Category: Finance

My friend with One More Year Syndrome has finally decided to retire.

She met with her financial advisor earlier this year, and was assured that she has plenty to support herself (and spouse) if she stops working.

However, she came back from that meeting with a notebook and a mission to track her spending. I guess she didn’t really know what she was spending her money on.

In the weeks since, I have heard about her canceling subscriptions, and cutting back on smaller purchases.

Which leads me to wonder: would I rather screw down the clamps on my spending early, perhaps feeling pinched (or at least careful) for most of my high-earning years; or would I rather start watching my spending in the 6 months leading up to retirement?

Continue reading “Would You Rather?”

My oldest cousin called me over the weekend, just to say hi and check in.

In the last few years, whenever I say anything about possibly retiring early, she responds quite strongly, something to the effect of: you’re not old enough to retire! And, what would you do with yourself?

Since she is quite a bit older than me, and her husband is older yet, and they are still working…well, I don’t say much more.

Today she let drop that she will probably retire at the end of next year.

At that time, the grandchild she is putting through college should be graduated.

Hm.

Food for thought when people offer opinions: you often don’t really know where they are coming from.

Over the past 10 years or so, I have set up my life to avoid shopping.

Well, avoiding shopping is maybe too strong a term.

Continue reading “When Habits No Longer Serve You Well”

As I noted in my post about my net worth at the end of 2023, said net worth went up quite a bit since the beginning of 2023. Actually, it went up by a lot.

I’m still thinking about my annual spending for 2023, but it’s clear that my net worth is more than 25 times that amount. My net worth is even more than 25 times my expected spending, i.e. my current spending, plus extra spending to cover health insurance costs, increased travel, anticipated large costs in the future (a new car, a new roof, etc.)

According to guidelines suggested by the Trinity study, if I have assets (liquid assets, no less) of 25 times my spending needs–such that I can live off of a 4% return–I ought to be able to live on my investments for the next 30 years. With a good chance of having lots left over for my heirs when I die.

So, am I FI (financially independent)?

Continue reading “Am I FI?”

Every year, for over 20 years, I take time at the end of the year to look at my finances. (Now “our finances,” but considering who does most of the number crunching, I will continue in the first person for this post.)

I calculate my liquid worth, I review my spending in the year just past, and then take a look at my savings goals for the coming year.

I think these exercises have been helpful over the years, and not just because they tend to keep me off the roads around a dangerous holiday. They keep me honest about my debts and spending, and force me to prioritize financial goals over the coming year.

I will go through the net worth and savings goals for 2023 below; a review of the yearly spending takes longer, and should show up within the next month, if all goes well.

(Just to be clear: I am not posting my net worth on the Internet. Even though this is supposed to be an anonymous blog, I have been asked by Mr. PiN not to put our real numbers out there.)

Continue reading “Updating My Net Worth For 2023”

An anecdote periodically makes the personal finance rounds; it goes something like this:

A professor starts a lecture with a jar, a collection of rocks, sand, and a beaker of water.

He puts the sand in the jar, then pours in the water. Once that’s done, he tries placing the rocks in the jar, but there isn’t room for all of them. Water or may not spill all over the desk.

Continue reading “More Big Rocks”