Income/Expenses For April 2014

budgetI’ve been tracking my income and expenses online since I initiated this blog back in early 2011. I do this for a few reasons.

First, I want to prove to the world that it’s possible to become financially independent at a relatively young age even if you don’t make a lot of money. I don’t make a six-figure income. I never have and I probably never will. But it’s not necessary. Often, people focus on income too much. Expenses are just as important because if you make $200,000 per year, but spend $190,000 of it you’ll never become financially independent. Conversely, bringing home $40k and learning to get by on half of it means you’ll likely be able to retire if you want to within 15 years or so. Making less means you have less to save, but spending less means you need less to retire off of.

The second reason I do this is because I want this to be a live look at one man’s journey. You can find countless books by financially successful people, but often it’s long after they’ve completed their trek to significant wealth that they’re then telling you how they did it. It’s easy to postulate. It’s much more difficult to actually show the whole process in action, for better or worse.

And finally, knowing that every dollar I spend is going to be published for the world to see serves as reinforcement to stay frugal. There’s been more than one occasion where I decided against a particular expense after realizing I might be a bit embarrassed to write about it.

So each month I will post my income and expenses for the previous month. I track every dollar in and out, so what you see is exactly what I earned and spent (rounded to the nearest dollar).

Income from April 2014:
Day Job Paycheck$3,225
Dividend Income $312
Online Income $818
Total Income$4,353
Expenses from April 2014:
Rent & Utilities$525
Auto$300
Student Loans$224
Restaurants$204
Health$149
Groceries$121
Fast Food/Takeout$117
Fuel$77
Auto Insurance$49
Pharmacy$44
Internet$30
Gym$30
Mobile Phone$25
Amusement $5
Everything Else*$211
Total Expenses$2,106

*The Everything Else category includes expenses I don’t have a regular budget for. For this month, I spent $58 to renew my annual registration on my car. I also bought a webcam ($36) as I had an interview via Skype for a potential opportunity in mainstream media to further spread the message behind this blog and broaden the audience. Unfortunately, I don’t think that went anywhere, but it was an interesting opportunity. There was also some major spending for birthdays this month. Both my girlfriend and her son have birthdays in April. I bought her son a gift ($16), and I also spent $101 for my girlfriend as I rented a room in Naples, Florida for the night and got her a small gift in addition to that.

For starters, income was great. However, you’ll see a major drop in income from my day job compared to last April. This is because of the pay cut I took earlier in the year due to some changes at work. While these changes have taken a few months to meaningfully materialize, this is likely a permanent loss of income on the level of what you see here in the YOY reduction. My sales for this April were approximately 30% lower than what I was able to accomplish last year, and that’s mainly because the sales pie has to be cut three ways instead of two. Although I also shaved ~$233 off this total this month to account for my quarterly estimated taxes, this is still way lower than what I could have potentially earned.

But what I lost in income at my day job was pleasantly made up for by income elsewhere. Obviously, dividend income continues to hum along very nicely. April’s dividends helped tremendously, and that’s $312 I didn’t have to go out and work for. What a burden to be lifted from my shoulders.

And income from my online ventures continues to surprise and grow. I’m simply amazed at what has transpired here, and I remain eternally grateful to all of you readers out there that continue to stop by this site and support what I’m trying to do here. As you’ll notice, I don’t really push any products here, so almost all of my income is generated via passive display ads and freelance writing. The income you see in the table is net of hosting fees ($152) and email costs ($20). I’m aiming to generate $12,000 in online income this year, net of expenses. I’m solidly on pace to exceed this goal, so I’m extremely happy with this. There’s a part of me that wants to transition from working at a car dealership to writing on a more full-time basis, and that idea becomes more and more realistic with every passing month. This type of change would slow the journey to financial independence down because I wouldn’t be able to save as much, but it would surely be a more scenic and enjoyable route.

Expenses were a bit higher than normal, mainly due to the aforementioned expenses related to gifts. For example, my food expenses look pretty out of control this month. But almost 1/2 of this spending was all done in one day in Naples. I took my girlfriend out to lunch and dinner (Naples is expensive!), and then we also went to this popular cupcake place after dinner. Subtracting this one night out and I only spent about $200 on food this month, but I was more than happy to take her out for a good time. She’s been incredibly supportive of what I’ve been doing over the last four years, even while she doesn’t share the same vision and enthusiasm. So I wanted to show my appreciation a bit.

I think the rest of the expenses look fairly normal. However, transportation costs continue to weigh on me. Fuel was a bit high due to the trip south and back, and I’m still amortizing the purchase of my used Toyota Corolla. I long for the days when I was riding the bus and my little scooter, that’s for sure!

I managed to save 51.6% of my net income this month. I consider anything over 50% as a definite victory, although I barely scraped by this month. But I’ll take it! A win is a win.

My goal is to save 50% of my net income, averaged monthly. So far, I’ve hit rates of:

  • 49.8% – January
  • 21% – February
  • 59.1% – March
  • 51.6% – April

So it looks like I’m now at an average savings rate of 45.4% for the year. Not my best showing for sure, but I’m hopeful that I can make up for this later in the year. Again, I knew it was going to be challenging with rising costs across the board and the amortization of a car purchase, but I feel pretty good about how I’ve fared thus far. Looking forward, I expect continued savings rates lower than what I’m used to, but I’m also anxious to continue doing my best. And what’s maybe best about this blog is that since it’s a live look at my journey to financial independence, you’re able to see challenges and setbacks, not just all the good stuff.

What did your budget for April look like? A victory or a setback? 

Thanks for reading.

Photo Credit: Stuart Miles/FreeDigitalPhotos.net

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103 Comments

  1. I have been reading your journey for a few months now and i just wanted to say that I’m so impressed by what you are doing here. You have helped more people than you will ever know with your dedication, thoughtfulness and persistence. I just changed companies relocating back home to Texas after working in two other states for nearly five years so I know what you mean when you say that you miss your family. I took a significant pay cut of more than 25k to do it but have no regrets. Good luck with whatever you ultimately decide to do. Thanks to you I’m now saving $500 a month outside of what I’m doing at work (401k)in hopes to get to FI in 20 years. Not as impressive as saving 50% but it is better than my 20 something self was doing. 🙂

  2. Congrats on a great month of saving, especially with the day job seeing better days. I’m glad you took some time to relax with the girlfriend, sounds like it was a fun trip. It would be so great to see you writing full time, I feel this could happen very soon. Oh, and you’ll have to find a way to use the webcam now that you have it, and if you need footage edited, I can make it look awesome for you 🙂

    Take care!

