I guess this thang is turning into a series much like my previous charting of debt payoff… hmmm!) I’ve been reading reddits like r/financialindependence for quite some time, I mean HELLO, I’m a PF blogger.. gotta keep up with those trends! With all my recent talk about making changes in my life over the past couple of months I figured I’d do a short post regarding what my actual FI number is… cause I gotta figure some of this stuff out!
10 days ago I sat down to review a realistic budget for the future, in a way that allows me to work part-time (about 20 hours per week) but also allows me to keep enjoying the lifestyle I have had for the past 1-2years. Which, in short, can be summed up as: travel a lot, live on very little, cook a lot of good food, live strangely compared to the rest of my community whom are all head-over-heels-in-debt and enjoy more of every day… without working so bloody much.
This is what I want. I want to work, I want to be productive, I want to spend time with my family and friends and PEOPLE, I want to garden and plant things and grow food, I want to volunteer, I want to spend more time on cycling and next winter on snowboarding, I want to read more, I want to read so much more and infuse my brain with STUFF. I also want to write. I can’t do all of those things if I continue to drown myself in workaholic-ism.
So, I established that a real budget for me looks about so; $839/month = $10,068 per year.
That’s pretty realistic spending in a way that I already spend now.
Things not covered in this budget:
- Buying expensive things like a new bicycle or an expensive new smart phone or computer or other widget
- Alpine membership next winter, $214+hst
- Significant medical bills
- A new vehicle
- Any other big purchase
- Living on my own (we are not married, I always like to be realistic)
Real spending last year came in at about $15k, travel came in additionally at 17 weeks of travel: $6,610.32 , that’s a bit on the high side and I don’t anticipate most years to go like that.
So take roughly $20grand and I have a pretty grand life and more than enough to play with. 10k on my normal budget, 6k travel and 4k on whatever else I dream up? That’s pretty sweet.
(Yes, I’m kidding…:D)
Conventional wisdom, according to no website in particular, (although Retire by 40 gives a decent enough explanation that I don’t have the energy to rewrite) states that you should have about 25x your living expenses saved to not run out of money before you run out of life. That’s however based on 30 years and since I do plan to live to 100… B) I have 67 years to go from now aaaand that’s not gonna cut it. But for now… I’ll run with it since I don’t plan on actually retiring and not working at all… close enough.
25x my annual expenses is only $500,000. Or a little more basic, 25x my bare bones budget of $10,068 = $251,700. Thats a little more attainable! With my current portfolio however that’s still a while away, but it’s nice to know what my numbers might look like.
Edit: whoops! Almost forgot to add this awesome resource; FireCalc