MedSaver's Journal

Where are you and where are you going?
MedSaver
Posts: 56
Joined: Tue Nov 24, 2015 1:04 am

Re: MedSaver's Journal

Post by MedSaver » Thu Feb 01, 2018 1:11 am

Hi Fish,

Sorry my reply is tardy. I haven't checked back in for a long time. Thanks for your encouragement. I'm surprised you think our expenses are reasonable. Compared to most people on here my numbers seem reckless. My colleagues vary from very spendy to very frugal so I fit in ok. Most of them do seem surprised that we haven't bought a house, but then again, they don't really know we are planning on FIRE within a decade... We plan to purchase a house within 5 years in the location we want to eventually end up. We plan on keeping that home for a long time.

MedSaver
Posts: 56
Joined: Tue Nov 24, 2015 1:04 am

Re: MedSaver's Journal

Post by MedSaver » Thu Feb 01, 2018 1:13 am

January 2018 Update

Liabilities:

Credit cards = $0

Mrs. MedSaver loans
Total student loans (5 year fixed 3.5%) = $37,037

MedSaver loans
Student loans blended (5 year ~3.5% fixed) = $122,977

Assets:
IRA/Brokerage/403b/457/cash: $715,653

Net:+$555,639

User avatar
Fish
Posts: 383
Joined: Sun Jun 12, 2016 9:09 am

Re: MedSaver's Journal

Post by Fish » Thu Feb 01, 2018 5:43 am

MedSaver wrote:
Thu Feb 01, 2018 1:11 am
I'm surprised you think our expenses are reasonable. Compared to most people on here my numbers seem reckless.
I think it's important to take things in context. If you count debt repayment as savings and subtract out the 20k for the wedding, your 2017 expenses add up to 117k. Compared to your household net income of 300k (which doesn't even include pretax retirement savings?), that's a savings rate of 61% which I find respectable even if the denominator is high. The core expenses (everything except student loans, travel, and the ominous "other") add up to 51k. While this isn't going to win you any frugal awards, it shows that you haven't overextended yourself in your lifestyle relative to income. There are lots of ways to earn 51k besides doctoring. For 300k you only have one option. Assuming you can cut the travel and "other" completely in a hardship situation, you even have 10+ years saved up if you were both to lose your jobs. And still have money in the budget to pay someone else to do the cleaning.

If reducing expenses is a goal, you can try what Scott 2 is doing in his journal and track the categories you're trying to cut. Quantifying what is going into "other" would be a start.

MedSaver
Posts: 56
Joined: Tue Nov 24, 2015 1:04 am

Re: MedSaver's Journal

Post by MedSaver » Thu Feb 01, 2018 11:53 am

I appreciate your insights Fish. We can certainly cut expenses if required in a hardship situation. As far as the "other" category, it is fully quantified but would be tedious to report (and read) e.g. Spotify $10, newspaper $15,etc.

MedSaver
Posts: 56
Joined: Tue Nov 24, 2015 1:04 am

Re: MedSaver's Journal

Post by MedSaver » Sun Mar 04, 2018 3:53 pm

February 2018 Update

Liabilities:

Credit cards = $0

Mrs. MedSaver loans
Total student loans (5 year fixed 3.5%) = $35,893

MedSaver loans
Student loans blended (5 year ~3.5% fixed) = $119,441

Assets:
IRA/Brokerage/403b/457/cash: $698,752

Net:+$543,418

Took a little hit from the stock market correction.

DutchGirl
Posts: 1153
Joined: Tue Sep 06, 2011 1:49 pm
Location: The Netherlands

Re: MedSaver's Journal

Post by DutchGirl » Tue Mar 06, 2018 1:10 pm

You're doing great. Nice progress on paying down the student loans.
And yes, unfortunately as far as the stock market is concerned, stock values are roughly back where they were at the beginning of January. Oh well... At some point, that will recover.

MedSaver
Posts: 56
Joined: Tue Nov 24, 2015 1:04 am

Re: MedSaver's Journal

Post by MedSaver » Mon Apr 02, 2018 8:11 pm

March 2018 Update

Liabilities:

Credit cards = $0

Mrs. MedSaver loans
Total student loans (5 year fixed 3.5%) = $34,655

MedSaver loans
Student loans blended (5 year ~3.5% fixed) = $115,883

Assets:
IRA/Brokerage/403b/457/cash: $678,871

Net:+$528,333

Losses in the stock market continue to mount. Additionally, our tax bill was almost an additional $20k (the marriage penalty is real)...

DutchGirl
Posts: 1153
Joined: Tue Sep 06, 2011 1:49 pm
Location: The Netherlands

Re: MedSaver's Journal

Post by DutchGirl » Tue Apr 03, 2018 12:33 am

I hope you're okay with the turbulent market? I know I am, but I do have a bit less skin in the game than you do.

MedSaver
Posts: 56
Joined: Tue Nov 24, 2015 1:04 am

Re: MedSaver's Journal

Post by MedSaver » Tue Apr 03, 2018 9:48 pm

I'm ok with turbulence or even a recession. If anything, it's time to buy more. It's a weird feeling having swings of tens of thousands of dollars every day though.

