We also had to pay stamp duty in July which was around $18K cold hard cash □□Īnd that’s it! I will keep the FIRE Progress chart rolling every 6 months so it doesn’t clog the visual too much. This is because $106K of cash was poured into our PPoR and we’re not including that asset in our FIRE portfolio because it doesn’t produce any income. You’ll notice a bit of a dip for this month for our 4% withdrawal.We plan on selling our last IP this year anyway so the FIRE portfolio will be made up of some cash but mainly shares in the future I’m lumping cash and real estate equity into the 4% rule to make it easier.So theoretically (using the 4% rule), our FIRE portfolio could fund a lifestyle of $2,404 a month right now. Divide that number into 12 and we get $2,404. So for July 2021, our FIRE portfolio is $721,461. We’re using the 4% rule for this calculation and I’ve gone back and done the rough calculations for the last 6 months so the graph looks a bit prettier (as opposed to just having one data point).Now that we’re in our house, the expenses should start to be more consistent The expenses are all over the place because we’ve had a few one-off items this year like the wedding and buying a home.How much money can we draw from the FIRE portfolio to fund this lifestyle.How much money are we spending to maintain our lifestyle.Now, this chart is actually the most important one and displays the two metrics that determine if we have reached FIRE. So without further ado, here are the new charts Once the 4% line eclipses our expenses, I will officially declare us FIRE and it will be the end of these updates.I will include a 4% line that will show what our portfolio could theoretically redraw in retirement.The same chart will also include how much money we’ve spent each month.This will only include income-producing assets and will not include our PPoR There’s a new chart (below) that will show our FIRE progression.The PPoR is going to be included as an asset.It’s not the best number to determine FIRE status but it does give a complete picture of our finances so it’s staying in I’m keeping the net worth number to be as transparent as possible.I have been thinking all month about what to include and exclude in these updates moving forward and come to the following conclusion. A major component of them is to give a practical guide as to how we’re going to fund our retirement once we hit FI.Īnd the net worth figure alone doesn’t really tell the whole story. Because whilst the purpose of these net worth updates has mostly been about keeping us accountable and giving some inspiration to others. So this update has been a long time coming. I feel like we’ve ticked off some major milestones in 2021:īut buying a home was the big one (wedding close second □) and it really feels like we’re embarking on the next chapter of our lives. It’s the little luxuries like a walk-in wardrobe, ensuite and open plan kitchen that just makes us feel super appreciative of the position we’re in. We have two spare bedrooms atm but hopefully, they will be filled in the not so distant future □. Mrs FB and I have always rented in pretty modest apartments since moving out of home because it’s all we needed. But going through all that just makes this feeling so much sweeter. Working, eating and sleeping in a tiny bedroom in SE London whilst flat sharing with 3 roommates. It’s such a far cry to where we were just 12 months ago. Yeah, moving sucks and it took a few weeks of setting everything up until it felt like home… but man… there’s just no better feeling than being settled in your very own castle with your wife □! We got the keys on the 9th and I couldn’t be any happier with how it’s all turned out. The table at the bottom details our entire journey from being $36K in debt all the way until we reach □Ī coupla big changes for these updates as we kick off a new financial year.īut before I dive into that, I have to talk about the big milestone for July… which was moving into our new home □. The formula to be able to retire early is simple, the hard part is being consistent and sticking to a plan for many years. I publish these net worth updates to keep us accountable, inspire others and show that reaching financial independence in Australia is very doable without winning the lotto, having a high paying job or inheriting a wad of cash.
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