Sorry to interrupt the Investing 101 Series (Part 2 on Compound Interest is coming out next week) but we are SO excited to announce we are starting our monthly FIRE Community Interview Series! Each month, we will be posting a Q&A with an outside member of the FIRE community who we have connected with along our journey. We feel it is extremely important to hear other people’s views and to learn as much as possible from others.
This interview series will cover people within the FIRE community who are on their way to becoming financial independent, have already reached financial independence, or who have retired early. If you are reading this and you are financially independent, retired early, or close to reaching these major financial milestones, please reach out to the Modern Fimily!
For this first interview, I’m delighted to welcome D who sent over her responses within 24 hours of me sending over these questions (you goody two shoes rock star)! I met D through Instagram, you can find her at eating_to_fire, and she honestly cracks me up. She is always providing comments that make me laugh out loud and she has one of the best senses of humor out there. And we were both Floridians in our past lives too!
So without further ado – take it away D!
1. Can you give us a little background of who you are, what you do, and how you became interested in personal finance? How did you discover the idea of financial independence?
I’m a 33 year old woman living in Washington, DC and working in corporate America, specifically, in management consulting. I’m also an immigrant and spent the first 10 years of my life in a war zone in the Middle East before moving to Florida with my family. I always feel as though I need to clarify the picture of my childhood immediately after disclosing it because the description at face value sounds so bleak to a Western audience; I had a happy and loving home life with AH-MAZING parents, an enormous, loud, intrusive, and self-sacrificing network of relatives, and a rigorous and happy school environment. I was so happy as a kid that I never noticed we were refugees… or that I was missing big chunks of school because a militia took over our neighborhood and we couldn’t leave…or that my mom would ration my medication because we couldn’t get more. I legitimately had no idea that this wasn’t normal, but am so grateful for the experience and what it taught me about the wealth and resilience that comes from having strong relationships with people you care about.
I found FIRE through Go Curry Cracker… I think I stumbled across the Yahoo article sometime around September 2015, and immediately fell down a rabbit hole that I’ve yet to resurface from.
2. When in your journey did you realize financial independence was actually possible? Was that the original goal at the beginning?
I was lucky to find FIRE just as I was moving to a higher paying job and wrapping up my student loan repayment, and very quickly became OBSESSED. I come from a culture where people work until they physically can’t, so the concept of having enough money to live a life of leisure BLEW. MY. MIND. I’ve set a FI number of $750K with an RE number of $1 million.
3. To help put things into context, if you are comfortable sharing some numbers, what is your savings rate, FIRE number, net worth, salary, how many hours a week do you work, etc? How long have you been working towards financial independence and where are you today?
I don’t have perfect numbers for 2019 yet, but I’m anticipating a 37% pre-tax savings rate and a 51% post-tax savings rate. This was not my original target. 2019 was a slower year for me financially as I took up the costs of my amazing sister’s fight against breast cancer so she could focus on annihilating it, which she did. My goal for 2020 is to hit 70% post-tax savings rate.
I work pretty long hours and I’m anticipating a promotion this year, which may increase my hours even more and will definitely increase my salary. If the economy improves a bit, I’d like to switch jobs as I don’t see myself sustaining a 60-110 hours/week for the 8 or so years I have until I FIRE.
4. Do you feel deprived? Do you feel like you are sacrificing and missing out on life? How would you say your mindset has shifted throughout your FI journey?
No! I have NEVER in my life felt this empowered, this financially stable, or this in touch with my values. I’ve also never been this capable at my job, this connected to my family, or this invested in my health. I’m not suggesting FIRE is a cure all that will eliminate all woes, but boy does it help whip an apathetic butt into shape.
5. What do you spend your money on and what don’t you spend your money on? Do you use a budget? Do you track your expenses?
I *suck* at budgeting. I have a budget and find it helpful to see how the numbers flow, but I use it more as a general framework. I really just try to keep a handle on the big stuff – rent, transportation, and food while maxing out retirement accounts and throwing extras into a brokerage account. I do use both Mint and Personal Capital, but mostly for a rearview look into my financial behavior. I’m not a big shopper, drinker, or consumer, but I do spend money on travel and take 2-7 trips a year.
