Semi-ERE Year 3 - Wanderlust Prevails

Where are you and where are you going?
2Birds1Stone
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Re: 2Birds1Stone's hustle to freedom!

Post by 2Birds1Stone »

halfmoon wrote:It sounds like you're making it work. What about the average age of your credit accounts, though? I thought that was a factor in the credit score...or are you keeping all the cards open?
The one's I can downgrade to a fee free version, yes. I have only had to cancel one card out of the 6 I have opened, I believe it was the British Airways.

Many will waive the fee in year two if you call and threaten to close it, or they will suggest you downgrade to a fee free card.

Another thing to note, for most CC's they report the oldest card of that type towards your age. So if you have an Amex card for 10 years, and open a bunch of amex cards/close them, but keep the 10 year old one, that is what will show on your age of credit for amex.

AussieGirl
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Re: 2Birds1Stone's hustle to freedom!

Post by AussieGirl »

AussieGirl wrote:im reading along how do you keep groceries at $1300 /yr mine are more like $10k wondering if that is a country difference. mine is for two adults two young kids. But still, what are you eating??
Howdy from the other side of the pond :) The $1300 is for my half of the groceries. Split with my SO. We do not have kids. Food is cheap here if you avoid the processed crap. We eat a lot of chicken ($.99-1.99/lb), ground turkey ($1.99/lb), London Broil ($2.49-2.99lb), rice, beans, potatoes, frozen mixed veggies, seasonal fruit/veggies (always cheap buying stuff in season), oats, peanut butter, yogurt, eggs ($.69/dozen), milk ($1.99/gallon).

We shop at Aldi, ethnic markets, make a list before heading to store and make sure we take advantage of sales and buy in bulk when more efficient. This also does not include household misc. such as cleaning products, paper products, alcohol etc. We don't have kids or pets so it helps keep the cost down. Our entertainment line item includes going out to eat so we do spend quite a bit there, usually ending up with leftovers to take to lunch.
Ok makes more sense now. Sounds like we are relatively similar - however I am including cleaning products, paper, nappies etc (not alcohol). Also the costs you provided are pretty low in comparison. Chicken is maybe $9 per kg (roughly $4.5 / lb). Dozen eggs $4.30. Gallon milk maybe $3.50. That being said I think that there is still some more we could do! Keep posting.

halfmoon
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Re: 2Birds1Stone's hustle to freedom!

Post by halfmoon »

2Birds1Stone wrote:Another thing to note, for most CC's they report the oldest card of that type towards your age. So if you have an Amex card for 10 years, and open a bunch of amex cards/close them, but keep the 10 year old one, that is what will show on your age of credit for amex.
Yet another piece of new information. The older I get, the less I know. ;) At least now I won't fret about people here ruining their credit when they churn cards.

2Birds1Stone
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Re: 2Birds1Stone's hustle to freedom!

Post by 2Birds1Stone »

AussieGirl wrote:
AussieGirl wrote: Ok makes more sense now. Sounds like we are relatively similar - however I am including cleaning products, paper, nappies etc (not alcohol). Also the costs you provided are pretty low in comparison. Chicken is maybe $9 per kg (roughly $4.5 / lb). Dozen eggs $4.30. Gallon milk maybe $3.50. That being said I think that there is still some more we could do! Keep posting.
Wow! Groceries are expensive in Au!! Where do you shop?? We certainly have supermarket chains and grocery stores where eggs are $3-4/dozen, but there are options where you can pay <$1/dozen. Same goes for chicken, produce, etc etc. I make a point to search the circulars and know which stores carry loss leaders in order to stock up. Hope that helps!

Here is a recent haul from last Sunday.

Total Spent $40.60

5lbs of white potatoes
3lbs of onions
3lbs of apples
2 loaves of Arnold Double Protein Bread
8 oz of fat free american cheese
2 packages of oatmeal
3lbs of boneless pork chops
3lbs of frozen veggies
2 packages of frozen pierogi
1/2 gallon of slow churn ice cream
4 boxes of Kashi Go Lean cereal (super high fiber/protein)
2 cans of black olives
18 eggs

This is a LOT of food =) Split with SO and we spent $20 each on what will end up being most of our meals for an entire week, at least.
halfmoon wrote: Yet another piece of new information. The older I get, the less I know. ;) At least now I won't fret about people here ruining their credit when they churn cards.
Haha, that's the beauty of learning, it's a never ending journey!

