April is the ninth anniversary of Frugalwoods! Onerous to imagine I’ve been doing this for thus lengthy but am nonetheless invigorated and excited to sort phrases at you and assist folks with their cash!!!! That is–by far–my longest tenure at a job and I’m not able to give up or hearth myself!
Us at 29. Can’t imagine that was A DECADE AGO
To rejoice, I’m going to write down a sequence of reflections by myself writing over the previous 9 years. Do I agree with my previous self? How have my views modified? When I began Frugalwoods on April 9, 2014, I had simply turned 30, I lived within the metropolis of Cambridge, MA, I’d been married to my husband for six years, we had been each working 9-5 workplace jobs and we had zero children.
Rather a lot occurred within the intervening 9 years!
I now work part-time (~23 hours/week) on Frugalwoods, which has grown to incorporate:
I really feel fortunate to do that work and deeply grateful to all of you for occurring this winding (and infrequently long-winded) journey with me!!! Thanks for being right here and for sharing your tales with me.
How I Received Right here
I began writing Frugalwoods as a result of I felt misplaced.
Mr. FW biking off to work after we lived within the metropolis
I’d simply realized I didn’t need to work at a desk in an workplace beneath fluorescent lights each Monday by way of Friday for the subsequent 35 years. I used to be solely 30 and already counting right down to 5pm each single weekday. And I had a terrific job. A job I used to be lucky to have. A job at a nonprofit that paid fairly properly. However these info–these checkboxes–didn’t make me content material or fulfilled. I felt like I used to be bumping by way of life as a balloon simply ricocheting off of different folks’s expectations. I wished to alter how I lived. I wished extra freedom and self-direction. I wished extra space.
The best way my husband, Nate, and I made a decision to attain that was by way of monetary independence. We figured if we lived frugally sufficient and saved properly sufficient, we might obviate work-for-pay from our lives. We’d now not be beholden to an employer’s schedule, calls for or location. We’d additionally, in fact, now not have that employer’s wage, retirement advantages or healthcare. So… only a few issues to determine!
The total story of our evolution is in my ebook, however the define is that we dove into the idea of FIRE (monetary independence, retire early) and decided that if we had been ruthless, we might in all probability eek our technique to monetary independence by our mid-30s.
I outline monetary independence as now not needing to work for cash.
Kidwoods and Littlewoods with sunflowers and pumpkins from our backyard
Which means we now have sufficient in property (taxable investments, retirement investments, actual property and money) to have the ability to drawdown a sustainable proportion of those property yearly with a view to cowl our dwelling bills with out operating out of cash earlier than we die. We decided that is by way of a substantial amount of math, on-line calculators and modeling in excel.
If you wish to run your personal numbers, and analysis easy methods to attain FIRE, I extremely advocate the next sources (since that is NOT back-of-the-envelope math):
- The Wealthy, Broke or Lifeless Put up-Retirement FIRE Calculator: Visualizing Early Retirement Success and Longevity Danger
- All the things from the MadFientist
- Early Retirement Now’s Sequence of Returns Danger posts
- JL Collins’ well-known inventory sequence, or, his ebook The Easy Path to Wealth
How We Reached FIRE in 23 Easy Steps (hah!)
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Us in faculty, age 21
We graduated faculty with out debt and each discovered jobs instantly. That is an immense privilege as a consequence of the truth that our dad and mom helped us pay for college.
- We bought married at 24, so we grew up collectively and began planning for our monetary future at a extremely younger age. The sooner you begin saving and investing, the extra years it’s important to reap the advantages of compound curiosity.
- Put up-marriage we had been low earnings and didn’t have a lot in financial savings, so we lived in a basement condominium and had been frugal by necessity. No inherited cash, belief funds or household cash for us.
- We had been in a position to keep away from debt, which enabled us to place all extra cash into financial savings, versus servicing debt.
- We steadily climbed the ladder in our respective careers and elevated our salaries over time.
- We lived under our means and socked away extra cash into retirement and financial savings.
- Early on, we set a objective of shopping for our own residence. This appeared ludicrous at 24 when our internet price was like $2,000, however we plugged away at saving up a downpayment.
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Married in 2008
We managed to save lots of ~$60k in money by the point we had been 27 and purchased our first dwelling in 2012 (this home is now our rental property).
- Now we do… not-so-good. After shopping for our home, we didn’t set one other huge monetary objective and so… I’ve dubbed these years (ages 27-30) the “pre-Frugalwoods hedonistic heyday.” We had been DINKS (twin earnings, no children) with salaries that had elevated over time. We lived in a enjoyable metropolis and went out to eating places, espresso retailers and bars. Rather a lot. We began shopping for extra stuff, we inflated our way of life and our spending saved proper up.
- Then we hit 30 and malaise took over. We requested ourselves, “Is that this all there may be to life? Working a job you don’t wish to earn money to spend to assuage your unhappiness over working the job you don’t like????”
- We had a joint quarter-life disaster that ushered in what I now name the “lean Frugalwoods years.”
- We articulated our objective of quitting our workplace jobs and shifting to a rural plot of land.
- To make this occur, we dove into excessive frugality. We saved cash with the zeal of the lately transformed and there wasn’t a factor I wouldn’t reduce in service of our monetary independence/rural homestead objective.
