“In my experience, the single most important thing you can do to improve your chance of success in most endeavors is to associate with like-minded people.”
Thanks halcyon. I could not agree more. Hence the stimulus to divulge an online journal with you guys. The only difference is that I aspire to be like minded. As you will see for the month of April, it has not happened yet. We are evolving and we have myriad excuses why the evolution has not sped up. Despite what you see for the month of April, we have improved financially and with the ambition to improve to greater levels.
For me there has been a strong parallel with excess in food and spending. Once again many available excuses exist for both. Long hours, stressful workplace, frequent geographical moves, illness in the nuclear family all are real and contribute. The quick summation is that I have been out of control since the birth of my son 9 years ago. My weight crept up to 270 (@ 5’ 9’). Regular exercise went away. Our spending and indebtedness has matched our take home pay for that period. We have bought and sold well over 20 new vehicles and lived in no less than ten places in 4 cities. In the last ten years we have averaged a yearly salary through work and business of 340000. Depending on how one breaks down the complexity, our net worth is right around 500000.
Our goals our to lead a more simple, content life with greater freedoms and healthier mental and physical behavior. I do not currently feel compelled to completely retire. We both work in a hospital delivering anesthesia as Nurse Anesthetists. We both work reasonable hours (40) with no on call or call back obligation. KI has 8 weeks scheduled vacation and I have 5 with most Federal Holidays. Even with that set up, obligations that are mostly self imposed turn our normal days into a chaotic race. I hope to decrease our cost of living and lifestyle to allow us to save enough though full or part time work to have the option of completing walking away from work in five years should we choose to.
My weight April 1 was 250. On April 29 it is 232. Part of what is consuming much of my time and money currently is an IronMan event I am scheduled to compete in August 28, 2011. Despite the fact that is a serious freedom restricting obligation, it is just the structure I need to get me to a point that I can see things more clearly. Writing this down has convinced me (and probably you) that I am a raging psychopath. Exercise is my Prozac. Eating better is helping too.
The first months’s journal post will be a mess and hard to follow. Hopefully by midsummer it will condense and simplify. Some of the issues are able to be resolved immediately, others not so much.
Income 21780
This months expenses:
Home 27244.00
primary mortgage 2720
second 1300
Farm mortgage 1600
21000 payment to contractor for Apartment construction
various misc costs make up the difference
Summation. We built an apt in the inlaws basement and moved in this month. The house is empty but staged for a sale. We will retain a good portion of the second mortgage after the sale because of lower sale price in relation to what we had financed. We still owe about 25000 for the apt construction. House cost 630k in 2007. Amt currently financed about 511k. Likely sale price 475k. Father in law holds second mortgage. He knows we are good for it and allows the “short sale”
Auto payments maintenance insurance and fuel:
3257.45
This includes
2011 SUV lease @ 919
2011 Subuaru @ 570.64
2011 Truck @646
2010 Tractor @ 429
The subaru and tractor are for sale. It will prob cost me 2000 per vehicle to get sell them.
Bills and Utilities 1802.43
Of note in this category is that it includes home and farm expenses. phones, cells, house cleaning. A TV set up for the apt of 318 and extra house cleaning fees for the house showings is unusual for this month
Health and fitness 2929.00
Another unusual amount
Used Titanium triathlon bike $1500 , ammunition for the gun safe of 429, and misc triathlon items pollute this category for April. Family YMCA of 117 is regular
Food and Dining 1617.38
This is the category we have changed the most. Really. This is better
Financial
Life insurance 177 quarterly for KI
disability ins for SI 931.99 quarterly
Kids 602
This included about 200 to their saving for straight a’s. Unfortunately I think it did not include their swim club fees of about 200. This is basically music lessons
Pets 505.10
UTi with the big dog and food for both. We also got some kittens to serve as mouse chasers for farm. They were free but some of the $ was from their start up
Shopping 400.58
Clothing etc
Student loan Payment 313
Ill include this but it is cancelled out by my employer
Entertainment 228.60
Concert tix, netflix, and itunes
Personal care 140.68
KI for a haircut
Business expense 121.42
mainly to secretary of state for LLC maintenance etc
Uncategorized about $300
cash amounts not captured. Paying little league umps because “Im far too busy” etc.