6. What brings you happiness and joy? How much money do these things cost?
My family and friends, making things, traveling, having my hands in dirt, being in nature, and learning new things. Most of these activities are free, with travel being the exception.
7. What is your investment strategy? Do you invest in mutual funds, index funds, dividend growth stocks, real estate, other businesses, etc.? Has your investment strategy changed over the years?
I invest in Vanguard Index funds/ETFs (total stock market, S&P 500, and international stock market) when possible, otherwise the cheapest Blends available . I currently work for one of the “Big Four” and have to maintain something called “independence compliance” per the terms of my employment. This means I cannot invest in any company that my company is providing Audit, M&A, or Regulatory services to, even if I’m not in any way involved in those activities. This limits what I can invest in on the market. Consequently and in the interest of simplicity, I just use the Vanguard funds my company has made available and call it a day.
My currently allocation, which costs me <1% in fees, is:
- ~89% US stocks
- ~5% international stocks
- ~5% alternatives (REITs and the like)
- <1% US & international bonds
- <1% cash
Aggressive, but in line with my current risk tolerance.
8. If you could go back in time and change things, what would you have done differently?
Learn about FIRE sooner
9. Do you take advantage of tax advantaged accounts offered to you? If so, which ones and how so? Do you have a game plan to be able to withdraw from these funds without getting hit with a penalty?
Yup! I max out a traditional 401K, HSA, and Roth IRA (only switched to Roth when I was phased out of the deduction), and I front load whenever possible. I’ll be setting up a backdoor Roth conversion ladder when I leave the workforce.
10. Where do you see yourself in the next year, 5 years, 10 years?
- Next year: grinding, traveling, looking for investment opportunities, and looking for a new job
- 5 years: grinding, traveling, and looking for investment opportunities, especially ones in my first country of citizenship to diversify into.
- 10 years: early part of the transition where I’m traveling through low cost of living areas, learning new skills, and volunteering in the climate change space.
11. Have you come out of the FIRE closet yet? Meaning, do your friends, family, co-workers etc. know about your financial independence goals? If so, how did you bring it up and what were their reactions? If not, why not? Why do you struggle with this conversation and why do you feel that money such a taboo topic?
HAHAHAHA. I tried, and … uhh… it did not go as planned. What’s crazy is that I have told jokes about being a serial killer that landed better than me openly pursuing FIRE did. It baffles me that there are people who can hear me say things like “my job is killing me, the planet is on fire, Nazis still exist, my mental health is in crisis, and I can’t stop thinking about how much I enjoy tweezing puppies”, and they will respond with “haha, samesies”. But if I say “I’m cutting my spending to save more and get out of the labor market early so I can focus on things that make me happier and healthier”, they react like I just told them that Beyonce is overrated, the planet is actually flat, and I plan on drop kicking a bunch of babies into a live volcano later. Which is just ridiculous because only one of those things is true.
12. What pieces of advice would you suggest to someone who is just starting out or someone who is working toward reaching financial independence?
I wish someone had told me when I was starting out that the discipline needed to pursue FIRE is a practice towards progress, not perfection. You will mess up, A LOT, and that’s ok. So long as the values you identified as your reason for pursuing FIRE hold true (even if they naturally evolve over time), you will only need to show up and practice until your mistakes get smaller or go away altogether.
13. What has been your greatest accomplishment to date?
Honestly? Hitting a net worth of zero was the happiest I’ve ever felt about a financial milestone.
14. Are there any books, blogs, or podcasts that you would recommend for our readers to check out?
GoCurryCracker, MadFientist, and Modern FImily. I also love the mathier and ethics-focused investment books like “A Mathematician Plays the Stock Marker” and “The Quants“. Generally speaking, the blogs are where I go for tips and the books are where I go to research and challenge my FIRE values and tactics.
15. How can people get in contact with you?
Instagram: eating_to_fire.
16. Anything else you’d like to share?
I love the modern fimily!!!
Wow, thank you D! What a great first interview (and I swear I did not pay her for #16’s response)! I’d like to dig into a few highlights:
- You take ownership of being an immigrant and recognize that our life is what we make of it. One of my best friends is on her FIRE journey and she is dating a guy who is half Syrian and half Turkish. When she approached him about the FIRE concept his response back was something along the lines of: “Wait, this is a movement in America? Living this way is NORMAL, not EXTREME.”
