Wahoo! FI for the month of FEB 2011

[RetirementColdHardTruth]

Hi guys,

Over the past 4 months I have been paying special attention to all purchases. I have made cut backs on things I felt were not necessary. As you may know I even paid of the house in full.

While doing this I have been tracking income, actual expenses, projected expenses, and how much my total balance for (cash, bond, stock, mutual funds) if invested into 30 year treasuries would spin off.

Well I am happy to report that this is the first time my actual expenses were less than my Financial Independence nest egg would have spun off for the month if it was invested solely in 30 year treasuries paying 4.55%.

I have been using this method as a guide to tell when I could essentially retire risk free. While that is nice, I don't expect my expenses to stay as low as they were this month forever. My true freedom date using the treasury method would be in late 2014. Of course I don't plan on retiring then as I will only be 42. My goal is to continue to grow my wealth and retire around 50-55.

Well I know it was a short month, but it is still nice to see that expense line drop below the FI line on my spreadsheet. Lets hope there are many more months like this in the future.

 

[braumeister]

Nice going!
Now you have a whole new set of milestones to watch for.
Like take your average monthly spending for the past 12 months and see when that crosses the line. Then your highest month, etc.

Each one gives you a nice feel-good moment.

 

[Fireup2020]

Awesome!

(I wish I were this diligent with my planning!)

 

[madcityacct]

Oh man - just imagine if 30 year treasuries were paying 5%

 

[RetirementColdHardTruth]

Oh man - just imagine if 30 year treasuries were paying 5%

Maybe we should say, when they pay 5% rather than if.

 

[NW-Bound]

Congrats!

I have been using this method as a guide to tell when I could essentially retire risk free.

If inflation will stay this low for 30 years, then, yes, you are all set.

 

[walkinwood]

Nice way to gauge your progress. All the very best to you.

 

[RetirementColdHardTruth]

Well again I have done it. It is March 30 and I just tallied up all my expenses and my income and what my retirement nest egg would generate at 4.52% today's closing treasury rate. This is the second month my expenses were less than my retirement nest egg would have generated.

I am taking into account all expenses including those that only come in 1 time a year (pro-rated ofcourse).

Just from tracking this at this level it makes me justify every purchase. But again, I feel I may be taking this retirement planning above and beyond. I am really starting to feel that I am saving too much and maybe I need to purchase a vacation or something? I really don't like expensive toys and such. Maybe just need to live it up a little?

 

[chris2008]

Do you feel you miss out on something at your spending level?
Do you deny yourself experiences you would have enjoyed or meeting friends just to meet your financial goals?
If not, why worry?

If so, try to loosen the belt. Sometimes the ROI is not financial but comes as increased joy of life.
T make sure I get the best ROI I ask myself when I spend for fun items: Did I receive fulfillment in proportion to life energy spent? Life energy defined as the time I need to earn the expense.