,000 | $ 357,000 | Wife got a big promotion with a job change. |
| Current | $ 2,070,000 |
35M and 34F Update: 80% FI and continuing to grind but changing mindset.
byu/ingwe13 infinancialindependence
Posted by ingwe13
1 Comment
Amazing similarity to my situation. I’m pulling the trigger. Submitted my resignation yesterday. Will do a full write-up soon.
I’ve run my own “sequence of returns risk” calculations, and I am overweighting the chance of near term stock market crashes in my planning. I know we shouldn’t “time the market”, but yet at the same time, historically, crashes are more common during periods of extremely high valuation (now).
But we have enough layers of safety it’s still going to work (I’m gonna do some consulting on the side, spouse is gonna keep working, etc)