Just giving a Q2 2023 update on my original post.
Please note that I do realise I'm in a high income household, thus this isn't possible for most people my age. I'm hoping to inspire others to persue F.I.R.E. and also share their journeys, whether it's a 5 year or 40 year plan. Okay, let's get to the numbers:
Age: 26
Nett worth at start of year:
2020 - R 100k ; 2021 - R 500k ; 2022 - R 1.2m ; 2023 - R2m
Current nett worth(Household): R2.8m
Current monthly household income(post tax): R150k
Monthly fixed expenses: +-R32k / Monthly savings: +-R105k
Assets: R4.4m (excluding vehicles)
Liabilities: R1.6m
Comments:
I adjusted our financial plans a bit to increase our savings ratio from 66% to 69% during most months. This had to be done quite carefully in order not to mess too much with our quality of life, but thus far it's looking okay.
Biggest worry currently: High interest rates hitting our home loan accounts. Sluggish economy with weak Rand isn't much of a surprise given what's happening with the global economy. Expecting some recovery to the markets in early 2024, but this can change as policies flip-flop.
Regarding some short, medium and long term future goals: As mentioned previously I'm aiming for a household nett worth of R3.5m by the end of this year. This amount remains unchanged. I have, fortunately, been outperforming my estimates by 10-15%, thus expecting a number closer to R3.8m.
Current aiming to have R10m by 30, hopefully R15m by 35. Inflation adjusted it will be closer to R20m by 35.
I'll try to answer most questions in the comments, so feel free to ask if you have any. I make these posts only to share my journey to F.I.R.E. as this has been a passion of mine for the past 5 years.
Good luck on your F.I.R.E. journeys.
Please note that I do realise I'm in a high income household, thus this isn't possible for most people my age. I'm hoping to inspire others to persue F.I.R.E. and also share their journeys, whether it's a 5 year or 40 year plan. Okay, let's get to the numbers:
Age: 26
Nett worth at start of year:
2020 - R 100k ; 2021 - R 500k ; 2022 - R 1.2m ; 2023 - R2m
Current nett worth(Household): R2.8m
Current monthly household income(post tax): R150k
Monthly fixed expenses: +-R32k / Monthly savings: +-R105k
Assets: R4.4m (excluding vehicles)
Liabilities: R1.6m
Comments:
I adjusted our financial plans a bit to increase our savings ratio from 66% to 69% during most months. This had to be done quite carefully in order not to mess too much with our quality of life, but thus far it's looking okay.
Biggest worry currently: High interest rates hitting our home loan accounts. Sluggish economy with weak Rand isn't much of a surprise given what's happening with the global economy. Expecting some recovery to the markets in early 2024, but this can change as policies flip-flop.
Regarding some short, medium and long term future goals: As mentioned previously I'm aiming for a household nett worth of R3.5m by the end of this year. This amount remains unchanged. I have, fortunately, been outperforming my estimates by 10-15%, thus expecting a number closer to R3.8m.
Current aiming to have R10m by 30, hopefully R15m by 35. Inflation adjusted it will be closer to R20m by 35.
I'll try to answer most questions in the comments, so feel free to ask if you have any. I make these posts only to share my journey to F.I.R.E. as this has been a passion of mine for the past 5 years.
Good luck on your F.I.R.E. journeys.