I am angry. So much d*** money going in so many directions. Obviously getting rid of the primary mortgage and associated expenses will help. I think we are using that as excuse not to change the other behaviors.
Don't hold back your comments. You wont hurt my feelings.
sshawn's journal
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Robert Muir
- Posts: 280
- Joined: Thu Jul 22, 2010 10:15 pm
Those are some big numbers, but taking action on the housing and cars is an important start. Plus you have some unusual payments this month that make it look bigger than your average month: expensive bike, quarterly payments, etc. I look forward to reading the affect of these changes 1 month from now.
If you're paying off little league umps, I would expect to see some winnings in the Revenue column (-;
If you're paying off little league umps, I would expect to see some winnings in the Revenue column (-;
I have read your OP for now the third time. I will probably have to read it again, or maybe print it out and study it, highlighting the numbers listed all over it.
Right now, I am speechless, but promise to comment.
ps: If were any kind of real estate agent or car salesman, I would love living in your neighborhood.
Right now, I am speechless, but promise to comment.
ps: If were any kind of real estate agent or car salesman, I would love living in your neighborhood.
Wow, you have a lot of room to improve! Once you get your expenses under control, the savings should start piling up from your large income. I think you have a good plan to start out. Could you sell the other cars too and replace them with older used vehicles? What's the reason for the large food expenses? Eating out? Ultra-premium ingredients? Do the children really want to do music lessons, swim club, AND little league plus all the time they have to go to school? What about some time to run around outside and be kids? While it's tempting to try to cut down on everything at once, watch out for burn out from changing too much at once. Maybe aim for one goal per month in order of most gain: 1) Sell house 2) Sell at least one car 3) Reign in food costs 4) Evaluate kids' activities. These seem like the easiest things to attack with the largest return. Fortunately, you are aware of this and have a plan. I think once you get used to thinking about the large expenses and see some results, cutting down on the smaller stuff like entertainment, fitness, and shopping will be easier. Good luck!
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George the original one
- Posts: 5406
- Joined: Wed Jul 28, 2010 3:28 am
- Location: Wettest corner of Orygun
> 2011 SUV lease @ 919
To me, this item just screams out for attention, even for a car lover like me!
A slightly used & clean vehicle could be purchased for 6 months worth of these payments. Not to mention that you're carrying extra car insurance required by the lessor. An instant $8k per year becomes available by ditching this lease.
To me, this item just screams out for attention, even for a car lover like me!
A slightly used & clean vehicle could be purchased for 6 months worth of these payments. Not to mention that you're carrying extra car insurance required by the lessor. An instant $8k per year becomes available by ditching this lease.
@ Robert. Im in awe too. I find it hard to believe that regardless of circumstance, I have let this go on this long.
@ Chris. Minor League Marlins are 3-1!
@ S. And improve us I intend to. The house is the big issue followed by everything else. We have already begun to scale back the kids structured activity plans for the summer.
@ MikeBOS. In this forum community, I am the oddball. In my workplace and amongst my peers and friends I am considered normal in the terms of the monthly package that I listed above. Maybe on the upper end of normal because of a bit higher income but when considered by percentage rather than bottom line I would say we fit right in. You are exactly right. The reason we are willing to go through the pain of change is because we are ready to use money as a tool for early retirement not a consumer contest. Your simple statement is the biggest punch in the stomach thus far. (In a good way)
@ George TOOne. Cars have always been a weakness. There are much better ways to do things and we will get to that.
@ HSpencer. Look forward to your comments.
@ Chris. Minor League Marlins are 3-1!
