Welcome to the monthly update of our journey to financial independence, where we report on the progress of our FI tree, aka Freedom Fund. Our mangoes are almost ripe and we’re projecting to reach our goal by July 2017. This means that we’ll have enough investments to live off of without ever having to work again to pay for living expenses. We’ll consider ourselves financially independent when our Freedom Fund is able to support our lifestyle indefinitely. Our Freedom Fund is comprised of all of our income-producing assets such as index-based investments, short-term reserves and a real estate property.
Wow, I can’t believe that the end of the year is already here. December is a very happy month for me. Besides celebrating my birthday and attending holiday festivities, December is also a great month to set financial goals for the upcoming year.
Freedom Fund Progress
Percentage of Freedom Fund reached in November
Our Freedom Fund jumped to 94%! That is a 3% increase from the previous month. If we were to retire today, our investments could cover annual expenses up to $32,905 a year. That puts us $2,095 shy of our annual income goal of $35,000!
Year to date progress
Declaring financial independence
Our goal is to reach financial independence by the summer of 2017. Reaching FI doesn’t mean we quit our jobs or come out of the anonymity. It means that if we didn’t care about having enough to pay for our future custom home, instead of renting, or saving for any other goals, we could break up with corporate America. In that case, we would have to get the additional income by doing side gigs that we’d enjoy.
Quitting our jobs after FI and bringing some side income would allow us to delay withdrawing from our accounts right away and it would also allow us to save for those other financial goals we have in mind. And most importantly, it would provide us with the desired freedom of owning our time. The ultimate goal of FI is to own our time, 100 percent! We want that vaina, coño!
We will, however, stay put after reaching FI. I mean, our jobs are not bad, and, yes, there are certain things that we dislike, but we’re not running for the door. We moved very close to work, so we don’t have the stress of a commute. We try to stay away from climbing the ladder, since (if you’re one of the chosen ones to move up the ranks) that involves double the stress, little extra pay and more corporate bureaucracy. So, we’ll stay put until we’re ready to pull the plug. That would be in about a year or two after reaching FI.
We’re ahead of our FI goal
If trends in the market were to continue, we could hit our Freedom Fund target by April. That is so freaking exciting! I still can’t get over the fact that we are able to accomplish saving and investing for an early retirement in less than four years after we got married. It’s happening and you’re witnessing it all! Thank you for following our journey.
I understand that the day we declare ourselves financially independent nothing will drastically change in our lives, but it is important to acknowledge and celebrate milestones. Sometimes having just one purpose to get up in the morning is all you need to keep you going. That’s why we’ve been counting down to our FI day since the beginning of this blog.
FI is a path to badassity
Working towards financial independence has never been about living below our means. We could live below our means all of our lives, spend most of our money without accruing bad debt and still never reach financial independence. FI is not the usual path to financial wellness that most working Americans follow. It’s not the path that is mapped with home and car loans, expensive college tuitions, credit card debt, saving 4% of income in a retirement account and working for a paycheck until you’re 65. It’s not the path where you just pay bills and then die.
Financial independence is a path to badassity mapped with pure awesomeness! (Thank you, MMM, for that term.) It’s a path that is set by a high savings rate, a debt-crushing plan and a strong desire to make your money work for you until you no longer need to work for the money. It’s a path in which you work doing what you truly love without worrying about a paycheck. It’s a path that pays you with satisfaction, royalties, passive income and unlimited time with friends and family. And best of all, unlimited options to fulfill your true happiness.
Do you really want it? Then, go get it. You also have a chance at this.
What were your financial goals for the month? Did you meet them?
Risk disclosure: All investing involves risk, including the loss of principal. The material contained on this website is for discussion purpose only and should not be misconstrued as financial advice.