If you look at the stock market, you would think that the economy is doing great! The stock market is up 13% to 14% yet consumer sentiment is at historically low levels. Inflation is up, gas prices are up, food prices is up, US debt is up, and cost of living is up. With many people struggling to make ends meet, you would think the economy isn’t doing great. I’m so confused on the economy right now. When you look…
You likely know that most banks will have savings accounts and/or high yield interest accounts that you can accrue interest. I recently heard about a bank that will pay you in American Airlines miles instead of cash for the interest. Which would you choose? Cash or airline miles? If you have had savings accounts you know you will get a 1099 tax form identifying how much interest you accrued that year. You also know that you have to file this…
Life just seems to move so fast. So fast that we sometimes miss or forget about the fine details. I’m referring to things that involve saving money or losing out on benefits. Did you know that your health insurance may have a program where they will give you credit to spend on medical expenses? Mine did. How about that 401K matching that your employer offers? Are you putting anything in it so you can at least get the matching? If…
I’ve heard from many and experienced myself the Sunday Scaries. That is the worry and anxiety of having to go to work on Monday but thinking about it all day on Sunday. Worrying that much on Sunday does not make it feel like a weekend. The thought of figuring out what needs to get done come Monday takes over your Sunday. With my early retirement I have no more dreaded Sunday Scaries! Figuring out what needs to get done on…
I resigned from my job in January this year and it’s been 6 months. I’ll let you know what I’ve learned, experienced, and what I would do different. This is my 6 month check in. Financial independence and retiring early has been a goal of mine for many years. I knew I did not want to work till retirement age and spend my time and energy working. I reached my goal and finally made the decision to quit my job…
If you are pursuing financial independence (FI) you know that debt if not your friend. Debt is owing someone something. In financial terms, it’s typically money. When your goal is financial independence having debt just slows you down. One of the goals to make FI achievable is to eliminate all debt including your mortgage. You do not want to owe anyone anything. Having debt is an anchor just like how it drags a boat. The math is simple. If you…
When you jump into an ice cold bath, lake, or beach, your body goes into some kind of shock. Going from a normal temperature to, all of a sudden, freezing water is a sudden change. Similarly, going from a life of working, getting a salary, and spending to not working, not getting a salary, and not spending as much is also a shock. To help, practice spending less before you dive into early retirement. For decades you had a certain…
One of the strategies I used in my financial independence journey is the “out of sight out of mind” strategy. Things you don’t see you tend to forget about. For example, my son played with certain toys all the time. When I hid a toy, he eventually forgot about it and went on with his life. This is the same strategy I used for my financials. Let’s apply this to different areas Retirement account When you work and hopefully your…
I started doing Roth conversions 5 years ago and I wrote about my first one here. I wanted to create a Roth conversion ladder so that I could have the option of withdrawing from my Roth account penalty free if I needed cash in early retirement. Now that I am not generating any W-2 income, I’m looking to see what my tax filing will look like next year since Roth conversions are considered as income. So for now, I am…
When you think or dream of early retirement, what does it look like? Is it waking up whenever you want, sitting on the couch all day watching television, doom scrolling on your phone, going out to eat, or planning an infinite number of vacations? From personal experience with being early retired for 5 months, I can say that you better have a plan. Is early retirement boring? I thought I had it all planned out. I was going to get…