2Birds1Stones' 325 day 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' 12 month hustle to freedom!

Post by 2Birds1Stone » Thu May 31, 2018 3:10 pm

May Financial Update

Assets
$120,000 CD/MM
$114,500 401k
$58,200 Taxable
$53,500 Roth IRA
$15,500 Ag Holdings
$12,500 Vehicle Equity
$17,600 HSA
$11,000 Au Holdings
$402,800 Total Net Worth (+$18,800)

Spending
$550 Rent/Utility
$98 Grocery
$47 Gas
$197 Entertainment
$50 Cell
$69 Travel
$20 Health/Hygiene
$44 Gifting
$1,075 Total Spending

Income
$717 Salary
$11,750 401k (100% into Stocks)
$533 HSA (100% into Stock)
$4,000 Other (Motorcycle sale, not earned income)
$17,000 Total Income

96% Savings rate(92% not counting bike sale)

$21,761 - Actual expenses, last 12 months (currently 18.51X, or 5.4% WR)
$15,300 - Actual bare-bone, last 12 months (currently 26.33X, or 3.8% WR)

Current 4% WR = $16,112

Monthly Combined Tracking

Second month of tracking our combined income/savings.

$2,676 - Combined Spending
$19,200 - Combined Income

86% Savings Rate

Combined NW = $492,000 (+$19,000)
Combine Spending = $43,000 (based on last 12 months)
Combined WR = 8.74%

Musings
Super low spending month, and really good income month due to savings on taxes (75% salary deferral to 401k), bike sale, and profit sharing.

Our combined spending was awesome, and lowered our trailing 12 month expenses. This should keep getting lower till it levels out around 36-40k/yr.

At the airport about to board my flight so I will post more thoughts later.
Last edited by 2Birds1Stone on Sat Jun 02, 2018 10:47 am, edited 1 time in total.

2Birds1Stone
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Re: 2Birds1Stones' 12 month hustle to freedom!

Post by 2Birds1Stone » Sat Jun 02, 2018 10:34 am

Well, it feels pretty amazing knowing that I have less than a full year till I take my first mini retirement.

364 days will go by quick, and I am pretty happy with the progress over the past 26 months since I've started posting here.

Just a trip down memory lane, but my net worth has increased by $234k since April 1, 2016.

At that time I predicted that my barebones FI # would be $460k, and $750k for full blown FI. Those numbers have dropped quite a bit since then, thanks to many cost cutting strategies and a snowballing web of goals.

Assuming 0% real market returns, and keeping my current job till next June 1st, I will be sitting ~$450-475k at time of parachute chord.

In the back of my mind I keep thinking about @jacob's comments about someone who earns a high income from one source to just suck it up and get to their more conservative number vs. struggling for a long time trying to piecemeal an income.

After that mini retirement I think it will take roughly 2.5-3 more additional years of FT work to get to 30x desired RE budget.

2Birds1Stone
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Re: 2Birds1Stones' 12 month hustle to freedom!

Post by 2Birds1Stone » Tue Jun 05, 2018 11:06 am

Today I reduced my cash position by $20k and purchased $10k worth of I Bonds, and $10k went into my taxable brokerage, which will be distributed into VTI/VXUS this week.

There is no need to have $120k sitting in CD's/MM accounts right now. Even at my current spending level that's 6X expenses.

Just wait a few days, and if history repeats itself, we will see a nice little correction in the coming weeks (or any time I lump sum invest).

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Seppia
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Re: 2Birds1Stones' 12 month hustle to freedom!

Post by Seppia » Tue Jun 05, 2018 4:29 pm

Progress and savings are impressive.
What is your plan for the first mini retirement stint? Did it stay the same since you first planned it or did it evolve?

I'm curious because my recent track record is similar to yours, and while the general end goal has stayed the same, tactics have evolved quickly and adjusted to a changing environment.

2Birds1Stone
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Re: 2Birds1Stones' 12 month hustle to freedom!

Post by 2Birds1Stone » Tue Jun 05, 2018 4:54 pm

Thanks Seppia.

My first taste of freedom will be a 120 day FMLA (Family Medical Leave of Absence), assuming I don't get fired/laid off before next June 1.

It's very different from what I originally planned, because my SO will continue working. She is just getting her career off the ground and taking 4 months off would be career suicide with her lack of experience and solid employment history. We still plan on taking 6-9 months off together in 2020, so that will be awesome.

My 120 days off will look something like this.

Fly to Poland and spend 4-6 weeks there visiting with family and friends. Parents have a paid off flat that sits mostly empty in Rzeszow. I will spend as much time as possible with my 94 year old grandfather and 90 year old grandmother. They are the main reason for taking FMLA.

I would like to spend another month exploring the rest of Europe, especially places I've never been. I have traveled to most of the popular tourist destinations as a youngster, so I'm thinking more along the lines of Slovenia, Slovakia, Norther Italy, Portugal, etc.

