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Old 08-09-2016, 04:58 PM   #21
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We ran 3 models. Bare bones, modest and "generous" (my term - DW says it's to show what it could end up being if I buy too many toys). The bare bones reduces charity, travel and so forth, and we did it more to agree in advance what cuts to make if some part of our financial plan evaporates - e.g. if SS fails. It's not likely to happen, but having a plan in advance made us feel better.

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Old 08-09-2016, 05:17 PM   #22
Recycles dryer sheets
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As much as I hate to quote Anthony Robbins...

After he put out his personal finance book, I came across a few reviews and discussions on it. One concept I liked was how he characterized different levels of financial independence:
  • Financial Security = Core spend is covered
  • Financial Independence = Overall regular spend is covered
  • Financial Freedom = Everything you want to buy is covered
I would edit it to 4 levels, taking Freedom down a notch and adding a top level of Financial Abundance.

Without putting a tag on it, the rungs of my Financial Independence ladder are as follows:
  1. My passive income covers my half of our core spend (utilities, groceries, etc. No discretionary)
  2. My passive income covers my half of our average yearly spend (including travel, fun, eating out)
  3. My passive income covers all of our core spend
  4. My passive income covers all of our average yearly spend
  5. My passive income covers all of our average yearly spend and allows us to travel internationally 6 months/yr.
  6. My passive income covers all of our average yearly spend and allows us to travel internationally 6 months/yr and we can be splurgy.

The missus and I kind of calculate our FIRE separately because she has a DB plan (though we still keep a holistic view on things).
I calculate my FIRE, against all these levels but I specifically want to achieve level 5 so if the missus' retirement nest egg/DB Pension doesn't pan out, I've got it covered. If it does pan out, then we can hit level 6.
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Old 08-09-2016, 05:18 PM   #23
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I have GAAP expenses but I prefer to use non GAAP like most of the stock market

Thus the $2000 for those new injectors is not reported.
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Old 08-09-2016, 07:15 PM   #24
Recycles dryer sheets
 
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Quote:
Originally Posted by YVRRocketSurgery View Post
As much as I hate to quote Anthony Robbins...

After he put out his personal finance book, I came across a few reviews and discussions on it. One concept I liked was how he characterized different levels of financial independence:
  • Financial Security = Core spend is covered
  • Financial Independence = Overall regular spend is covered
  • Financial Freedom = Everything you want to buy is covered
I would edit it to 4 levels, taking Freedom down a notch and adding a top level of Financial Abundance.

Without putting a tag on it, the rungs of my Financial Independence ladder are as follows:
  1. My passive income covers my half of our core spend (utilities, groceries, etc. No discretionary)
  2. My passive income covers my half of our average yearly spend (including travel, fun, eating out)
  3. My passive income covers all of our core spend
  4. My passive income covers all of our average yearly spend
  5. My passive income covers all of our average yearly spend and allows us to travel internationally 6 months/yr.
  6. My passive income covers all of our average yearly spend and allows us to travel internationally 6 months/yr and we can be splurgy.

The missus and I kind of calculate our FIRE separately because she has a DB plan (though we still keep a holistic view on things).
I calculate my FIRE, against all these levels but I specifically want to achieve level 5 so if the missus' retirement nest egg/DB Pension doesn't pan out, I've got it covered. If it does pan out, then we can hit level 6.
What dollar amount do you use to figure international expenses for 6 months? Just curious.
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Old 08-09-2016, 09:36 PM   #25
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Quote:
Originally Posted by tdv2 View Post
What dollar amount do you use to figure international expenses for 6 months? Just curious.
I'm using $60k CDN for the 6 months of international travel combined for the two of us. It's based on total spend (for a 3 week trip to Japan and Korea last year which ended up being somewhat less than $300/day CDN and rounded up. I'm going to track expenses for an upcoming 2 week European cruise to see how closely the daily spend aligns. I'm expecting the cruise trip though to end up being closer to $400/day combined.

The Japan and Korea numbers were all budget hotel stays and eating out. When we retire, I'm expecting our trips are a bit longer which would possibly allow us to cut accommodation costs via a longer term rental on some occasions and food costs by cooking local ourselves. Also, the plan would be to do a mix of four, 1.5 month trips instead of one long 6 month trip which would hopefully average out higher cost destinations with lower cost destinations.

We're read about singles travelling a year for about $20k but staying in hostels, primarily travelling to SE Asia, some working under the table a bit, etc. We want a bit more flexibility than that. Hoping our budget will allow that.
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Old 08-09-2016, 11:03 PM   #26
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We made sure that the ER budget covered all our expenses of the final working years as a minimum.
We were confident to be able to live on less.
But we did not want to risk regrets.
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Old 08-10-2016, 07:45 AM   #27
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I have two projected budgets - a "bare bones" budget and a normal one. I intend to keep w*rking at least until the normal budget is covered, but it's comforting knowing the bare bones budget is covered, in case that decision is taken out of my hands.
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Old 08-10-2016, 02:21 PM   #28
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We have a bare bones budget and the one we now enjoy. If things went south we know we can make it.
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