Why I Travel Despite It Delaying FI

Some would argue that we have everything we need in our own backyard and, for those some, that may be true.  If you have had the great honor of meeting your mate, having a child, and/or retiring in a home you love with a community you are involved in, you very well may have won the game of life and may not feel the need to search further.  You have cultivated your own utopia and are completely content with your surroundings.  If that is you, I give you my most sincerest congratulations.  I, on the other hand, am not quite there.  My seeds are still being sowed.  🙂

Last week I tweeted about my gypsy soul and my homebody nature always being at odds with one another.  From the responses, it seems I am not alone.  This is a constant battle I fight within myself.  While I appreciate all that I have, my ideas for utopia and my reality are not quite matched up.  Some of that is work related, a fair portion is timing, and some other shit I have brought on myself.  I love the idea of “home” and being completely settled…I can even picture what it looks like in my head!  But a life of contentment takes a certain amount of polishing.  It takes time to figure out what works for you and what doesn’t.  It takes time to build that tribe around you.  And it takes freedom to fully explore the ideal life outside of the glimpse you get before or after work.

All that being said, I can’t pretend that once I find “home” I won’t still be tempted to travel.  Because travel does more for me and my insight than any book in the world can.  I’m one of those weirdos who needs to actually touch and feel something to have it make an impact.

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Few books would have included this fabulous street art on a random wall in Cuba.  Even if they had, could they also describe the wet heat of the pavement or the smells emanating from the gutter while lingering to take it all in.  Guess you had to be there!  😉

While I don’t often write about my travels, they are always being planned or occurring behind the scenes.  For someone who writes about money, that may seem counterproductive.  And I get it. Continue reading “Why I Travel Despite It Delaying FI”

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An Aha Moment… Reverse Engineering FI

This post was featured by Rockstar Finance. If you clicked over from there, THANK YOU, and I hope you enjoy the read. If you just happened to wander over here and are interested in all things Personal Finance or FIRE (Financial Independence/Early Retirement), I highly recommend you hop over to Rockstar Finance to check out their site and all the awesome bloggers they host weekly.  Oh, and don’t forget to check out the Rockstar Finance Forum where you can chat PF to your hearts content. Thanks for stopping by and I hope you will follow along on my long and winding road to FI!

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It occurred to me last week that I have been looking at this whole FI thing the wrong way.  Building your wealth is a long process and it takes time…1,979 more days in my case but who’s counting?!  In an effort to not feel overwhelmed, I decided to flip the script.  What if I started looking at FI from what I have already saved?  What if I start looking at it with an attitude of abundance and not destitute (a tad dramatic but I love the striking opposition it induces 😉 ).

The basic formula for FI is 25 x yearly expenses.  Whatever that number equates to is considered safe to use a 4% rate of withdraw.  If all these numbers are true, we can instead flip it around to calculate how much I would receive each month if I quit working today based on what I have already saved!  Here’s a semi random example:

Bianca has $333,000 in assets.  Divide that number by 25 and you’ll get $13320 per year which is equal to $1110 per month.

$1110 per month.  That is how much all my years of work combined have afforded me to live.  For reference, I have been working and earning a W2 since 1993 when I was 14.  That’s 24 years of working for the man and all those years of labor have afforded me 1110 dollars per month of FREEDOM.  Isn’t that incredible?!  Not from a high or low standpoint but just that it is actually calculable?!  Isn’t it strange to compare your future life’s enjoyment based on the amount of hours you worked to earn such jubilee?  It’s hard to wrap my brain around!

So the question is, forgetting all tax implications, could you live off $1110 per month?  If forced to do so, I’m fairly certain my answer would be yes.  I’ve crafted my life in such a way that I have few responsibilities which results in my cost of living being lower than most.  Granted, my studio is paid for and I would likely have to stay there, I’d have to remove all travel from my agenda, sell my car in favor of my bike, eat a shit ton of beans and rice (which I do anyway), and never get sick.  Pretty risky with some of those variables but I could probably make it work, and many people do.* Continue reading “An Aha Moment… Reverse Engineering FI”