Category: Finance

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”

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”