  3. Good work, DM!

    I know real estate investing in not your cup of tea and you have no interest in it as an investment. While you’ve probably already commented on this, (if so I missed it), can you buy a house anywhere in your area for approximately what you pay in monthly rent?

    That would be another facet of FI as it would eliminate the expense (excepting normal home ownership expenses). Perhaps you view it as a form of being tied down or simply not cost effective. Just wondering if you’ve seriously considered and investigated the option and what your rationale is.

    Good work on your online income!

  4. DM,

    I think you need to think a little about what constitutes financial independence. If you’re trying to get financial independence so you can write, then being able to live by your writing IS financial independence.

    Have you thought of trying for a book contract with a good advance? You’ve got a lot of writing on here, and it belongs to you. Edit that writing, and you’ve got a book. If you can get a $10,000 advance, take 5 months to do the editing while keeping this blog going. You can live on $1000 a month from the advance plus dividends and earnings from this blog and still put $1000 a month into stocks.

    Don’t wait till you’re 40! Go for it now!

  5. Matt,

    Thanks so much. I really appreciate your support.

    And I’m glad you shared your experience there regarding moving back home to Texas. I’m in a very similar position, where I’d likely make much less than I do now (even after factoring in my pay cut) if I were to move home. Of course, money doesn’t really matter when we’re talking about family.

    I’m glad you chose to move home and be with loved ones. I envy that courage, but I’m also very close to pulling the trigger myself. And I’m really happy to hear you have no regrets. I live life with no regrets myself, and it’s important to be cognizant of your choices and how they’re affecting your life. Doing so puts you in control so that you have no regrets over your choices.

    And I think you’ll find that success begets success. That $500/month starts to snowball into something fantastic quicker than you might think. Best of luck with your journey! 🙂

    Cheers.

  6. Ryan,

    I’ve definitely seen better days at my day job, but it is what it is. I know that I’ve worked incredibly hard and created a lot of opportunities for myself. I’ve always found it to be true in my life that as one door starts to close, another bigger and brighter door soon opens. And life is full of transitions. It’s just important to be ready to take opportunities as they present themselves, and be open to change. And change is definitely what I’m going through right now.

    And thanks for the support in regards to writing. I would love to be able to write more often, and I’m limited really only by my available time. I think I could write much more and focus on quality more than ever if I had less time constraints. Of course, this is one of the opportunities I’m speaking of, so I’m excited to explore some different ideas here over the coming months.

    And maybe I should try some video stuff. I don’t know how it would go over, but it might be a chance to reach new audiences and spread the message. I’ll definitely give you a shout if I go down that path, as I know you’re the expert in that arena.

    Keep up the great work on your end. You had a great April. Onward and upward. 🙂

    Best wishes.

  7. Solid month. I know you’re down about the income loss at work, but $3200 (net) in a single month is nothing to sneeze at. It’s not that bad… though nobody in their right mind wants a pay cut. Still, with the online income you’re doing great!

    I feel you on the car. I have a few months to go before my “next car in cash fund” is fully funded. That will open up some additional room for investing pursuits. I’ve been socking away money towards it every month for years, gah! Cars suck for buying freedom, but they sure are fun to drive!

    Keep it up!

  8. Curtis,

    I’ve definitely thought about real estate. In my particular area, homes and condos are quite expensive. Renting down here makes better financial sense, but this isn’t true in all markets. For instance, back home in Michigan there are many areas where you can buy a decent house for $50k.

    I’m not against buying a primary residence, but it would have to fit my lifestyle. Furthermore, I’d have to have a large margin of safety. I wouldn’t buy something if the monthly payment simply came out to around the same as renting. I’d only buy if this payment came out considerably less than renting, because I’d then have to factor in costs for occasional repairs, maintenance, and possible updates/changes.

    Overall, I like renting because I enjoy the flexibility and low-effort lifestyle. I’m not the type of person who would look forward to cutting the grass, building a garden, cleaning gutters, raking leaves, shoveling snow, painting walls, fixing plumbing, changing cabinetry, or going on a Home Depot run. It’s just not in my blood at all. But if the right place came along at the right price I wouldn’t be opposed to building equity with my monthly payments.

    I should also mention that long-term travel is something that I’m interested in at some point. And buying a place could hamper me, unless I found the right tenant and situation. As such, I enjoy renting cheaply right now.

    But I also know how lucrative rentals can be. It’s obviously working for you. Congrats on that! I envy those that can leverage real estate correctly, but I simply operate within my circle of competence and interest.

    Best regards!

  9. Jim,

    Thanks for that! I appreciate the comment. Sometimes I need a little boost of encouragement like that. 🙂

    And I’m totally with you. I don’t know if I’d claim financial independence by blogging, because the income I make via writing could go away at any time. I would never claim financial independence unless I was earning enough passive income via investments. But I’d love to be able to downshift a bit and enjoy the path to FI much more than I do now. It’d be a longer road because I’d likely be making much less, but it would certainly be a lot more fun!

    And I am thinking about writing a book one day. I’d put together a ton of new content for it instead of using the blogs posts, but it would be a great product. And it wouldn’t be an e-book or anything. It would be a real book you can pick up with your hands. I’ve thought about doing a trilogy of books: The first book would be me changing and chasing after financial independence, learning about investing, sharing tips and ideas, etc. The second book would be financial independence and what it looks like once I actually get there, the best stocks to hold if you’re living off of your passive income, ways to spend your time, etc. Then I’d write the third book maybe a couple decades after I reach FI to discuss what the road looks like long after I’ve traveled it and whether or not I have any regrets, what I would change if I had to do it all over again.

    Anyway, I’ve got all of these great ideas. They live in my head and drive me crazy sometimes. This blog is probably only 10% or so of the output I’m capable of.

    Thanks for the ideas and encouragement again. I’m strongly considering making a go of it, at least for a short time to see how it goes. I’ll be discussing this in the coming weeks! 🙂

    Take care.