@ S. And improve us I intend to. The house is the big issue followed by everything else. We have already begun to scale back the kids structured activity plans for the summer.
@ MikeBOS. In this forum community, I am the oddball. In my workplace and amongst my peers and friends I am considered normal in the terms of the monthly package that I listed above. Maybe on the upper end of normal because of a bit higher income but when considered by percentage rather than bottom line I would say we fit right in. You are exactly right. The reason we are willing to go through the pain of change is because we are ready to use money as a tool for early retirement not a consumer contest. Your simple statement is the biggest punch in the stomach thus far. (In a good way)
@ George TOOne. Cars have always been a weakness. There are much better ways to do things and we will get to that.
@ HSpencer. Look forward to your comments.
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George the original one
- Posts: 5406
- Joined: Wed Jul 28, 2010 3:28 am
- Location: Wettest corner of Orygun
Just tracking expenses is a huge start. I had no idea where my money was going before I did that, and it made me feel helpless. When you don't see expenses adding up you can just ignore them.
I would create a spreadsheet to track all your expenses. A clean, simple, searchable way to track your expenses makes it so much easier.
I would create a spreadsheet to track all your expenses. A clean, simple, searchable way to track your expenses makes it so much easier.
Sshawn
One point I would like to understand before I comment on the post. You list annual income at $340,000.? Am I reading this correctly? If so, my hearty congratulations! So are you a physician? I guess there are people who do make that kind of money out there (I personally don't know any myself) but that seems pretty high. Of course you also say "business" brings in some other income besides your Nurse work. I understand from your post, you and spouse are both Nurse specialists.
Would it be acceptable for me to say if you just chilled and spent nothing but basics that you could be retired in zip time with that kind of income? (After dumping/liquidating all debt). What is that income after taxes?
With a couple to three years of that kind of income, I would be skipping the light fantastic E-O-mediately~~~!!!!
One point I would like to understand before I comment on the post. You list annual income at $340,000.? Am I reading this correctly? If so, my hearty congratulations! So are you a physician? I guess there are people who do make that kind of money out there (I personally don't know any myself) but that seems pretty high. Of course you also say "business" brings in some other income besides your Nurse work. I understand from your post, you and spouse are both Nurse specialists.
Would it be acceptable for me to say if you just chilled and spent nothing but basics that you could be retired in zip time with that kind of income? (After dumping/liquidating all debt). What is that income after taxes?
With a couple to three years of that kind of income, I would be skipping the light fantastic E-O-mediately~~~!!!!
@HSpencer That is a correct. Income into the checking account was 21780 this month. Chilling and dumping debt is exactly where we are at. Earning the kind of money we do and still running on the treadmill is nuts. Even the farm has been up for dumping consideration. (We bought the Farm). These conversations spur thought that I need to have.
I can name 10 people that I see almost everyday that make MORE money than we do. I have always fancied myself the antithesis of "keeping up with the Jones.'" That is simply not true. I can look at the list above and see that. I started with:
“In my experience, the single most important thing you can do to improve your chance of success in most endeavors is to associate with like-minded people.”
Oddly, that statement has come full circle in the last few hours and taught me a lot about not only where I want to go, but where I have been.
I truly appreciate our financial, psychological banter!
I can name 10 people that I see almost everyday that make MORE money than we do. I have always fancied myself the antithesis of "keeping up with the Jones.'" That is simply not true. I can look at the list above and see that. I started with:
“In my experience, the single most important thing you can do to improve your chance of success in most endeavors is to associate with like-minded people.”
Oddly, that statement has come full circle in the last few hours and taught me a lot about not only where I want to go, but where I have been.
I truly appreciate our financial, psychological banter!
