Honestly, I hit $20K/mo just on CC. Not counting mortgage. I do out donations on there too, so prob $2k- $3k there. Yes, I do have an expensive wine addiction.
Your FIRE (Financial Independence, Retire Early) Number?
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If including taxes and savings, $20k/month isn't hard to hit without living overly extravagant. Frankly, my retirement number is to have $400k/year without hitting principle. My hope is to have that by 50.
Yep, as an example we were spending ~$5k per year on wine clubs. Cancelled all of them.QBCade said:
Honestly, I hit $20K/mo just on CC. Not counting mortgage. I do out donations on there too, so prob $2k- $3k there. Yes, I do have an expensive wine addiction.
Ah, shoot. You were just getting started.
Ha. Yes. I'm going to have a very nice built-in wine fridge that will be empty soon.QBCade said:
Ah, shoot. You were just getting started.
Time to restock
I've known people who spend multiples higher than that.SoupNazi2001 said:ORAggieFan said:
If including taxes and savings, $20k/month isn't hard to hit without living overly extravagant. Frankly, my retirement number is to have $400k/year without hitting principle. My hope is to have that by 50.
You don't include savings when talking about retirement/Fire. You include actual spending and taxes otherwise you are basically equating to your current income level which is a different topic.
On a separate note, $5K on wine.
That would be me
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That's an average of $13.70/day. Decent bottle every couple days, couple nice bottles when you have guests. I could see that happening without working too hard at it.
You also have to figure the expensive bottles that you save for 2-15yrs.
What are y'all doing with your emergency funds? I currently just have it sitting in Amex Savings get 0.50%.
Just wondering if there's something better to keep it in that's safe, but gets a bit better return than that?
Just wondering if there's something better to keep it in that's safe, but gets a bit better return than that?
No-fee/no-interest checking account at a local bank where you can build a relationship with the lobby manager and credit officer/vp.AgLiving06 said:
What are y'all doing with your emergency funds? I currently just have it sitting in Amex Savings get 0.50%.
Just wondering if there's something better to keep it in that's safe, but gets a bit better return than that?
I keep 6-months of expenses in a personal account (but as mentioned above this is < $10,000). And then $5,000 per rental property in my business account.
After a few years of aggressive savings, the e-fund becomes such a small percentage of your overall portfolio that chasing yield is futile.
My number has always been $3MM in liquid assets ( excluding home base) . I'm 61 and still working.
Savings account at BoA. I use it to keep my total balance high enough so I can max cash back on credit cards.AgLiving06 said:
What are y'all doing with your emergency funds? I currently just have it sitting in Amex Savings get 0.50%.
Just wondering if there's something better to keep it in that's safe, but gets a bit better return than that?
Example: Keep $50,000 in savings. Max cash back rate is 2.625%. Put $8333 on credit card each month. Get $2625 cash back for the year. If you view that as a return on the parked money, that's a 5.25% return.
Granted, the cash back is 1.5% normally, so it's really only a 2.25% net return. But still not bad on an emergency fund, and I don't really feel the need to go hunting for a few hundred extra $$.
94chem,
That, sir, was the greatest post in the history of TexAgs. I salute you. -- Dough
That, sir, was the greatest post in the history of TexAgs. I salute you. -- Dough
On this note, we are those people who earn points and never really use them. As I continue to re-plan our financial strategy for this year, I was investigating our points through CC. Lo and behold, we have $6,300 in points just sitting there. Since travel is pretty much going to be dead in the water going forward I converted all points to cash.94chem said:Savings account at BoA. I use it to keep my total balance high enough so I can max cash back on credit cards.AgLiving06 said:
What are y'all doing with your emergency funds? I currently just have it sitting in Amex Savings get 0.50%.
Just wondering if there's something better to keep it in that's safe, but gets a bit better return than that?
Example: Keep $50,000 in savings. Max cash back rate is 2.625%. Put $8333 on credit card each month. Get $2625 cash back for the year. If you view that as a return on the parked money, that's a 5.25% return.
Granted, the cash back is 1.5% normally, so it's really only a 2.25% net return. But still not bad on an emergency fund, and I don't really feel the need to go hunting for a few hundred extra $$.
