I have achieved the FI 3.0 target I set for myself. Let me share my journey to get to this point:
I achieved FI (Financial Independence) 2.0 in Jun 2021.
I have been aiming for FI 3.0 since Dec 2021 (see this post: http://financeopti.blogspot.com/2021/12/revisiting-my-fi-fi30.html).
Firstly, a recap of what is FI 3.0. It has a few buffers baked in:
- CPF is not included in the Starting Balance - this is the first buffer
- The withdrawal rate is reduced from 4% to 3% - this is the second buffer
- Certain expenses are assumed to last till perpetuity, even if it may not be the case. An example is children's class fees.
- I own only 1 property - my HDB flat, which is my matrimonial home
- No car
- I use freebies whenever possible - my watch is free, my shoes are free, and my bag and jacket are given free from my previous companies
- For 2 years, I took MRT to work at unearthly hours (exit station before 7.45am) to spend $0 on transport
- Side hustles - I took up side hustles including food delivery, paid surveys, writing 2 blogs (one technical blog and one FI blog)
- I do repayments to my mortgage loan regularly - now my loan has only ~$950 remaining
- I invest regularly - in stocks and bond
- Whenever I get upset at work, I keep in mind I have a bigger goal in my life - to achieve FI and I endured it to get to this point
- Be able to sleep better at night - e.g. for the past week I can't get to sleep until after midnight, or very often I wake up 2-3am, think about work, and then am not able to get back to sleep
- I burst the income ceiling for BTO long ago - by taking a sabbatical, I will draw no CPF, which will qualify me for our dream 5-room BTO
- Issues at work - unsupportive and unhelpful colleagues that only care about themselves, not enough support from bosses, too many whiners and complainers at work thus creating a toxic environment, etc. Typical work gripes I guess
- Real-life test of my FI expenses - all my expense calculations to date are based on when I am still working full-time. Will my expenses stay the same after I stop working full-time? Only by stopping full-time work will I know for sure
- Find time to work on my technical blog
- Find time to create more quality articles for my FI blog (yes, this blog)
- Find time to spend more quality time with my kids e.g. if my kid is sick, he can stay at home instead of going to my parent's place, or I can avoid a scenario whereby I have to juggle taking care of him and working at the same time
- Find time to do some self-study
- Find time to rest more - I got too many comments from colleagues and family that I look tired over the past few years. I want to do something about it by finding time to get proper rest and doing something that I am truly passionate about
- Find time to start exercising more regularly instead of just once a week - need to take care of my health. Now in my 40s, health issues are starting to pop up: eyesight not good, catch bugs easily, knee pain, etc.
- Find time to have the freedom to travel a bit further to get a good lunch instead of eating the same stuff around my neighborhood because I have to get back to work
- Find time to do volunteer work and help the community - I find this to be meaningful
- Find time to be closer to nature - will like to go for regular nature walks and not have to take leave to do so
- Find time to do some administrative things - writing my will, fixing my laptop, and changing to a cheaper phone plan are some of them
- Find time to launch my startup. Yes! I have many ideas! Now that I am FI, coupled with my work experience over the past few years, there is no better time to start!