I’ve got to break free….
I want to break free, yeah….
I want, I want, I want, I want to break free. (Queen)
Don’t we all want to be free?
One way to be free is to embark on the journey to Financial Independence and while on the journey, you have all the time to define what it means for you. Once in a while, it is best to stop and look on the map to see where you are.
So, where are we? We track our progress with the Amberindex. Once this is at 100pct, we have reached FI. This will be the first destination in this journey: be free.
We are ate 27, 4 pct of the target, and exactly on track with our plan to be FI by 2029. Great news just before the year end. Time for celebration!
A lot happened this year: volatile markets, great paper profit in gold and the far less profit in gold, a paycheck cut when changing to a job that increases satisfaction and happiness (the true goal in life?), deciding to spend more on travel, extra income via options… A lot of unplanned events, events that are not in 2029 plan… Be flexible…!
On of the key elements to this progress is the system we have in place wherby we have predifined and priority investment transfers! Highly recommended.
Mr RIP actually asked an interesting question in a comment: how can it be that FIRE is still so long away with a Savings Rate close to 50pct? Good question.
Let me try to answer:
- The SR of 50 pct includes our mortgage payments. The one that only shows money that goes to investments is closer to 30 pct. That makes a big difference. Using the mother of calculators, the difference between 30 pct and 50 pct is no less than 11 years when you would start from 0.
- The plan we have to retire in 2029 is based on a custom spreadsheet that has some inputs. One of these inputs are one off costs that I guesstimate to happen in the future. Think bathroom and kitchen renewals. I prefer to factor in these elements in the plan.
- The plan excludes the house equity and money for travel. These are not assets that we can sell little by little to pay the day-2-day bills. There are people that add the equity in the main house… We do not do that.
Those 3 elements combined are the main reason why we still have 13 years to go. It beats the official age of the Belgian state by 14 years…