FI in 10 years

Where are you and where are you going?
steveo73
Posts: 1733
Joined: Sat Jul 06, 2013 6:52 pm

Re: FI in 10 years

Post by steveo73 »

Just got my bonus for this year - $8000 after tax. My wife got $2500. Sounds great expect that last year I got $14,600 for myself. This is a hard hit to handle and is another reminder of why I want to FIRE. Its not like last year was so much better than this year. I suppose that is the way it goes though.

Our savings rate will still be 70% - technically its 69.159%. The mortgage pay out date is now 06/01/2016. Basically I feel that we are slipping a bit and truthfully it sucks. We will also save less than $100k this year - close to it at $96k.

There isn't really that much I can do other than to sell the second car. I think that will only make a small difference however I think its worth it. I honestly can't see many areas to cut the budget any further. I ride my bike basically everywhere. I never buy my lunch. The kids aren't relatively spoiled. My wife cuts her own hair. Of course I do as well.

Lastly this is based on no more expenses this year. If something comes up then it will be worse than what it is.

steveo73
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Joined: Sat Jul 06, 2013 6:52 pm

Re: FI in 10 years

Post by steveo73 »

steveo73 wrote:I posted these monetary goals on the MMM forum but I'll put them here because this forum suits me better. Its easier to read everything.

End of 2015
1. No debt which consists solely of the mortgage (we might not make this but we will be close)
2. Super - $200k. This is assets that we can't use until we are about 65. We already have this amount but I couldn't be bothered to create a target here.
End of 2016
1. $100k in non-super assets. This will be really tough.
End of 2017
1. $200k in non-super assets. Again tough.
End of 2018
1. $300k in non-super assets. Again tough.
End of 2019
1. $400k in non-super assets. Again tough.
2. Super say $300k.

It'll be interesting how this goes. My wife wants to quit work when we get to $500k in non-super assets. I figure at that point we will definitely be FI. I'm also tracking to get to $1 million in assets excluding our house. That to me would be really good.

The problem is that I have 2 goals that don't work together - the goal to retire as quickly as possible and the goal to get to about 3% WR (I think about $1mill).
I'm just revisiting these goals. Super is currently at $246k and the mortgage will still be here at the end of the year however it should be paid off by 6th January 2016 which is pretty close.

I might change the non-super assets to a higher target for next year but I suppose it doesn't really matter. The only reason I state this is that I figured out that we have $46k of company shares at the moment so we should easily make the 2016 goal.

Going on these figures it looks more likely to retire at the end of 2020 and I can't see that meaning that we have $1 million outside our house. It still feels like a long way off.

After writing this I should add that our house must be worth over $1mill. I love where I live and its required at the moment but geez that is a lot to put into your house. If doesn't feel to me like having the same amount of money outside of your house.

steveo73
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Joined: Sat Jul 06, 2013 6:52 pm

Re: FI in 10 years

Post by steveo73 »

I'm on holidays now and it feels great. I've still had to log on a couple of times for work and its made me realize how much it sucks however at the same time I'm now thinking of moving towards FI slower but with more time available now.

My work basically allows me to have 8 weeks leave per year which entails a lower salary however I am thinking of doing that for 3 years and then moving to part time work for another couple of years (maybe 5). This would give me more time off now rather than getting burnt out. I am burnt out now and the time off is making me realise that.

The only issue is that my wife is talking about working less as well. Our youngest starts school next year and my wife is going to try and get more flexible work arrangements to see him off to school and maybe getting home from school.

So I will see what happens over the next couple of months and then make a call on what to do. I like this approach though as it would give me more time out now.

steveo73
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Joined: Sat Jul 06, 2013 6:52 pm

Re: FI in 10 years

Post by steveo73 »

A couple of non ERE related points:-

1. Today my youngest son turned 5. He starts school next year. Time passes so quickly in this regards.
2. I was sure I was getting the sack at work. The project that I have been on has been horrendously bad. I think that I won't get the sack now however I can see my work changing locations. At the moment its a 5 minute bike ride and I am going to the gym at lunch time twice per week. I've also cut down on how long I've been working and I think I'm back to a 20 hour work week despite being paid for a 40 hour work week. I reckon they owe that too me after the past year of hell. I think the new work location will be a 45 minutes to 1 hour commute both ways and it is going to suck.

Anyway next year will be interesting. My wife wants to see my youngest son more and possibly work less. I want to keep working full time for another 5 years and then assess where we are at.

El Duderino
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Post by El Duderino »

That is a real bummer about having to go from biking 5 minutes to a longer drive. Substantially greater costs (on several levels) with that arrangement. Any alternatives?