  10. CI,

    I hear you on cars! I’ve had plenty in my life that were a lot of fun to drive: A Corvette, Cobra Mustang, Trans Am, etc. However, they’re such a money drain. They just suck the cash right out of you. I’m glad I bought my Corolla because it’s a fantastic car for the money, and I know I could sell it for double what I paid right now. However, the days of the bus and scooter were much cheaper. 🙂

    And thanks for the support regarding the income. I know what you mean. It’s all about perspective. I need to remember that while the pay cut sucks, it’s still a ton of money. And the more I think of it, it’s maybe not the pay cut that bothers me, but the fact that I took a pay cut while I’m simultaneously subject to rising benchmarks. I’m judged against surveys, and my benchmark went up about 15% over the last couple of months. Less money and higher standards suck. Of course, it’s also the time I spend there. I feel like every minute I spend at work is one less minute I could be writing and inspiring. I just feel like my potential and the good I can do here far outweighs what I do at work. But money is money.

    Anyway, I appreciate the thoughts. And I’m glad you’re able to invest more money now that your car fund is full. Any rides that are on your shopping list right now?

    Best wishes!

  11. Looks like you had a very active month across the board. Congrats on scoring that interview! You can think of the webcam as a business expense necessary to spread the good word =).

    It’s good to treat the wife/gf every once in a while. You know what they say, a happy wife a happy life =) (or happy gf, in your case). I used to live in south Florida many years ago and Naples always struck me as a sort of high end place.

    I must say, I keep looking at the sum of your dividend and online incomes and I keep thinking “boy, he could walk away from it all if he really wanted to”. I’m sure it’s comforting to know that you have these other sources of income to fall back on if things get rough.

    Good work saving over 50% of your income. It is understandably not your best showing, but fantastic nonetheless.

  12. Spoonman,

    Thanks for stopping by!

    Naples is pretty expensive, but it’s also really beautiful. We had a great time, and I have to say I had one of the best meals I’ve ever eaten at this restaurant along 5th Ave. downtown. Of course, for what we paid I would expect no less. 🙂

    And you’re right. It’s really comforting to know that I could make a serious go of writing for a living. Or, at the very least, take a break from the all the crap at work and write for a while to see where things go. I just feel so happy when I’m able to sit down and write or communicate with other like-minded investors like yourself. Whereas work is a total drain and buzzkill, this is completely uplifting. It’s such an interesting dynamic in that I have these two completely opposite forces at work in my life. But changes are coming…

    Thanks for the support. This year has been tough on the savings rate with the reduced income and increased expenses, but I’m still giving it a hell of an effort.

    Looking forward to changes both in my life and yours. I know you’re just as anxious to quit work as I am. 🙂

    Take care.

  13. DM,

    “Corvette, Cobra Mustang, Trans Am, etc” Wow, I’ve never had anything even close that much fun! You used to be a wild man, sweet jesus!

    Anyways I plan to keep my current vehicle another 3-5 years and enjoy not having a self induced car “payment” for a while.

    To be honest, I’m starting to slip a bit at work. I find myself dreaming about more exciting things than exchanging time for money. Especially because in the military, I’ll barely be rewarded for extra effort. But at the same time I know that once I leave I’ll miss it. Kind of wish i could just fast forward 5 years and join the Army reserve. That is my dream now that I think about it.

    Catch you later wildman!

  14. DM,

    I have been following your blog the last 3 months or so and i have to say, it is a complete inspiration to me. At 24, i find your investment strategy easy to digest and understand. I think if you wanted to, you’d have a bright future in writing a series of books geared toward younger investors, although i am sure you message carries just as well to the older crowd. I started investing in 2009 and neglected it until just a few months ago when i bought some GE shares. Luckily my grandfather led me in the right direction in 2009 in the form of purchasing VZ. This is the first stock that showed me just how awesome dividend investing can be. I kick myself for allowing that gap between 2009 and now, but i am glad that i am back on track at the still relatively young age of 24. I always look forward to checking the updated articles you post on this blog. Keep up the good work! I can’t wait to watch you hit the 200k mark! I think you will be there sooner than you think.

    Take Care,

    Josh

  15. I’ve seen your student loans go from ~200/month to ~220/month.

    Curios to know if you can’t find much to invest in if you would pay the whole thing off? That would free up ~220/month. I don’t know your loan terms so it may not be the best idea but I decided to it last week. Had rates of 6.5% and another 12 years remaining. Any thoughts?

    Keep up the good work as always.

  16. I hear you on the income being diminished… I really notice when my income goes down (due to shortage of overtime). When this happens, I have to watch my expenses more closely.

  17. Thx again for the update, it’s a real pleasure to follow along…Just curious, would you move out of FL for a higher paying job or are you stuck there? You could easily make 2 or 3x your income in Texas or ND working in the oil/gas industry, they’re desperate for competent workers. Seems like that would really expedite your journey to financial independence by making a move. .

  18. Hi DM,

    Great effort on the getting over the 50% saving rate for April, especially with a higher than normal spend. Like yourself, I believe 50% represents a saving rate that goes from an everyday ‘good saver’ to a ‘FI candidate’. Keep up the good work!

    It’s not nice to hear your time at work is getting more difficult, and might decline further. I think your attitude to your employment situation is commendable. You mentioned in a comment above that you keep a philosophy of ‘when one door closes another opens’, I think that’s a great mindset to have and just scanning through some of your readers ideas and your responses to them, it’s clear that you have a lot of options to consider. These options ARE exciting and will very likely change your life significantly.

    I wish you all the very best in your future decision making. From reading your blog, and seeing the effort you put into researching your stocks and making the right decision, I have no doubt you’ll make the right call!

    Cheers
    Huw

  19. Hi,
    I was just wondering what kind of interest you’re paying on your student loans? Just wondering if you’dd be better off diverting more of your capital (earnings) into eliminating them in the short term. Remember that every month the interest they accumulate is compounding your future wealth downwards in much the way that you dividends increase it.
    Just a thought!

    UTMT

  20. Hi Jason,

    Thank you for sharing this.

    My saving was pretty good amount last month (April 2014). In Canada, especially in Toronto, fuel and car insurance costs are extremely high; however, I managed to save around $2300 last month.

    Cheers,

  21. Hey Jason, what about interviewing with Dave Ramsey? You would make a great addition to his team and Nashville is a great place to live. I’m a big fan of his, but he’s more of a real estate guy with limited background in picking single stocks. I think if anybody could change his mind on investing in single stocks you could by talking and writing about investing in dividend growth stocks with a long history of growing dividends.