Sshawn
OK, I looked pretty good at your posting and I am going to have to say I have no qualifications to give you any advice. It seems to me you are making tons of money, owe tons of money, but could use your half million net worth to pay it off anytime. So, what could I say? I see a dangerous, yet somewhat balanced financial set up. Dangerous, because what if the income stops? Dangerous, because what if the economy tanks and you can't sell out, to pay off? Were it me, I would not be sleeping nights, and would soon be sick. However, your worth and income showings seem to be your net.
All I can say is good luck!!!!! If you want out of all that, I would focus on eliminating most of it and saving up the Donald Trump income, and chilling pretty soon.
Being a Nurse/Doctor whatever, you know the mental strains that debt and balancing incomes and all that stuff can cause.
But, I guess if someone has the means, then they can handle it.
ps: I personally know two doctors who live together in a 7.500 sq ft house!! I guess they make ga-zillions.
Damn, if I wasn't so old I would be enrolling in some medical school!!! I was an army medic for a while. Does that count?
OK, I looked pretty good at your posting and I am going to have to say I have no qualifications to give you any advice. It seems to me you are making tons of money, owe tons of money, but could use your half million net worth to pay it off anytime. So, what could I say? I see a dangerous, yet somewhat balanced financial set up. Dangerous, because what if the income stops? Dangerous, because what if the economy tanks and you can't sell out, to pay off? Were it me, I would not be sleeping nights, and would soon be sick. However, your worth and income showings seem to be your net.
All I can say is good luck!!!!! If you want out of all that, I would focus on eliminating most of it and saving up the Donald Trump income, and chilling pretty soon.
Being a Nurse/Doctor whatever, you know the mental strains that debt and balancing incomes and all that stuff can cause.
But, I guess if someone has the means, then they can handle it.
ps: I personally know two doctors who live together in a 7.500 sq ft house!! I guess they make ga-zillions.
Damn, if I wasn't so old I would be enrolling in some medical school!!! I was an army medic for a while. Does that count?
@Sshawnn:
Have you read 'The Millionaire Next Door'? I'd recommend it for someone in your situation. It's highly applicable - it discusses high income, low wealth people - which seems to be where you're at right now.
You definitely seem to be on the right track psychologically, but I've always found that immersing myself in literature helps make a change stick.
Have you read 'The Millionaire Next Door'? I'd recommend it for someone in your situation. It's highly applicable - it discusses high income, low wealth people - which seems to be where you're at right now.
You definitely seem to be on the right track psychologically, but I've always found that immersing myself in literature helps make a change stick.
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jacob
- Site Admin
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- Location: USA, Zone 5b, Koppen Dfa, Elev. 620ft, Walkscore 77
- Contact:
Uhm... you spend about the same on pets as I do on my entire cost of living; alternatively, two months of your car payments would cover me for a year. It is quite likely that the corporate earnings and mortgage interest payments that result from your lifestyle more than pays for my lifestyle through my investments. Thank you 
I think maybe a change in priorities will do. Look at your ratios. In particular ..
Debt/Assets
Net worth/Spending
Spending/Income
If these are good, you'll feel in control, sleep well at night, not be scared about job loss and lay offs, ...
Ratios are also interesting goals to have. When I started out, my very simple goal was to be able to buy a house in cash. Having ready-money does make you feel independent and in control. It is a wonderful feeling. It got even better when I had enough money to become independent of my job. My BS tolerance went way down after that. I also became much more aware of how subtly the pressure is used to steer employees around e.g. "you need to do this [for me] because it's good for your career". This feeling and freedom is something that you can buy much like you buy a Lexus or 3 extra bedrooms. It's just a matter of priorities.
Focusing on cutting spending is never fun. Yet focus on increasing saving, which is the same thing but a positive goal, and spending automatically decreases. Same with being frugal: Don't think of it as sacrificing and giving up; think of it as becoming more resourceful and self-reliant.
I think maybe a change in priorities will do. Look at your ratios. In particular ..
Debt/Assets
Net worth/Spending
Spending/Income
If these are good, you'll feel in control, sleep well at night, not be scared about job loss and lay offs, ...