If your son is starting school next year, would your wife be able to pick up a job in education or something where she is able to work similar hours to those he would be away?

cmonkey
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Joined: Mon Apr 21, 2014 11:56 am

Re: FI in 10 years

Post by cmonkey »

Sorry to hear about the change in commuting. Commuting sucks no matter what (unless its a 5 minute bike ride). If public transit is not an option perhaps a different driving route with less traffic? No need to take the mains if the sides will only add 10 minutes and it means less stress.

I can relate to the feeling of being on vacation and logging in. I was out all last week yet still had to log on for about 30 minutes to take care of something. Critical path item or something... Being back today after a week out is a real drag although I have had worse Mondays.

Hankaroundtheworld
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Re: FI in 10 years

Post by Hankaroundtheworld »

Sounds like your house value is your ticket out (into ERE), of course, assuming you want to live somewhere else (more cheaper), but 1M USD in House value, wow!, that will allow you to make 2020 as ERE date quite easily !

steveo73
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Joined: Sat Jul 06, 2013 6:52 pm

Re:

Post by steveo73 »

El Duderino wrote:That is a real bummer about having to go from biking 5 minutes to a longer drive. Substantially greater costs (on several levels) with that arrangement. Any alternatives?

If your son is starting school next year, would your wife be able to pick up a job in education or something where she is able to work similar hours to those he would be away?
Yes - it really sucks if I have to commute more. I am sitting at home now when I should be at work. I'm working from home. I have a team of about 5 -6 staff and everyone prefers the current work location. I'll have to see what happens but maybe we can push to stay where we are.

I wish my wife could work in education but she doesn't have that skill-set.

steveo73
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Joined: Sat Jul 06, 2013 6:52 pm

Re: FI in 10 years

Post by steveo73 »

cmonkey wrote:Sorry to hear about the change in commuting. Commuting sucks no matter what (unless its a 5 minute bike ride). If public transit is not an option perhaps a different driving route with less traffic? No need to take the mains if the sides will only add 10 minutes and it means less stress.

I can relate to the feeling of being on vacation and logging in. I was out all last week yet still had to log on for about 30 minutes to take care of something. Critical path item or something... Being back today after a week out is a real drag although I have had worse Mondays.
I will catch public transport for sure. I will not drive to work as its just a waste.

My work as far as work goes is pretty good although the last year has been way too intense. I think its now manageable but I will continue to push to do less and less. I have a really good team. They work hard and are now good at their jobs. I suppose as a manager I don't care what they do - turn up or don't turn up. I think that makes it a nicer environment for them. In stating all of that sometimes I prefer when I used to actually code and deliver stuff. I still sometimes analyse a problem and try to fix it and I can enjoy that somewhat.

In stating all of that the final point is that I really just don't like work. I'm not like Jacob or someone who wants to go back to work. I'd rather just stay at home and do what I want to do every day.

steveo73
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Joined: Sat Jul 06, 2013 6:52 pm

Re: FI in 10 years

Post by steveo73 »

Hankaroundtheworld wrote:Sounds like your house value is your ticket out (into ERE), of course, assuming you want to live somewhere else (more cheaper), but 1M USD in House value, wow!, that will allow you to make 2020 as ERE date quite easily !
Its worthless though if I stay where I live now. Seriously its a scam. My net worth is high but unless I downsize it really means nothing. I don't consider my house as part of my net worth with regards to FI. I view my expenses and then my FI assets which do not include my house. The house has some advantages - no rent and therefore a hedge against increased rents in the future. Its also a buffer with regards to my assets. We could always downsize.

My youngest son is 5. If we choose to stay where we live now until he finishes school its more like 15 years away until we move. I also like the area we live in. There are heaps of bike tracks and the area is really well designed for a nice lifestyle. Its clean and nice with heaps of facilities (free BBQ areas/parks etc).

I actually think 2020 is now a massive stretch however that could change. I want to get to a portfolio value of about 800k + the house paid off + some buffer. I suppose its just a matter of just enjoying the life that I have now. I suppose I have it good (as probably do all or most of us).

steveo73
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Re: FI in 10 years

Post by steveo73 »

I think that there are more people getting the sack in my team. Its really tough at the moment. I'd like to last another 5 years but who knows what will happen.

steveo73
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Re: FI in 10 years

Post by steveo73 »

A bunch of people lost their jobs today. It happened a couple of months back and now it happens again. I just think my job is at a massive risk.

