50 min
Finance Friday: Is Your FI Number Overly-Conservative? BiggerPockets Money Podcast
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- Investing
Saving up for financial independence can take some time, but if you’re earning a high salary, keeping your exSaving up for financial independence can take some time, but if you’re earning a high salary, keeping your expenses low, and heavily investing, FI can come quicker than you think. Today, we talk to Kristine, an estimator in the mechanical engineering and plumbing industry. Kristine and her fiancé make a sizable amount of money. Even better, they spend very little for their income bracket and invest in long-term index funds.
Kristine and her husband are thrifty, they pay only $600 a month to rent a room in a house and are just now about to purchase their first home. They’re putting 20% as a down payment and are ready for a large shift in disposable income. They’re also planning on having kids in the future, and want to be sure they can retire on their terms so they can spend time with their children.
Originally Kristine wanted about $3.1 million dollars in assets to hit a $100,000+ per year withdrawal allowance (using the 4% rule), but Scott and Mindy argue that this could be more aggressive than needed. Kristine may be over-budgeting for future children and other expenses, without realizing that her sizable amount of assets could compound quicker than she thinks. Will Kristine be able to retire far earlier than she plans? Listen to find out!
In This Episode We Cover
How having a high income can put you on the fast rack to FI
Keeping your housing expenses low especially when you’re making a lot of money
Putting money into bonds as opposed to high-yield savings accounts
Being on the same page (financially) as your partner and having regular money dates
Having future expenses budgeted so you can have an accurate retirement goal
And So Much More!
Links from the Show
BiggerPockets Money Facebook Group
BiggerPockets Forums
Finance Review Guest Onboarding
How I Used Real Estate to Pay for My Newborn Daughter’s College Education
Check the full show notes here: https://www.biggerpockets.com/moneyshow184
Learn more about your ad choices. Visit megaphone.fm/adchoices
Saving up for financial independence can take some time, but if you’re earning a high salary, keeping your exSaving up for financial independence can take some time, but if you’re earning a high salary, keeping your expenses low, and heavily investing, FI can come quicker than you think. Today, we talk to Kristine, an estimator in the mechanical engineering and plumbing industry. Kristine and her fiancé make a sizable amount of money. Even better, they spend very little for their income bracket and invest in long-term index funds.
Kristine and her husband are thrifty, they pay only $600 a month to rent a room in a house and are just now about to purchase their first home. They’re putting 20% as a down payment and are ready for a large shift in disposable income. They’re also planning on having kids in the future, and want to be sure they can retire on their terms so they can spend time with their children.
Originally Kristine wanted about $3.1 million dollars in assets to hit a $100,000+ per year withdrawal allowance (using the 4% rule), but Scott and Mindy argue that this could be more aggressive than needed. Kristine may be over-budgeting for future children and other expenses, without realizing that her sizable amount of assets could compound quicker than she thinks. Will Kristine be able to retire far earlier than she plans? Listen to find out!
In This Episode We Cover
How having a high income can put you on the fast rack to FI
Keeping your housing expenses low especially when you’re making a lot of money
Putting money into bonds as opposed to high-yield savings accounts
Being on the same page (financially) as your partner and having regular money dates
Having future expenses budgeted so you can have an accurate retirement goal
And So Much More!
Links from the Show
BiggerPockets Money Facebook Group
BiggerPockets Forums
Finance Review Guest Onboarding
How I Used Real Estate to Pay for My Newborn Daughter’s College Education
Check the full show notes here: https://www.biggerpockets.com/moneyshow184
Learn more about your ad choices. Visit megaphone.fm/adchoices
50 min