by Welcome to our quarterly update, where we share our progress towards financial independence and how we’re optimizing our lives for happiness along the way. We believe that money is a tool to fuel our true passions and create meaningful experiences. Join us as we reflect on our journey towards FIRE (Financial Independence, Retire Early) and share the joys of living intentionally, even before reaching our ultimate goal.
Our FIRE Progress: Breaking It Down
Last year, we decided to break our FIRE goal into smaller, manageable targets. We’re excited to share that in January, we hit our first milestone: accumulating enough income-producing assets to generate $30-35k in annual retirement spending. Our next goal? Saving for a home purchase. This two-step approach allows us to work towards financial independence through investments first, then tackle homeownership.
Q1 2023 By the Numbers
Essential Expenses
We focus on tracking our essential expenses, as these are the costs we can’t easily cut in retirement. For Q1, our basic spending broke down as follows:
- Net Rent: -$873 (Our rental property generated $4,323 in net income!)
- Bills & Utilities: $519
- Groceries: $2,009 (including $507 prepaid for a summer/fall produce co-op)
- Auto & Transportation: $986 (including $550 for new rotors)
- Home Supplies: $297
Total Essential Expenses: $2,938 ($979.32/month)
Dividend Income
Our portfolio generated $3,650.23 in dividend income this quarter. After covering our essential expenses, we had a $712 “surplus”—money that could fund discretionary spending in retirement but is currently being reinvested.
Living Our Best Life Now
While we’re excited about our progress towards FIRE, we’re equally focused on enjoying life in the present. Here are some highlights from our quarter:
Virginia Road Trip Adventure
We spent 9 days exploring Virginia, soaking in its rich history and even playing college students for a day at the University of Virginia. These experiences remind us why we’re pursuing FIRE—to have the freedom to explore and learn at our own pace.
Cooking Up Happiness
We believe that cooking at home is not just economical but a source of joy and health. This quarter, we perfected our vegan lasagna, baked delicious apple pies, and even made light apple cider from leftover peels. These simple pleasures remind us that happiness often comes from the little things.
Embracing the Miracle Morning
We’ve resumed our “Miracle Morning” routine, inspired by Hal Elrod’s book. By waking up an hour earlier to meditate, affirm, visualize, read, write, and exercise, we’re starting each day with intention and positivity. It’s a small change that’s making a big difference in our overall happiness.
Looking Ahead
We’re excited about our upcoming trips to Maryland for a concert and to the Dominican Republic for some much-needed beach time (and the best fried fish ever!). These plans keep us motivated and remind us of the experiences we’re working towards.
Final Thoughts
Our journey to FIRE isn’t just about the numbers; it’s about creating a life we love, both now and in the future. By focusing on what truly brings us joy, from simple family activities to new adventures, we’re ensuring that our path to financial independence is rich in experiences and happiness.
What steps are you taking to improve your happiness while working towards your financial goals? We’d love to hear your stories in the comments below!
Source: “The Miracle Morning” by Hal Elrod