MedSaver
Posts: 56
Joined: Tue Nov 24, 2015 1:04 am

Re: MedSaver's Journal

Post by MedSaver » Sat May 05, 2018 6:20 pm

April 2018 Update

Liabilities:

Credit cards = $0

Mrs. MedSaver loans
Total student loans (5 year fixed 3.5%) = $33,465

MedSaver loans
Student loans blended (5 year ~3.5% fixed) = $112,308

Assets:
IRA/Brokerage/403b/457/cash: $706,942

Net:+$561,169

MedSaver
Posts: 56
Joined: Tue Nov 24, 2015 1:04 am

Re: MedSaver's Journal

Post by MedSaver » Wed May 30, 2018 11:51 pm

May 2018 Update

Liabilities:

Credit cards = $0

Mrs. MedSaver loans
Total student loans (5 year fixed 3.5%) = $32,263

MedSaver loans
Student loans blended (5 year ~3.5% fixed) = $108,707

Assets:
IRA/Brokerage/403b/457/cash: $777,170

Net:+$636,200

thegreatvoid
Posts: 42
Joined: Fri May 04, 2018 1:49 am

Re: MedSaver's Journal

Post by thegreatvoid » Thu May 31, 2018 12:18 am

how did you make 75k in a month , if i may ask ?

MedSaver
Posts: 56
Joined: Tue Nov 24, 2015 1:04 am

Re: MedSaver's Journal

Post by MedSaver » Thu May 31, 2018 1:35 pm

thegreatvoid wrote:
Thu May 31, 2018 12:18 am
how did you make 75k in a month , if i may ask ?
The majority (>$50k) was through my retirement plan for work (funded once per year). The balance is regular monthly savings, paying off student loans and market returns.

MedSaver
Posts: 56
Joined: Tue Nov 24, 2015 1:04 am

Re: MedSaver's Journal

Post by MedSaver » Fri Jun 29, 2018 7:52 pm

June 2018 Update

Liabilities:

Credit cards = $0

Mrs. MedSaver loans
Total student loans (5 year fixed 3.5%) = $32,072

MedSaver loans
Student loans blended (5 year ~3.5% fixed) = $105,120

Assets:
IRA/Brokerage/403b/457/cash: $787,262

Net:+$650,070

DutchGirl
Posts: 1153
Joined: Tue Sep 06, 2011 1:49 pm
Location: The Netherlands

Re: MedSaver's Journal

Post by DutchGirl » Sat Jun 30, 2018 1:19 am

Making progress... Nice!

I hope life's okay, too?

MedSaver
Posts: 56
Joined: Tue Nov 24, 2015 1:04 am

Re: MedSaver's Journal

Post by MedSaver » Tue Jul 31, 2018 8:22 pm

Life is ok. I have my health.

MedSaver
Posts: 56
Joined: Tue Nov 24, 2015 1:04 am

Re: MedSaver's Journal

Post by MedSaver » Tue Jul 31, 2018 8:23 pm

July 2018 Update

Liabilities:

Credit cards = $0

Mrs. MedSaver loans
Total student loans (5 year fixed 3.5%) = $31,136

MedSaver loans
Student loans blended (5 year ~3.5% fixed) = $102,241

Assets:
IRA/Brokerage/403b/457/cash: $816,749

Net:+$683,372

DutchGirl
Posts: 1153
Joined: Tue Sep 06, 2011 1:49 pm
Location: The Netherlands

Re: MedSaver's Journal

Post by DutchGirl » Sun Aug 19, 2018 12:28 am

Jan 2016 you had $256796 of assets and $279k of debt. So in those 2.5 years you have reduced debt by $146k and you have grown your net worth by $560k-ish. Total growth of $700k+, partially from income, partially from the stock market. Well done.

Your aim is to have $3 million to $4 million. Seems like that should be doable within the next decade. In the beginning you said that both your wife and you plan to continue to work once you reach this number, so for me that would mean that you can call yourself FI when you reach $3 million, because the growth to $4 million (and beyond) will happen anyway.

Good luck!

MedSaver
Posts: 56
Joined: Tue Nov 24, 2015 1:04 am

Re: MedSaver's Journal

Post by MedSaver » Sun Sep 02, 2018 11:54 pm

Hi DutchGirl,

Yes, we are doing pretty well so far. Digging out of this giant debt hole hasn't been a fun experience though.

MedSaver
Posts: 56
Joined: Tue Nov 24, 2015 1:04 am

Re: MedSaver's Journal

Post by MedSaver » Sun Sep 02, 2018 11:57 pm

August 2018 Update

Liabilities:

Credit cards = $0

Mrs. MedSaver loans
Total student loans (5 year fixed 3.5%) = $29,963

MedSaver loans
Student loans blended (5 year ~3.5% fixed) = $93,743
(I will be making a couple of higher payments on this debt, which is why it has fallen faster than usual.)

Assets:
IRA/Brokerage/403b/457/cash: $845,027

Net:+$721,321

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