Financial Freedom Blog Post #11

 Dear Reader!

I know, I know. Back so soon?

I just couldn't stay away.

So, let's revisit our dear friends Millennial Revolution. Remember to buy Kristy's new book, which is amazing!

So, again, we calculated how long it would take to reach our number ( $1,004,955.00 ).

(Note: I realized I calculated this wrong and I'm actually saving even more than this, so please see the updated chart below):

Year	Balance	Savings	ROI	Total	Age
1	$206,281.96	$31,985.88	$12,376.92	$250,644.76	34
2	$250,644.76	$31,985.88	$15,038.69	$297,669.32	35
3	$297,669.32	$31,985.88	$17,860.16	$347,515.36	36
4	$347,515.36	$31,985.88	$20,850.92	$400,352.16	37
5	$400,352.16	$31,985.88	$24,021.13	$456,359.17	38
6	$456,359.17	$31,985.88	$27,381.55	$515,726.60	39
7	$515,726.60	$31,985.88	$30,943.60	$578,656.08	40
8	$578,656.08	$31,985.88	$34,719.36	$645,361.33	41
9	$645,361.33	$31,985.88	$38,721.68	$716,068.89	42
10	$716,068.89	$31,985.88	$42,964.13	$791,018.90	43
11	$791,018.90	$31,985.88	$47,461.13	$870,465.91	44
12	$870,465.91	$31,985.88	$52,227.95	$954,679.75	45
13	$954,679.75	$31,985.88	$57,280.78	$1,043,946.41	46
14	$1,043,946.41	$31,985.88	$62,636.78	$1,138,569.08	47
15	$1,138,569.08	$31,985.88	$68,314.14	$1,238,869.10	48
16	$1,238,869.10	$31,985.88	$74,332.15	$1,345,187.13	49
17	$1,345,187.13	$31,985.88	$80,711.23	$1,457,884.23	50
18	$1,457,884.23	$31,985.88	$87,473.05	$1,577,343.17	51
19	$1,577,343.17	$31,985.88	$94,640.59	$1,703,969.64	52
20	$1,703,969.64	$31,985.88	$102,238.18	$1,838,193.70	53
21	$1,838,193.70	$31,985.88	$110,291.62	$1,980,471.20	54
22	$1,980,471.20	$31,985.88	$118,828.27	$2,131,285.35	55

And you can see we are now between 12 and 13 years (not too shabby if I do say so myself!). Of course, if we have children, this number will only go up. 

To update on Mr. ItF, he has perhaps $1,035,000 now (I suppose he has done much better than I have. While I have increased about $50k, he's over doubled his money. How does he do it? I don't know. S&P 500 I guess).

So even with children I think we could still reach FI within 8 to 9 years. Though once we have children, we will have to decide if I should keep working until 55 or not (a whole 21 more years! The suspense!!).

So let's go back to #4: 

4) What is your annual, monthly, weekly and daily savings goal?

Again, using Grant's calculator, we can see here:

Year	Annual	Monthly	Weekly	Daily
1	$784,233	$63,345	$14,537	$2,076
2	$371,393	$29,999	$6,884	$983
3	$233,989	$18,900	$4,337	$619
4	$165,444	$13,363	$3,067	$438
5	$124,442	$10,052	$2,307	$329
6	$97,211	$7,852	$1,802	$257
7	$77,850	$6,288	$1,443	$206
8	$63,405	$5,121	$1,175	$168
9	$52,239	$4,219	$968	$138
10	$43,366	$3,503	$804	$115
11	$36,162	$2,921	$670	$96
12	$30,208	$2,440	$560	$80
13	$25,215	$2,037	$467	$67
14	$20,977	$1,694	$389	$56
15	$17,343	$1,401	$321	$46
16	$14,199	$1,147	$263	$38
17	$11,457	$925	$212	$30
18	$9,051	$731	$168	$24
19	$6,927	$560	$128	$18
20	$5,042	$407	$93	$13
21	$3,362	$272	$62	$9
22	$1,858	$150	$34	$5
23	$507	$41	$9	$1

(Note: I updated it so the correct year is highlighted - Year #12).

