How FI am I now?

When on the journey to FI, it is always interesting to know if there is progress, standstill or regression. Tracking the status is a very good way to get a view on the trend. Hence, I put the amberindex back in the spotlight.

For a long time, I have not posted about my progress on the FI journey. The last post I made on this dates back from the end of 2017. When I go back into my archives, I even find data that shows that I was at 45pct FI in june 2018. AWSOME…?!?

Where are we today on the FI journey?

After a review of the 2019 expenses, I now have a new baseline for my expenses and thus a new target FI number.

In my current calculations, I use 3,5pct safe withdrawl rate. Somehow, this feels better than the 4pct rule. I think this might change over time, Especially withe the concept of Barrista FI that I read about.

Let’s cut the crap and throw out the new number!

I am now 11,39% FI!

I do not feel bad anymore on the drop from 45% to 11pct. I am over that. I am adjusted to the new reality.

I also have a new view on FI and the journey to FI. That can be a fat FI journey as well. More on that later.

That 11,39pct is now my new baseline. I started logging all data again so that I can adjust going forward would assumptions change. Here is what I do now

Assume a 3,5 pct Safe Withdrawl Rate. Maybe 4 is better or 3? I do not know.
I do not count my emergency fund and holiday money in here. Holiday money seems a no brainer as it will be spent on holiday. Emergency fund is debatable
I keep legal pensions that I can only acces at 65 73 (or whatever number it will be by then) out of scope. For an early retirement, they are not accessible.
The net value of my house is not in here. It is not a money generating asset. Selling it and renting/living elsewhere creates a new situation that I do not want to thinker about now. I can see then what it means in terms of numbers.

How FI are you?