I would then fly back to the USA, and take a 1-2 week motorbike trip with my dad. He's been talking about it for years. We originally planned on riding to Alaska in 2020, but the timing will not work then. So 2019 would be a good consolation prize.

Following that I would like to just enjoy some peace and quiet without having to work, visit some friends around the USA using the travel miles I've accumulated, and taking some shorter 3 day trips with my SO.

At that point It's end of September and I go back to work till the following summer.

At that point I should have ~$500k NW, and we will likely take off on a 6-9 month adventure to SE Asia, Eastern Europe, and if we have time Central America.

In early 2021 when that adventure is over, she will have to go back to work FT to get to FI.....I will either work FT if I can find a job that's tolerable with flexible schedule (sales), or work PT and draw 1-2% from my investments.

At that point I'll be 34, and not have to work FT ever again.

These are grandiose plans, and life tends to get in the way. But for now, I'm sticking to my story :)

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Seppia
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Location: Italy

Re: 2Birds1Stones' 12 month hustle to freedom!

Post by Seppia » Wed Jun 06, 2018 1:23 am

It's a great plan.
Life may get in the way somehow (a kid, a great career bump, a newfound love for an expensive hobby such as flying etc) but that's part of the fun.
My approach is to have a long term general vision about what I want to do with myself and my family, and then try and be flexible about the short and mid term.
I am a huge "strategy over tactics" kind of person, it seems you are following a similar path.

Remember to hit me up before you visit northern Italy, in 2019 I'll be most probably living in Trieste, so we may get in touch if you visited.
In any case I can try give you some recommendations, I'm from Como and I know northern Italy sufficiently well.

Keep kicking ass

classical_Liberal
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Re: 2Birds1Stones' 12 month hustle to freedom!

Post by classical_Liberal » Sun Jun 10, 2018 6:23 pm

Great plan!

I'm hoping to join you with some time off w/in 12 mos & SO still working for an even longer sabbatical. I really think this is all about balance. As much as I'm sick of my current routine, I can't imagine never producing value (hence making money) again. Secure FI of a 3% WR will come, and I bet you'll still earn more, doing whatever what you want. Your FU has bought you optionality of how and when you earn for the rest of your life. Enjoy my friend!

Re investments, I'm having itchy feet with cash at the moment as well. No matter how I roll the dice, I simply can't justify keeping more than 25% of NW in it. I threw a few grand in IAU when gold dipped below $1300. I considered I-Treasuries when yields peaked above 3% on the ten year, but I can get low/mid-2% on 12mo CD's, so I held off. Other than DCA'ing in my 401K my only other purchase this year was a couple hundred shares of OHI (healthcare REIT) this February. It's done OK so far, but I just don't have enough knowledge/time/will to consistently pick individual value winners. All the US indices seem too inflated and my international indexing is reaching 25% of portfolio as well, I really don't want to over invest in foreign's with currency risk and all... Patience is a virtue? maybe?

2Birds1Stone
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Re: 2Birds1Stones' 12 month hustle to freedom!

Post by 2Birds1Stone » Mon Jun 11, 2018 4:04 pm

Thanks Seppia, I'll definitely let you know when I'll be heading to Italy!

c_l, that's awesome. You have a pretty good gig with work and should have no problem re-entering the work force if your desired lifestyle inflates or there is a particularly bad sequence of returns. I on the other hand have no formal education and would likely see my income chopping in half trying to return into the workforce in a similar role during economic downturn.

I think the 120 days will be a good test run, then I can decide an exact date for the sabbatical once I am earning again. I am super pumped! I do know I don't want to continue living on $18k/yr forever though =D

I dumped a decent amount into stocks over the past few months. My allocation is getting close to where I want it to be. 60% stocks, 20% CD's, 15% bonds, 5% Precious Metals.

2Birds1Stone
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Re: 2Birds1Stones' 12 month hustle to freedom!

Post by 2Birds1Stone » Mon Jun 11, 2018 4:17 pm

This is based on the ~$400k of assets I have (sans vehicle equity) by the end of this month assuming a flat market.

Image

classical_Liberal
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Re: 2Birds1Stones' 12 month hustle to freedom!

Post by classical_Liberal » Wed Jun 13, 2018 7:50 pm

2Birds1Stone wrote:
Mon Jun 11, 2018 4:04 pm
I think the 120 days will be a good test run, then I can decide an exact date for the sabbatical once I am earning again. I am super pumped! I do know I don't want to continue living on $18k/yr forever though =D
Glad you're excited! The most I've done while working in a career is 4 weeks, which seems like a ton. I bet you can really get a perspective change in 4 months.