Interestingly enough, if we compare these two charts, they match up. If I save $31,985.88 (and invest it) every year, then I can retire in 12 years, which matches Grant's chart exactly.It is still pretty astonishing to see that if I save just $5 every day I can retire one year earlier.

However, there are other considerations at play which means it may very well be 21 years.

The good news is that if we have a child and I need to contribute less to my 403(b), that I only have to save and invest $3,362 a year to be on track for 21 years. Of course, it may be much nicer to retire early. 

There are actually quite a lot of items you can get for your child free (with swap meets, parents' Facebook groups, etc), so the main cost is really childcare at this point. We actually typed out a budget estimating how much a child would cost, and it comes out to about $3,118.75 a month on top of our existing expenses.

The most costly of these was childcare: roughly $1683 a month. However, if you think about it, quitting your job to raise a child (which somehow just feels different from retiring early to raise a child, though really, it's sort of the same thing), will lead you to lose out on prime years when you could be contributing to your 403(b) or 401(k) as your case may be.

Here is a great article on the topic:

https://money.usnews.com/money/personal-finance/family-finance/articles/2017-10-30/the-high-cost-of-being-a-stay-at-home-parent

One example, taken directly from the article, explains a woman becoming a stay at home mom for five years would lose a whopping $665,445 - this isn't even taking into account how hard it is for women to return to the workforce after they have children! So, if we take that into account, it could be much more than $665,445 - since we should keep in mind that is only for five years.

However, on the flip side, most FIRE'rs usually say that they don't want to miss out on the prime years of raising their children - it's true you will never get those years back, while money is just money, right? And you can always get SOME kind of job, right? Even if that means working at Starbucks or being a Wal-Mart greeter (just some of the jobs I hear getting thrown around for Barista-FI'ers).

Personally, I have a pretty good job right now. It has its ups and downs but I feel quite lucky to have a white-collar job. Once I get older, the chances of me getting this same white-collar job may not materialize.

Thanks for listening to my rambling.

I remain, your,

Into the FIRE

Financial Freedom Blog Post #10

Dear Readers, 

It's me, Into the FIRE. 

How have you been? Well, I hope. 

We're going to do a little recalculation today to see how our numbers have been shaping up!

So let's start from the beginning.

Let's start from question #2: 

2) What are your current annual expenses?
3) What is "your number"? (This is 25 times or 30 times your annual expenses.)
4) What is your annual, monthly, weekly and daily savings goal?

So far I have the data for #2 and #3.

Exact averages month by month for 2018 were explored in Financial Freedom Blog Post #4, so I will just paste the average for all 12 months for 2018:

Average for 2018:

$3,045.09

2019 was missing more than a few months, so I will re-paste the prior months' averages as a refresher for you:

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
Sep 2019	$5,039.99
Oct 2019	$3,888.60
Nov 2019	$4,392.86
Dec 2019	$2,652.36
Average for 2019:	$3,292.77

I will also include the averages I have so far for 2020:

Month and Year	Total Spent
Jan 2020	$5,078.29
Feb 2020	$5,704.09
Mar 2020	$3,629.14
Apr 2020	$2,417.21
May 2020	$3,459.47
Jun 2020	$2,071.96
Jul 2020	$3,621.55
Average for 2020:	$3,711.67

You will notice there has been a trend up in the average spending so far. This is due to travel expenses. I imagine these might go down if/when we retire early since we will not be limited by vacation time, and we would be able to travel during the cheapest periods instead.

Also, in September 2019, there was a spike in the average spending. This was due to a rather large purchase of home goods from IKEA. This was necessary for Mr. ItF's sanity, so I consider this unavoidable. They say "Happy wife, happy life!" which is true, I guess, but it's important to consider your spouse's happiness even if they aren't the "wife" in the relationship. :)

So... the new number without further ado:

Average Spending per month (for Jan 2018 to Jul 2020):				3349.85
Average Spending extrapolated to a Year (Average):				40198.2
My 'Number' (25x Average Yearly Expenses):				1004955

So now you can see due to the higher averages, my new number is $1,004,955.00, which is an increase of $103,746.45. I'm not particularly phased by this increase despite the fact we didn't get any raises this year. :)

Although I plan to post more today, I'm going to split this up into a new post, so the posts are more manageable to read.

