Financial Independence Unusual FIRE Path--overcorrection |
| Unusual FIRE Path--overcorrection Posted: 04 Dec 2020 11:37 AM PST Thought I'd share in case anyone was in the same boat as me. Essentially I started out deep in the hole, and have created a path to FIRE as a side effect of digging myself out. Middle class kid growing up. Went to college. As sort of a surprise (due to family stuff), I graduate with 240k debt at a little less 6% not dischargeable in bankruptcy (due to legislative change). This seems overwhelming on any likely entry-level salary, so I do a professional degree to ensure higher income starting out. Next, I experience a series of unfortunate events. My mother takes ill while I'm in school, and I start supporting her and paying her medical expenses out of pocket, which I will do for about 8 years. This is before you could get insurance for pre-existing conditions so it's rough until Medicare kicks in. At the same time, wife takes ill, end up doing support and out of pocket off and on for about 4, until she recovers. At some point, I have to move to an expensive area for work. So I do about an 80-100 hour week while being generally frugal for 10 years to make ends meet. I also get very lucky by surviving a couple layoffs with minimal unemployment during the great recession. Over time, through no fault of my own, my salary grows to about 300-400k/year. About four years ago, horrible financial things stop happening (more or less), and I take off like a rocket. Now I'm at a NW of 950k. 500 liquid-ish (not retirement) split 450k invested and 50k in cash. 200k in tax-advantaged retirement accounts (also invested). 250k in house. 700k mortgage at 3%. One more kid to go. Two income family, knock on wood. ~6k/month in total expenses (factoring in deductions). Could theoretically live on partner's salary, but only just. Considering doing FIRE once the post-tax money is around 1m and net worth is around 1.7m. The notion of making less than 2x expenses post tax is terrifying, but I might try a year to focus on health and family at least. Anyone else screw up and overcorrect their way to financial independence? I feel like the traditional path is to be a banker or a tech person who rode the Obama/Trump markets, and I seldom see folks like me. [link] [comments]  |
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