You should check out some "flyover" country during your bike tour. Price out housing and the like. I bet you'd be surprised the bang for your buck you can get on 18K out here, even in some of the very pleasant, smaller "college town" urban centers. Especially with economy of scale with the GF, at 36K you'd be close to median spending out here, and with mad 2B1S ERE skills your lifestyle could be that of a young, hipster upper-middle class. Of course, each to their own, but it might shift your perspective of the best place for a home base.

2Birds1Stone
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Re: 2Birds1Stones' 12 month hustle to freedom!

Post by 2Birds1Stone » Thu Jun 14, 2018 3:59 pm

Ah yes, but it will be a while before the SO is generating $18k @ 4% from her portfolio. Right now it's more like $3,600/yr =P

Any specific towns/areas you would recommend?

We are able to stretch our current $3k/month budget pretty far living in a HCOL area, big part of that is travel hacking and I get a ton of travel/culinary experiences that are expensed for work. I spent the past 3 days staying in NYC for some customer meetings and internal stuff. Tried Smith & Wollensky steak house for the first time, got some ridiculous sushi the second night, and had poke for lunch on Tuesday and today, while work catered some bomb food yesterday.

Tomorrow I'm in the office and it's already weekend time again. I think I'm going to be mountain biking on Saturday morning, and doing a hike/BBQ for fathers day with my parents, brother, his SO, my fiances family too. Always fun having 10 people over to our 1 BDRM apartment =) At least we have a huge yard.

From a financial milestone standpoint, our combined NW just kissed $500k a day ago, but will probably be short lived.

2Birds1Stone
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Re: 2Birds1Stones' 350 day hustle to freedom!

Post by 2Birds1Stone » Tue Jun 19, 2018 7:55 pm

I need to start tracking weight and activity more diligently.

My weight has crept back into the 218-220lb range the past week, and today I started tracking calories and expenditure (using my Garmin 920xt).

My ideal weight is somewhere around 195-198lbs, which I have not been since spring/summer of 2014.

classical_Liberal
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Re: 2Birds1Stones' 350 day hustle to freedom!

Post by classical_Liberal » Tue Jun 19, 2018 11:33 pm

I could suggest a few places I've actually lived, but it reads like you have a ton of friends and reasons to stay put. Plus none of those places will have near the entertainment you can get in the city.

2Birds1Stone
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Re: 2Birds1Stones' 345 day hustle to freedom!

Post by 2Birds1Stone » Wed Jun 20, 2018 9:04 am

Ah, yes for now the family and friends thing is pretty important, and provides low/no cost entertainment and a social support system. Once we are RE'd though, we will be traveling 50%+ of the time anyway, so the lower cost option will win. That may be renting a room in a family members home to store our stuff and decompress between adventures, or buying a small home in a low cost state like we discussed last year. Something <$50k in rural FL, CO, UT, AZ etc, but a few hours drive from a major airport.

I have a feeling our families will also leave the metro NY area over time, and that's great too, more people to visit all over the place. And less expectations of seeing us as often =)

I'm heeding your advice on not making too specific of plans years in advance, what we want, as well as the world around us will be different beyond what we could imagine in the current time.

I'm just counting down the days, 345 to be exact, till I can execute phase one of semi-ERE.

2Birds1Stone
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Re: 2Birds1Stones' 350 day hustle to freedom!

Post by 2Birds1Stone » Sat Jun 23, 2018 9:29 am

Every so often, I get this feeling, which starts off as an inkling that something is not quite right.

Very often, after a few days of introspection and processing it, I feel like I am confined by my current environment. In reality the only confines are the mental ones I have placed on myself. Compared to many of my peers, I enjoy a lot of autonomy over my work schedule, travel, etc. I have freedom to pursue any employment opportunities I could potentially think of (limited by lack of degree/experience in some areas), and have the FU$ to stick it to my current employer at will......yet I continue to feel *trapped*?

I realized that over the past few weeks, its not anything work related that has spurred these feelings, but rather my SO's current health issue. She's had a pretty wicked ear infection for the past 2 1/2 weeks, which has resulted in 2 urgent care visits, and 2 hospital visits. Seems to be resistant to antibiotics, and I've felt pretty helpless as far as easing her pain/discomfort.

She's missed work (and is paid hourly, so lost wages), which I explained did not matter, and her health is 100X more important than an arbitrary saving/spending goal for the month. And even our OOP maximum for the HDHP is still a small fraction of our net worth. I've felt a mixture of guilt for trying to still enjoy the beautiful NY spring and the company of some friends, because I can't sit at home watching her in pain, with minimal interaction because speaking/noise is painful. We've had to turn down many invitations to get together for otherwise exciting activities/gatherings the past two weekends, and I worry that if she's not better by middle of next week, we are likely to have to cancel our flights down to FL, which is the only vacation on our schedule for this year. I know she will feel awful if it comes to that, and that is another emotion I am not exactly prepared to deal with.

