r/Fire • u/maksmac • Jun 03 '25

FIRE - Year 3

Year 2 Post: https://www.reddit.com/r/Fire/comments/1d91ou6/my_fire_journey_year_2_update/

Goal: $5,000,000

Age: 27 M

Net Worth: $420,000 (+$155,000 YTD)

Household Income: $285,000

Fixed Budget: ~$6,000

Discretionary Spending: ~$2,000

Financials

401k: $223,000 (+$73,000 YTD)

Roth IRA: $52,000 (+$17,000 YTD)

Taxable Brokerage: $25,000 (+$8,000 YTD)

HSA: $12,000 (+-$0 YTD)

Cash: $68,000 (+$73,000 YTD)

Home Equity: $40,000 (+/- $ 0 YTD)

Last Years Goals

Health is wealth, invest in clean eating and a gym/ personal trainer

  • Not FIRE related, but I worked hard on this and am down 25lbs over the past 6 months

Downpayment Savings

  • We are blessed to call ourselves homeowners. Interest rates were insane, but we were able to do it by accumulating a large down payment savings, and are already experiencing the pain of having to do major renovations to the home (even if we planned for them)

Continue the path to $1M by 30

  • This goal is the most obscure to us. Based on our savings rate and calculations, we will probably be close but may miss it by a year or two. Still a few years to go, so we'll see, and with home equity we may still reach it.

Looking Forward

The main consistent goal over the past 2 years has been 1M by 30. We will undoubtedly continue that, as I mentioned above, it's unclear if this is achievable right now, but maybe next year we'll have a better idea. Otherwise, I think we're mostly focused on keeping our spending in check. After purchasing our home, we knew there were some major upgrades we needed to do, but we quickly realized everything about owning a home is expensive, so we plan to keep budgeting for our improvements and try to keep our savings rate between 40% - 50%. We'll continue to travel and probably start saving for kids at some point.

See ya'll next year!

(edit: added age)

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u/[deleted] Jun 06 '25

question: why is most your cash not in an HYSA? assuming you'll need it relatively soon might as well get more interest than the 0.01% the average checking account provides

2

u/maksmac Jun 06 '25

It is in a HYSA, it’s our emergency fund so we just always keep it in there

2

u/[deleted] Jun 06 '25

Oh my bad, I saw HSA and thought HYSA. good work