USGrant1962
Thinks s/he gets paid by the post
When I retired last year I had a withdrawal plan of $X/month that I would transfer from Vanguard to my bank for expenses. No problem so far. Now, I have some consulting income and instead of just blobbing it in with the rest of my portfolio, or transferring to my bank to offset my monthly draw, I have in mind to pay for various specific things with it. So my back-of-the-envelope plan is to fund, in this order:
1. $2K, small upgrade to my home office (Aeron chair, new laptop, some computer upgrades).
2. $XK, 1st quarter estimated taxes
3. $5K, we bought a new car and wrote the down payment out of my Vanguard MM, I'll "refund" that to my portfolio
4. $7,900, HSA contribution
5. $20K, annual iBond purchase
6. $XXK, renovations to the summer house
7. $6,500, Roth IRA
8. Q2, Q3, Q4 estimated taxes when due.
These were generally already in my FIRE budget (except additional IRA contributions) so this is all just mental accounting.
But, I find that thinking this way makes my paid consulting gig even more fun. Being a megacorp lifer and LBYM, I've never really had to worry earning X to pay for Y. I don't really now, but find it kind of rewarding to get a consulting check and say to myself "this pays for my laptop and Aeron chair".
For folks that are FIRE, what are your strategies for "extra" income? Do you chuck it in your portfolio, blow the dough, offset your planned spending, or something else?
1. $2K, small upgrade to my home office (Aeron chair, new laptop, some computer upgrades).
2. $XK, 1st quarter estimated taxes
3. $5K, we bought a new car and wrote the down payment out of my Vanguard MM, I'll "refund" that to my portfolio
4. $7,900, HSA contribution
5. $20K, annual iBond purchase
6. $XXK, renovations to the summer house
7. $6,500, Roth IRA
8. Q2, Q3, Q4 estimated taxes when due.
These were generally already in my FIRE budget (except additional IRA contributions) so this is all just mental accounting.
But, I find that thinking this way makes my paid consulting gig even more fun. Being a megacorp lifer and LBYM, I've never really had to worry earning X to pay for Y. I don't really now, but find it kind of rewarding to get a consulting check and say to myself "this pays for my laptop and Aeron chair".
For folks that are FIRE, what are your strategies for "extra" income? Do you chuck it in your portfolio, blow the dough, offset your planned spending, or something else?