New, excited 30 year old hoping to be done by 40

[BadInvestor]

Hi all,

I've been lurking for months now and have been motivated ever since. I am 30 years old, single and decided to post after I hit the 200k(100k Personal/100k IRA) milestone one paycheck early. My dream is to be FI by 40 with about 1M with the help of the market.

Current income is 115K-125K and I have been able to save about roughly 65K across retirement and non retirement this past year. Burn rate is about 25K-35K with a very good lifestyle as my rent and transportation costs are relatively low.


My current financial situation:

Assets:
No Debt
100K Taxable Investments/Savings
105K Rollover/Roth/Employee IRA

Major Expenses:
300-800 Monthly Food bill ( I love to eat)
300 Monthly Rent
Car is 1999 Honda which is reliable and paid off in full by my Parents after graduating high school, so I never had a car payment(and technically never had a car since it is still in their name). Repairs/Maintenance are done by myself and car can go another 5 years easy.
The rest combined with the above will total about 2400-3000 a month depending on gifts, gas, insurance, going out, entertainment, gym membership, gadgets, etc.


I will be updating this with every 50k or 100K update and hopefully this will motivate me to save even more!

Happy new years everyone and thank you for the motivation!
BadInvestor

 

[Ready]

Welcome to the forum. You sound like you are managing your expenses very well, and achieving a very high savings rate as a result. You state that you want to be FI in ten years, but not necessarily retired. That's a good thing, since you are probably too young to know if you will really want to stop working in ten years, but it's always nice when you choose to work because you want to, rather than because you have to.

As for being FI with $1M in savings, I have to wonder what $1M will really be worth after ten years of inflation. I'm not sure if having $1M at age 40 will make you truly FI, but it will certainly put you in very good shape for the future. Keep up the great work!

 

[walkinwood]

Welcome! Congratulations onyour financial achievement.

$1M is a great goal to have. There is always a chance that, as you age, you'll realize you need a bit more - but so what? You will already have the habits that you need to set and achieve a new goal.

A friend told me that many many years ago, I told her that when I had $100,000, I would retire. Obviously, it wasn't a realistic goal, but that desire to retire early remained.

 

[Live And Learn]

Welcome to the forum and congratulations on setting a goal and working towards it. You've made a great start towards being FI. Just don't shortchange yourself by not taking advantage of your young age and good health by "over saving". Remember that its ok to "live a little".

 

[BadInvestor]

@Ready - I completely agree. I probably wont be able to live in comfort with 1M, but the thought that passive income could pay my basic shelter, transportation, and necessities blows my mind. For me its not really about not having to work, its about knowing I don't have to work. Like you said, I don't really know what my desires are going to be in 10 years and my greatest wish is that I don't burn out early and potentially "wasting" my life away.

@walkinwood - Thank you! I recently read an article somewhere about people who write down their goals have a better chance of reaching that goal. This forum is kind of my pen and paper

@Live And Learn - Thanks! I always ponder the delicate "balance" myself, but I really don't feel like I am missing out on anything aside from not owning a house(or mortgage) and/or newer car compared to my peers. This year I was able to enjoy my 1st cruise, and two mini vacations(free flights and price-lined hotels) with very minimal finances.

 

[BadInvestor]

I learned a few things these past 13 months or so.

I learned to live your life and not waste/wait your life away until early retirement. I learned that I probably would need more 1.4-1.6m (or even more) as kids, life, health may necessitate that extra cushion.

I still managed to increase my net-worth by 100k to a total net-worth of 300k but it doesn't feel any different. I hope to celebrate when I hit 500k.

 

[Katiek]

Thanks for posting, I love to hear updates from people. I totally agree with your sentiment that it's not worth living miserably in order to save every cent for a goal in the future. It's possible to enjoy life now, spend money in ways that are meaningful to you now and still save for the future. Sounds like you're doing just that.

 

[Big_Hitter]

300-800 Monthly Food bill ( I love to eat)

ever go to Enchiladas y Mas on Anderson?

that's my favorite Mexican place on the planet

 

[38Chevy454]

Appreciate the update. You are still young and have a great start on savings and a plan to meet your end goals. Way ahead of most of your peers who are paying off debt, live at or above their means, and no real plans beyond surviving the weekend.

So now go blow a little money celebrating your $300K milestone! Important to have fun and enjoy life while you are saving for future.

 

[Big_Hitter]

I learned to live your life and not waste/wait your life away until early retirement. I learned that I probably would need more 1.4-1.6m (or even more) as kids, life, health may necessitate that extra cushion.

Agreed - you're young and living in a young person's town - live a little and keep saving!

 

[TomH]

Here's a curve ball for you...


What if you get married?
What if you have kids?