Thank you for reading,

Into the FIRE

Bored at home? We've got another discounted activity for your enjoyment!

My Dear Reader,

Are you enjoying your time at home??

I hope you are.

But if you're not... Have you ever thought about learning Mandarin?

I made a friend when I went to Beijing, China. She was our tour guide for about half a day, if I am remembering correctly. She's an amazing businesswoman, and even came to live in NYC for a short while.

She's starting a brand-spanking-new business and I've got a discount just for YOU!

It's a whopping 15% off!

Her nickname is Sunflower, and here is her website:  https://lookmandarin.com/ 

The discount code is Dim Sum. Unfortunately, when you register, it won't say you have 15% off, but Sunflower has promised me if you use the discount code, she will get you your 15% back that you pay afterwards. She's very trustworthy, don't worry. :)

Good luck with your Mandarin studies!

Ever yours,
Into the FIRE

Stuck at home? Try this!

Hello Dear Reader,


Are you stuck at home due to the coronavirus pandemic?

Why not try watercolor painting?

Here is what you need:
HB pencils and eraser
Small and medium round painting brushes
Watercolor Set of Paints
300 Gram Cold Press Watercolor Paper


All the materials may cost around $30 or so, for perhaps an hour or two (or more) of pleasure! So that is nice.

Now, what if you're a total newbie?

Here is where my good friends Lago Artes come in! Lago Artes is a small, family-run business that teaches watercolor painting in person and virtually.

Now, normally they charge 25 euros per person, but for Few and FIRE Between readers, you can get a huge discount and only pay 15 euros per person! Now, you ask: what if I want to pay in USD?

Don't worry, you can pay 20 USD per person! The euro price may be a better deal, but since we don't know how the exchange rate will fluctuate, these are the prices they agreed to offer our dear reader. Also, if you pay in euros you may be subject to the exchange rate.

So how do you get this great deal? You need the promo code: ITF2020 . You can pay them through PayPal: lagoarte@gmail.com . In the message, just mention my handle (Into the FIRE) and the promo code (ITF2020). You should also mention that this is payment for the virtual watercolor class, and how many people the payment is for.

Here is their Facebook page to make your reservation:
https://www.facebook.com/lagoartes/

I recommend you contact them for availability before paying so that you can ensure that their schedule matches up with yours!

Note: I do not get any commission from Lago Artes. I only receive a small commission from the Amazon links for the products listed above (but again, at no extra cost to you!).

Thank you for reading and happy painting!

Ever yours,
Into the FIRE

Opportunity to win $25,000! (Either mail-in for free or invest $500)

Hello Dear Reader,

It's your favorite FIRE blogger, Into the FIRE (just kidding ;P - there's plenty of FIRE bloggers out there much cooler than I am ).

Anyway, I wanted to share with you this opportunity I found today to win $25,000 from Wealthfront.

Here are the official rules.

Note, I get no affiliate benefit from sharing this with you! :). Just sharing out of the goodness of my heart.

A few key excerpts: You do not need to invest to win. If you do not wish to invest, you must mail in to enter.

See here:

(b) Entry Without a Wealthfront Cash Account: If you do not have an active Wealthfront Cash Account, you may enter each Applicable Sweepstakes for free by mailing a 3×5 card containing (i) the “Code” listed in Table A that corresponds with the Applicable Sweepstakes to which you are entering; (ii) your first and last name; (iii) phone number; and (iv) email address to: Wealthfront Sweepstakes c/o Sync Marketing LLC, 3905 State Street #7 Box 506, Santa Barbara, CA 93105-5107. Upon Administrator’s receipt of your 3×5 card, you will receive one (1) entry in the Applicable Sweepstakes. You must send one (1) 3×5 card for each Applicable Sweepstakes you wish to enter. Limit: one (1) 3×5 card per entrant per Applicable Sweepstakes.

