To get a full background on this journey, please see part 1.
In short, I need to cash flow nearly $40,000 of expenses in addition to paying off my living expenses and my outstanding debt.
I have four main categories of things I am paying for this year.
2022 SET IN STONE EXPENSES
Expense 1 – $8,000
I have paid off all of this. I wish I had done things differently regarding this. However, I am overall in a better headspace and understand what led to these decisions.
Expense 2 – $22,300
I have $10,800 left to pay on this.
POTENTIALLY VARIABLE EXPENSES
Expense 3 – $3,860
In total, I ended up spending $4,206.35 and I am still mad.
Expense 4 – $5,000
So far, I have spent $2,573.25 in this category. I don’t anticipate on spending too much more on this category. Maybe my final number will be under $4.5K when it is all said and done.
Thoughts Thus Far
I am spending way above my ideal FIRE number. It’s wild that it took me over 5 years to get $100k accumulated in net worth, yet I nearly spent that amount in after tax spending this year.
A silver lining, I guess, is that I did buy some expensive ass 1-off shit. So going forward, I do not anticipate spending that much as part of my regular expenses. Truly, I want to be able to take 2 nice vacations a year and go to Vegas each year. I also want to put enough in my retirement accounts that I do not have to work a Corporate job when I am 40.
This is year 1 of my (hopefully) 10 year journey to Financial Freedom.