I have something new to share with you today. Part of why I wanted to start a blog is to share my investing journey as I work towards something that’s been a goal of mine for a while now – and that’s early retirement. I want to share my ups and downs along the journey and portray a realistic march towards early retirement.
For those of you who may not know, there is a community of people here in the United States that are working towards early retirement. This group is often referenced with the acronym, “FIRE” which stands for “Financial Independence Retire Early.”
The concept is somewhat simple: get enough money to be able to afford your lifestyle solely from the growth of your investments. This involves a strategy of saving and investing very aggressively early in your working years, and then once you have a certain amount of money saved up, you have the privilege of no longer needing to work for money. The amount that you need to save depends directly on the amount that you need to spend annually to sustain your lifestyle.
I plan to go more in-depth on this concept in future posts, but in the short term just know that I’m saving and investing aggressively to hit a certain net worth number where I no longer need to work.
So far, I have saved a lot on a pretty moderate salary over the past five years of working. I’m 26 years old and have already amassed a nest egg of over $160,000 through diligent and consistent investing – nothing fancy. Below, you can see a chart of my net worth growing over the last year and a half as well as a breakdown of my current assets as of March 2021.
March 2021 Net Worth: $162,239
- Cash: $9,336.95
- Checking Account: $1,559.83
- High Yield Savings Account: $7,767.12
- Investments: $141,458.53
- Work 401(k): $72,457.42
- Roth IRA: $47,743.60
- HSA: $15,072.89
- Taxable brokerages: $6,184.62
- Cryptocurrency: $11,386.04
- Bitcoin: $11,365.87
- Ethereum: $20.17
One additional thing to call out is I that don’t really have any debt. I have credit card debt every month, but I pay that on time and in full. My car is paid off, and I don’t currently own a home. This isn’t because I’m super passionate about renting or anything, but I’m only tied to the region I’m working in for the short-term, so it hasn’t made sense up until this point to buy a house.
Hopefully you guys find this interesting – I plan to post monthly updates to keep you in the loop on how my net worth is growing and track my journey towards early retirement.
I’d love to know if you guys are trying to retire early or seek financial independence. Post a comment or send me an email at email@example.com and let me know!