In Greek mythology Sisyphus
was the king of Ephyra (now known as Corinth). He was punished for his
self-aggrandizing craftiness and deceitfulness by being forced to roll an
immense boulder up a hill only for it to roll down when it
nears the top. Wikipedia
After discovering the
financial independence community I have struggles to
make signification changed.
I have been thinking
about it a lot and how to make progress.
What I've currently
done.
- Calculated my
last year expense and set that as a budget for this year.
- Calculated my
Savings Rate
- Setup budget for
next year with reduction of expenses in the discretionary that should be
possible to increase my savings rate by 18%
- As one of my big expenses was
travel. I start down the path of using travel rewards.
- High recommend listening to
ChooseFI episode 009 and 031
- Had a talk with my wife
What calculating Expenses include
everything for you and spouse, start with base salaries also include any 401k
match, then list and subtract all expense including taxes and medical. I
believe these are important because when you are getting close to FIRE you will
have to pay these out of pocket and best to know what you are paying. The
Savings Rate is your (INCOME - EXPENSES)/INCOME
Both my wife's family and mine live in
different states. This requires us to travel twice a year just to see
family. One way to help reduce some cost was to get into Travel
Rewards. This is a big subject and I am excited to start this hack.
Now talk to the wife went well.
Took multiple conversations for her to sort of understand why I want to go
toward FIRE. She loves her job and doesn't want to stop anytime
soon. So it has been hard. I have showed her the budget and how
much we spend. I will say it did raise an eyebrow on how high clothing,
shopping, and travel were. As I have found saying we are going to spend less
and doing it has been the problem.
I've decided to take a different
approach. We are going to focus on one category Food.
We spend $320 a month on dinning out
and $795 on groceries.
For the next month we are going to
focus on these Food to get them at $100 for dinning out and $650 for groceries.
Saving of $365 a month. That one change would increase my savings
rate by ~2% for the year.
We will do this :)
No comments:
Post a Comment
As a visitor here, you are part of a fantastic community. Comments help me and others. It is a great way to pass on your experiences.