Hey there! Welcome back to My Early Retirement Journey. In case you’re just joining us, here’s a little bit about me. I am a single 30-something, openly Christian, hesitantly immigrant-y, human woman. I love watching TV while eating takeout, and I want to retire early. I currently work as a consultant in a tele-health call center making around $40/hr. I started my professional life in 2015 at the ripe ole age of 31 after a few false starts. I spent 2016 paying off about $10,000 worth of credit card debt. I spent 2017 paying off about $20,000 in private student loans; I still have about $300,000 in federal student loans for which I am currently on an income-based repayment plan for the next 25 years, give or take. I started really getting into savings and investing late 2017 when I stumbled upon the FIRE (financial independence, retire early) community. In 2018, I made the decision to try to save for a sabbatical and maybe if all goes well continue the journey to early retirement. Along this journey, I give all sorts of updates, just like this one.
This is the June 2018 Update of my savings and investments balances, i.e. my personal capital. I don’t call it net worth because my massive student loan debt keeps me at a negative net worth and frankly that’s discouraging.
I tried my hand at Excel to make a simple bar graph. It took a few hours to remember all the words. I kept getting so many error messages. So if it’s been awhile since you tried Excel, don’t give up after the first error message! Once you figure out what they’re asking for, it only takes about 15 minutes to format.
Let’s quickly recall some budget items:
2018 Savings goal: $37,000/yr (2017: no goal)
Monthly savings contributions: $3115/mon
When you add in my Safety Net Fund + Regular Savings and Checking, the amount is a little more.
💜 Yay! I’ve sort of reached that enviable $100,000 hump.💜 I’m not celebrating yet. I don’t really count my checking and savings amount yet. I see that as my safety net fund. Experts recommend 6 months. I went ahead and saved for about 1 year of expenses ($30,000) for a couple reasons. First, it was a default choice because I had that first 6 months in CDs and I didn’t want to cash them out when I first started investing in Dec 2017. Secondly, I have this fantasy of just quitting my job and in case I do, I’d like to have 6 months readily accessible. I mean I probably won’t, but sometimes humans do crazy things. Also, both my brokerage account and 401k are using my traditional retirement age of 65 to allocate my funds at a risky 90% in stocks. I keep going back and forth (future scheduled posts), but in short, it makes me feel better to have 1 year’s expenses on hand. I know the compound interest lost is causing investment aficionados to gasp in horror, but again, I’ve only been investing “actively” for about 6 months now. That’s all folks!