Financial Independence Daily FI discussion thread - Wednesday, February 23, 2022 |
- Daily FI discussion thread - Wednesday, February 23, 2022
- Keeping Up With The FIRE Joneses
- Three Year Update: 40 y/o FIREd
- Weekly Self-Promotion Thread - February 23, 2022
| Daily FI discussion thread - Wednesday, February 23, 2022 Posted: 23 Feb 2022 02:02 AM PST Please use this thread to have discussions which you don't feel warrant a new post to the sub. While the Rules for posting questions on the basics of personal finance/investing topics are relaxed a little bit here, the rules against memes/spam/self-promotion/excessive rudeness/politics still apply! Have a look at the FAQ for this subreddit before posting to see if your question is frequently asked. Since this post does tend to get busy, consider sorting the comments by "new" (instead of "best" or "top") to see the newest posts. [link] [comments] | ||||||||||||||||||||||||||||||||||||||||
| Keeping Up With The FIRE Joneses Posted: 23 Feb 2022 05:27 AM PST Does anyone else here feel like they can't keep up with the other FIRE minded people here? I'm specifically talking about maxing out tax-advantaged retirement accounts, but this applies elsewhere too. For me, our HHI is $130k. We're mid-20's, so I feel extremely forturnate to be in this position (considering I grew up with my parents income never combining for more than $70k each year). We max our HSA and contribute enough to get the full employer 401k match (roughly 10% our contribution), plus we max both of our Roth IRAs. I feel like we underbought on our house (purchased for $250k), and our only other debt is a pickup truck at $550/mo. No student loans or cc's. Every dollar in our budget is accounted for, between Saving, Spending, or Investing. It never seems like we will ever get to golden standard here of maxing out all retirement accounts. On top of that, we do want to do some home improvement projects of both moderate and considerable size (eg. vinyl privacy fence for $8k, bathroom and master bedroom update for $30k) however I have no idea where the funds will come from, given that we are shoveling every dollar we can into investments to set ourselves up for FIRE at age 45-50. Does anyone else feel like they can't keep up with the savings rates on here? [link] [comments] | ||||||||||||||||||||||||||||||||||||||||
| Three Year Update: 40 y/o FIREd Posted: 22 Feb 2022 01:31 PM PST February 22nd 2019 is the last day I worked so it's been 3 years now. Last year's post is here: https://www.reddit.com/r/financialindependence/comments/lppel7/two_year_update_39_yo_fired/ Expenses So unfortunately I've changed the way I spend money and it's not compatible with Mint anymore, so I don't have the full category breakdowns with charts / graphs I've had in the past, but I'll do my best. Taxes: $50,245. I paid $40,000 in quarterly Federal estimated taxes and $8000 in quarterly State estimated taxes, in addition to the $655 I owed for Federal and $1575 I owed for State last April. (I realized a bunch of capital gains last year and had some significant interest income.) Home: $3460. $99 per month for HOA, $515 for the year for Insurance, and I've started investing my HELOC so I have about $185 per month in Interest from that, plus the $50 yearly HELOC maintenance fee. $1520 in property taxes. Healthcare: $4840. Health Insurance was $327 last year and $345 starting this year with Dental going from $26 per month to $28 per month. Got a Crown last year that cost me $565. Utilities: $2450. Electric for the year $842 (just over $100 in the four A/C months, and $50 the rest of the year). Gas for the year $456 (~$70 in the four winter months, $17 for the rest of the year) Internet is still $73 per month ($876). Phone bill is $275 for the year. Automotive: $2175. I spent $1059 on gas last year and drove a total of 5200 miles. Auto Insurance was $506 per six months, twice, so $1012. $105 oil change. No other maintanence, but I'll probably be getting my brakes done and need new tires this year, so that will be a hit. Entertainment: $657. $13.77 for Amazon Prime, $7.99 for Disney+, $17.99 for Netflix, $9.99 for Spotify, and $5 for Clash of Clans. The Prime, Netflix, and Spotify are all reimbursed (~$430 per year). I also spent around $120 on other video games last year. Debit Card: $12,592. Now the categorization problem. I switched over to using a pre-paid debit card (5% cash back) but it does not have Mint integration, and I'm not going to categorize the 400+ lines by hand. I did a quick run through and just threw a "1" next to lines that looked like food / dining / snacks, and a "2" against lines that looked like "misc spending" whether that be gifts, clothes, shoes, bidet, etc. That $12,592 is the grand total I put on the debit card over the year with about $2600 of that total already categorized above (e.g. Prime/Netflix/Spotify, Internet, and some other stuff is all on the Debit Card). Food: My "Food" tally was $8590. This more/less matches the $8000-$9000 in spending I've had the past two years. Purchases: $1408. This included things like my $566 bidet, $80 shoes, a few hundred dollars in Christmas gifts, movie ticket purchases, my $115 concealed pistol license renewal, and other Amazon purchases. TOTAL Ignoring the Taxes section, my total expenses add to $23,580. This pretty much jibes with my expenses from last year ($28,000, but I had several big "one-timers" last year like the $2000 roof assessment and $3500 TV I bought). Investments: I'll just add to the Table I posted last year.
