Just crossed the $3M NW Threshold. 42, and FIRE Seems Close!

[djfiii]

I keep a spreadsheet in which I track my NW monthly, so I have a running series of columns so I can always look back and see how it fluctuated month to month over time.

I just did a preliminary completion of August (I usually do that, and then update on the last day of the month). I'm happy to report that for the first time ever, I crossed the $3M NW barrier.

I never set a specific exit number, but figured it might be in the $3M - $5M range. I'm starting to feel like it's close to time. I'm 42, the wife is 41. No kids. Both in lines of work (technology) where PT consulting from anywhere is easy to come by, if things ever start to feel too tight, which lends further credence to the feeling that I can do it sooner rather than later.

Anyway, just thought I'd share since I was pleasantly surprised as I saw that number crank out a $3 in front.

[edit -sorry, this probably shouldn't be in the "Hi, I am..." sub-forum.]

 

[Ronstar]

Congrats! Quite an accomplishment at such a young age!

 

[djfiii]

Thanks!

I should add that around $500K of that is equity in our primary residence, and I think most folks exclude that from their NW numbers since it's not really "spendable", so maybe I got a bit jumpy

Still feels pretty great though!

 

[Jasonjam83]

Congrats! Very impressive

 

[firewhen]

That is amazing. Couple of observations:

We track net worth but on an annual basis, unless you enjoy it not sure why you need to do it monthly and first forecast and then update it...

Be careful with your FI number, I was also looking at $3- 5M, and the good news is we blew past that but the bad news is I kept working it is very easy to keep plodding along and OMY. Especially with no kids and presumably less expenses, should be much easier to get out of the game.

 

[Vincenzo Corleone]

Congratulations. That's a nice number. My wife and I (also childless) hit that at around the same time you did. Feels great.

I'm curious: how/where are you finding PT work in IT?

 

[Dawg52]

Congratulations. That's a nice number. My wife and I (also childless) hit that at around the same time you did. Feels great.

I'm curious: how/where are you finding PT work in IT?

My old company(paper product and chemical wholesale) hired an IT person part time as we didn't need a full time employee. I know this person also had a PT gig with a small health service firm in my town. There is a need for some smaller businesses.

 

[Toocold]

Congratulations! Great accomplishment. Have you thought of what you want to do now that you are FI?

 

[COcheesehead]

You are in a good place. I found that the numbers really start to work in your favor from this point. The first few million take awhile, but then you should be able to add more millions in much shorter increments. The hockey stick phenomenon. A slight uphill bias over a long timeframe, then at one point it shoots more vertical.

 

[djfiii]

That is amazing. Couple of observations:

We track net worth but on an annual basis, unless you enjoy it not sure why you need to do it monthly and first forecast and then update it...

Be careful with your FI number, I was also looking at $3- 5M, and the good news is we blew past that but the bad news is I kept working it is very easy to keep plodding along and OMY. Especially with no kids and presumably less expenses, should be much easier to get out of the game.

Thanks!

Regarding monthly, there’s no reason other than habit. And it only takes maybe 5 minutes because I’m adjusting balances in a spreadsheet column for a handful of cash, brokerage, retirement accounts, and then associated debt balances (car, mortgage, etc). The totals are just automatically calculated.

Definitely won’t fall into the trap of “keep working”. I’m already formulating specific thoughts about optimal time to leave (maximize RSU vesting, etc).

 

[djfiii]

Congratulations. That's a nice number. My wife and I (also childless) hit that at around the same time you did. Feels great.

I'm curious: how/where are you finding PT work in IT?

Admittedly haven’t looked, but I already work in tech consulting in a very niche space (cyber security, focused on large global banks) and sometimes work gets subcontracted because it’s just hard to find people with this skill set. So I’d just become one of those that gets subcontracted to if/when I feel like it.

So by part time I don’t mean a regular 10-15 hr/wk job; rather, I envision being hired for maybe 2-4 weeks at a time, whenever I feel like it, at an agreed upon rate, and I’d work full time for those 2-4 weeks, and then go back to whatever it is I was doing immediately prior.

 

[djfiii]

Congratulations! Great accomplishment. Have you thought of what you want to do now that you are FI?

Yep!

I love cooking so playing around with the idea of culinary school. I’ve been watching a lot of woodworking videos and think that looks awesome. Being able to make tables with that resin fill, I think would be great. I love traveling and fishing, don’t do enough of that now so will certainly do more. I’ve considered trying sailing and maybe going on a long trip hugging the coastlines. The list goes and goes

 

[djfiii]

You are in a good place. I found that the numbers really start to work in your favor from this point. The first few million take awhile, but then you should be able to add more millions in much shorter increments. The hockey stick phenomenon. A slight uphill bias over a long timeframe, then at one point it shoots more vertical.

