Category: Finance

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”

It has been a long week. In fact, it has been a long few months, with not enough vacation time to break it up.

While on a walk home, I started thinking about what my schedule might look like if I cut back to very part time, just working enough to qualify for health coverage. In my mind, it sounded very pleasant.

My friend, who has decided to work One More Year, will actually be doing this in a few weeks. She is suddenly a good deal more interested in having me cut back as well, so we can have more time to socialize together. She asked if I could afford to do so.

I don’t think I can, just quite yet. But I thought it might be interesting to look at the finances of cutting back, and see where the sticky points might be for me.

Continue reading “The Financials Of Going Half-Time”

Every year, at the end of the year, I review the year’s spending. I’ve done this for over 20 years, and I learn different things every time (here are my lessons from 2021).

Reviewing our spending by category, or even thinking about what category to include, means that I can really look at where my (our) money is going. Which can prompt further reflections, like: is this where I want my money going? Does that seem like a good amount of money to spend on that category?

It’s also good to know how much money it takes to support our lifestyle. Since finding out about FIRE, I realize this exercise is even more helpful. After all, once I have 25 times (or 30, or 33, depending on how conservative I want to be) my yearly spending saved, financial independence has been reached. So, every year, I can ask myself: how close am I to reaching financial independence?

Continue reading “That Time I Finally Reviewed My 2022 Spending”

As seems to happen at least once a year, Mr. PiN and I are reconsidering our decision to run our household with just one car.

Once again, Mr. PiN had to be out of town for a family medical emergency. This time, he left the car here (he flew), but the situation was still pretty inconvenient for me. Even better, the “check engine” light came on right before he left.

Is it time, we wonder, to get a second car?

Continue reading “Second Thoughts On Living As A One Car Family”