The “lean Frugalwoods years” had been a particularly efficient detox. We eradicated rather a lot from our spending, together with:
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The place we met at age 18 and bought engaged at 23! (a school lecture corridor: the peak of romance 😉 )
All consuming out: bars, eating places, espresso, take-out, work lunches, and so forth
- Shopping for clothes
- Shopping for non-necessities (equivalent to dwelling decor, make-up, and so forth)
- Paying for haircuts
- Leisure that price cash
- Train that price cash
- Title one thing and we in all probability eradicated it
Doing this compelled us to establish our priorities. It was a transformational expertise that made us understand how a lot cash we’d been losing on stuff that finally didn’t matter to us. If you wish to do that train your self, my free Uber Frugal Month Problem will lead you thru the steps we took.
→Eliminating every part is a straightforward means to determine what you worth and what you need to add again into your life.
Us at age ~30; the peak of “lean Frugalwoods”
It’s primarily Marie Kondo-ing your funds. You take away every part from the sock drawer of your spending after which YOU are in command of deciding what goes again in. It was a obligatory examination for us, however after a couple of years, we realized it wasn’t sustainable for a lifetime (at the least, not for us).
We would have liked to discover a center floor, however there’s no means we might get to that center floor with out first dropping right down to the bottom floor.
Dawn view from our again porch
Throughout 2014–our first lean Frugalwoods yr–we vacillated between saving 65%-82% every month making our common financial savings fee 71.4%. This was achieved, sure, by way of excessive frugality, but additionally by way of having good, white-collar salaries. I’m beneath no delusion right here; there are however two variables on this equation:
- Earnings
- Bills
If we’d had decrease incomes, we wouldn’t have been in a position to save almost this a lot. We hit our monetary independence quantity a couple of years later, however made the choice for Mr. FW to proceed working as a result of he loved his job properly sufficient, it paid extraordinarily properly and he was in a position to work remotely from our homestead in Vermont. We additionally wished to pad that FI quantity as a result of extra is all the time higher.
Again to our 23 Easy Steps…
Our homestead within the woods
14. We bought our Vermont place in late 2015 (the identical week Kidwoods was born, which for the file, I don’t advocate… though it completely labored out).
15. I left my workplace job after Kidwoods was born and began working extra hours on freelance writing and Frugalwoods.
16. We moved to Vermont full-time in Might 2016 and commenced renting out our Cambridge home in June 2016.
17. We continued to save lots of at a reasonably excessive fee–sometimes saving all of my husband’s wage and dwelling off of my earnings mixed with the rental earnings.
child + ebook child: born weeks aside!
18. We had our second daughter, Littlewoods, in 2018… mere weeks earlier than my first ebook revealed! I appear to have a knack for birthing kids at REALLY disturbing/busy instances.
19. Within the spring of 2021, we made the choice for Mr. FW to retire from his job as a software program engineer after being with the identical firm for 14 years.
20. We paid off our Vermont mortgage previous to his retirement, for causes which might be absolutely defined on this put up.
21. I continued to work part-time at my favourite job of all time: serving to folks with their cash!!!!
22. We’ve by no means initiated a drawdown of our property as a result of we’re in a position to proceed dwelling on my earnings mixed with the online revenue of our rental property. We “practiced” this for a number of years whereas saving my husband’s earnings, which was a superb technique to decide the feasibility of this plan.
Mr. Frugalwoods, higher referred to as Nate, current day
23. If I resolve to cease working, or the rental ceases to be worthwhile, or some mixture thereof, we are able to all the time begin a sustainable drawdown, per our above FIRE calculations.
All in all, I’m very cognizant of the function that privilege and luck play in our successes.
Certain, we labored arduous, however we had been additionally dealt a profitable hand at delivery and continued to rack up privileged alternatives over time. That reality is just not misplaced on me and I do know I’m a really lucky particular person.
Current Day: April 7, 2023
That brings us to the current day and what I establish because the “Frugalwoods monetary upkeep section” (hat tip to my favourite podcast). We’ve settled right into a extra temperate model of our previous selves, which extends its tendrils into each side of our lives. This moderation performs out not solely in the way in which we spend cash; it permeates every part we do.
We spend greater than we did throughout “the lean years,” however lower than throughout our “hedonistic heyday.” I believe we’ve hit that center floor the place we’re not continuously leaning into excessive frugality, however we’re nonetheless considered about our spending.
Littlewoods, now age 5!
We proceed to take a position for retirement (by way of my solo 401k), contribute to our taxable investments, save into 529 faculty financial savings plans for our youngsters, and add to our Donor Suggested Fund for charitable giving. Our earnings is way decrease than when my husband was working, however we dwell fortunately and we dwell properly.
Crucially, we now have the time, house, freedom and readability of goal that we lacked 9 years in the past.
My early Frugalwoods posts define these lean years intimately and my hope is that this nine-year retrospective will allow me to light up the center floor, the upkeep section, the sustainable-for-a-lifetime place we’ve (hopefully) arrived at right now.
I stay up for excavating a few of my years-old posts, a lot of which I haven’t checked out since I first wrote them. And because you’re on this journey with me, I MUST know…
What previous Frugalwoods posts are you curious about listening to an replace on???
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