CoffeeSnob’s Journal

Where are you and where are you going?
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CoffeeSnob
Posts: 10
Joined: Fri Mar 09, 2018 2:45 am

CoffeeSnob’s Journal

Post by CoffeeSnob »

Ere journal

Hey folks! I am a 30 year old software engineer located in the US who has recently stumbled upon ERE and MMM (like, in the past month). Any and all suggestions on getting me started are welcomed.

Also, as much as I love the idea of early retirement, I’m certainly not as hardcore as some of you... I have 2 young kids (10 months old and a 4 year old) and a wife that enjoys entertaining, which has had positive impacts in our life but will affect our housing selection.

My goal is retirement by 37. My “savings rate” is a deceptive metric because retirement will automatically cut my expenses in half (more about that below).

So without any further adieu, here are the numbers... they’re a little “back of the napkin”, but I’ll get more specific over the next few weeks.

My gross income; 165k (not including 5% 401k and 20k/year pension vestment)
DW’s gross income; 70k (not including 5% 401k)

Monthly combined net income (including 401k and pension accrual); 16.5k

Monthly expenses; 9.5k
Target monthly savings; 7k
Monthly retirement expenses; 4.7k
(Both of the above include $1k misc, $300 entertainment, $430 vacation savings and a $500 car payment, so lots of sandbagging)
Things that go away with retirement or are temporary;
- $2k per month child care
- $2.1k per month mortgage (we can move to a cheaper home upon retirement)
- $.5k per month private school (the future is public school from 1st grade on or home school upon retirement)
- $.2k misc

I know that at a 300x multiplier that puts me at about a 1.4m goal with a WR of 4%... however I plan on consulting remotely part time around 10 hours per week (I love what I do) which should bring in at least $2k/month... my wife also may keep working for fun but I’m not including that in my math;

Monthly consulting income; $2k
Difference; $2.7k
Retirement goal; $810k

Current debt;
$16k for a car loan that is near zero percent interest
$295k mortgage

Assets;
$70k 401k/investments
$175k home equity

I just started a new job with a tough commute, which should be a good excuse to downsize our home to something cheaper and easier to maintain, so I might be able to bring my mortgage from $2.1k down to $1k or less... within striking distance of quickly paying it off.

Also the new job offers cheap childcare... way cheaper than our $2k per month nanny.

I’ll post my first “real” fiscal entry the end of April as I want to have enough time to go one solid month with the new company.

Also as a side note... I started out in construction. In a lot of ways I am already a “renaissance man”, doing all my own car work and home repairs... I think reducing the clutter in my life and relying on my own skill set is one of the biggest appeals to me about ERE.
Last edited by CoffeeSnob on Fri Mar 09, 2018 10:11 am, edited 1 time in total.

Smashter
Posts: 541
Joined: Sat Nov 12, 2016 8:05 am
Location: Midwest USA

Re: CoffeeSnob’s Journal

Post by Smashter »


CoffeeSnob
Posts: 10
Joined: Fri Mar 09, 2018 2:45 am

Re: CoffeeSnob’s Journal

Post by CoffeeSnob »

Hah! Funny you mention that... I plan on roasting at home in the next few weeks, partially to get rid of my almost $100 per month coffee budget.

Thank you for the link!

CoffeeSnob
Posts: 10
Joined: Fri Mar 09, 2018 2:45 am

Re: CoffeeSnob’s Journal

Post by CoffeeSnob »

Update:

Decided not to downsize - commute isn't bad... the area we're in is also projecting 20%+ rise in home values over the next 2-3 years, so I want to take advantage of that before downsizing. (in the last 1.5 years alone we've gained over 100k in home equity that I plan on taking advantage of when we downsize).

We saved $5k per month the last 2 months, plus $1,900 per month 401k matches/contributions and a $1,600 per month pension plan (or the equivalent thereof).

So our effective savings per month has come in at about $8.5k.

However, we may be purchasing and providing a condo for my in laws and my wife's grandmother... I'm unsure what our monthly cost will end up being to help right-size them, but I am estimating anywhere from $1k-$1.5k per month, which will come directly out of the $5k per month net savings.

Current total savings (including 401ks, and only including a portion of home equity that becomes liquid upon FIRE): $104,000.00
"Minimum" FIRE goal: $857,933.33 (I've been making adjustments based on our ongoing budget changes, thus the adding $47k to our retirement goal)
Percent of the way there: 12.12%
Months left to FIRE: 68 (including $1k per month for in laws)

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