The Beginning of My FI Journey
This is the beginning of my journey to retire in less than 15 years.
A Little About Me
Ever since I can remember, I have always been somewhat conservative / money conscious. Depending on who you ask, I could be considered wise, foolish, cheap, minimalist, or even frugal. I believe I may have a hand in each pot. However, I think each of those terms have some subjectivity to them. Just like many financial decisions, there are seldom absolutes when it comes to making the “right” decision. For example, is a home purchase “smart”? There are a million variables that go into determining the answer to that question – such as market conditions, price, rate, loan duration, loan type, length of time intended to own, income, location, location, location, future plans (and goals), lifestyle, current debts and liabilities, relationship status, kids, etc. the list goes on and on.
The Decisions
Not long ago, I decided to begin my FI journey – because believe it or not, it needs to be a decision. FI is short for financial independence, and while I am technically financially independent in the sense that I live on my own (with my lovely wife) and do not rely on family or friends for support, I do, however, rely on my 9-5 job (realistically 7-4:30 + a 45-minute commute each way – so technically 6:15am-5:15pm). Very convenient and optimized, right? My goal by the end of this journey is to be truly financially independent; to do what I would like with my time, when I want to do it, and not be held down by the ball in chain of the traditional American dream work hours where I am forever working for someone other than myself. This never-ending hamster wheel is less and less appealing to me the older I get. Not only is this tiring and every day ends with knowing I am going to wake up to repeat it all over again, but there is also no such thing as true job security. I am 100% replaceable, and God forbid I drop dead tomorrow (because no one is guaranteed tomorrow), my company would surely have my seat filled in a week. It sounds harsh, and I mean no disrespect by the company that employs me, but it is the truth of the matter.
The Good, Bad, & Ugly
Enough about the depressing American dream. Let’s talk about perfect timing as I do see the necessity to add that I just recently purchased a $370,000 home at what I see is the peak (if not near peak) of the housing market in June of 2022 when interest rates are nearing 6%. Don’t worry, I was smart (or was I) and put down 5% on a 30-year mortgage instead of the traditional 20%… My COLA just jumped $1,500 a month by the stroke of a pen, pushing my mortgage payments to just about $2,000 a month. Again, was this wise, or foolish? Only time will tell. Not to say that I am in too deep, but I do know my FI journey has begun here regardless of my past and most recent decisions. Recovering, planning, and taking action to increase my savings rate by lowering my controllable expenses is the game, and I am stoked to begin this journey.