Ratios are also interesting goals to have. When I started out, my very simple goal was to be able to buy a house in cash. Having ready-money does make you feel independent and in control. It is a wonderful feeling. It got even better when I had enough money to become independent of my job. My BS tolerance went way down after that. I also became much more aware of how subtly the pressure is used to steer employees around e.g. "you need to do this [for me] because it's good for your career". This feeling and freedom is something that you can buy much like you buy a Lexus or 3 extra bedrooms. It's just a matter of priorities.
Focusing on cutting spending is never fun. Yet focus on increasing saving, which is the same thing but a positive goal, and spending automatically decreases. Same with being frugal: Don't think of it as sacrificing and giving up; think of it as becoming more resourceful and self-reliant.
Wow. I'd love your income level, but not your expenses. My partner and I could be FI in about 2 years with that amount of income coming in.
You seem to know what you need to do to get your debts and expenses under control. Best of luck.
The farm sounds like a good investment to me. I'd love it if I could afford 10 acres. The UK doesn't produce enough food to fed half the population, which will cause problems as food becomes increasingly expensive to import due to rising demand and rising oil prices.
You seem to know what you need to do to get your debts and expenses under control. Best of luck.
The farm sounds like a good investment to me. I'd love it if I could afford 10 acres. The UK doesn't produce enough food to fed half the population, which will cause problems as food becomes increasingly expensive to import due to rising demand and rising oil prices.
This is my first post b/c I couldn't help but respond. Been reading for a while and love this site!
A few things first:
If you don't feel compelled to retire, your plan will look different than most others on this great website. You have to craft your plan around what you want for your life.
You mention wanting the option to walk away in five years if you want, so that is what my post will be based on.
Let's start off with your current budget:
Income 21,780.00
1st Mortgage (2,720.00)
2nd Mortgage (1,300.00)
Farm Mortgage (1,600.00)
SUV Lease (919.00)
2011 Subaru (571.00)
2011 Truck (646.00)
2010 Tractor (429.00)
Misc Car Exp (3258-2565) (693.00)
Bills & Utilities (1,803.00)
Health & Fitness (2,929.00)
Food & Dining (1,617.00)
Life Insurance (177x4/12) (59.00)
Disability Insurance (931x4/12) (311.00)
Kids Spending (602.00)
Pet Spending (505.00)
Shopping/Clothes (401.00)
Student Loan Pmt (313.00)
Entertainment (229.00)
Personal Care (141.00)
Business Expense (122.00)
Uncategorized (300.00)
Left Over 3,570.00
The good news is that you have positive cash flow even with out-of-control spending (unless you missed some items). This obviously doesn't include some of the one time payments, but hopefully those aren't reoccurring each and every month...
Here are some more questions I hope you will answer so I can give a more thorough response:
1. Why did you buy a farm? It seems your current life is way too busy to have a hobby farm. Most hobby farms turn into hobby expenses. If this isn't necessary, I would strongly consider selling.
2. How many children do you have? This is important for issues like college planning/saving, insurance needs, how much should be spent on their expenses etc. Unless I missed it, I think you just mentioned the one son from nine years ago...
3. What is the student loan balance(s)? What about the interest rates?
4. Where is the 500K net worth figure coming from?
5. How much do you owe your father-in-law on the second mortgage? Interest?
6. How are the apartment fix up costs being handled? Are you going to be reimbursed for the capital improvement made to the in-laws house?
7. What is the cost of living like in your area and/or what part of the country do you live in?
Here is the start of my suggestions:
1. Sell the farm and tractor.
2. Get down to two cars. If you have a large family, I would suggest a fuel efficient vehicle and a larger SUV/Van. With gas prices on the rise (with no end in sight), you can save a lot of money each year by going from a truck to a compact car. As others have mentioned, a nice used car and SUV can be had for cheap. Here are two examples from eBay after 5 minutes of looking:
http://cgi.ebay.com/ebaymotors/2004-Hon ... 23103b1729
http://cgi.ebay.com/ebaymotors/2005-For ... 939wt_1196
Total Cost: 20,000 which you could pay for in 2 or 3 months. You should be able to work out a deal with a local bank or credit union for them to finance the difference on the leases and other car purchases if you can't cash flow the loss. You need to get rid of those high payments though.
