2Birds1Stones' 12.5 month hustle to freedom!

Where are you and where are you going?
2Birds1Stone
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Joined: Thu Nov 19, 2015 11:20 am

Re: 2Birds1Stones' 17 month hustle to freedom!

Post by 2Birds1Stone » Sun Apr 29, 2018 2:25 pm

Thank you Viktor. Yes, it will result in a significant increase to cash flow between now and when I test out ERE. It also serves as a much better anchor point for what I will command from the market when/if I want to return to similar work to get to my final #.

We just got back from a road tip to Philly, I finished accounting for all of April expenses and for the first time ever have fully tracked SO's expenditure and income as well.

Our combined spending was just a hair shy of $3,000 for the month. It didn't include any emergencies or large one off purchases. I counted pretax health insurance costs as well as the imputed taxes I owe for her portion of benefits. Since we will have to pay health costs out of pocket, it seems silly not to count the spending now. Historically over the past three years, our spending has been averaging between $48-60k if you count health insurance and dental.

$36k/yr will be a pretty big stretch goal for us, given our HCOL area and lifestyle. It's approximately 1/3 - 1/2 of what an average family here spends. And to Jacobs point in the "Is Frugality only for the rich?" thread, combine that with an income that is 50% higher than an average family here you have the perfect storm for a 60-70% net savings rate and reasonably early retirement. I still feel like an amateur when I read about people here spending <$10k/yr(per person)

2Birds1Stone
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Re: 2Birds1Stones' 17 month hustle to freedom!

Post by 2Birds1Stone » Mon Apr 30, 2018 3:58 pm

April Financial Update

Assets
$114,100 CD/MM
$101,100 401k
$59,400 Taxable
$53,500 Roth IRA
$15,500 Ag Holdings
$12,500 Vehicle Equity
$16,800 HSA
$11,100 Au Holdings
$384,000 (+$6,000)

Spending
$550 Rent/Utility
$117 Gas
$100 Grocery
$197 Entertainment
$50 Cell
$20 Health
$36 Misc
$250 Gifting
$1,320 Total Spending

$6,536 Net Income

80% Individual Savings Rate

$22,198 - Actual expenses, last 12 months (currently 17.3X, or 5.78% WR)
$15,300 - Actual bare-bone, last 12 months (currently 25.1X, or 3.98% WR)

Current 4% WR = $15,344

Monthly Combined Tracking

First month of tracking our combined income/savings.

$2,991 - Combined Spending
$8,736 - Combined Income

65% Savings Rate

Combined NW = $473,000
Combine Spending = $45,000 (based on last 12 months)
Combined WR = 9.51%

Current Combined 4% WR - $18,920 ($1,576/month)

classical_Liberal
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Re: 2Birds1Stones' 17 month hustle to freedom!

Post by classical_Liberal » Mon Apr 30, 2018 7:41 pm

Well, well, well. Combined numbers now! isn't that sweet...

I'm curious, is there any tension now that you are tracking finances jointly? My GF has made some pretty big (relative to her ERE wheaton level) leaps recently, but I'd get downright pissed if she was spending joint finances in "her" way. Separate finances, but with a few similar goals (like a sabbatical) have prevented any arguments so far.

Congrats on the progress, looks like your at or near your individual low FI number! let that sink in for a moment.

2Birds1Stone
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Re: 2Birds1Stones' 17 month hustle to freedom!

Post by 2Birds1Stone » Tue May 01, 2018 5:39 am

Hey C_L, I've been loosely tracking combined net worth for almost two years now in a spreadsheet. This is the first time I've gotten fiance to agree to track spending so we can attempt to hit a combined target and see how far away from FI we are as a household.

No tension on the spending front, though income is a bit of a different story. Right now she's very much underemployed, so even with low spending she's adding maybe $600-800/month to her investments, while I'm adding $4,000-$5,000/month.

It's been over two months since she got let go from her job, and while her PT grocery store job is ok as a temporary fallback, we both realize that it's seriously impacting her ability to accumulate funds toward our mutual goal of taking that gab year.

I'm not pressuring her about it, but I won't be formally combining finances any time soon :) When that does happen, it will not be without a pre

Edited to add - Yes bare-bone FI is a cool place to be! It definitely "takes the edge off" at work :)

2Birds1Stone
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Re: 2Birds1Stones' 17 month hustle to freedom!

Post by 2Birds1Stone » Wed May 09, 2018 11:53 am

The past few weeks have been amazing. Spring is finally here in NY. I've been mountain biking several times a week, and this past week I got back into running a very hilly 10k course near my home. I also signed up for a gym that is very close to home. For $20/month flat I have access to all of the heavy weight lifting equipment I could dream of using. We have a gym at the office, but it's 12 miles away and I prefer to work from home when I can. Weightlifting is something I enjoy doing 2-3 times a week, and my tiny 450sq foot apartment just simply doesn't have the space to make a gym.