Sometimes I wonder if I'm insensitive or have trouble empathizing with people. Emotions suck, sometimes I wish I was more of a robot ;)

classical_Liberal
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Re: 2Birds1Stones' 350 day hustle to freedom!

Post by classical_Liberal » Sat Jun 23, 2018 3:25 pm

2Birds1Stone wrote:
Sat Jun 23, 2018 9:29 am
She's had a pretty wicked ear infection for the past 2 1/2 weeks, which has resulted in 2 urgent care visits, and 2 hospital visits. Seems to be resistant to antibiotics, and I've felt pretty helpless as far as easing her pain/discomfort.
Home remedy for middle ear infection:
Go to the drug store and purchase a baby nose suction and 3% Hydrogen Peroxide. Mix H2O2 with tap water 50/50, flush hard into ear with bulb. Do this 2-4X daily, it is uncomfortable and may throw off balance for minutes after.

This works MUCH better than Cipro drops or oral broad spectrum, IMO. Will kill resistant organisms as well. Good results in 24-48 hours on average. The only problem being if ear canal is completely swollen shut and the fluid cant get in. If this is the case a wick may be needed for the Rx Cipro-hydrocordisone drops. The steroid will decrease swelling, one you have an "in" use the H2O2 mix.

If your GF gets regular ear infections (I do) then use this technique going forward at the first sign of pain. I used to go to urgent care at least 2X per year for middle ear infections, with this strategy I haven't gone in 5+ years.

Edit: To add, this is a personal, nonprofessional treatment I use. Obviously, follow any MD advice

slowtraveler
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Re: 2Birds1Stones' 350 day hustle to freedom!

Post by slowtraveler » Sun Jun 24, 2018 7:00 am

It's understandable you feel stressed and have a conflict of interests in your desires. You want to get a break and feel attachment to the vacation but life happened.

I hope she feels better soon and you get to enjoy your time off.

2Birds1Stone
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Re: 2Birds1Stones' 350 day hustle to freedom!

Post by 2Birds1Stone » Fri Jun 29, 2018 7:19 pm

June Financial Update

Assets
$104,500 CD/MM
$115,400 401k
$78,300 Taxable
$53,300 Roth IRA
$15,300 Ag Holdings
$12,300 Vehicle Equity
$18,300 HSA
$10,600 Au Holdings
$408,000 Total NW (+$5,200)


Spending
$550 Rent/Utility
$141 Grocery
$182 Gas
$171 Entertainment
$200 Depreciation
$50 Cell
$127 Travel
$105 Health/Hygiene
$125 Misc
$66 Gifts
$1,717 Total Spending

Income
$5,960 Salary
$780 401k
$533 HSA
$7,273 Total Income

76% Savings Rate

$21,776 - Actual expenses, last 12 months (currently 18.74X, or 5.34% WR)
$15,300 - Actual bare-bone, last 12 months (currently 26.67X, or 3.75% WR)

Current 4% WR = $16,320

Monthly Combined Tracking

$3,289 - Combined Spending
$9,400 - Combined Income

65% Savings Rate

Combined NW = $499,000 (+$6,200)
Combine Spending = $42,000 (based on last 12 months)
Combined WR = 8.42%

Musings

Spending highest it's been in past 3 months, still not too shabby, and trailing 12 month dropped. Income was average. SO's might actually be a bit lower because she missed some days due to being sick for 3 weeks.

My portfolio took a decent little dip but ended mostly flat after today. I moved a significant portion of cash into taxable this month, as well as those I-series bonds. We're so darn close to the half mil mark. Actually crossed it a few weeks back when we had that little bump in stocks and then lost it just as quickly.

Leaving for vacation tomorrow, looking forward to a nice week away from work.

trailblazer
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Re: 2Birds1Stones' 350 day hustle to freedom!

Post by trailblazer » Fri Jun 29, 2018 8:22 pm

499 . . . so close . . . if only she hadn't missed work :D But nice job!

2Birds1Stone
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Re: 2Birds1Stones' 350 day hustle to freedom!

Post by 2Birds1Stone » Fri Jul 06, 2018 4:04 pm

Thanks tb, if the markets cooperate we will be over $500k NW moving forward. It's a pretty cool milestone, another $500k and we will be fully FI and never have to work again.

I'm on vacation in FL visiting family and friends this week. 8 days and 7 nights, which gets a bit expensive even with travel hacking the flights. I'm not confident that we will be able to stay under $3k for our July combined spending.

The trip has been incredible, and just what the doctor ordered in terms of stress relief. When we don't have to work FT anymore, I can't wait to take trips like this much more often.

Went scalloping two times, and had those sweet bay scallops for dinner two nights. Incredible. And all it cost was some beer and gas money =D

It's going to be hard to go back to work on Monday after 10 days off.

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