Saturday, February 11, 2023

Taking Stock of my Financial Independence 3.0 Journey

FIRE, Financial Independence

I achieved FI (Financial Independence) 2.0 in Jun 2021.

I have been aiming for FI 3.0 since Dec 2021 (see this post:

As per usual during this period of the year, now is the time to take stock of my FI 3.0 journey and see how I stand. 

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
  • 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 childrens' pocket money. 
This is where I am now:

Financial Independence

Based on my tracking of daily expenses in 2022, I also made a few adjustments:
  • Personal spending is increased from $50 to $100 a month
  • Travel spending is increased from $50 to $100 a month
  • Eating out spending is increased from $600 to $650 a month
  • I have also increased the spending for CNY Ang Bao based on previous experience

With the above considerations, I re-calculated my FI, and found that I will need 1.5 million to achieve FI 3.0. I have 0.62 more months to go to achieve FI 3.0:

I'm excited! Have to be really careful with my spending and money now! It is close!

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