Nice little late Christmas present! Going to use these funds to make some house upgrades we were already planning to make. Will cover about half that work.
100k/yr on a credit card!
You do you!
You do you!
Balances at Merrill edge count towards platinum honors. You don't have to keep it in savings at .01%
Not terribly difficult to do if you have the expenses for it. I funnel everything I can (that doesn't have extra fees for using a CC) through cards including almost all monthly bills. My spend isn't 100k, but it's in the 60-75 range.
CCs are more convenient, more secure, and when used right, give you money back on expenses you need to pay anyway. Only way they're bad is if you use them to spend more than you would otherwise spend using cash.
CCs are more convenient, more secure, and when used right, give you money back on expenses you need to pay anyway. Only way they're bad is if you use them to spend more than you would otherwise spend using cash.
Absolutely easy to do. Start with season football tickets, the travel (for me) to get there, regular monthly expenses and it adds up quickly.John Francis Donaghy said:
Not terribly difficult to do if you have the expenses for it. I funnel everything I can (that doesn't have extra fees for using a CC) through cards including almost all monthly bills. My spend isn't 100k, but it's in the 60-75 range.
CCs are more convenient, more secure, and when used right, give you money back on expenses you need to pay anyway. Only way they're bad is if you use them to spend more than you would otherwise spend using cash.
Yep, which is why I have $6,300 on my way to my checking account. That number would be $0 if I didn't use my CC for pretty much everything which I pay off every month.John Francis Donaghy said:
Not terribly difficult to do if you have the expenses for it. I funnel everything I can (that doesn't have extra fees for using a CC) through cards including almost all monthly bills. My spend isn't 100k, but it's in the 60-75 range.
CCs are more convenient, more secure, and when used right, give you money back on expenses you need to pay anyway. Only way they're bad is if you use them to spend more than you would otherwise spend using cash.
A vacation home such as lake, beach, ranch or mountain house, which is extremely common, is a very easy way to rack up expenses.
Instantly double your property taxes, utilities, insurance, and HOA fees. Those also come with boats, UTVs, tractors, etc with the associated maintenance and storage expense. Then the expense of traveling to and from the place. Those homes also lead to hosting guests so more food, groceries and entertainment.
Throw in a few grand kids and this common lifestyle is easy to spend $220k/yr or $100k on a CC.
Instantly double your property taxes, utilities, insurance, and HOA fees. Those also come with boats, UTVs, tractors, etc with the associated maintenance and storage expense. Then the expense of traveling to and from the place. Those homes also lead to hosting guests so more food, groceries and entertainment.
Throw in a few grand kids and this common lifestyle is easy to spend $220k/yr or $100k on a CC.
AKA lifestyle creep
Certainly depends on lifestyle. Please consider these numbers of net worth:
Percentile Threshold Net Worth:
10% $ 1,219,126
2% $ 6,557,023
1% $11,099,166
0.1% $43,207,732
I do not think the 10% number cuts it unless we're talking blue plate special. The 2% is MORE than enough for me. My numbers are simple:
Home: Paid off;
Skull and Crossbones (can't be touched): $500k
Investment Funds: $2.5
Does not include social security, which I honestly have no idea what to expect. Maybe $3k per month? The $2.5 has to be working capital. Big gains are taken off the table in a managed effort. I personally will not work one second more than necessary. I'm not where I need to be but hope to arrive in five years after a couple decades of utter failure. Advice to young people. Plan, plan and then plan some more. The path to wealth is there but it takes planning. While others throw rocks and pine about gender identity, you mow down the field with diligent investing.
Percentile Threshold Net Worth:
10% $ 1,219,126
2% $ 6,557,023
1% $11,099,166
0.1% $43,207,732
I do not think the 10% number cuts it unless we're talking blue plate special. The 2% is MORE than enough for me. My numbers are simple:
Home: Paid off;
Skull and Crossbones (can't be touched): $500k
Investment Funds: $2.5
Does not include social security, which I honestly have no idea what to expect. Maybe $3k per month? The $2.5 has to be working capital. Big gains are taken off the table in a managed effort. I personally will not work one second more than necessary. I'm not where I need to be but hope to arrive in five years after a couple decades of utter failure. Advice to young people. Plan, plan and then plan some more. The path to wealth is there but it takes planning. While others throw rocks and pine about gender identity, you mow down the field with diligent investing.