    Best of luck in whatever future adventure you decide to undertake. I can’t wait to read about it!

  22. Just curious, did you ever approach the boss about the fact that he is taking away 30%+ of your income? Obviously don’t demand anything but just bring it up that you are disappointed. They may consider making up some of the difference if they know you are unhappy enough. If not at least you can laugh at them and say you asked when you find a new opportunity elsewhere 🙂

  23. I have a little more house than im comfortable with due to a divorce but there are some pro’s and con’s.

    PRO’s

    Where i live rents were literally going up faster than my salary was growing which always boggled my mind. I periodically check my old apartment and goggle at how high the rent is 5 years later. The mortgage interest deduction is a nice perk. I do pay the association fee’s for the townhouse but that obviates the need for any exterior work (and working 60+ hrs its worth every penny). It’s a lot more space than my apartment was and i have a garage for those wonderful Noreasters that dump 2 ft of snow in the winter!

    CON’s

    I dont like being tied down. If i lose my job i only have about 4-5 other state locations due to the specialized nature of what i do so i’d have to move. It’s more expensive than rent was (but atleast some of that goes towards principal). The great recession killed house values, they havent recovered yet (but its creeping upwards finally). You have to fix your own toilette when it breaks 🙂

  24. Based on your expenses you will need at least $825K in your porfolio (in current USDs) that would take around 25 years. It may be a good idea to put some money in a ROTH IRA to try to minimize taxes later. Then if you start a family – kids – they will drain your pocket change rather quickly.

  25. The government direct loans i have are sitting at 2.1%! Never made any sense to me to pay them off since even the crappiest of div stocks can cover that.

    6.5% youch wise move getting rid of those bad boys.

  26. Man quit the job and lose the car. Get a part time job close to home and write more. Life is too short to put up with that kind of BS IMO!

  27. What a fantastic lesson your story contains! Your choice of frugality has already provided you with so much more freedom. Imagine if you were like most people and your expenses were 90% or more of your monthly income – you’d be in desperate straits. Instead, you’re just annoyed that you’re only able to save 50% of your income. And you’ve accumulated investments worth more than 75 times your monthly expenses. That job of yours is no longer quite the ball and chain on your life choices that so many others experience.

    Even without yet reaching the goal of being able to meet your monthly expenses with passive income, you’ve increased the freedom in your life enormously. Congratulations! You’ve established habits of living that will reward you for the rest of your life.

  28. Good stuff with such a high monthly saving. Anytime you can save +/- 50% of your income you’re ahead. No two ways about it. Of course, you won’t be able to hit that every month but that’s OK. Life always throws a curve ball of unexpected expenses at the wort possible times. But hey, like dollar cost averaging some months will be over 50% saving and some less. As you as you average that mark you’ll be fine.

  29. IMO the problem you are having is lack of confidence. The blood sucking job has been smacking you around a bit and thus lowering your confidence level. You will be able to find a job making that amount of money, no offense, but 36kish is not great. You need to have an exit date/plan for within the next 3-6 months. Write one out. I know you are a dividend investor, but you need to have another 20k lying around for these type of situations. Heck put it into a dividend mutual fund, just something that you would possibly liquidate.

    Get rid of the student loan and lose the car and you are darn near FIRE as it is now. Heck worker as a waiter for a few hours close by if you need a few extra bucks. 1kish for rent/utilities seems stout to me as well. Don’t let the man beat you down!

  30. Amen… That’s what I have been saying. Investing, saving, living a frugal lifestyle is awesome… but “live” your life. You are only young once and family time, personal time and time is finite. Life is a balance… invest, save, live smart, but live. I follow the same plan… but I travel the world. That’s one expense/experience I won’t give up. You can’t think tomorrow I’ll retire. tomorrow I’ll travel, tomorrow I’ll enjoy. There is no tomorrow only today. Nothing is guaranteed. Be smart, save and invest but know that time is finite and you can’t assume tomorrow will come.

  31. Forgot to add. Are you still working a lot of hours for that pay? Tell them to kiss your @$#!

  32. I understand it makes financial sense, but not worrying is priceless. I would pay them suckers off, even at 2%. It’s easier to pay 15k off then it is to save 70K to cover the $200 loan. There is a time for investing and there is a time for locking down the hatches. I would do the later in this situation. He is basically saying he would like to quit work to work more in writing. They are both work, but writing isn’t to him. I say never work a day in your life and do what you love. 🙂

    PS: Gain $30 by losing the gym as well. You live in Florida for goodness sakes!

  33. I say scratch these and then early retire now. Be a bartender/waiter for extra cash here and there. Make more with writing etc.

    Auto $300
    Student Loans $224
    Restaurants $204
    Auto Insurance $49
    Gym $30

    Total: -$807 = Bam early retired in the next few months. Ok I’ll quit posting now. I just don’t like companies that pull this kind of mess…..

  34. Hi DM – You got me curious over how your girlfriend see things… you say she think differently about finance, could you tell us more, maybe she knows something of value?

  35. “make a radical change in your lifestyle and begin to boldly do things which you may previously never have thought of doing, or been too hesitant to attempt. So many people live within unhappy circumstances and yet will not take the initiative to change their situation because they are conditioned to a life of security, conformity, and conservation, all of which may appear to give one peace of mind, but in reality nothing is more damaging to the… adventurous spirit within a man than a secure future. The very basic core of a man’s living spirit is his passion for adventure. The joy of life comes from our encounters with new experiences, and hence there is no greater joy than to have an endlessly changing horizon, for each day to have a new and different sun. If you want to get more out of life, you must lose your inclination for monotonous security and adopt a helter-skelter style of life that will at first appear to you to be crazy. But once you become accustomed to such a life you will see its full meaning and its incredible beauty.”

  36. Hello Jason, have you ever thought about pursuing a career as Financial Planner? If not, I think you can be a great one and you probably would love this job. Thanks for sharing. I really enjoy reading your blog.

  37. CI,

    Haha! Well, the Corvette was purchased with money from my inheritance way back in the day. Otherwise, I would have never been able to afford something like that. Of course, youth is wasted on the young. 🙂

    And that sounds like a great goal: Spend more time on your passions, while also being a part of the military on a more part-time basis. Wish you much luck in getting there, but I know you don’t need it. You’re doing great over there.

    Cheers!

