I am surprised the ChooseFI guys didn’t win a PLUTUS award. They’re my choice for FIRE info and have introduced me to so many resources. My favorite to date is JL Collins’ Simple Path to Wealth. I got the (free) audio book, shared it with DH and proceed to actually spend money on a hard copy. That’s how much I value the information.
I’m sure I’ll find another great resource on this list … hoping I can find one as an audio book to listen to on my commute and long runs.
Being five months into this journey, I’ve only scratched the surface on the resources available and the amount of information can be a little overwhelming at times. But, I like to keep to the JL Collins mindset: Keep it Simple.
So, in keeping it simple, this week’s FI activities were all about continuing to consolidate our monies:
Sold two of my Vanguard funds that we’re over the 1% expense ratio; no, I’m not 100% VTSAX yet because on some funds, there’s a $50 charge for transactions within 60 days … I’m math adverse and cheap, so I’m avoid that $50 because it’s easier then calculating the impact of a higher percent expense ratio (read: I AM LAZY)
Transferred my 401k from prior employer and firm to Vanguard
Huge thanks to Brad & Jonathan from ChooseFI for inspiring the FIRE in this family. You’ve won our award for being the best FI-influencer. Today’s episode scared me (we own and owe on three houses), but that’s a story for another time.
Since my last post three months ago, we’ve hit a bit of a bump, but at the end of the day, it will get us to FI sooner.
At the end of July, I knew I would be out of a job in 30 days. Not really ideal, but also not an ideal job. It was the kick I needed to high tail my job search, seeking a change in industry and location for the reasons listed below. After many applications and even more interviews, I got an amazing job offer just six days after leaving my job. This provided a 4-week, unpaid break in which I was able to knock out a lot of the household “To Do” items, but was a little financially tough.
This career change was necessary for my mental health, but was also FI-driven:
Geoarbitrage 1: Change from working in the city to the ‘burbs = save 3.5456% in city wage tax
Geoarbitrage 2: Change commute from daily $10/day train or $10/day parking to 25-minute drive with free parking = save $200/month ($2400 annual savings)
Job Arbitrage: 8.9% salary increase with signing bonus, annual bonus and employee stock purchase option
This is all pretty awesome and we’re in the process of adjusting our finances to ensure we take advantage of and max out our pre-tax contributions. And, more exciting, updating our spreadsheets and FI timeline.
Another financial advantage of this change was our shift to my husbands insurance. We were pre-FI when we chose our insurance with my old employer. Being on the path, we’re scrutinizing the details. We chose to stay on a high-deductible plan, but switched to his employer for these added benefits:
Employer adds $2,000 per year to our HSA (free money!)
Transferring my old 401K to Vanguard. It’s currently with Fidelity at an expense ratio lower than Vanguard, but charges $12/quarter in book keeping fees.
Changing jobs (and changing industries) is hard and it’s a lot of work, but because we’ve made some less-than-financially-ideal decisions in our past, we have to keep working for now. I love my new job and the financial rewards; the path to FI is getting clearer!