Throwaway for anonymity. We are thinking about RE next year and I've been doing a lot of calculations. In the process, I've put together a summary of our financial journey over the years.
Me (39F) and DH (41M), married 17 years, 2 kids.
Total NW>$8M, with ~$500k in primary residence. Withdrawal rate<3%.
Parental support: - No student loans, no credit card debt. - In-laws contributed to first home down payment (~$50k). - My parents gave me $20k at marriage. - We each had a car purchased by parents (DH VW New Beetle, me Toyota Corolla).
2007: - Got married. - Bought first house in suburbs of Seattle for $420,000, paid 20% down (same for all subsequent real estate purchases). - We both began working in software after graduation. This was before huge tech salaries for new grads, we both made less than 6 figures in our first jobs. - We didn't know anything about investing, did not max out 401k beyond employer match, paid aggressively into house. We did live below our means.
2010: - First child born. Daycare and my parents. - Sold my Corolla. Bought a Subaru Outback (cash).
2012: - Moved to Bay Area. - Kept our Seattle suburb house. Hired a PM and rented it out. Positive cash flow. - Second child born. Hired full-time nanny. - For the next few years DH switched jobs frequently, rapidly climbing the corporate ladder and increasing his salary. I switched jobs once and salary went up a little.
2013: - Lived in 3 rentals before buying an old townhouse in Bay Area for $650,000.
2015: - I discovered FIRE, J L Collins stock series, various influencers, etc. - Tried to educate DH, turns out money matters largely go in one ear and out the other. But he trusts me with our finances completely. - Took stock of our assets. NW a bit under $1M, ~$500k liquid. Started tracking expenses, consolidating investments, maxing out 401k, etc. - MIL passed away from cancer. Left us $90k. - Rough estimates I had for FIRE was 5-10 years and $2M-$4M.
2016: - I quit my full-time software job to be a SAHM. Let the nanny go. - I started working remotely part-time as a translator and educational consultant. - Paid off the remaining mortgage on our Seattle suburb house.
2017: - Moved back to Seattle. - DH left the startup life for the megacorp life. - Sold our Bay Area townhouse for ~$500k profit. - Bought very old house near Seattle downtown for $840,000. Did some renovating. - NW hit $2M
2018: - Bought investment property near Olympia for $320,000. Positive cash flow. - Younger child started kindergarten. Both kids in public school.
2019: - NW hit $3M
2020: - COVID-19 happened. - Bought investment property near Raleigh, NC for $220,000. Positive cash flow. - Losing our minds cooped up in our house. Started house hunting again. - Bought our (hopefully) forever home an hour south of Seattle for a little over $1M. Did some minor renovations. - Sold our Seattle house for $1M. With our renovation costs and agent fees we about broke even.
2021: - Bought a Yamaha boat (cash). We keep it at our house or our own dock so no costs beyond insurance, gas, and yearly maintenance.
2023: - Bought a Rivian R1T (cash). Installed car charger. - Installed central AC in house and some minor renovations. - NW hit $6M
2024: - Enrolled children in private school. - NW hit $8M
Hopefully the next step will be RE!
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