FIRE Tax Time Shock

Let me start by acknowledging that this is a post of privilege. I support paying tax. Sometimes I’m a direct beneficiary of what those taxes are spent on (health, education, roads). If not, my taxes go to benefit others who are not as privileged or lucky as I have been (pension, disability, unemployment benefits). Growth We have the majority of our FIRE savings in a Vanguard Managed Fund. As most of you know, last year was extraordinary in terms of market returns – over 20% for our superannuation, for example. Mr. ETT and I were astounded to see we had earned $40,000, of which $31,000 was Capital Gains. The year ... Show Me More!

March 2018 Spending and New Habits

In 2017, we spent $64,000 on everyday expenses. In 2018 we have the goal to be able to live off one wage, or $60,000. To generate that using passive income and the 4% rule, we’ll still need $1,500,000 invested! Every dollar less we spend is another dollar we don’t have to save up for in retirement. Daily Spending Rate March. Sigh. I knew the health insurance was coming, so I also knew that this was going to be another month we wouldn’t meet our daily spending rate. We are a quarter of the year through, and it’s been normal life expenses that again have pushed us over. I’m feeling discouraged, ... Show Me More!

February 2018 Spending and New Habits

In 2017, we spent $64,000 on everyday expenses. In 2018 we have the goal to be able to live off one wage, or $60,000. To generate that using passive income and the 4% rule, we’ll still need $1,500,000 invested! Every dollar less we spend is another dollar we don’t have to save up for in retirement. Daily Spending Rate I’ve been in avoidance mode all month, because it felt spendy from day 1. This mode is not helpful! We need to calculate our daily spending rate more frequently so we can make course corrections along the way. I will Tweet our DSR once a week as an accountability measure. This month ... Show Me More!

January 2018 Spending and New Habits

In 2017, we spent $64,000 on everyday expenses. In 2018 we have the goal to be able to live off one wage, or $60,000. To generate that using passive income and the 4% rule, we’ll still need $1,500,000 invested! Every dollar less we spend is another dollar we don’t have to save up for in retirement. Not a good start to the year. Our Net Worth dropped and the number of days to retirement increased. Let’s hope we can turn it around! Daily Spending Rate Armed with our new goal, we immediately had a massive spending month. Even including our holiday, in 2017 we only spent $193 a day. This ... Show Me More!

There’s A Fly In My Ointment – 2018 Spending Goals

This time last year, I’d recorded our first yearly spending, and the shock of the number drove me to set a goal of reducing our spending by 10% in 2017. I was fired up and ready to commit, to both financial and personal goals. After achieving our 2017 spending goals, I find myself at a bit of a loss. There isn’t this big, horrible thing driving me, although we know we still spend a good $20,000–$30,000 more than most other Financial Independence bloggers. I’ve been collecting possible ideas in my brain, reading what others are doing, and letting it all swish around. I’m finally ready to put something together. First, the ... Show Me More!