- You were able to help out your sister during a time of need. I am so sorry to hear about her struggles but SO happy to hear she has overcome cancer and that you were able to help support her both emotionally AND financially during her journey. That is the power of FI!
- 60-110 hour works weeks?! I honestly don’t know how you were able to send this back within 24 hours – I would be SO exhausted! Let’s find you a new job pronto with a better balance.
- I LOVE your response to question #4 – so well said. It’s all about FREEDOM and EMPOWERMENT.
- I too am not the best at budgeting but like you said, you master the big stuff and that’s all that really matters. If you haven’t already, you can check out our Master the Big Stuff Series on housing, transportation, and food to learn more. It is not about deprivation!
- Coming out of the FIRE closet is HARD (you guys see what I mean about her humor – talking about finances is hard to make funny yet somehow she is able to do it). We too have not yet figured out how to approach our family and friends on this topic. Any readers have any advice?
- I love your response to # 12 too – again, very well said. This is not a journey of perfection!
Thanks again so much D for being our first guest interview on the Modern Fimily. You sure shared some great information. I hope you all enjoyed D’s responses as much as I did.
Modern Fimily readers, did you enjoy this interview? Any additional questions you would add? Are you financially independent, retired early, or close to reaching these key milestones? We would love to have you tackle our guest questions. Give us a shout! Thanks for tuning in and check back next month for the next interview 🙂
Great entry in the first of your FIRE guest posts on Modern FImily
I remember those 60-110 hour weeks and now I can’t even fathom a 20hr a week job. I’ve been tossing aroun the idea of applying for one that something I love…but I love my free daily schedule and ability to do nothing or go on a run in a whim.
Best wishes on your future financial path D and so far things are looking good for you.
Thank you Chris! I can’t imagine a 60-110 hour week, especially consistently. I keep telling D it’s time to find her a new job but she loves working with her team and coworkers so at least she’s finding enjoyment with it! I think I’d be on the fence too, post FIRE, about wanting to do a part time gig that I’m truly passionate about but like you I feel like I’d be giving up the freedom to plan your day exactly how you want it to be.
Thank you for featuring me Modern Fimily! I loved getting to share this and hope that someone will find value in it. What you ladies are doing is so admirable, and I can’t wait to read the follow up series!
Of course, you’re a gem! I too hope some readers will find value in your responses, I’m sure they will! Thank you for your continued support 🙂
Thanks for sharing D!
I like the FIRE closet question, I think a lot of people struggle with this since it is taboo to talk about money, but everyone wants their friends and family to be informed! You can quickly sound ‘preachy’ though. I always like to hear strategies and challenges about healthcare coverage, so you could add that!
Take care,
Max
Thanks for the comment Max! I definitely am struggling with the FIRE closet dilemma myself! Good idea about health coverage – I didn’t really think about it since it’s a non-issue for us in Canada but I’ll add it into the mix 🙂
I am already in love with this series! And love this interview and having a new awesome account to follow in IG. You are right, she is awesome and super funny. Thanks for this series really, learning about people’s stories is so needed because we are a diverse bunch following this path in a million different ways.
🙂
Thanks J for the love, we appreciate it! D really is great 🙂 and we’re hoping to showcase more great people in the FI space because like you said we sure are a diverse group and we are reaching our goals in our own unique ways 🥰
I love it! Especially the part about spilling the FIRE beans and nobody understanding – that’s definitely our experience too. Great series 🙂
Thanks Kim for tuning! We tried to come up with some questions you don’t typically hear asked all the time (along with common ones too!) and I have a feeling that the response to the coming out of the FIRE closet is going to be similar for most interviewees, we shall see! D’s humour really shined in her response back to that one 🙂
Love, love, loved this interview. Line of the day goes to “Beyonce is overrated, the planet is actually flat, and I plan on drop kicking a bunch of babies into a live volcano later. Which is just ridiculous because only one of those things is true.”
Nice work @eating_to_fire – we can totally relate with trying to come out of the FIRE closet.
Thanks ladies! She’s funny right!? I’m glad her humour pushed through in this interview 🙂
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