I retired at 62 and one thing people seem to forget is medical insurance before Medicare kicks in. You better figure a big part of your budget on medical insurance for you, wife, and family. It is a big expense until you are 65. I pay over $12000 a year for my wife's insurance and it sucks. That does not count the deductibles I pay every year. I turn 65 this year and my Medicare cost + supplements is around $5000-$7500 a year. It can be more or less depending on what your income was the previous year, but a lot cheaper than what you pay for Obamacare.
Just remember one thing ... spend your kids inheritance ... If you don't they certainly will.
Just remember one thing ... spend your kids inheritance ... If you don't they certainly will.
Yeah, I've passed FIRE, unless you say 50 is still. Spent too much on kids & living. My perspective is that I want to enjoy life while my body & mind are still too shape. Willing to work longer.
I was retired the first 35 years of my life so i don't mind working the last 35.
200K/yr rental income spendable cash including income taxes accounted for, debt free.
This is the first FIRE thread I've seen that contemplates vacation homes and 5-figure wine habits.
Fat FIRE is just as viable as Lean FIRE.
We personally plan on working until the last one is at least in HS, so 8 years more or thereabouts If we bail at that point, it puts at RE at 50/51.
We will hit full FI (including college and private school tuition) in about 3 weeks. Starting to look at alternate income streams in order to be less dependent on the market in general, and a single stock specifically. If we can get to 100-200K passive per year to go along with our equity investments, that should mean we can either live out a great retirement, give a ton, or pass it on to our boys - hopefully all 3.
We personally plan on working until the last one is at least in HS, so 8 years more or thereabouts If we bail at that point, it puts at RE at 50/51.
We will hit full FI (including college and private school tuition) in about 3 weeks. Starting to look at alternate income streams in order to be less dependent on the market in general, and a single stock specifically. If we can get to 100-200K passive per year to go along with our equity investments, that should mean we can either live out a great retirement, give a ton, or pass it on to our boys - hopefully all 3.
Yeah, I was pointing it out because vacation homes are a very common retirement or lifestyle goal. It's not an outlandishly lavish lifestyle and is very common with successful Aggies. Most on here are inherently ambitious.
I imagine many have the goal of early retirement while not compromising on lifestyle. It's pretty clear the frugal lifestyle method of living off rice and beans, but I imagine that lifestyle is not the reward attracting the FIRE pursuit.
My guess is most on this forum are searching for the balance of somewhere in between the two extremes.
I imagine many have the goal of early retirement while not compromising on lifestyle. It's pretty clear the frugal lifestyle method of living off rice and beans, but I imagine that lifestyle is not the reward attracting the FIRE pursuit.
My guess is most on this forum are searching for the balance of somewhere in between the two extremes.
The save 90% of salary, never eat out, buy beater cars and shop at thrift stores so you can retire at 40 on $50K annually is a strange sub set.
So much sacrifice to spend an entire life with no cable, cutting coupons to food town and going to library for movies vs. Netflix. Everyone has free will but such a strange flex I've seen with the movements.
So much sacrifice to spend an entire life with no cable, cutting coupons to food town and going to library for movies vs. Netflix. Everyone has free will but such a strange flex I've seen with the movements.
Living like the school custodian and dying a millionaire is definitely not what anyone should strive to be.
Fire should mean retiring while still living the same/better lifestyle IMO.
Vacation/second homes are definitely expensive to upkeep but find the right one that STR well. This is the best of both worlds. Go to your retreat when you want, and rent it out the rest of the time. Most people do not spend but 4-8 wks at their second homes anyways. Why not rent it out the other 40+wks.
We currently rent out our vacation home that easily pays for all of the operating costs.
Fire should mean retiring while still living the same/better lifestyle IMO.
Vacation/second homes are definitely expensive to upkeep but find the right one that STR well. This is the best of both worlds. Go to your retreat when you want, and rent it out the rest of the time. Most people do not spend but 4-8 wks at their second homes anyways. Why not rent it out the other 40+wks.
We currently rent out our vacation home that easily pays for all of the operating costs.
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