RSA F.I.R.E. Progress

[gracer]

I enjoy seeing progress posts on the F.I.R.E. community page, but have never seen a RSA version, so thought about doing one myself. This really isn't supposed to be some brag post, personal finance is just something I'm very passionate about and I'm hoping that it can inspire others to save more or show that they are ahead of the game.

All amounts are for total household income. My wife and I are both in professional posts, I had a bit of debt, she had none. Started working in 2020 at age 24.

Nett worth at start of year:

2020 - R 100k ;
2021 - R 500k ;
2022 - R 1.2m ;
2023 - R2m

Current asset allocation:
Stocks = +- R 300k ;
RA = +- R 700k ;
TFSA = +- R 300k ;
Real estate = R700k

Curent post tax annual household income: Around R1.8m salaries and R200k real estate ;
Monthly savings rate: 60% of income

2023 plans: I don't think we can cut on our expenses anymore. Aim for the year is adding to our real estate loans as the interest rates are crushing our returns from tenants. It's a tricky decision as I do believe the stock market is at a great place for entry, but I'm hoping for stagflation until mid 2024 to give me a gap to enter more positions. Our nett worth goal for end of 2023: R3.5m. Current Lean F.I.R.E. goal: age 32

Let me know if you guys enjoy posts like these, maybe we can get more from people in this community? Any additional info ideas are welcome.

 

[frb]

@gracer Post tax of 1.8mil per year at 26 combined? What in God's name do you guys do?

Edit: forgot to day congratulations OP. This is crazy good. I do like these posts because its always a reminder there's always more out there, seeing other people succeed only motivates others to try to think of ideas.

I do think FIRE is a discussion for people with high net salaries, which in your case it indeed is. Alot of people gave up on fire because in reality their incomes ain't enough.
So people who don't earn enough really can't cut back on much without severely dropping quality of life.

I feel I earn a decent salary but even for myself this salary is not enough, need much more income streams/ business ideas to prop myself higher up to be honest.

 

[jonyjam_123]

@frb Yes, please share so we can also work on that career / industry move.

 

[frb]

@jonyjam_123 Yeah lol, I feel considering his wife started at 24 I'm guessing med school. I know folks in accounting, law etc and those professions aren't really hitting crazy heights unless u are really a gem/ have a network. Another profession software engineers, so I'm assuming that's what he is doing, lol OP will confirm or deny

 

[gracer]

@frb Yeah we're both in healthcare. I know this is definitely not within everyone's opportunity range and some might only get a similar salary in their 30's or even 40s. We are both very lucky to be where we are in our careers. But if you get there in your 30's then this might still give you some hope that you can achieve F.I.R.E.

 

[frb]

@gracer Yes 100%, you also worked hard, the exams and endless shifts don't magically happen haha. So pretty dope that you doing well. Tend to see more med school individuals poor with finance, so power to you, really nice to see.

I think most people have already chosen their career path, if their salaries ain't enough, the solution is to do more, you can't cut back, so it's all fair game. Everyone should inspect/be accountable their life, if it isn't the life they want to live they need to change their circumstances. It is what it is lol no way to wiggle around it. It's not easy but needs to be done tbh.

 

[valerie60]

@gracer Congrats on an amazing salary.
Are you in medicine? Arent salaries from government around 40/50k for internship and comserve?
Was under the impression they only exponentially grow after specialisation.

 

[conner]

@gracer Nice figures man! Also been following the FIRE sub and would love if we had a local one.

 

[villeverte]

@gracer Nicely done. That's very rapid NW growth. Which professions, if I may ask?

 

[danmillward]

@gracer Very good numbers and you're setting yourself up well with the property asset base. Are the tenants on your property? I presume your Real estate is your net value (i.e. property value minus bond).

I also enjoy seeing these from a non-US perspective.

What are you projecting your expenses at? Seems very low but I suppose your rental income is making up for a good portion of it, and I also don't have the perspective of really good dual income as I live alone.

I'll post my own next week sometime.

Edit: also, how on earth are you earning >R900k after 3 years exp? Unless your wife has been working longer and earns more. Only profession I can think of is sales, doctor, or management consultant.

 

[gracer]

@danmillward You presume correctly and we have tenants. Monthly expenses are R44k/month. We work in healthcare.

 

[danmillward]

@gracer Nice. That's a solid expenditure too - not terribly low, but not excessive either. I look forward to seeing your progress

 

[gracer]

@danmillward Technically it's R31k/month. The rest is spending money that we use or save for holidays.

 

[julesseluj]

@gracer That's awesome OP and very inspirational!
Why not start a F.I.R.E SA page ?

 

[jaanney]

@julesseluj I agree with a new sub. Would love to join. I think a lot of people on this sub could take these type of posts the wrong way

 

[villeverte]

@jaanney Sounds like a them problem. This sub is already quite small.

 

[danmillward]

@julesseluj SA subs are generalised because the community is too small. It's fine to encompass SA FIRE in this sub.

 

[skitnik]

@gracer I would love to see more like this! Very inspirational. I want to pursue F.I.R.E. but need to up my income. Nice to see someone doing it successfully.

 

[faith4l]

@gracer Awesome stuff.

Are you dead set on lean FIRE or are you looking at later stages say 40years old etc?

Will post my FIRE progress and targets as well sometime as well to keep the flow.

 

[gracer]

@faith4l Thanks! I want to see my children grow up and aiming to get kids at age 32. Will then try to only work half day to be there for them. This has been my motivation since I've started working.