Story on 38-year old FIRE aspirant

[explanade]

LBMY, after making a mistake in her 20s, hopes to hit $1 million soon.

Indeed, by increasing her retirement savings — she socked away $1,000 in September, the largest line item in her budget — DeFelice can theoretically hit her FIRE number sooner. If she stays focused, she says, she hopes to reach $1 million by age 45. By the traditional FIRE number rules, that would allow her to withdraw and live on about $40,000 a year.

"If I do reach that million-dollar mark, I would feel confident in not having to bring in an income with a standard day job or with my business. For me, though, [retirement] is not the end goal."

She hopes to continue to help people follow her model to reach financial independence of their own. DeFelice is focused on growing Best Money Class Ever, investing any profit the classes generate back into the business.

So a FIRE milestone but not aiming to RE.

Shows her budget in September. Pays cash whenever she can.

Read in CNBC: https://apple.news/A0zdNDjyTTuqq34CdRwf3gQ

 

[pacergal]

Great article, LBYM is the way to get there.
Good for her

 

[4legsgood]

Always paying cash? I prefer 2% back on a credit card paid off monthly. Thinking not needing earned income after hitting 1 million at 45? Not seeing wisdom here. Good luck to her, but I think her plan will keep her in an RV. Retire early great, but there is such a thing as too early for both mental well being and financial reasons.

 

[MarieIG]

Interesting article.

I am a fan of living below one's means - but this lifestyle does not appeal to me. (I'm fine with a restricted lifestyle to pay off debt, a sabbatical, and some life balance along the way, but living long term in an RV would not float my boat.) I would have liked more information on the business. Is it paying into SS for her? Is it paying towards medical coverage? (I did see she had a line item in her budget for medical.) I didn't see anything in her budget for giving to the less fortunate, or mention of any donation of her time (i.e. to an animal shelter/ food pantry, etc.)

Well - different strokes for different folks.

 

[flyingaway]

When she is 45, $1,000,000 is no longer enough.

 

[teej1985]

Interesting article.

I am a fan of living below one's means - but this lifestyle does not appeal to me. (I'm fine with a restricted lifestyle to pay off debt, a sabbatical, and some life balance along the way, but living long term in an RV would not float my boat.) I would have liked more information on the business. Is it paying into SS for her? Is it paying towards medical coverage? (I did see she had a line item in her budget for medical.) I didn't see anything in her budget for giving to the less fortunate, or mention of any donation of her time (i.e. to an animal shelter/ food pantry, etc.)

Well - different strokes for different folks.

All self employed people have to pay self employment taxes, assuming there's sufficient profit.

 

[retire202052]

Marriage?......Kids?......Living in an RV......nope....just my opinion.

 

[ExPatKiwi]

Back in 1985 I started a job that paid $35k/yr in New Zealand which was an eye watering amount in the town I was living in at the time. A million dollars was the winning amount in a lotto ticket and thought of as the amount needed to be setup for life. Now here I am in 2023 and $1million in the bank is no longer seen as enough to retire on for life and the average house price is now a million.

 

[LateToFIRE]

Back in 1985 I started a job that paid $35k/yr in New Zealand which was an eye watering amount in the town I was living in at the time. A million dollars was the winning amount in a lotto ticket and thought of as the amount needed to be setup for life. Now here I am in 2023 and $1million in the bank is no longer seen as enough to retire on for life and the average house price is now a million.

While I would not want to retire on "only" $1M, that would be plenty for most retirees (at a conventional retirement age) in most parts of the U.S., granted more difficult in coastal cities and resort towns. Combine that with social security and its a lock. I know I could do it if I were solo - would spend $100K on a sailboat and spend the rest of my able days living on the water. Or $250K gets you a small condo in FL if aging beach bum is more your style. There are folks on this board who have detailed budgets in the $40K-$60K range, and that is about what my now deceased in-laws spent a few years ago for a very nice retirement lifestyle that included a nice primary home and vacation condo.

 

[hausfrau]

Marriage?......Kids?......Living in an RV......nope....just my opinion.

+1

LBYM and strict budgets are fine with me, but being close to 40 with no family wouldn't be my dream. I'd prefer something on my own property too. Lot rents can be a little iffy. Different strokes and all that...

 

[aaronc879]

When she is 45, $1,000,000 is no longer enough.

Maybe not for you but everyone is different. A $1,000,000 would be well above enough for me at 45. I am 44 and have less than half that and will only do very little self employment work from now on and i'll be just fine.

 

[CaptTom]

She hopes to continue to help people follow her model to reach financial independence of their own. DeFelice is focused on growing Best Money Class Ever, investing any profit the classes generate back into the business.

Looks to me like she's more clever than we're giving her credit for. The article isn't a documentary about her successful life choices. It's an advertisement for her business. Good for her. People love to pay hard-earned money for self-help advice, might as well take some of it.

 

[dunkelblau]

When she is 45, $1,000,000 is no longer enough.

If Sept 2023 is her typical monthly spend (despite the one-offs) of $2676, this would annualize to 3.2% of a 1M portfolio, uplift by 25% from 7 yrs inflation, and this would be 4% which seems pretty close.

Looks to me like she's more clever than we're giving her credit for. The article isn't a documentary about her successful life choices. It's an advertisement for her business. Good for her. People love to pay hard-earned money for self-help advice, might as well take some of it.

Yup, looks like she started a YouTube channel bestmoneyclassever last year and she's been uploading shorts and videos, but it hasn't gained much traction. Gotta admire her persistence.