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Re: Fingeek's Journal

Posted: Mon Oct 08, 2018 11:26 am
by fingeek
Update for Sept:

Primary job income cover (How much of my primary salary am I saving?): 75% (Last month: 75%)
Savings Rate: 66% (Last month: 66%)
Current net worth (not including home): £301,437 (Last month: £303,686)

To cover "fixed expenses" (lean FIRE):
Current Withdrawal Rate requirement: 7.3% (Last month: 7.2%)
NW deficit to 4% SWR: £246,442 (Last month: £244,194)
Years of savings to 4% SWR: 4.7yr/Jun 2023 (Last month: 4.7yr/May 2023)

To cover "fixed expenses + optional expenses" (live as today):
Current Withdrawal Rate requirement: 8.8% (Last month: 8.8%)
NW deficit to 4% SWR: £364,267 (Last month: £362,018)
Years of savings to 4% SWR: 7.0yr/Sept 2025 (Last month: 6.9yr/Aug 2025)

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Another month of a slightly dropping net worth - And this should be the last of them, as I'm getting the house in order for the yearly plan. Not too many other thoughts this month, just following the plan!

Re: Fingeek's Journal

Posted: Mon Oct 08, 2018 11:40 am
by fingeek
Q3 update on yearly plan

1. (DONE 100%) Fix/simplify asset allocation, and reduce costs.
2. (DONE 100%) Review the current investment platforms, to ensure I'm optimising for fees.

3. Purchase at least two more property investments this year.
INPROGRESS 80%. Pub conversion property completed, and renovation is 90% done (reopen downstairs as a pub/bar, create 8 residential units upstairs). No plans to buy a 2nd, as this first one ended up being a beast.

4. (DONE 100%) Reduce P2P investment.

5. Max out my wife and my ISAs for the year.
INPROGRESS 50%. Current surplus capital is going into the pub conversion; Once that's done, surplus will go to fill our 18-19 ISAs.

6. Literally getting the house in order.
DONE 100%. Ensuite replaced! Painting done inside/outside! Only thing remaining is the radiator replacement. Interestingly, with the pub refurb I've gained enough random building knowledge, to be comfortable with changing rads myself. So I'll plan to keep £1k invested and just replace the rads as and when they rust/leak.

7. Ask for a sabbatical before pulling the trigger.
DONE 100%. I'm taking practically all of next year off for paternity/shared parental leave, so this will double up as my sabbatical.

8. Quit work in August (????)
DONE 99%. I'm considering this task done as I've "slipped" it to January with baby due, and take the subsequent year off. That way, I have a good chunk of time off, and also have a fallback option to go back to work if I need (or chose?) to. By end of year, I'll be in a position where investments and property income generate >100% "core monthly living income". And then a small trickle of fun money from side businesses and barFI. Task marked 99% to review this is the case come January.

9. (DONE 100%) Find x hobbies, build life outside of money

Re: Fingeek's Journal

Posted: Mon Nov 05, 2018 8:17 am
by fingeek
Update for Oct:

Primary job income cover (How much of my primary salary am I saving?): 75% (Last month: 75%)
Savings Rate: 66% (Last month: 66%)
Current net worth (not including home): £300,287 (Last month: £301,437)

To cover "fixed expenses" (lean FIRE):
Current Withdrawal Rate requirement: 7.3% (Last month: 7.3%)
NW deficit to 4% SWR: £247,593 (Last month: £246,442)
Years of savings to 4% SWR: 4.7yr/Jul 2023 (Last month: 4.7yr/Jun 2023)

To cover "fixed expenses + optional expenses" (live as today):
Current Withdrawal Rate requirement: 8.9% (Last month: 8.8%)
NW deficit to 4% SWR: £365,417 (Last month: £364,267)
Years of savings to 4% SWR: 7.0yr/Oct 2025 (Last month: 7.0yr/Sept 2025)

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Yet another month of stable/slight dropping net worth (3 sequential months now I think). The pub conversion is broadly done, and we're looking for a tenant to take on the bar now. The net worth bleeding should be stemmed at this point, and we should be getting better month-on-month from here, barring any more surprises.

The focus this month has really been on getting us ready for baby - Sorting the room and such. It's been fun shifting gears and focusing more on family again! Looking forward to having next year off and reassessing when I should go back to work in ~Jan 2020.