  38. Josh,

    Thanks so much. I’m really glad you’ve found some inspiration here. That’s my main purpose with the blog. I really want to inspire others out there to take control of their expenses, investments, and time. Freedom is something too great to just completely ignore.

    Congrats to you for getting started so early. Don’t feel bad about wasted time; you’re getting off to a MUCH earlier start than most. You’re certainly off to a much faster start than me!

    Just stick with it, and you’ll absolutely get to where you want to go. You’ve got a really long ramp to get that snowball moving.

    And I hope you continue to read. I appreciate the readership, and I hope (and plan) to put out even better articles as time goes on. My passion for inspiration is really just getting warmed up.

    Best wishes!

  39. Ron,

    That’s a great question.

    I’ve addressed this before, but I think I should dedicate a whole blog post to it.

    I haven’t paid them off yet, and I’ll tell you why. I just now logged into my account to pull up my interest rate. I have four total loans. Two have an interest rate of 2.35%, and two have an interest rate of 3.125%. Plus, the interest paid is tax deductible (up until a certain income amount). The loans are also quite flexible – I can claim a temporary deferment/forbearance for economic hardship, and if I take a significant income hit I can negotiate payment terms. Overall, I feel I can do better with my capital in equities, even at lofty valuations.

    But if I were you with that type of interest rate I absolutely would have paid them off. No question. If my interest rate was even marginally higher at, say, 4% or so, I’d probably pay them off. But I think it’s advantageous to keep them here. We’ll see. I may change my mind on that if stocks continue to advance.

    Best wishes!

  40. IP,

    Absolutely. Some people might not notice fluctuations in income, but people like us who monitor every penny it’s pretty noticeable. 🙂

    Hopefully, we can keep the income going over the long haul.

    Cheers!

  41. Purewater,

    Thanks for stopping by! And those are some really interesting ideas.

    I’m not stuck here in Florida. However, I do have a very nice lifestyle here, considering the costs. But I have some ideas/plans that I’be been contemplating for a while. And the culmination of those plans are coming into focus now, and I’ll be writing about that in the coming days. I’ve been frustrated for a little while. And I guess I’ve been marching to the beat of a drum, and maybe I don’t particularly like the tune anymore.

    Anyway, I won’t be moving to ND or Texas – not that those aren’t great places to go. But I will be making some changes that I hope will be beneficial to my journey over the long haul. I’m super excited to make that announcement, so be sure to stop by this weekend! 🙂

    And if you know of anything in particular in TX or ND, do let me know. Although I’m not interested at this moment, I might be in the future. I had always thought you needed specific skills to work in that industry.

    Best regards.

  42. Huw,

    Thanks so much! Yeah, I think 50% is a good litmus test for early retirement. If you can get over 50% I’d say you have a really good shot at retiring early and claiming financial independence. And I aim to exceed that mark every year.

    Thanks for the support. And as you can probably tell, I’m extremely analytic. Every decision I make goes through this checklist of pros/cons in my head, where I weigh out multiple scenarios. Sometimes it’s overwhelming, but it’s gotten me this far. 🙂

    And what you’re talking about is what makes the journey to financial independence so wonderful. You don’t even need to get all the way to FI to reap all the rewards. Just becoming flexible along the way really improves your quality of life. Opening up options has made me so much happier, and it’s amazing how much my life has changed over the last few years. As I’ve said before, FI is a journey AND a destination. And you don’t need to reach the destination to enjoy the journey along the way and reap the benefits.

    Best of luck to you on enjoying both the journey and the eventual destination. 🙂

    Best wishes.

  43. UTMT,

    I actually checked my interest rates just a few minutes ago for another reader. I have four loans. Two are at an interest rate of 2.35% and two are at an interest rate of 3.125%. Plus, as Dave mentions the interest paid is tax deductible. And the flexibility is really wonderful. Overall, I think I can do better in equities right now, but if stock prices continue to advance and my balance drops to a level to where I could pay it off quickly then I might change my tune. I’d definitely love to have the payment off the books! 🙂

    Thanks for stopping by. Hope all is well!

    Cheers.

  44. S Arun,

    Wow! Great job there on the savings. $2,300 is some serious, serious savings. I think most people would be thrilled with that.

    Keep up the great job, especially in such an expensive city! 🙂

    Take care.

  45. luckydog17,

    Man, I would LOVE to do something like that. It would really be a dream come true to somehow work in a position like that, where I’m writing and inspiring people on a daily basis. That’s what I’m really trying to do here on the blog, but doing it on a larger scale would be even better because the impact would be larger. Unfortunately, it’s often not what you know but who you know. Maybe at some point I’ll meet someone who could put me in touch with the right people.

    And I’ve thought long and hard about my next step. I’m excited to be talking more about it in the coming days. Stay tuned! 🙂

    Best regards.

  46. Zol,

    Believe me, I’ve been down that road. But my business is pretty ruthless. It’s all about numbers and profit, and as an investor it’s understandable. But this is exactly why I’m trying to move from the working class to the investor class – this drive for profit with an uncaring attitude toward employees is beneficial to the investor class, while being detrimental to the working class. It’s an interesting dynamic in that I’m feeling both sides of the coin at one time!

    And it’s not just the loss of income that has been frustrating, but also the rising benchmarks I’m responsible for hitting and the constant negative feedback. A major part of my job is surveys and customer service indexing. So almost every client I’m in touch with is surveyed on their experience with me. And as time has passed, this has gone from being a relatively minor part of the job to being about as important as the profit I bring in. And so every negative survey that rolls in triggers a meeting with my boss. It’s become such a drag and a buzzkill for me. And this is another interesting dynamic in that I have so much positive feedback and love for what I’m doing in my personal life with investing and writing, and this constant drain on my confidence and enjoyment at work. One has to go. Guess which one? 🙂

    But I’ve definitely decided to look for opportunities elsewhere. Being unhappy, and then taking less money for it, is simply not an option for me anymore.

    Thanks for stopping by. I appreciate the encouragement!

    Best wishes.

  47. Zol,

    I would generally agree with those pros and cons.

    I think it’s easier to rent cheaply, however, due to economies of scale. For instance, it’s easier to “right size” an apartment for one or two people than it is a house. You can easily run into a cheap studio apartment, while even small houses are still in the 700+ sq. foot range. And shared walls typically means the studio is going to be more efficient with energy.