I've spent a lot of time this past week reading about thru hiking the appalachian trail........it is one of the first things SO and I plan on doing once we are free from the jobs.

2Birds1Stone
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Re: 2Birds1Stone's hustle to freedom!

Post by 2Birds1Stone »

not a bad start to 2017
Last edited by 2Birds1Stone on Fri Feb 05, 2021 4:06 am, edited 1 time in total.

2Birds1Stone
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Re: 2Birds1Stone's hustle to freedom!

Post by 2Birds1Stone »

Happy Fat Tuesday Folks!
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halfmoon
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Re: 2Birds1Stone's hustle to freedom!

Post by halfmoon »

2Birds1Stone wrote: I still have a headache that feels like it’s coming from the base of my head/neck and my sinus through today. It’s been 7 days now. Excedrin helps, ice helps, but it keeps coming back after I wake up in the morning. Ugh.
You have my utmost sympathy. Causes and treatments for chronic headaches obviously vary by individual, but Naproxen (Aleve) usually works for me to break the cycle for awhile. Any other NSAIDs give me rebound headaches. Good luck!

2Birds1Stone
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Re: 2Birds1Stone's hustle to freedom!

Post by 2Birds1Stone »

58.3% Savings Rate
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2Birds1Stone
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Re: 2Birds1Stone's hustle to freedom!

Post by 2Birds1Stone »

My job just got a whole lot worst.

We acquired a large competitor and as of this month there is a huge consolidation project where most of my existing business unit will likely become obsolete. Too much redundancy across the existing and new teams. We are essentially getting "managed out" and it will effect income potential drastically moving forward.

This along with other recent events have really pushed me to consider a more scaled back FIRE lifestyle, which would allow me to get out of the workforce as soon as possible.

I have been discussing with my SO the possibility of taking a gap year at the beginning of 2020, around March. We will still be a solid 3-5 years away from our original FIRE goal portfolio, but have enough stached to take a year off while we are young. When we go back to work, it will unfortunately be at a reduced pay, but at that point we should have the flexibility to find something we enjoy doing till we get to that goal $#.

The biggest thing we are exploring is becoming full time RVers. It looks like we could travel around in an RV for $24-30k/yr all in. I have been following blogs, vlogs, forums on the subject and it seems to align very much with our goals and desires. The biggest unknown right now will be the cost of healthcare when we are ready to take the plunge. Barring any crazy increase in premiums I think that we will be in a good spot to take a year off.

Some other ideas include thru-hiking the Appalachian Trail, which can be done for $10-12k for two people. Taking 6-8 months to do so nice and slowly.

My family also has an apartment in Poland where we can stay rent free and it is very LCOL. $2k/month can provide us a very comfortable living for 3-6 months out of the year.

Regardless of how we end up spending out year off, the main point is going to be taking that year and test driving some RE lifestyles.

Look forward to discussing plans and ambitions with you all, I have a feeling the feedback here will be valuable in shaping those decisions as the time draws nearer.

George the original one
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Re: 2Birds1Stone's hustle to freedom!

Post by George the original one »

Quickly looking over your spending, it looks like 35-40% gets spent on vehicles & entertainment. I would think figuring out how to reduce these expenses without affecting the enjoyment you perceive should be a high priority in your quest for FIRE? Imagine the RV living cost dropping to the $19k-24k range... how might that change your plans?

2Birds1Stone
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Re: 2Birds1Stone's hustle to freedom!

Post by 2Birds1Stone »

George the original one wrote:
Wed Apr 12, 2017 10:07 am
Quickly looking over your spending, it looks like 35-40% gets spent on vehicles & entertainment. I would think figuring out how to reduce these expenses without affecting the enjoyment you perceive should be a high priority in your quest for FIRE? Imagine the RV living cost dropping to the $19k-24k range... how might that change your plans?
That's a fair assessment.

Last year I spent right around $25.2k, this year I should come in between $25-26k, so I'm already close to that range.

I guess one thing I haven't really gotten into here is my hobbies/interests etc. I am a big believer in spending on things/experiences/etc that align with someone's values. I try to keep my fixed costs as low as possible and indulge in areas where I feel the value is there.

That being said, I could definitely get that number pared down.