3×5 Card Entry Details: The Administrator will discard any 3×5 cards that (i) do not contain all required information described above or (ii) contain more information than is required by these Official Rules. Discarded 3×5 cards will not receive an entry. 3×5 cards for each Applicable Sweepstakes must be postmarked on or after the Applicable Sweepstakes’ start date and before or on the Applicable Sweepstakes’ end date. All 3×5 cards for an Applicable Sweepstakes must be received by the Administrator on or before the third business day that follows the Applicable Sweepstakes Sweepstake End date as listed in Table A below in order to be eligible.

Now, if you do invest to win:(a) Wealthfront Cash Account Entry: If you have an active Wealthfront account (i.e., account is open and funded) in good standing as of the end of the Applicable Sweepstakes Period, you will automatically receive one (1) entry in the Applicable Sweepstakes, subject to the entry limits below. Limit: one (1) entry per person/account holder per Applicable Sweepstakes. If you do not wish to participate in all Sweepstakes, you can opt out by sending an email to support@wealthfront.com.

The minimum investment is $500. Personally, I don't like investments such as these. Wealthfront takes a small fee for robo-investing, but it's still a fee for something that I could do on my own.

So if you do enter, I'd suggest mailing in. $25000 for a $500 return sounds great, but remember you are competing with everyone who has an active Wealthfront account.

So, your odds aren't that great, but it's better than playing the lottery (probably).

If you do mail in, I've copied the table from the official rules below:

TABLE A
Applicable Sweepstakes Periods and Approximate Winner Selection Dates
Applicable Sweepstakes	Sweepstakes Starts	Sweepstakes Ends	Winner Selection (on or about date)
Sweepstakes 1 Code: WFSWEEP1	March 20, 2020	March 26, 2020, 5:00 p.m.	April 3, 2020
Sweepstakes 2 Code: WFSWEEP2	March 27, 2020	April 2, 2020, 5:00 p.m.	April 10, 2020
Sweepstakes 3 Code: WFSWEEP3	April 3, 2020	April 9, 2020, 5:00 p.m.	April 17, 2020
Sweepstakes 4 Code: WFSWEEP4	April 10, 2020	April 16, 2020, 5:00 p.m.	April 20, 2020

Best of luck to you! And please stay safe and wash your hands in these trying, crazy, coronavirus times!

Yours truly,

Into the FIRE

Really cool opportunity to win $10,000!

Dear Reader,

I’ve found a very cool opportunity for you to win $10,000! It also relates to travel hacking - so a double win!

So, MIT has come up with a really cool travel aggregator (with some sweet bonuses like weather and points of interest). It’s called Escape.

Right now, they’re running a promotion for you to get $10,000 if you can plan the cheapest around the world itinerary.

Here’s my referral link (no cost to you, and it gives me no money, but another entry into the competition if you use my link): https://greatescape.co/ref/g52318247 

I’d really appreciate it if you could use my referral link in thanks for me informing you about this.

Even if you don’t want to enter, just check out the cool tool MIT has put together. Who knows, maybe you will plan your next flight with their tool!

Good night, 
Into the FIRE

ChooseFI Documentary Search!

Dear Reader,

Exciting news! You can apply to be part of the ChooseFI Documentary Search!

Here is the link.

There is an in-depth written portion and a video portion.

They also require you to sign a video waiver.

Yours truly, Into the FIRE, actually applied but I didn't submit the video waiver. There were portions of it that didn't exactly feel right to me. I've submitted an email requesting clarification and I'll keep you updated on the news!

I heard they will be following 6 families on their FI journey.

This seems really exciting and fun.

If you apply, I hope you get picked!

Warmly,
Into the FIRE

Disclaimer: The above link is not an affiliate link and I do not get any kickbacks. There should be no application fee. If at any point you are asked for money or payment, you have clicked on the wrong link. Thank you :)