3. Lower the price of your house for quick sale. If your father-in-law is already carrying 2nd mortgage, get house sold and begin to work on paying him back immediately. I think you are going to take more of a loss than you had thought due to lower cost, commissions, etc, but it will be worth it in the end.
Once you answer some of the questions posted above, you should be able to get your living expenses down to around 5,000/month while still living comfortably (not like most other posters). This obviously means you would be able to save around 15,000 a month. It doesn't take long to build wealth extremely quickly with those numbers.
You could easily get down to part time work way before five years if you focus on your goals.
I hope this long post has been some help.
GJL
A few things first:
If you don't feel compelled to retire, your plan will look different than most others on this great website. You have to craft your plan around what you want for your life.
You mention wanting the option to walk away in five years if you want, so that is what my post will be based on.
Let's start off with your current budget:
Income 21,780.00
1st Mortgage (2,720.00)
2nd Mortgage (1,300.00)
Farm Mortgage (1,600.00)
SUV Lease (919.00)
2011 Subaru (571.00)
2011 Truck (646.00)
2010 Tractor (429.00)
Misc Car Exp (3258-2565) (693.00)
Bills & Utilities (1,803.00)
Health & Fitness (2,929.00)
Food & Dining (1,617.00)
Life Insurance (177x4/12) (59.00)
Disability Insurance (931x4/12) (311.00)
Kids Spending (602.00)
Pet Spending (505.00)
Shopping/Clothes (401.00)
Student Loan Pmt (313.00)
Entertainment (229.00)
Personal Care (141.00)
Business Expense (122.00)
Uncategorized (300.00)
Left Over 3,570.00
The good news is that you have positive cash flow even with out-of-control spending (unless you missed some items). This obviously doesn't include some of the one time payments, but hopefully those aren't reoccurring each and every month...
Here are some more questions I hope you will answer so I can give a more thorough response:
1. Why did you buy a farm? It seems your current life is way too busy to have a hobby farm. Most hobby farms turn into hobby expenses. If this isn't necessary, I would strongly consider selling.
2. How many children do you have? This is important for issues like college planning/saving, insurance needs, how much should be spent on their expenses etc. Unless I missed it, I think you just mentioned the one son from nine years ago...
3. What is the student loan balance(s)? What about the interest rates?
4. Where is the 500K net worth figure coming from?
5. How much do you owe your father-in-law on the second mortgage? Interest?
6. How are the apartment fix up costs being handled? Are you going to be reimbursed for the capital improvement made to the in-laws house?
7. What is the cost of living like in your area and/or what part of the country do you live in?
Here is the start of my suggestions:
1. Sell the farm and tractor.
2. Get down to two cars. If you have a large family, I would suggest a fuel efficient vehicle and a larger SUV/Van. With gas prices on the rise (with no end in sight), you can save a lot of money each year by going from a truck to a compact car. As others have mentioned, a nice used car and SUV can be had for cheap. Here are two examples from eBay after 5 minutes of looking:
http://cgi.ebay.com/ebaymotors/2004-Hon ... 23103b1729
http://cgi.ebay.com/ebaymotors/2005-For ... 939wt_1196
Total Cost: 20,000 which you could pay for in 2 or 3 months. You should be able to work out a deal with a local bank or credit union for them to finance the difference on the leases and other car purchases if you can't cash flow the loss. You need to get rid of those high payments though.