    But, overall, it’s a lifestyle question as much as a cost comparison. If you want a house with a yard and a place to raise a family, then the cost comparison likely becomes a bit biased. Much the same as if you want to avoid fixing things and doing yard work it’s easier to work around the numbers and find renting in your favor.

    And although one could buy a condo/townhouse (like you have) which would provide the best of both worlds, this can often also provide the worst of both worlds: You’re tied down just like a homeowner, while also sharing the walls like an apartment dweller. Plus, you have to deal with a HOA and all the negatives of that.

    I go back and forth on owning. Like I said, if the right property at the right price came along and maybe I could even pay cash I might go for it. For instance, if I could find a nice house for like $40k I might be interested in cashing out some stocks and buying the place in cash to mitigate future rising housing costs. This would be a hedge, but it would come at the sacrifice of a certain lifestyle. So I’d have to think long and hard about it.

    Cheers!

  48. That helps tremendously and makes me feel helluva lot better that I decided too. A whole blog post would be even nicer 🙂

  49. Dave,

    I don’t think I’ll need anywhere near that much money. The expenses you see here are historically high for me. And my cash flow situation is actually better than it looks. The $300 for auto is an amortization for a car I paid cash for last year. That will drop off at the beginning of 2014. And my student loans will likely be completely paid off by the time I hit 40. So that’s $525 right off the top. Then, of course, there were gifts. I think a normalized expense level for me is somewhere around $1,500. At a 3.5% portfolio yield, that would require a ~$500,000 portfolio. And that’s pretty much what I’m aiming for.

    And I don’t plan on having any children. And by saying I don’t plan, I mean I’m not having any children. That’s non-negotiable for me. And it’s not a financial decision only, but rather something I decided on years ago.

    Cheers!

  50. Chris,

    Thanks so much for adding that! Fantastic points there.

    The journey to financial independence provides much, much more than the end result of freedom. It provides more and more flexibility all along the way. Much like climbing a mountain provides you ever greater views as you go up, you don’t need to reach the top to receive all the benefits. It’s not an all-or-nothing situation. 🙂

    And thanks for the support. Your comment here is echoed in my own thoughts all the time. Every day I go to work and get bummed out I come home and instantly feel better because I realize how lucky I am that the me of four years ago decided to get in gear and put the me of today in this wonderful position where I can basically walk away and do something different. Some people call it “FU Money” and that’s probably apt. Freedom and flexibility are such wonderful concepts, and you don’t need to have 100% of your expenses covered by passive income to enjoy some of that flexibility.

    And your final point is so true and important. These habits never really go away. Once you realize how beneficial they are, you’ll be trained to stay on task for the rest of your life. 🙂

    Thanks for stopping by.

    Best regards.

  51. DivHut,

    Thanks!

    And I totally agree. 50% is the litmus test for me. If you’re saving 50% you’re on the path to early FI. Drop much below this and you’re going to have a tough go of it if you’re looking to retire early.

    And life definitely has a way of throwing curve balls. I’m dealing with one as we speak, but it’s all in how we react. React appropriately, and you can knock that curve ball out of the park! 🙂

    Cheers.

  52. Monty,

    Thanks for the comment there. And I agree with you on the confidence. Work has been a total bummer lately, and the benchmarks I’m being held to are increasingly difficult to maintain. Couple that with a fairly significant loss of income, and my drive has been diminished significantly. However, it just motivates me that much more to write and work on the passions that drive me.

    And I hear you on the expenses. Trust me, I’m all over it. I can’t get rid of the car right now due to some lifestyle changes that are coming up, but the car isn’t affecting my cash flow quite how it looks. The car was paid in cash last year, and I’m just amortizing the costs throughout the year to recognize the expense. The cash flow, however, is fine. And the student loan is hard to just “get rid of” because we’re talking $18k in loans. However, I do have some plans to lighten the load here. I’ll be discussing my ideas this weekend, so stop by and give me your thoughts.

    Best wishes!

  53. DivHut,

    Couldn’t agree more. Today is all we have. Tomorrow is not promised.

    However, it was the sacrifices the me of yesterday made that put the me of today in the position to live life in the manner I want to. And I couldn’t be happier that the sacrifices were made. I’ll be making some changes that are exciting but also bittersweet, and I’ll be talking all about it in the coming days. I hope you let me know what you think!

    Take care.

  54. Jason, I read through comments of other readers and I agree, if you love to write and hate your job, just find a way to quit and find something else to do. Life is too short. Your job is holding your down, if you would invest at least half of this time doing something you like or interested in, you would be surprised how eventually money will follow your passion… Its funny before I read your last article I wrote my post in my blog about my experience of “earning money while following my heart”… http://happyhealthyandwealthygirl.blogspot.com/2014/05/how-to-earn-money-while-following-your.html

  55. Monty,

    I hear you, but I think I explained in the previous comment why I keep my loans. I wish the younger me would have never taken them in the first place, but live and learn. It’s the mistakes I made that put me in the position to change my life, so I have no regrets.

    But the great thing is that student loans are somewhat flexible with payoff terms. For instance, dropping my income significantly could also drop my payment load quite a bit.

    And I plan on reducing the gym fee as well. Every expense I have is under review right now. 🙂

    Cheers.

  56. Grox’s Stocks,

    Great question there.

    My girlfriend works in early childhood education. And she’s been doing this for many, many years. It should also be noted that she’s more than 10 years older than me. Anyhow, she doesn’t have a desire to become financially independent or retire early at all. She quite enjoys what she does for a living, and plans on doing it for the foreseeable future. She has been incredibly supportive of my goals and journey, but just doesn’t share the same vision or passion. Such is life.

    So I would say she’s in the camp that would recommend one pursues a job that is enjoyable. However, I continue to recommend financial independence, because then you have the freedom to pursue passions without regard to pay. I don’t think either approach is right or wrong, but just different. Ultimately, you have to do what works best for you.

    I hope that helps?

    Best wishes.

  57. Matt,

    Great quote there! I’m really feeling the message right now. I’ve never been more inspired or motivated than I am right now. I’m so excited to announce the exciting, but bittersweet news about some changes I’m taking on. Life is full of changes, and after some soul searching I’m ready to tackle some new opportunities and challenges.

    Thanks for posting that. Sometimes you just have to leap….

    Cheers.

