Financial Freedom Blog Post #4

Hello Dear Reader!

I'm back!

I know, so soon?

But I'm really trying to get through these action items!

I have a special bonus today.

But first, time for the disclaimer:

Here is the title of the book again: Financial Freedom: A Proven Path to All the Money You Will Ever Need.
But! Here is today's bonus action item! We will be doing an action item from (drumroll, please... ::drumming ensues briefly, rises to a climax, then stops::) Quit Like a Millionaire: No Gimmicks, Luck, or Trust Fund Required! It's Kristy Shen and Bryce Leung's book (founders of Millennial Revolution!) This was an amazing read. It's super educational plus it's interesting to boot. I really recommend it! Pick up your copy today.

So, back to the question:

2) What are your current annual expenses?

Were you enjoying what I thought would be the start of a new series where I break down my monthly expenses? I'm sorry if you were since that will be put on hold indefinitely.

Instead, I've totaled my spending from January 2018 to August 2019 and put together these handy-dandy chart for your (eager?) perusal:

First is the year 2018 (I've broken it down this way so you can see the yearly spend):

Month and Year	Total Spent
Jan 2018	$2,964.27
Feb 2018	$3,829.93
Mar 2018	$3,010.71
Apr 2018	$3,095.49
May 2018	$2,869.13
Jun 2018	$2,367.32
Jul 2018	$2,872.43
Aug 2018	$3,328.17
Sep 2018	$3,476.41
Oct 2018	$3,174.42
Nov 2018	$3,855.42
Dec 2018	$1,697.42
Average for 2018:	$3,045.09

Next is Jan 2019 to Aug 2019 (I haven't calculated my Sept to Oct spending yet, so this will have to do!):

Month and Year	Total Spent
Jan 2019	$2,273.32
Feb 2019	$2,239.56
Mar 2019	$2,667.78
Apr 2019	$3,564.71
May 2019	$2,602.56
Jun 2019	$2,920.77
Jul 2019	$3,846.92
Aug 2019	$3,423.83
Average for 2019:	$2,942.43

And... dun-dun-dun-DUNNN!

Without further ado, here is my number!!

Average Spending per month (for Jan 2018 to Aug 2019):				$3,004.03
Average Spending extrapolated to a Year (Average):				$36,048.34
My 'Number' (25x Average Yearly Expenses):				$901,208.55

So there you have it: $901,208.55 (a little less than one MILLION dollars! Cue Dr. Evil pinky to mouth).

(That answers 3) What is "your number"? (This is 25 times or 30 times your annual expenses.))

Some caveats: I only calculated my spending, I didn't calculate Mr. Into the FIRE's (ItF). However, along with that, here comes our lovely bonus!

So in Kristy and Bryce's new book, they have an action item in the back (specifically, it's Appendix D).

It will show you how many years it will take you to become financially independent (or to reach FI).

So, while I didn't include Mr. ItF's expenses, I also did not include his assets/savings (of which he has considerably more than me). So I am confident this will all work out.

Now, without further ado, please see my chart below!

Year	Balance	Savings	ROI	Total	Age
1	$154,738.11	$10,233.60	$9,284.29	$174,256.00	33
2	$174,256.00	$25,540.49	$10,455.36	$210,251.85	34
3	$210,251.85	$25,540.49	$12,615.11	$248,407.45	35
4	$248,407.45	$25,540.49	$14,904.45	$288,852.38	36
5	$288,852.38	$25,540.49	$17,331.14	$331,724.02	37
6	$331,724.02	$25,540.49	$19,903.44	$377,167.95	38
7	$377,167.95	$25,540.49	$22,630.08	$425,338.51	39
8	$425,338.51	$25,540.49	$25,520.31	$476,399.32	40
9	$476,399.32	$25,540.49	$28,583.96	$530,523.76	41
10	$530,523.76	$25,540.49	$31,831.43	$587,895.68	42
11	$587,895.68	$25,540.49	$35,273.74	$648,709.91	43
12	$648,709.91	$25,540.49	$38,922.59	$713,173.00	44
13	$713,173.00	$25,540.49	$42,790.38	$781,503.87	45
14	$781,503.87	$25,540.49	$46,890.23	$853,934.59	46
15	$853,934.59	$25,540.49	$51,236.08	$930,711.15	47
16	$930,711.15	$25,540.49	$55,842.67	$1,012,094.31	48
17	$1,012,094.31	$25,540.49	$60,725.66	$1,098,360.46	49
18	$1,098,360.46	$25,540.49	$65,901.63	$1,189,802.58	50
19	$1,189,802.58	$25,540.49	$71,388.15	$1,286,731.22	51
20	$1,286,731.22	$25,540.49	$77,203.87	$1,389,475.59	52
21	$1,389,475.59	$25,540.49	$83,368.54	$1,498,384.61	53
22	$1,498,384.61	$25,540.49	$89,903.08	$1,613,828.18	54
23	$1,613,828.18	$25,540.49	$96,829.69	$1,736,198.36	55

So, as you can see from the chart, I should be able to reach FI in 14 to 15 years. I did not calculate any salary increases (which would affect the savings amounts).

Hopefully I will be able to reach this sooner.

Mr. ItF is basically already FI, and he has about $500,000 perhaps, so we could reach FI even sooner in between 8 to 9 years if I have calculated this correctly.

Now, why did I calculate 23 years from now? That's because at age 55, I will be able to tap into a special retirement plan from my company which will cover us with regards to medical insurance until we are eligible for Medicare (Medicare is the old-age health insurance, Medicaid is the low-income health insurance. I always get those confused! Hopefully I got them right here).

So, I hope you enjoyed this special bonus post! I'm excited for the next one.

Thank you again for reading.

I hope you have a wonderful night.

Yours truly,
Into the FIRE