Is it really possible to be financially independent and if so what does that mean? To be financially independent means something different to everyone but for me it means the following:

  • Am I able to quit my full-time day job and have no worry about income (retire)
  • Maintain quality health insurance
  • Continue an enjoyable lifestyle with my wife and kids

These are all questions I believe we should all be asking ourselves. Too often we put these questions off until we are too close to retirement and then it is too late to make a significant change.

My Family’s Journey

The goal of this blog is to detail our journey to financial independence. We have been working very loosely towards retirement for some time but not making any real progress. I attribute the lack of progress to not defining any goals. When my wife and I started discussing financial independence we came up with a list of goals for 2017 and implemented them as of January 1.

  • Create and use a budget
    • Our spending on items such as groceries, restaurants, & shopping sprawled out of control some months and starting a budget really opened our eyes to this
  • Increase amount of money being saved each month/year (We defined a number and figured out a way to get to it)
    • Savings account
      • Parents savings account
        • We increased this late last year by 60%
        • We also moved most of our savings to Ally so that we could collect more money from their high interest (how funny is it that 1% is considered high)
      • Kids savings account
        • We doubled this late last year as well. It sounds great that we doubled it but it still isn’t much but does add up through the years
      • Non-taxable accounts
        • 401k
          • We have 27K going into this account every year
        • Roth IRA
          • Started it in 2017 and will be maxing out for 2016 & 2017
        • College Savings Accounts
          • We will evaluate increasing this later in the year
        • Health Savings Account (HSA)
          • We are saving $4,000 a year in this account and pay our current medical expenses out of pocket thus allowing this to grow.
        • Taxable account
          • I currently use Schwab as my brokerage account.

Our goal for financial independence is 50-55. We opted for a range for a variety of reasons:

  • I am already 40
  • Things change, for example we are going through the process of adopting from overseas.
  • Life happens. This includes items such as sickness, job loss, and etc.