3. Lower the price of your house for quick sale. If your father-in-law is already carrying 2nd mortgage, get house sold and begin to work on paying him back immediately. I think you are going to take more of a loss than you had thought due to lower cost, commissions, etc, but it will be worth it in the end.
Once you answer some of the questions posted above, you should be able to get your living expenses down to around 5,000/month while still living comfortably (not like most other posters). This obviously means you would be able to save around 15,000 a month. It doesn't take long to build wealth extremely quickly with those numbers.
You could easily get down to part time work way before five years if you focus on your goals.
I hope this long post has been some help.
GJL
@ m741 I recently started using mint.com to track. It is quite helpful. I agree with immersion in the literature. I will check out your book recommendation.
@jacob KI and I will turn this new lifestyle into a game. Just last night we spoke of how it will be fun to amass savings. The ratio game is a great idea. We are very interested in investing in our freedom. Focusing on the positive and twisting our thinking into what we are gaining rather than what our perceived sacrifice is will go a long way in keeping us on track.
@sky Thanks for stating the obvious. May I come visit yours and eventually live there? It has not been difficult to manage the cash flow at all. It is somewhat difficult to figure our how to STOP the cash flow and I appreciate most of the comments received on this post.
@firefighterjeff Actually, I fancy myself myself a do it your self er. With a little research, I am am able to complete almost any task. Specialization has been hard on my family, my mind, my body and my finances. That was one of the many, many reasons that the ERE book hit me so hard. Maybe we are an isolated case in the ERE world. I assure you that in the confines of the rat race that surrounds us we are somewhat median. I know things are terribly out of whack and I also know that things will improve! All your suggestions are spot on except for the farm. Did you see my recent post about the farm? viewtopic.php?t=1048
@Shandi76 Thanks. We are going to get this turned around! If you havent already, Please see the above link and comment if you like
@GJL I usually snoop around on forums of various types for information about a topic that interests me and never post. Immersing my self in this forum will turn out to be one of the best financial decisions I have ever made. I am happy to be responsible for your first post!
I am being very careful in stating what I want. As you can see from my initial journal entry, I am keeping my options open but plan to modify much on a day to day basis. I hate waking up to an alarm clock but yet want to experience the alarm having FI and knowing that I dont have to get up before I cancel the obligation.
Through all of our spending, we have always been cash flow positive. Please see my previous posts if you have not already. viewtopic.php?t=1048
viewtopic.php?t=1047 Knowing that you read through We bought the farm I would be anxious to hear your comments about it as an investment.
Two children girl 11, boy 9. Public schools, No formal savings
Lets consider the 33k balance on the student loans as a wash as my current employer is basically paying them off
The 500k is a conservative figure. We have about 400k in workplace retirement accounts and I figure I have 100k in equity with the farm at a very quick sale. The number does not count the quick sale value of various material goods.
110k on second house mortgage. We pay my father in 5% interest.
Apartment costs were from savings 30k, and second 30k will come from farm timber sale in June. We are not asking for any reimbursement from them. We are caring for them in a very critical fashion. We will split some ownership costs from them for now. I am not going to speculate about what the future holds for our living arrangement here but we are comfortable here as a family and I am happy to be spending time with them in their last years.
We are in the Mid west and I would classify our potential living expenses as low.
I am appreciate the time and thought that posters have had concerning our situation.
@jacob KI and I will turn this new lifestyle into a game. Just last night we spoke of how it will be fun to amass savings. The ratio game is a great idea. We are very interested in investing in our freedom. Focusing on the positive and twisting our thinking into what we are gaining rather than what our perceived sacrifice is will go a long way in keeping us on track.
@sky Thanks for stating the obvious. May I come visit yours and eventually live there? It has not been difficult to manage the cash flow at all. It is somewhat difficult to figure our how to STOP the cash flow and I appreciate most of the comments received on this post.