 

[BadInvestor]

Here's a curve ball for you...


What if you get married?
What if you have kids?

My girlfriend is a saver herself thankfully! Actually it's been quite odd nowadays that she seems more frugal than me.

Yes she does eventually want to get married and have kids one day, but then I will have help from her on the Salary/Networth(instead of dividing by two )

 

[BadInvestor]

I normally wasn't planning on updating until 400k but a "life event" came up that will be forcing me to buy my first car. My 16 year old car was stolen recently and I will be purchasing a new 2016 Subaru Outback (25k). Its more than I wanted to spend but I think somehow convinced myself that I will probably have it for 10+ years and I should get something with a little more room that I can grow into that will align with my lifestyle as well(mountain biking, sports, hunting, camping)

I will be purchasing it in cash but it will take a huge dip out of my savings.

Networth is now at 360k before the car purchase, and salary has now climbed to 139k for 2015.

See yall in 5-6 months!

 

[nash031]

Can't go wrong with a Subi... it'll be my next car purchase (hopefully in >5yrs) and should've been my last one!

 

[Big_Hitter]

^ agreed - I've had about 6 scoobs - that outback should last you a while

 

[Katiek]

I think the car purchase is consistent with what we were discussing. It's important to save and not spend money on things that don't bring you joy, but it's also foolish to try to save a few thousand and end up with a car that doesn't facilitate the things you enjoy. Many safe miles in your new car!

 

[BadInvestor]

This title makes me chuckle.

Just wanted to update that I am over 600k NW! I don't currently(34) feel any wealthier than when I was 32 and had 350k, but it is amazing to see a 250k jump in less than 2 years!

Income is now at 145k.

Since my last post, I purchased a 2016 Subaru Outback and a SFH that I am now renting out. I might be purchasing a place of my own soon hence the cash position.

Cash:120k
Taxable:200k
IRA/Roth/401k:200k
Rental SFH: 290k

Mortgage: 196k

 

[exnavynuke]

This title makes me chuckle.

Just wanted to update that I am over 600k NW! I don't currently(34) feel any wealthier than when I was 32 and had 350k, but it is amazing to see a 250k jump in less than 2 years!

Income is now at 145k.

Since my last post, I purchased a 2016 Subaru Outback and a SFH that I am now renting out. I might be purchasing a place of my own soon hence the cash position.

Cash:120k
Taxable:200k
IRA/Roth/401k:200k
Rental SFH: 290k

Mortgage: 196k

Great progress! Keep it up

 

[Exit 2024]

You are moving to your original goal very fast, keep going, you can get to $1mil way before your 40th Birthday

 

[evilanne]

You are doing great! It's amazing how things move right along when you have a plan that you are working towards

 

[Standard Staples]

This title makes me chuckle.

Just wanted to update that I am over 600k NW! I don't currently(34) feel any wealthier than when I was 32 and had 350k, but it is amazing to see a 250k jump in less than 2 years!

It's funny you say that, because I had noted in my own log that when we hit $1M in assets, it didn't feel like much of a "milestone." I think with those of us that track numbers regularly and with the digitization of money, it's harder to get excited by numbers, as they can often feel as if they're moving too slowly. We aren't hitting the lottery... we're accumulating wealth at a modest pace through hard work and wise decisions.

I'm in a really similar boat as you, in that my NW is up ~$300K since this time 2 years ago... but I don't feel a single bit wealthier. Maybe I need to print fake $1 bills and start piling them in the guest room. Then I can do a Scrooge McDuck money dive when the room gets really full, and it'll feel more real...

 

[BadInvestor]

A quick update since it has been over 2 years since the last.



I am now 36, still single, and have just reached a million dollars in net worth. However with two mortgages and with the continual rise of living costs, I feel more broke than ever, and my next goal is to win the lotto.



Income - 165k


Assets

Taxable - 400k
IRA - 331k
SFH (Rental) - 345k
Primary - 475k


Debt
Mortgage1 -180k

Mortgage2 - 330k

 

[Rianne]

Thanks for update, what happened? You paid $300/month in rent in your first post. Hope the mortgages will appreciate in the long term. Still a good saver, keep it up!

 

[HI Bill]

A quick update since it has been over 2 years since the last.



I am now 36, still single, and have just reached a million dollars in net worth. However with two mortgages and with the continual rise of living costs, I feel more broke than ever, and my next goal is to win the lotto.



Income - 165k


Assets

Taxable - 400k
IRA - 331k
SFH (Rental) - 345k
Primary - 475k


Debt
Mortgage1 -180k

Mortgage2 - 330k

Congrats! $1M isn't what it used to be, LOL. Keep up the good saving and investing and lifestyle!