Thanks for the perspective - that’s fantastic to hear!

 

[brokrken]

Thanks!

I should add that around $500K of that is equity in our primary residence, and I think most folks exclude that from their NW numbers since it's not really "spendable", so maybe I got a bit jumpy

Still feels pretty great though!

Congrats! I keep track of both numbers, with and without RE. All planning is done without the RE, but the RE is real money, so I like to look at that much larger number, too!

 

[Rianne]

Congratulations! I'm always encouraged by you young'uns achieving financial goals. What are your spending habits? I always tried to balance save/spend priorities. There was a time we hired lawn care, housecleaning, dog sitting but saved the bonus' and majority of the paychecks. And of course the market kept getting better after 2008. We're in a great place at 62 yrs old.

 

[copyright1997reloaded]

We track net worth but on an annual basis, unless you enjoy it not sure why you need to do it monthly and first forecast and then update it...

Had to LOL on this, as I am on the opposite end of the spectrum. I have a google sheet that shows me updates in real time. About 15 tabs worth, things like holdings, % change (day, ytd, since Feb 2020 "peak"), asset allocation (equity/bond/cash/precious metals), Estimated tax liability, Non-fund single stock risk, equity asset allocation by industry, country, ...

The biggest issue is that it is somewhat out of date as I need to enter trade information manually and/or adjust cash in bank data periodically.

As of this minute, I am up slightly on the day.

 

[flyingaway]

That is amazing. Couple of observations:

We track net worth but on an annual basis, unless you enjoy it not sure why you need to do it monthly and first forecast and then update it...

Be careful with your FI number, I was also looking at $3- 5M, and the good news is we blew past that but the bad news is I kept working it is very easy to keep plodding along and OMY. Especially with no kids and presumably less expenses, should be much easier to get out of the game.

If you like travel and playing, it is not a good time to retire in this environment. So OMYs is not that bad.

I actually enjoy adding my accounts together at the end of each month to see where we are.

 

[djfiii]

Congratulations! I'm always encouraged by you young'uns achieving financial goals. What are your spending habits? I always tried to balance save/spend priorities. There was a time we hired lawn care, housecleaning, dog sitting but saved the bonus' and majority of the paychecks. And of course the market kept getting better after 2008. We're in a great place at 62 yrs old.

Thanks!

Our spending habits are way below our income. We are reliably saving $25k/mo at the moment, and annual bonuses/stock are saved on top of that. And by "saved", I mean plowed into various investment vehicles. I do a lot of real estate investing. Also building a vacation house on a ski mountain, but will VRBO it while not there to cover the cost, etc.

 

[Rianne]

Our spending habits are way below our income. We are reliably saving $25k/mo at the moment, and annual bonuses/stock are saved on top of that. And by "saved", I mean plowed into various investment vehicles. I do a lot of real estate investing. Also building a vacation house on a ski mountain, but will VRBO it while not there to cover the cost, etc.

Very nice. Would you teach my 5 nieces and nephews how to build wealth? Only one niece saves every penny she earns into some type of investment fund. The rest think money is for spending. Although they are keeping the economy afloat.

 

[AZ2020]

Thanks!

I should add that around $500K of that is equity in our primary residence, and I think most folks exclude that from their NW numbers since it's not really "spendable", so maybe I got a bit jumpy

Still feels pretty great though!

I include my primary residence. It has $500K worth of equity. If it had negative equity you would include it, right?

Congratulations on making it to 3M! As others have said, the ramp up is quicker now. 4M is likely only a few years away!

 

[Katiek]

Congrats! Very impressive accomplishment and this foundation gives you a lot of options for your future.

 

[Sunset]

Congrats... that is great.

I remember when I crossed an arbitrary savings line, I felt I had made it to "well off".
Then the market tanked and I lost a LOT...

It taught me, before retiring, make sure I have 20% more than my retirement number, so I won't have to work when the market tanks again.

 

[djfiii]

Congrats... that is great.

I remember when I crossed an arbitrary savings line, I felt I had made it to "well off".
Then the market tanked and I lost a LOT...

It taught me, before retiring, make sure I have 20% more than my retirement number, so I won't have to work when the market tanks again.

Yea, I absolutely would pivot most or all of my portfolio to low risk / low return once I actually pull the trigger. That's why I think whatever my number is, it needs to generate enough income for me at like 4% return

 

[targatom2019]

Awesome, now use your bond $$$$ to pay off the house

 

[Love This Community]

Congratulations OP!! Great feat saving high $$.