Re: Fingeek's Journal

Posted: Tue Dec 18, 2018 3:19 pm
by fingeek
Update for Nov:

Primary job income cover (How much of my primary salary am I saving?): 75% (Last month: 75%)
Savings Rate: 66% (Last month: 66%)
Current net worth (not including home): £304,280 (Last month: £300,287)

To cover "fixed expenses" (lean FIRE):
Current Withdrawal Rate requirement: 7.2% (Last month: 7.3%)
NW deficit to 4% SWR: £246,213 (Last month: £247,593)
Years of savings to 4% SWR: 4.7yr/Aug 2023 (Last month: 4.7yr/Jul 2023)

To cover "fixed expenses + optional expenses" (live as today):
Current Withdrawal Rate requirement: 8.8% (Last month: 8.9%)
NW deficit to 4% SWR: £364,632 (Last month: £365,417)
Years of savings to 4% SWR: 7.0yr/Nov 2025 (Last month: 7.0yr/Oct 2025)

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Bit of a late update this month - Has been majorly busy. Am looking forward to being less busy now going forward.

The pub/bar conversion is 90% complete. We're opened and tenanted, and money is finally coming in (The bleeding has stemmed). Back to slight normality in that net worth increase has resumed. Hopefully going forward, it will increase at an accelerated rate.

I've let everyone in work know about leaving for baby parental leave in Jan 2019, and back Jan 2020. Which means I will be away for a full year. From the FIRE perspective, it's a little scary, but mostly exciting that I get to do a 1yr trial FIRE run! Will I blow my accounts and have to go back to work early? Will we keep reducing our expenditure such that I don't actually have to go back? Will I get bored and do some new business or hobby things?

I wish you all a pleasant Christmas and New Year period, and hopefully you all get to relax and do what is most meaningful to you, with whomever is most meaningful to you too.

Re: Fingeek's Journal

Posted: Wed Dec 19, 2018 12:18 am
by wolf
Congrats to your financial progress and your 1 year trial FIRE! I guess, that you going to learn many things....and enjoy!

Re: Fingeek's Journal

Posted: Thu Dec 27, 2018 6:34 am
by fingeek
Thanks for the encouragement, wolf! I don't believe I will be able to full-FIRE just yet, but this will give some "real world" data to help me adjust my FIRE figures/date.

Re: Fingeek's Journal

Posted: Sun Dec 30, 2018 3:24 pm
by fingeek
Update for Dec:

Primary job income cover (How much of my primary salary am I saving?): 75%
Savings Rate: 66%
Current net worth (not including home): £306,570

To cover "fixed expenses" (lean FIRE):
Current Withdrawal Rate requirement: 7.2%
NW deficit to 4% SWR: £243,922
Years of savings to 4% SWR: 4.7yr/Jul 2023

To cover "fixed expenses + optional expenses" (live as today):
Current Withdrawal Rate requirement: 8.7%
NW deficit to 4% SWR: £362,341
Years of savings to 4% SWR: 6.9yr/Nov 2025

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We have a remortgage to complete for the bar conversion, and then that project is effectively complete. This will realise an increase in equity, and will skew the NW figures (more accurately I believe, though equity (value of property, shares, businesses) needs to be moderated against actual returns).

I've wrapped up most of my primary work, and we have from 0-4 weeks until baby is due. I have about £6k of payments to go out in preparation for the year ahead but otherwise I think I'm all set. Looking forward to trialling this FIRE thing, and most importantly spending time on family and health.

Re: Fingeek's Journal

Posted: Sun Dec 30, 2018 3:26 pm
by fingeek
Q4 update on yearly plan

1. (DONE 100%) Fix/simplify asset allocation, and reduce costs.
2. (DONE 100%) Review the current investment platforms, to ensure I'm optimising for fees.

3. Purchase at least two more property investments this year.
DONE - Achieved 80%. Pub conversion property completed, and renovation is 90% done (reopen downstairs as a pub/bar, create 8 residential units upstairs). No plans to buy a 2nd, as this first one ended up being a beast.

4. (DONE 100%) Reduce P2P investment.

5. Max out my wife and my ISAs for the year.
DONE - Achieved 50%. ISAs are not full for this calendar year, but still plan to fill the ISA by end of 18-19 tax year.

6. (DONE 100%) Literally getting the house in order.
7. (DONE 100%) Ask for a sabbatical before pulling the trigger.

8. Quit work in August (????)
NOT DONE - 99%. Taking the year off as discussed in previous quarterly review, but not "quit" in the real sense. We are practically at covering 100% "core monthly living income" if we cut back, and it will be interesting to see how the SWR and cover figures show over the coming months

9. (DONE 100%) Find x hobbies, build life outside of money