Crypto is down a little bit from where it was 1 year ago, but that still puts me at around $1,670,000 in financial accounts. During the bull run last year for Bitcoin I sold off a bit and moved the money into my brokerage account, which is why I'm going to have a $40,000+ tax bill this year. I also started getting into the DeFi, Crypto Lending / Interest Earning systems. I ended up having interest income of ~$52,000 last year, which is pretty nice given my expenses are in the $25,000 range. And that was just for the partial year, I'm expecting closer to $80,000+ this year. It's a bit risky and out of many peoples comfort zones, but I'd been working out okay for me so far. The Living Part Is this pandemic thing still going on? Has it been another whole year already. I'm still not going out a whole bunch, but it's certainly not as locked down as before. My D&D buddy and his wife had another kid last year and the pregnancy was pretty rough (just constantly tired / nauseous.) So D&D was on hold but I was still going over and playing other games. Going hard on Gloomhaven, and lately we've been playing Terraforming Mars which was surprisingly good. Now that the kid is born and Mom's feeling better, last week we had a quick 30-minute "Session 0" to re-establish where we are in the world, do some in-town tasks (buy new horses since a Troll ate ours...) and what we want to do going forward. I just got a text today inviting me over for D&D this weekend, so yay! Home life is same old. I'm kind of on a 6-8 hour sleeping cycle many days. Get up in the morning, drink some water, hang out listening to a podcast or watching a video, then going back to sleep for a few hours. Lots of periodic napping. Two of my cousins are planning on a cruise getaway in the fall which I might go on. I've never been on a cruise but I want to, and this might be a good chance. My one cousin (36F) has been cruising solo for the past couple years, and now it's her and her brother (34M) who are arranging this thing in the fall. This might be a good opportunity to reconnect. The Cousins have never really been close: we all get along and are excited to see each other, but it was really only a twice a year 4th of July and Christmas situation, which totally evaporated the past two years for obvious reasons. Moving House One last topic, I guess. I'm considering moving house soon. I've been in this 800 sq ft condo for 12 years now and I'm thinking about moving to 1) upgrade and 2) be closer to my circle of friends. Rough Map "B" is the D&D friend and one I hang out with the most but is 30 miles away. As we all get older I can only assume we'll be hanging out together more and more often, especially once these guys start retiring too. I want to move into a bigger (and nicer) place that is more centrally located to my inner circle of 4 close friends. There are some really nice areas over there and I'm looking at places that are currently in the $350,000 to $450,000 range. Things keep coming up for sale and I have my eye on a few neighborhoods, but I'm just not ready to pull the trigger just yet. I'm not really in any rush, there's nothing pushing me other than a mere desire. So I can wait. Wait out the pandemic, wait out the... whatever it is the market is doing right now. Wait for the next Crypto bull run later this year or next year. But I'll keep looking at Zillow and refining what exactly I'm looking for. Maybe one will pop up that I just cannot refuse. We'll see. [link] [comments] | ||||||||||||||||||||||||||||||||||||||||
| Weekly Self-Promotion Thread - February 23, 2022 Posted: 23 Feb 2022 02:00 AM PST Self-promotion (ie posting about projects/businesses that you operate and can profit from) is typically a practice that is discouraged in /r/financialindependence, and these posts are removed through moderation. This is a thread where those rules do not apply. However, please do not post referral links in this thread. Use this thread to talk about your blog, talk about your business, ask for feedback, etc. If the self-promotion starts to leak outside of this thread, we will once again return to a time where 100% of self-promotion posts are banned. Please use this space wisely. Link-only posts will be removed. Put some effort into it. [link] [comments] |
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