Part of it will happen naturally due to depreciation curve on the car I purchased. I spend $16.9k on a sports car last year gently used with 21,450 miles, the original owner paid $45k for it. It should depreciate less and less as time goes on.

Entertainment tends to vary quite a bit, last year I averaged $248 in "entertainment" per month, and $280 in "travel". Both of these are completely discretionary but worth it to me. Combined, these two categories only represented almost exactly 5% of my take home pay. So while I am definitely looking to maximize my utility of $$, I am not sure how much lower I can cut this without adjusting my lifestyle significantly.

Edit : Just to clarify, the $24-30k in my previous post was for the two of us. My $25k/yr in spending is for just myself.

2Birds1Stone
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Re: 2Birds1Stone's hustle to freedom!

Post by 2Birds1Stone »

It's been awhile since I've updated here.

Dove head first into a training program and have built up to about 20 miles of running and 80 miles of cycling a week.

Leaving for Poland on Friday, will be gone till July 16th. Really looking forward to seeing my family, doing some hiking and exploring.
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2Birds1Stone
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Re: 2Birds1Stone's hustle to freedom!

Post by 2Birds1Stone »

*Late*
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2Birds1Stone
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Re: 2Birds1Stone's hustle to freedom!

Post by 2Birds1Stone »

Did a lot of consolidating on the different bank accounts I had.

Still very cash heavy in the overall portfolio.

classical_Liberal
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Re: 2Birds1Stone's hustle to freedom!

Post by classical_Liberal »

...
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Allagash
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Re: 2Birds1Stone's hustle to freedom!

Post by Allagash »

Very impressive, you are in a tremendous place for your age and making great progress. Nice detail in your journal.

I think two big keys for you are low rents and low groceries. How do you keep rents at $550/mo? And where do you live in the U.S. to have $550/mo in rents (including utilities)? My guess is you split with your SO?

Do you have home internet? I didn't see this in your expenses.

So glad you add vehicle depreciation in your expenses. SOOOO many people leave this out! I bought my car for cash 2 years old in Jan 2012 for $14k (including tax and registration) and I could get $6k for it today, so my depreciation has been $121/mo.

Is restaurants under entertainment?

I'm impressed with how you spent $3.70 per day in 2016 on food. I spent $6.16 per day in 2016 as a single guy and I eat simpler than anyone I know. I guess you get economies of scale splitting with your SO.

I spent $38,700 in 2016, so I get an F. I dream to spend what you did $25k, Where you really kill me is rent (I pay $1,250 no including utilities you pay $550 including utilities). I also have to cover my own health ins being FI self-employed, and I have costs related to my S Corp (accounting, payroll, etc...)

You have a good life too and do a lot of travel on that $25k. Having a $550/mo rent including utilities helps a lot.

2Birds1Stone
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Re: 2Birds1Stone's hustle to freedom!

Post by 2Birds1Stone »

Thanks for stopping by! I'll try to answer your questions here instead of line by line.
Last edited by 2Birds1Stone on Fri Feb 05, 2021 4:22 am, edited 1 time in total.

Allagash
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Re: 2Birds1Stone's hustle to freedom!

Post by Allagash »

2Birds1Stone you are another one of these super impressive young folk on this site that has their head screwed on right. The future is so bright you gotta wear shades. Keep it up man!

I notice a theme on this sight that having a SO or roomates is a big ERE secret for many, especially in high cost areas. Keep that little gal you got that gets half the bills....I'm in my 40's and the datin' ain't easy no more...it was a hell of a lot easier in my 20's and the gals were purdy-er back then, should have locked up one back then. Toughest nut to crack as a single 35+ in HCL areas is rent/housing....b/c roommates are a NO GO ZONE past early 30's (at least for me they were...they even sucked a lot pretty much past 25).

2Birds1Stone
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Re: 2Birds1Stone's hustle to freedom!

Post by 2Birds1Stone »

....makes me wonder how I react when I lose multiples of that during the next stock correction or bear market.
Last edited by 2Birds1Stone on Fri Feb 05, 2021 4:23 am, edited 4 times in total.

2Birds1Stone
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Re: 2Birds1Stone's hustle to freedom!

Post by 2Birds1Stone »

Mini Update

As long as the compensation offer is where I want it to be, I will accept.
Last edited by 2Birds1Stone on Fri Feb 05, 2021 4:23 am, edited 1 time in total.

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