Today I am Officially Registered Financial Independence Blogger® in Theory
Back in 2010 I reached a breaking point in my life financially. I was working a part-time job attempting to make ends meet and those ends were just not coming together. My financial life was a nightmare. I was deep in credit card debt pushing the limits of five figures. I was driving around a 5 year loan called a Mercedes Benz, my payment was $323.95 a month, I still remember the number. I was making minimum payments on almost $60,000 in student loan debt. I owed my parents close to $40,000 that I also was making minimum payments towards, which happened to be their 2nd mortgage, yes that’s right my parents helped me out with a 2nd mortgage on their house. When you type all that out and read it out loud you have to think this guy must have just jumped ship and filed bankruptcy to get out from the debt that I was buried under. Quick caution I decided to curse today, I put some of these *** to cover it all up but yeah probably shouldn’t read this one to the kids as a bed time story.
Instead, over the last 5 years I have worked to have no personal debt, it’s something that you may have read before from me but it’s the most real thing about me, I wear it like a gold medal after the 2016 Olympics. I also say it because it’s f***ing awesome. I get more happiness and satisfaction paying off my debt than a dollar of any money from the blog over time, which might sound really strange to some. If this blog one day goes down in a personal rant of craziness, which based on my resent absence sometimes seems less far fetched, the real thing that comes out of all of this is I put myself on the map financially, no forget that not enough. I have a treasure map with a dotted line and a big “Red X” that is my day of financial independence.
I am proud of my gold medal of defeating debt. I also feel like the treasure map I stole it away from greedy pirates. I want a new medal though, I want the financial independence medal and just like 5 years ago I am declaring my intentions, my thoughts, and most importantly my written word as a deep dive passion into mine*. I’m going to start sharing how each financial decision impacts my financial independence. When I paid $8.50 for a large bowl of soup from Zoup today, don’t think that I wasn’t wondering what the frugal happened to my money. The fact that I’m still recovering from a virus/sickness gives me room for latitude or I can claim it as my $10 affect recently heard on Paula Pant’s Afford Anything Podcast, it made my life easier today that’s for sure.
Financial Independence is a Theory
What I think scares myself and the masses about Financial Independence or FI is that it’s a theory. We can run numbers some accurate, some not accurate, and some that we just kind of plug in and spit out happiness or sadness the working plan for FI is to put together a load of money, divide by 4% and make sure that covers your expenses. Anything that happens above and beyond that you either better have a load of money on the side or be really f***ing adaptive. I don’t think the theory says change your skin like a chameleon, but it does say to be ready for anything and everything.
I write most of “FI is a Theory” as a pessimistic a**hole, something that you might read on a big finance website about someone who has just reached Financial Independence and has decided to throw rocks at anything that moves rather than trying to learn, understand, and use a nugget of the information to better themselves. Who knows maybe I was this pessimistic a**hole I talk about, reading Mr. Money Mustache and Early Retirement Extreme thinking riding a bike down the street in Chicago to retire early and live in a mobile home on $7,000 year means both of these guys are total whack jobs. Years later to be able to identify with both writers and their ideas makes me realize that one, I go through a process internally to basically claim anything that sounds new and unfounded but extremely intriguing is usually something that I will hate and then wrap my arms around like a new puppy after a short denial, process of hate, followed by my own fact finding mission to be truly wrapped in a process. Secondly, the claim of pessimistic a**hole to a transition of optimistic cult leader is one that is not that far away.
Today I claim this fact and truth related mission to be my sole writing angle. I think I have moved on from debt. We are making moves financially that make that May 2020 goal seem like a walk in the park. My first claim to action is sharing with you a few facts about our progress this year.
Net Worth-The net worth is soaring like an Eagle, do other animals soar higher? Net worth is good, Passive Income>Expenses is really my bone, but nice to see.
Rental Mortgage Debt-The mortgage rental debt is a few minor payments away from being gone. If you just bought a new car, you probably paid more than what I owe on our rental house. It’s not bragging it’s one of our next financial milestones and we are close, champagne bath celebration?
Portfolio Increase-The S & P is up and so am I, but more importantly we are shoveling cash into our 401K, H.S.A., IRA, and even Brokerage account. Some of those are big shovels, others are one’s that the kids are using in the sand volleyball court in our park, not that would bother me. Of course I want to tell your 3 year old to pack up his belongings and get back to the swings while you play on your iPhone as I spike the ball next to little Johnny.
Realization This is Possible-I jokingly say I don’t make much money, like me and the guy at McDonald’s are neck in neck with our paychecks, except he gets a discount on happy meals and since I work at a bank I get a discount on ummm checking accounts, great news for him. I mean those toys are collectible items. Beginning in 2017, the rental income from our Florida property (gross) will eclipse my take home pay. Mic drop, no that’s getting old, what’s better than a mic drop? Suggestions needed.
Connecting dots here that says that I could quit the 9-5 job and do the 843 things that could or should be done around the house or hang out at the coffee shop, walk the dog, I don’t know Home Depot, Bed Bath and Beyond, I’m not sure if we are going to have enough time.
If you are reading this and are on board with the cult following theory known as Financial Independence and can’t wait to drink from the fountain of theory then I think you will enjoy some of the new articles coming. If not feel free to throw in a crazy comment along the way I don’t mind having those either. Welcome to the “New” Financial Independence Blog®, Even Steven Money, see you soon.
*mine will always include Even Steven Money this means Mr. and Mrs. Even Steven Money. I may talk separately from time to time but I will be clear in doing so.