It’s a brand new year. 2013 to be exact, but you probably already knew that, unless you’re still wasted from that New Year’s party. As a present to myself, I figured I’d grab a domain name and start a blog to track my journey to financial independence (FI for short).
Achieving early financial independence is something that I’ve been interested in and actively pursuing for some time now. So here’s my blog about it. Read on for greater detail and some frequently asked questions.
What do you mean by “financial independence”?
Simply having enough investment income to pay all my bills, thus negating the need for a day job.
What do you mean by “early”?
Sooner than age 59 and 1/2, the earliest age you can begin drawing off your tax deferred retirement accounts without penalty.
I got a late start at making money and saving money due to spending way too long in education and training. But as of last year (age 33), I finally have a real job with a real six-figure income. So now I can kick things into high gear. Here’s the targets (assuming no radical life changes):
- Age 50 - Envelope math says this should be pretty easy.
- Age 45 - Envelope math says this is doable, but difficult. *This is my target*
- Age 40 - Envelope math says this is pretty much impossible short of winning the lotto or inheriting a ton of money.
How do you intend to achieve early financial independence?
A combination of the following:
- Maintaining the order of my financial house
- Frugal living
- High savings rate (50%+ of net income)
- Investing in dividend growth stocks
- Investing in high yield dividend stocks
- Selling put options
- Investments in other income producing assets (P2P lending, real estate, silent partnerships) as deemed appropriate and as opportunities arise
- Blogging to keep myself on track and to interact with other bloggers and commenters
So you’re another one of those early retirement guys, right?
No. I don’t hate my job. Actually, I find it rather enjoyable. But then reality gets in the way. Over the course of a 30 year career, it is unlikely that things will remain the same. Maybe I’ll get ‘rightsized.’ Maybe my boss, who is cool, will be replaced by a total douche. Maybe I’ll get tired of work or burned out. Who knows? Early financial independence is simply an insurance policy so that when and if these events happen, the fallout will be on my terms and play by my rules, not those set by circumstance.
What do you plan to blog about?
Whatever I feel like. Here’s a short list of things I’d like to write about in this forum.
- Dividend growth investing
- Tracking my progress and cataloging my failures
- Investments in other asset classes
- Thoughts related to the world of financial independence
- Book reviews
- Dividend stock analysis
I spend way to much time thinking about the above and it would be very nice to start putting my thoughts in writing.
How often do you plan to update this blog?
Whenever I have something to say and the free time to say it. My primary foci are my job and my investments. During summer I like to get out, travel a bit, and see the area.
Also, I don’t want to write crap just to fill up a 3x, 4x, or 5x per week posting schedule. I might write crap anyway, but at least this approach will minimize that.
Some other things you might want to check out while you’re here:
- Check out what I’m trying to do with my life on the 2013 goals page
- See my current investment portfolio
- Read the about page to learn still more about me
Readers: What are your thoughts on financial independence, early or otherwise? How about early retirement? What suggestions do you have for myself or others hoping to achieve financial independence?