@firefighterjeff Actually, I fancy myself myself a do it your self er. With a little research, I am am able to complete almost any task. Specialization has been hard on my family, my mind, my body and my finances. That was one of the many, many reasons that the ERE book hit me so hard. Maybe we are an isolated case in the ERE world. I assure you that in the confines of the rat race that surrounds us we are somewhat median. I know things are terribly out of whack and I also know that things will improve! All your suggestions are spot on except for the farm. Did you see my recent post about the farm? viewtopic.php?t=1048
@Shandi76 Thanks. We are going to get this turned around! If you havent already, Please see the above link and comment if you like
@GJL I usually snoop around on forums of various types for information about a topic that interests me and never post. Immersing my self in this forum will turn out to be one of the best financial decisions I have ever made. I am happy to be responsible for your first post!
I am being very careful in stating what I want. As you can see from my initial journal entry, I am keeping my options open but plan to modify much on a day to day basis. I hate waking up to an alarm clock but yet want to experience the alarm having FI and knowing that I dont have to get up before I cancel the obligation.
Through all of our spending, we have always been cash flow positive. Please see my previous posts if you have not already. viewtopic.php?t=1048
viewtopic.php?t=1047 Knowing that you read through We bought the farm I would be anxious to hear your comments about it as an investment.
Two children girl 11, boy 9. Public schools, No formal savings
Lets consider the 33k balance on the student loans as a wash as my current employer is basically paying them off
The 500k is a conservative figure. We have about 400k in workplace retirement accounts and I figure I have 100k in equity with the farm at a very quick sale. The number does not count the quick sale value of various material goods.
110k on second house mortgage. We pay my father in 5% interest.
Apartment costs were from savings 30k, and second 30k will come from farm timber sale in June. We are not asking for any reimbursement from them. We are caring for them in a very critical fashion. We will split some ownership costs from them for now. I am not going to speculate about what the future holds for our living arrangement here but we are comfortable here as a family and I am happy to be spending time with them in their last years.
We are in the Mid west and I would classify our potential living expenses as low.
I am appreciate the time and thought that posters have had concerning our situation.
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Robert Muir
- Posts: 280
- Joined: Thu Jul 22, 2010 10:15 pm
It certainly seems you are getting your head in the right place in a hurry! I've rarely seen such a turnaround. Even my own epiphany back in '99 wasn't nearly as drastic.
It's great to see that your wife is totally on board. Unfortunately, for many couples, that can be a real stumbling block. One person "sees the light" while the other not only doesn't believe there's a light to see, but they don't think a light is even required.
My advice would be to initially focus primarily on getting out of debt. If you know that your father would rather have the 5% interest income than the $110k back, then I would suggest investing $110k in some kind of fairly liquid investment and that way you would know that he could be paid back immediately if needed.
Once you're out of debt completely, then you can bring your focus on building your investment assets and educating yourself on the various investment options as Jacob mentions in his book.
Focus, focus, focus! That should be your watchword.
My understanding is that as nurses, after Financial Independence, (as long as you keep up your CE & etc.), you'll be able to work as much or as little as you want. If you wanted some extra money for a cruise or something, then you just put yourself on-call for a period of time. Flexibility is good.
It's great to see that your wife is totally on board. Unfortunately, for many couples, that can be a real stumbling block. One person "sees the light" while the other not only doesn't believe there's a light to see, but they don't think a light is even required.
My advice would be to initially focus primarily on getting out of debt. If you know that your father would rather have the 5% interest income than the $110k back, then I would suggest investing $110k in some kind of fairly liquid investment and that way you would know that he could be paid back immediately if needed.
Once you're out of debt completely, then you can bring your focus on building your investment assets and educating yourself on the various investment options as Jacob mentions in his book.
Focus, focus, focus! That should be your watchword.
My understanding is that as nurses, after Financial Independence, (as long as you keep up your CE & etc.), you'll be able to work as much or as little as you want. If you wanted some extra money for a cruise or something, then you just put yourself on-call for a period of time. Flexibility is good.