December Freedom Fund Update: We Are Very Close to Declaring Financial Independence

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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 progressdeclaring financial independence

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.

Featured image by Farmgirlmiriam
First post image by Sarangib

Please like & share:
November Freedom Fund Update: Progress is Not Always Visible
January Freedom Fund Update: We Reached a Dividend Goal Last Month

Mr. Enchumbao

I work for a large investment management company helping people save for traditional retirement. During my spare time, I write about our FIRE journey here, at Enchumbao. My journey to FI began in 2012. I was in a lot of debt back then, but I turned things around and became debt free a few years later. My wife and I reached financial independence in 2017 and are preparing to retire soon.

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6 Responses

  1. EL says:

    Hey congrats on reaching 94% of FI. What side hustles will you consider next year when you reach the goal? Will you move after also, when you officially resign? I have a longer way to go to reach my goal, but its good to see others accomplishing it. I think Ill be able to reach FI in 8 years. IF the DOW goes to 100K ill join you sooner. Good Luck.

    • Thanks! We’re not thinking of resigning next year since we want to save some more for a house in the future and have extra funds to help our parents. I can see us working for another 1-2 years after we become FI. It will depend on our circumstances but it’s a great feeling to know that we can pull the plug anytime after we reach our FI goal and do side hustles if we want to accumulate more for the other priorities listed above.

      I’ve been giving a lot of thought of what we would do after we officially resign. I’m trying to stay focused on things that I want to do without money being in the equation. We’ll continue to blog because we enjoy it even if it doesn’t bring a penny in profits. I’ve been getting back to piano lessons (on my own) so maybe I get good enough to play at piano bars! 🙂 Who knows? I might be known as a PF blogger and musician over the next 20 years.

      We’ll be moving after we resign since our location is best for work but not for the activities that we truly enjoy.

      Congrats on your FI goal as well. 8 years is not bad at all. If the DOW gets to 100k soon, don’t quit your day job!

  2. SO CLOSE!! I’m sure you can taste it right now. You have the right attitude, you don’t have to suddenly stop everything you are doing, but with FF, you have the freedom to do what you want when you want. That’s the ticket right there!

    I don’t know if you are a fan of the office, but I picture declaring financial independence much like how he declared bankruptcy (heres the link


  3. Congrats! We’re far from as close as you guys but it’s awesome to see someone so close to independence! When you’re there do you plan on quitting your jobs right away or tapering down? I’m in the unusual but fortunate position where I actually really like what I do and don’t plan on necessarily quitting when I’ve hit FI, but I’m curious to hear what you’ll do.

    • Hi Jackie,
      It’s good to be in that situation where you don’t need to quit your job after becoming FI because of dislike.
      We just reached our FI goal last month but are staying put for a little longer. Since we’re planning on moving abroad after retirement we can’t just pick up and go due to our obligations in the States. So we’re giving ourselves between now and next fall to clear our plates from these obligations. While that happens, we’ll continue to save to build a house abroad. Thanks for dropping the congratulatory note! 🙂

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