Update on our FI Journey

After our first post, we didn’t write anything about our FI journey 😦 Not that we were busy, but it was plain laziness 😦 😦 Finally here comes an update (Better late than never!!!)…

We are very pleased to announce that our NAV (Net asset value) touched our FI goal on June 6th, 2014 !!!! Volaaaaaaaaaaaaaaa 🙂 🙂 Technically, now there is no need for us to earn, we can sustain (actually, lead a luxurious life) on the interest income from our investments:-)

Though, at ground level, not much has changed yet in our life after this milestone. He is still in a full time corporate job.

What has changed after FI ??

1. Stress has drastically reduced. Now we don’t worry much about unplanned expenses. Before FI, one unplanned expense and I would make everybody’s life hell (Everybody refers to ‘Koshika’)!
2. I have started enjoying corporate job more. It is just psychological, but who cares? Now I can leave my job whenever I want to and the fact that I don’t have to do this job till eternity – both these make the job a limited time offer and I want to enjoy this limited time offer as much as I can
3. We have drastically reduced our saving rates. Before FI, we were saving 70% of our in hand salary. Now we are saving just 30% of our in hand salary. With more money to spend the quality of life has significantly improved – We are sending Pari to daycare for 3 hours daily which gives Koshika some free time, we are almost going out on daily basis, lots of shopping, lots of travel plans in pipeline etc etc – who says money cannot buy happiness 🙂
4. Originally, Koshika planned to take up a full time corporate job after Pari turns one. Now Pari is almost 2 years old and Koshika is still not working (Oh yes, but she is still on a full time Mom job, apart from those 3 daycare hours) We have much more freedom and flexibility while deciding things.
5. Earlier I was spending all my free time reading about how to increase investment income, how to minimize expenses, how to become FI faster etc etc ….. Now I am spending most of the free time with Pari and Koshika!!!

Our immediate plans

1. Full time corporate job: Because of certain reasons, we have decided that I will not leave the full time corporate job as of now. When? We still haven’t decided.. For now, we just plan to go with the flow – currently I am enjoying my job and extra money 🙂 Tomorrow if I stop enjoying it, I can leave it immediately…. Wow what a feeling it is 🙂
Now that Pari is almost 2 years old, Koshika also at times gets an urge to pursue something. Who knows? She might start something of her own or join a corporate job (part time or full time)
2. Travel, travel & travel: During our journey towards FI, we curtailed our outings and travels big time – Now is the time to compensate!!! We plan to travel extensively this year (both short weekend trips and long trips). To start with, we have planned a 3 week India trip. We are leaving on 26th Feb 🙂 🙂 🙂
3. New experiences: Until now our life was very focused on achieving FI and somewhere during this single-minded focus, we have missed several pleasures of life. Now we want to reward ourselves and focus on experiencing new things – be it learning new skills, visiting new places, exploring unique stuff or meeting new people. We want to make each day more enriching and full of memorable experiences. We have also decided to document these new experiences and share with you through this blog – All such posts will be categorized under ‘Every Day A New Experience
4. Blog posts: Last but not the least, we intend to be much more regular with the posts on this blog. Let’s see how it goes.

In the end, we would like to re-emphasize that to achieve FI we have made sacrifices, every single moment, which was very painful – But now in hindsight, every sacrifice was worth. The freedom that FI provides is ‘Priceless’!!

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11 thoughts on “Update on our FI Journey

    • Indeed! We rarely find Indians thinking about early retirement. During our 5 months sabbatical, we plan to do several awareness session around FI and early retirement. We want people to envision a life outside 9 to 5 job

      Good to know that you are working towards passive income through dividends. You also intend to retire early after you have enough passive income?

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  1. Hi, interesting blog. Would you mind sharing the details of how you achieved this goal with your readers? I am an Indian too, and since I can relate to a lot of what you have said in your posts, I have no idea where to begin this journey. Thanks!

    Liked by 1 person

    • Hi Kush,

      Nice to see an Indian visiting our blog 🙂

      When we were on our journey to FI, I spent lot of time searching for FI blogs written by Indian but could not find any!

      I am sure, you will be able to relate a lot with our journey – I shifted to US just 2 years back. Most of my journey to FI was covered in India and most of my investments are still in India. After few months/years, I plan to go back to India.

      We plan to share all the details on how did we achieve FI in our future posts! Stay tuned!

      Cheers!

      PS: For starters, I would suggest you to read the book – Think and Grow Rich By Napoleon Hill (Amazon link – http://www.amazon.com/Think-Grow-Rich-Napoleon-Hill/dp/1453670114). One of the best book on the subject!!!! Though the context of the book is american but it covers all the fundamentals which can easily be applied in Indian context.

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  2. Great post. It will be interesting to hear your journey to FI and how you planned your investment income to exceed your job incomes. This will help the likes of me!
    Good going, all the best.
    drstarter33

    Liked by 1 person

    • Hi Drstarter33,

      Thank you for visiting our blog !

      Yes I plan to cover all the details around my FI journey in future posts. Few posts are already work in progress and will soon be published. Stay tuned!

      FYI – My investment income doesn’t exceed my job income. My job income is quite high and I don’t need that much to live. These days we are almost splurging and still we end up saving 30% of my after tax salary. My investment income is a little more than what I would need to live after I leave my corporate job.

      Cheers!

      Like

  3. Glad to hear you have achieved FI! Question for you … After saving hard for so many years and reaching FI, was is hard to allow yourself to increase your spending? We are getting close FI, maybe another 2-3 years. It feels like it would be challenging to change old habits that are so ingrained into one’s psyche. We may be reluctant to spend more if we keep working. Also, how does the increased spending affect your FI status? Is it feasible to stay FI at the increased spending level, or are you suggesting that you would decrease spending again if you quit working? Again congrats to you on your journey!

    Liked by 1 person

    • Thank you for the wishes and for visiting our blog 🙂

      You are absolutely right……….. It was/is difficult to increase the spending. We now feel as if we are splurging….. And at times even feel guilty!!! We still maintain monthly budget and track our expenses and there are months when we have to encourage ourselves to spend more!!! Even after all the encouragements, we end up saving 30% of our after tax salary! But trust me, spending definitely makes the life more pleasurable 🙂

      In our case, we are NOT FI at our current spending levels. The plan is to reduce the spending when I quit working!

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      • No blog (yet). Basically we are living on less than one person’s income and saving the other income, targeting around 65-75% savings rate depending on some variable earnings. According to the 4% rule we are FI, but we would like to spend more and/or have a larger safety margin in retirement as travel and health expenses may increase our budget. Targeting early retirement at age 40 for me and 38 for my wife but we shall see!

        I’d love to see a post on the cost of living in your city in India. I can’t seem to find much reliable info for India. Would be an interesting perspective since you can relate to life in the US. Thanks for your perspective!

        Like

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