  58. Happy,

    I have thought about that, actually. However, I’ve received a few emails over the years from individuals that are in the industry and they have expressed very similar frustrations to my own: Quotas, meaningless meetings, red tape and bureaucracy, frustrating workplaces, management that is in constant opposition, office politics, etc. Of course, this is all anecdotal.

    However, the biggest obstacle of all is my lack of education in this space. I’d have to go back to college to get a degree in finance, and the time/cost it takes to do so would likely mean my ability to become FI by 40 would be impossible. Of course, if it meant I’d be happier with my employment this might not be so bad. But it seems like a pretty big gamble when I don’t know if I’d enjoy it a lot more than what I do now. There would definitely be a honeymoon period, but if it’s back to the usual dog eat dog then I’d be disappointed.

    Thanks for adding that. I appreciate the perspective and insight.

    And I’m open minded to just about anything right now. But I’m excited to be announcing some big news here about some changes and renewed focus. Stay tuned! 🙂

    Best wishes.

  59. Happy,

    Haha! Actually, the fast food isn’t as it looks. This month, that was mostly takeout from a Chinese place and also a couple pizzas. I eat traditional “fast food” very rarely, to be honest. Maybe once or twice a month on average?

    Best regards.

  60. Happy,

    I read the post, and I like the message. Keep trying until you find something you like is good advice. However, I wonder if I’m a lost cause? I sometimes think there isn’t ANY job out there that I’d actually like. I don’t like being told when to clock in, clock out, eat, wake up, go to sleep, answer the phone, get on the computer, etc. I guess maybe I’m meant to be an entrepreneur? I guess it’s my distaste for working for someone else in general that ultimately drives my passion for reaching financial independence. Then I can simply work on my passions without any care for compensation.

    And you mentioned craigslist in your post. What was your experience there with finding part-time work? I often think writing more and working part time would be the ultimate solution, but part-time jobs usually pay very crappy. I would love to work 50% of the time I do now, but not when we’re talking a 80-90% pay cut. Most part-time jobs I run across only pay like $8 or $9 an hour, which sucks.

    Thanks for adding that! And I enjoyed the post. I should definitely get a LinkedIn profile together. 🙂

    Best wishes.

  61. I have been in your same situation before. I work for a company now where the culture of the company is priority #1. Even thought I am working more hours than I ever have, it doesn’t seem that way. The companies that don’t take care of their greatest assets end up losing them!

  62. Saving for the future is great however, it’s just as important to enjoy life as it comes. Ya never know what’s gonna happen in the future. If ya can’t enjoy the money you earn then what’s the point. At least that’s my thinking. Keep up the good work!

  63. Hi Jason. I’m amazed at your online income over 800$/month. Could you please explain how you get that? Is it only using adsense+clicks or do you have any kind of sponsors?

  64. Hey DM,

    I think in the near future everything is going to fall into place for you. For me every week is three weeks closer to financial independence. My current pathway has somewhat of a certainty to it, anything else whilst much more enjoyable would likely hold an element of uncertainty. This is probably the phase you’re just leaving. The FU money and passive income is now almost sufficient to take the other pathway in the fork on the road.

    For now I continue along the same pathway not because it is enjoyable or otherwise, I actually enjoy my job but it is not my passion. It was my passion but the corporate environment has ruined the joy it held. The politics, bull crap, endless second guessing and micro management have driven me nuts. We had a great month, our expenses were $3678 for my wife and I. Although slightly higher than last month we’re now in the ‘good’ range. Our one off expenses are under control and we now have plenty of FU money. Last month I had $10,252 in net income whilst my wife remains unemployed. Our property project still remains a huge potential cash drain in the near future but the project now has all it’s approvals and we have pre-sold nearly half the project. We picked up over $200 in interest on our cash reserves set aside for the property project so that was great to see as well.

    For you, I really hope you can grab a position that will not only liberate your mind but ensure you’re well compensated for your talents. In about two years time I think I am going to be facing the same fork in the road. I know it is going to be a very very tough decision. Continue to the left and it is two more years and certain. Continue to the right and I likely end up in the same destination but at a different rate and with it’s own challenges. When I face that fork in the road I may re-read some of your recent posts to get a gauge on just how to make the decision I know I will face. Indeed it is a decision all who strive for FI must make.

    Good luck with the your plans. Just remember how much you have achieved and how far you have come from four years ago and that is absolutely all of your own doing.

    KM

  65. Jason,

    You CAN and SHOULD write a book now. You can help so many people. You keep it simple, real, realistic, and achievable. I look forward to all your blogs and comments on other sites too.

  66. also I just remembered. research about freelance copywriting. I read about this sometimes ago and you might like it. I have saved in my notes two websites guru.com and monthlycopywritinggenius.com because I was going to make my daughter to research more since she is very good in writing. Hope it helps.

  67. about craiglist part time jobs. if you really want to pursue writing, you might start with low income jobs, just to add them to your resume and see how you like it. then after you gain more experience you will start dropping low pay jobs or ask them for raise.

  68. Funny this came up. I had my gf spend some time reading your blog since she was somewhat skeptical about what you are trying to do and how it could be done. Her very first question was “So that’s all well and good about his choice to live so frugally but what does the gf think?!”.

    She’s not very investor/tax/money savy but she seems to be picking it up quickly. She was super reluctant to pay off the car but i convinced her to (i want to strangle whoever gave her the lenght/terms of that loan btw). Either way, I think the light bulb turned on about 2 months later with no car payment. Her car definitely is getting long in the tooth but now that she doesnt have a car payment driving it into the ground suddenly made sense!

    And i tell her every month how much in dividends i made. Sorta blew me off when it was so paltry a few years ago but as i keep adding and the div’s keep rising there’s some “real” money coming in now. It’s gotten to the point where she asks me hehe. It’s like, yup hunny, that’s a free purse and shoes every month that i didnt have to do ANYTHING for other than let the money sit there and work for me. I havent gotten her to dip her toe in the investing water but she’s definitely sniffing around the well.

    It always amazes me they don’t teach financial literacy in school. She’s a really smart girl with a bachelor of science. But she never devoted any time to really thinking about debt/savings/investing/retirement.

  69. I would add that if i had your talent for writing i would definitely look into an e-book. I just had a friend publish his first work of fiction (he’s a desk jockey marine who writes in his spare time). I figure if he can do it you certainly could. Hell just organizing the content in this blog and your journey would make a pretty damn good read. I literally spent a good half a day clicking back through all your articles when i first discovered you.