Interesting 2 guys who are both 55 lost their jobs. One of the guys is frugal and will be fine. The other guy I mentioned on this journal last time the sackings came through. He had a mortgage at that point. I assume that he still has it. Makes you realise how important becoming FI really is.

steveo73
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Joined: Sat Jul 06, 2013 6:52 pm

Re: FI in 10 years

Post by steveo73 »

More updates on how crap my job is at the moment. I've been sacked from a project that I am working on and been told that I need to move into the city with the additional longer commute. I don't have a start date yet. I've lost my team because I've lost that project and it has taken me a while (6 months) to get the team functioning well. I also really like the guys that I have working with me.

I wish they would actually sack me because I hate it so much but I don't get a choice.

I've re-done my figures again and networthify is stating that I should hit my number in 3 1/2 years. Admittedly this is based upon a 5% return which could be down in reality. I also change my WR to 5% and not 4%. Still this gives me some hope.

My wife though has been approved to work part time. She starts this in 8 weeks time. That will be good for her.

I'm not really worried about the 5% WR as I expect that my wife will continue working part time or I will work part time or we can relocate or something. It also doesn't include an social security or inheritance.

DutchGirl
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Location: The Netherlands

Re: FI in 10 years

Post by DutchGirl »

Hi Steveo,

That sucks, indeed. :-( . Is there a way for you to explore other job options? Quitting this job, and finding another with a similar paycheck but less travel time and a more stable environment? Or maybe with a bit less salary but the increased stability and less work stress?

I'm sure it's great where you currently live, but I think you and your family could be very happy elsewhere, too, where life is cheaper and nature is awesome, too. (I'm pretty sure those places exist, also in your country). Maybe you have become a bit blind for that option, because you are just so used to where you are now? Sometimes I feel like you claim to be stuck in a specific situation, when I think you're not stuck at all. You have a lot of options. You may still choose to stick with your current situation, at least for now, but I think you have more options and more freedom than you think you have. And that's nice :-)

steveo73
Posts: 1733
Joined: Sat Jul 06, 2013 6:52 pm

Re: FI in 10 years

Post by steveo73 »

Hi DutchGirl - thanks for the comments.

I could get another job. That really isn't a problem. I think though if I take out the emotion my current job will enable me the most time to work as little as possible. I can work from home although that might change however I will push that as much as possible. I would also like to get retrenched and I feel like holding on in case it happens. So the stability doesn't really bother me.

The work stress sucks however this is at least partially my fault. I need to manage this better. Since I went on holidays recently I have managed it better. There are good things at work as well. I told my team yesterday and they were I think genuinely pissed off. I really like working with them and I've created a good positive environment there. That gives me some satisfaction.

As for moving I don't think its honestly worth the effort. We could move elsewhere in the country and downsize and possibly save a couple of hundred grand however I think the safer option is to stay where we are, save up for a couple more years and then work part time or quit. We can then allow the children to get through school and into Uni (this will be at least 12 years away) and then if we need to we can relocate to top up our stash.

I do hear what you are stating about me personally not wanting to move. I could move and I accept that however its a harder decision to make with a wife and 3 kids.

steveo73
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Re: FI in 10 years

Post by steveo73 »

I just realized that I started this journal in 2013 with a goal of retiring by 2023. I can definitely meet that goal or probably significantly beat it which is good to see.

steveo73
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Re: FI in 10 years

Post by steveo73 »

I've got a meeting with my boss today. I am 100% sure its not a retrenchment package however that would be great. He wants to know what I want to do. Its tempting to state I want a retrenchment package or I want to remain working in the same location I am or I want to work from home a couple of days per week.

steveo73
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Re: FI in 10 years

Post by steveo73 »

I spoke to the boss and I'm trying to push myself towards the job with the least possible amount of work and ensure that I get to work from home one day per week and my current location one day per week. That would be sweet.

I'll have to play the game right but if I can pull this off I reckon work will be more enjoyable than what it has been and although I'd rather stay where I am 5 days per week if I can make it 3 days per week it will be cool.

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jennypenny
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Re: FI in 10 years

Post by jennypenny »

That's cool. After all the drama, you might end up in a better situation when it's all over.

steveo73
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Re: FI in 10 years

Post by steveo73 »

jennypenny wrote:That's cool. After all the drama, you might end up in a better situation when it's all over.
Thanks Jenny. I think it might end up better. Its interesting because I have zero interest in having a high flying career. I don't want to manage a bunch of people. I don't want to work excessive hours in an attempt to get some massive pay.

I want to work as little as possible and save as much money as possible.

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