Join Early Retirement Today
Thread Tools Search this Thread Display Modes
Planning: Back on track
Old 06-06-2016, 09:17 AM   #1
Recycles dryer sheets
EvrClrx311's Avatar
Join Date: Feb 2012
Posts: 479
Planning: Back on track

Back on track may be the wrong phrase. Much more aware of the suck that life has (had) on retirement progress. A few years ago I assumed I was on a good track to save for retirement, but the spending was getting out of hand... so it's a bit like shooting yourself in the foot (Example: if you save 2 million but need to live on 200K a year). Really got to the bottom of why that was... see I've been saving 20% toward retirement consistently since I started working 12 years ago. I assumed that just continuing a 20% savings rate means I could spend everything else... and so I did. My income has almost tripled since then and I had a epiphany of sorts last year (as I saw my dream to FIRE by 50 keep slipping a year at a time as my income went up)... it's the spending that is a real threat!

2014 Numbers:
Income: $161,000
- Retirement Savings: $32,500/yr
- Cash Savings: $0/yr
- Mortgage: $50,600/yr
- Car(s): $18,000/yr (5 year loans being paid down)
- Living Expenses: $30,000/yr
(Taxes seem to soak up the rest)

(sold house... planning to get back into the housing market, but waiting to find the right kind of place, not a McMansion)

2016 Numbers:
Income: $212,000
- Retirement Savings: $52,000/yr (maxed on company contribution and my own)
- Cash Savings: $50,000/yr
- Rent: $24,000/yr
- Car: $7,200/yr (only one loan now; keeping car till it dies)
- Living Expenses: $30,000/yr
- Travel: $18,000/yr
(Taxes seems so soak up the rest...)

Heading in a better direction...
My income has gone up quite a bit, by my overall spending has gone down. While adding in more travel money (something I love; makes me feel much richer in life) I was still able to reduce spending for the year by 20%... upped my savings by a factor of three. To be honest I do spend some of the "cash savings" but not on anything I would consider yearly or monthly expenses. I'm banking closer to 40% of my income now (not just 20%).

My FIRE date which had been getting pushed back further and further toward upper 50's (raised income seemed to be a negative in that regard) is now in my late 40's. Need to maintain this new philosophy (of sorts) through my 30's and I think I'll be set

EvrClrx311 is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 06-06-2016, 10:13 AM   #2
rodi's Avatar
Join Date: Apr 2012
Location: San Diego
Posts: 6,733
Originally Posted by EvrClrx311 View Post
I had a epiphany of sorts last year (as I saw my dream to FIRE by 50 keep slipping a year at a time as my income went up)... it's the spending that is a real threat!
You're doing better than me... I had that epiphany in my 40's.... And with less income, concentrating on spending was the ONLY way I reached FIRE.

You've gone through a lot in the past few years - and come out of it with a good attitude and good plan. Keep it up.

Retired June 2014. No longer an enginerd - now I'm just a nerd.
rodi is offline   Reply With Quote
Old 06-06-2016, 10:29 AM   #3
Thinks s/he gets paid by the post
Join Date: Feb 2014
Posts: 1,140
Invest some of your cash savings. There is significant inflation risk in keeping too much in cash. An index based portfolio should average about 7-8% return on investment.

You seem to spend a lot on travel. Can you spend less and still enjoy the experience?

I just spent two weeks in Italy--total cost was <$4000.

If you save 40% you should be saving about $80,000 per year. That is phenomenal. Especially if you keep your living expenses at $48,000 (living + travel). Are you investing your savings in an after tax portfolio? Don't keep it all in cash, inflation will eat up the value of cash.
EastWest Gal is offline   Reply With Quote

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off

Similar Threads
Thread Thread Starter Forum Replies Last Post
Planning vs. over-planning for retirement ER Eddie Life after FIRE 49 11-09-2013 06:04 PM
Hoping to get back on track joshm34 Young Dreamers 1 07-20-2011 09:06 AM
Getting back on track / where should I invest? Webzter Young Dreamers 7 05-15-2011 10:01 PM
Hello (again) - RE derailed ER, now back on track (I think!) msbearkeley Hi, I am... 1 03-25-2010 08:19 PM
Need help planning a trip: Denver to Albuquerque and back brewer12345 Travel Information 17 04-22-2007 08:33 AM


All times are GMT -6. The time now is 06:02 AM.
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2016, vBulletin Solutions, Inc.