Churning more bank bonuses as well. Recently signed up for the Chase savings bonus of $300, and will be doing the $200 KeyBank checking bonus.

Additionally, it's time to start churning travel reward cards again. Those points will be super useful when it's sabbatical time, and I won't have the income to cover much CC spending at that time. This will be a fun little game between now and then.

Currently we have
~103k British Avios
~100k American Airlines Miles
~60k IHG Points
~75k Southwest Miles

I would love to beef those up as well as earning some flexible travel reimbursement points for expenses outside of the USA that are not particularly easy to get direct points for.

Between the miles and the reimbursable credits it should keep our initial flight costs lower than paying out cash.

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Viktor K
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Location: China

Re: 2Birds1Stones' 17 month hustle to freedom!

Post by Viktor K » Wed May 09, 2018 11:43 pm

Hey 2Birds1Stone, do you have a total for how much you've made off bank bonuses and the like? Also very envious of you taking advantage of so much outdoor time! That is something we definitely want to replicate when we move back to the US!

2Birds1Stone
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Re: 2Birds1Stones' 17 month hustle to freedom!

Post by 2Birds1Stone » Thu May 10, 2018 5:34 am

Hey Victor, I do have data on bank bonuses. Going back to summer of 2016.

Account Month Opened Bonus
Citi Checking August 11 $400
Chase Savings October 15 $200
Chase Checking October 15 $300
HSBC Checking September 24 $350
TIAA Savings November 29 $250
Capital One MM December 7 $100
M&T Bank Checking December 8 $150
TD Bank Checking December 8 $300
Schwab Brokerage December 20 $100
Discover Savings January 7 $100
Wells Fargo Check January 26 $250
Santandar Checking February 18 $225
Citizens Checking July 18th $150
CIT Bank July 26 $100
Bank Of America January 1 $200
Chase Savings April 25 $300

$2,975 Total

For credit card travel bonuses it's more than that in miles/points. ~$5,500 between my fiance and I.

2Birds1Stone
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Re: 2Birds1Stones' 17 month hustle to freedom!

Post by 2Birds1Stone » Thu May 10, 2018 5:35 am

The bank stuff is taxed, most send you a 1099-INT

The CC's are not. They offer a statement reimbursement, travel reimbursement, or simply miles/points which you redeem for airfare/hotels. None of those are taxed.

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Viktor K
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Re: 2Birds1Stones' 17 month hustle to freedom!

Post by Viktor K » Thu May 10, 2018 8:40 am

That's a nice bonus! Thanks for the numbers. I am inspired.

2Birds1Stone
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Re: 2Birds1Stones' 17 month hustle to freedom!

Post by 2Birds1Stone » Sun May 13, 2018 7:43 pm

My SO has started reading ERE blog posts, I think I'm falling in love all over again =D

We are 6 weeks into tracking out combined spending, and we should eek out another sub $3k month in May. This is pretty damn significant. It's still laughable compared to what Jacob and his wife spend, but a big improvement over our previous $48k/yr.

I should be able to cover my half of spending @ 4% WR by mid/late 2019. BOOM

2Birds1Stone
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Re: 2Birds1Stones' 17 month hustle to freedom!

Post by 2Birds1Stone » Thu May 17, 2018 9:46 am

Due to work related shit, I am now targeting June 1, 2019 for my sabbatical or mini/semi retirement.

My boss is a bipolar prick. This is all assuming I last that long.....

trailblazer
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Re: 2Birds1Stones' 17 month hustle to freedom!

Post by trailblazer » Thu May 17, 2018 10:51 am

It's always the boss in the end.

2Birds1Stone
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Re: 2Birds1Stones' 12.5 month hustle to freedom!

Post by 2Birds1Stone » Sun May 20, 2018 4:19 pm

Sold my Motorcycle today.

$4,000 added to the portfolio, since I wasn't counting my bike in the assets, it's 1% increase to the numbers =P

With my luck the stock market will tank next week and I will lose that $4k on paper.

wolf
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Re: 2Birds1Stones' 12.5 month hustle to freedom!

Post by wolf » Mon May 21, 2018 12:08 am

You don't drive anymore? Or why do you sell it?
I thought about buying a motorcycle lately, but I am afraid of security. There are (many) traffic accidents with motorcycle drivers. But on the other side, it could add a little bit of mobility to my life. How was riding your motorcycle?

2Birds1Stone
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Re: 2Birds1Stones' 12.5 month hustle to freedom!

Post by 2Birds1Stone » Mon May 21, 2018 10:51 am

@wolf I used it primarily as a recreational vehicle, and the past two seasons didn't get out much. Last year I rode maybe 10 times totaling 1000 miles.

I do love riding, though my immediate area is very congested with car traffic and not the safest place to do so.

If I lived somewhere more remote with less car traffic, I would buy one again in a heartbeat.

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