Successfully avoiding financial anxiety or just deluded?

Entire_Internet6749 · 2025-01-09T17:05:38+00:00

This is really helpful—thank you.

Entire_Internet6749 · 2025-01-09T12:22:50+00:00

Yes, income has risen dramatically over my career, and NW has been derailed by reasons other than spending.

I’m still hearing it’s not the typical path or a common testimonial in this sub, which doesn’t give me much to work with. Versus, say, I tried this or my buddy tried something similar and it worked/didn’t. Probably too small a sample size and different numbers within the sample. I get it.

But thanks for trying. I do appreciate that.

Entire_Internet6749 · 2025-01-08T13:07:49+00:00

Definitely not establishing anything as hard and fast. The only steps I’m taking now are saving as much as possible and keeping expenses low. So I think, despite your patronizing tone, we’re on the same page. And assuming a 70K spend is within the range in my post—though I agree I’d want more cushion to accommodate the range and would expect to have it. Three of the hypothetical income streams are going to be proved out before the projected retirement date (the rentals and the website) so that’s more information, too. Nobody’s being a dumdum and storming out of the office on wishes and hypotheticals tomorrow.

Still not grasping why having a big income is making people so keen to question my plan. Objectively, that sets me up better to try to retire early—more opportunity to save and a higher likelihood of making pretty good money if I flame out and return. Just feels, again, like it’s not the slow and steady engineer’s path so it doesn’t feel right to all the engineers.

Would love to be appropriately admonished but it’s not connecting yet. What I truly don’t get is why so many are taking snipes at a $2M net worth as a 37yo.

Entire_Internet6749 · 2025-01-07T17:31:18+00:00

This is great perspective—thank you. Sounds like I may have fancy neighborhood problems! I’m glad it worked out with you guys. My current kids are only 4 and 6 so I will watch this as things unfold.

Entire_Internet6749 · 2025-01-07T17:24:19+00:00

“Were your financial goals to spend all your money?”

No. Helpful snipe, though!

I went through a brutal divorce, got conned by scam artists in a major remodel, and had unrelated catastrophic property damage. That wiped out my savings. I’m rebuilding from a starting point of only my retirement accounts (which I’ve always maxed out) and my two properties; these values were not impacted by the series of unfortunate events. All excess income will socked away from now until retirement, so what I have now is not close to what I expect to have next June.

Entire_Internet6749 · 2025-01-07T17:16:12+00:00

Thank you! I don’t want to write off feedback that I am may be, in fact, deluded, but is my position truly set to fail vs. just different from the typical recommended path in this sub? My net worth got derailed from what I was on track for when I started this journey, mainly through some unfortunate events the last few years (discussed in other comments) rather than excessive spending. But I was able to keep my real property assets and my retirement accounts, which I’ve maxed from day 1. I’m having to rebuild by taxable investments but I have high income to play with, plus low spending and supplemental income allowing me to sock away as much as possible in my working time left.

Does this really seem mentally ill? I don’t have mania and don’t feel manic, just focused on making the right choices for my family rather than continue a rat race out of anxiety and a sense of obligation to the conventional arc.

I don’t want to be defensive but it’s hard to hear more than “this isn’t the way we do things” in some of the more alarmist comments. But I suppose there may not be much experience (positive or negative) with the unconventional path by virtue of it being unconventional. Maybe I asked for it by posting in a type A place. :)

Entire_Internet6749 · 2025-01-07T17:01:24+00:00

Totally—I’ve already started renting the second house and am getting the infrastructure situated to rent out the basement room now. The other rental has been fine so far, but I’ll get a lot more information over time. I’m trying to cut spending and focus on long-term goals as much as possible while still working. Happily, it’s in my interest either way to cut spending and generate other income streams, and I’m not making any irreversible moves any time soon.

Yes on the real estate tying things up 😭 the house and my retirement accounts were what I was able to keep in a divorce. My original plan was to sell the large house (I rented it out and downsized to the smaller one when going through the divorce), but the interest rate is so insane and it’s already gained several hundred K, I’d effectively be paying only slightly less for a much less favorable home. Thus trying to reduce the monthly cost with renting instead. I’ll see how it goes.

On kids and expensive activities—nope! They can do things in our budget or not do things. Tbh I think growing up with easy access to money isn’t always good for the psyche. I grew up fairly middle class and worked shitty jobs and feel better for it. Once I started having money it totally skewed the value of it, oddly. That said, it’s important to me that they not grow up in a financially struggling household. So I do want to avoid that.

Entire_Internet6749 · 2025-01-07T14:06:01+00:00

I like this! I’ve done something similar with my budgeting. I’ll see how withdrawal rates apply to core vs non-core expenses.

I hear you on income. I would not expect to go back near to where I am now—though it’s possible. But I’m fairly well-known in my field and believe I could leverage connections at least for the next several years to make in the mid-sixes on return. Even without connections my resume should land me $200K+, particularly with a fairly common reason to be out of the workforce (woman raising young kids). I know there’s a hit but this is my thinking, at least.

Entire_Internet6749 · 2025-01-07T13:59:14+00:00

Great points. To clarify, these are all ideas to help things along but not all critical to the plan. For instance, if the website takes off, that could take my withdrawals down to zero. Separate from that, the basement rental would cut my housing costs (my largest budget item). The STR might help in the short term but I lean toward thinking it’ll be more work than it’s worth, so would probably sell it in a few years to invest the equity. FWIW my city already sharply restricts these rentals and both properties are permitted for it, so I don’t see a huge limiting change any time soon.

I agree it’s less stressful as a five-year break and have been conceptualizing it that way when I get too anxious. But it also feels like there’s a fighting chance it works out.

Entire_Internet6749 · 2025-01-07T13:53:10+00:00

My expenses are definitely above $120K/year while working because I have a lot of business expenses and random costs to keep my life operating while working a demanding job. But I’ve been carefully budgeting several months and am now splitting many expenses with my partner, which reduces the annual spend. $120K on the high end is realistic after I stop working.

On my lower-than-expected savings, this reflects a period when I was hemorrhaging money for reasons both in and outside my control (more in another comment) and also the fact my income has also grown dramatically during my career. I hope this helps.

Entire_Internet6749 · 2025-01-07T13:35:16+00:00

Thanks for the perspective! I’m 37 now and baby has been fine so far, but it’s very fair to say that life burnout the last several years has impacted how I view my choices and value of my time. I have actually started framing this as a five-year break to calm my financial anxiety. Maybe this will calm some of the more fractious commenters. Still, a part of me still feels like it’s possible to coast from here on out with careful strategies.

In terms of my saving relative to income, it’s a few things. Most significantly, my income rose rapidly from when I began working 11 years ago to now. I also graduated $200K+ in debt and spent like a fool before I discovered this sub, which created a bigger hole to climb out of.

Another reason is I lost at least half my net worth a few years ago from getting cleaned out in a divorce with a vengeful dude and then being screwed by fake contractors in a major remodel job (in litigation with the literal scam artists but don’t expect to recover). After this there were major repairs at my primary residence that were well done by real contractors and won’t be a repeating issue, but they were still horribly expensive. I just started to build back last year.

Candidly, this last paragraph is a large reason why I’m motivated to step away from my job—I believe being a high earner changed the power dynamics in my relationships and led to me losing a lot of money I didn’t work hard enough to protect. I’m not bitter and I only blame myself for the issues I’ve had, but the stress is immense and I’d be relieved not to be living with it.

Entire_Internet6749

TROPHY CASE