  70. @KM im in the same situation… it took the corporate environment 10 years to completely destroy my mental sanity and snuff out the “passion” that used to be there. Stress levels are off the chart and i dont know how in hell i could put up with this for another 35 years. I’m gonna grit it out for as long as i can since it pays well and build up the portfolio at which point i’ll be in a position to take something much less demanding. Being an engineer isn’t quite what Scotty and LaForge made it out to be 🙂

  71. @KM i’m just gonna tell this short story because it makes me feel better. I think what really set me over the edge is there was this portion of the design that was wayyy behind, people quitting/retiring/ect. I have a proven history of taking bad situations and turning them around so i dove in and did what i could to get it off the ground successfully. The dread yearly review rolls around and they shafted me on long overdue promotion/raise with the reasoning that it was a “transitional year” where you have to “prove yourself going forward in this new space”. I was a hairs breath away from pulling a Jerry Maguire.

    I’m also investigating “new opportunities”. And if there’s one thing i know its alot easier to find a job when you still have a job 🙂

    P.S. love the “FU money” adage, i just heard that for the first time a few weeks ago and laughed my ass off

  72. Ryan,

    That’s great to hear! I’m glad you’re now working for a company with a healthy culture where the employer appreciates and values employees. I’m in the car business, and it can be pretty brutal. But I knew that going in.

    And it’s a shame it’s come to this because I’ve been a hard worker and a loyal employee. Such is life.

    Thanks for stopping by!

    Best wishes.

  73. Sunny,

    We all have to have a balance. I’ve found my lifestyle to be a bit of a sacrifice at the beginning, but now I experience quite a bit of joy out of the little things. A little perspective goes a long way, that’s for sure.

    But you absolutely have to live life to the fullest. And that’s the point behind my whole journey. I would never want to be a robot that clocks in when I’m told to, eat when and what I’m told to, clock out at a certain time, and go through the motions and everything else. Life should be full of passion, and I intend to maximize my time so that I can enjoy mine.

    Cheers!

  74. Jose,

    I’m amazed too, to be quite honest. I never thought I’d get to where I’m at.

    I don’t have any sponsors/private advertising going on. Everything you see is derived from ad networks placing ads on the sites (AdSense) and freelance writing. My earnings break down to approximately 60% ads and 40% freelance writing, depending on the month.

    I hope that helps!

    Cheers.

  75. KM,

    I totally hear you. You are preaching to the choir, my friend. The BS and politics totally ruined it for me. And the almost impossible benchmarks I’m judged against have left me in utter disbelief.

    Congrats to you guys for marching so steadily and aggressively toward financial independence. That is my mantra. I believe in going full-tilt for as long as humanly possible. If I wouldn’t have done it to the extreme degree I did, I wouldn’t be as flexible as I am right now. Extreme measures definitely gives you options!

    And thanks for the support. It’s great to walk this path knowing that I’m not alone; there are so many like-minded savers and investors out there like yourself that are walking alongside of me. It’s a wonderful thought. 🙂

    Keep marching. Your options are multiplying every single day!

    Best regards.

  76. margaret,

    Thanks so much. I’m looking forward to possibly having a little more time than I’m used to here pretty soon. In that case, I might just have the resources to tackle a big project like that. I think I could produce something of really high quality, and something different than anything else. I think it’d either be a big hit or a total dud, but I’d like to maybe give it a shot here one day soon. We’ll see what happens.

    I appreciate the support. If I put something together you readers will be the first ones to know! 🙂

    Take care.

  77. Happy,

    Thanks for all of the great information there!

    I’ve never heard of those freelancing sties before. That’s some awesome stuff right there. Every tool in the arsenal helps bring one closer to freedom!

    The more I think about it, the more I want to write. It just seems like that’s the next natural path for me. It’s not traditional, but traditional is pretty boring. 🙂

    Thanks for the resources. Much appreciated.

    Best regards.

  78. Zol,

    That’s an awesome way to get your girlfriend interested: This is free money that can now buy you a new pair of shoes, etc. It’s just tough to get someone to save the money for two or three pairs of shoes in the future, rather than just buy the one pair now. Delayed gratification is quite difficult for most people. I guess it just comes naturally to those of us who are interested in financial independence. And as I’ve mentioned before, I don’t think delayed gratification is delaying happiness at all. Delaying gratification, for me, is actually hastening gratification. I’m simply putting off buying things that do nothing for my long-term happiness to instead gain access to the experiences/things/time that will make me happier faster.

    And I also find it amazing that at least one course of personal finance isn’t mandatory in high school. I know it would be a boring class that everyone would be snoozing through, but I think some of that stuff will seep in. I almost wonder how we don’t have more people in dire economic positions than we already do with the lack of basic financial education around us.

    Cheers!

  79. Zol,

    I think I could put together a basic e-book quite quickly. However, if I do take the time to write a book I’d want it to be something I could really be proud of for the rest of my life. And I think I’d rather have an actual book that you can put your hands on and read. Maybe it’s the traditionalist in me. I know that would be a riskier/more expensive way to do it, but it might lead to better results too. I don’t know…I go back and forth on it. Maybe for my first book I might be better off just doing an e-book and getting it out there and gauging the response from there. Although I might think it’s great when I’m done, readers might think it’s crap.

    Thanks for the support. I definitely plan on putting something together sooner or later. It’s a personal goal of mine to one day write a book, so I don’t want to forget about it. And as I mentioned in an earlier comment, my ultimate plan is to write a trilogy of books each focused around a different phase of financial independence – walking the path, then reaching the destination, and finally reflection. 🙂

    Cheers!

  80. One could always just join the club and go management route. I’ve had that presented to me as an option at one point. I declined because I really dont think i could look people in the eye and say (lie?) how those guys/gals do. Call it moral fortitude or idiocy on my part. The problem is they destroy exactly what they are looking for. Even worse they are constantly rewarded for that behavior because their uppers and uppers uppers are demanding it! Very strange system we live in.

    And lets say we go the “start your own company” route. I’ve had highschool friends do madly well. But they literally have turned into different people. I’ve had them brag about how many part time workers they hired so as to “have to pay them health insurance” or “pit employees against each other to let the cream rise to the top”. I mean, seriously… how many levels up the pay run do you have to go before you start destroying your personal value system. I’d rather go to war with 10 people i trusted with my life than 100 who don’t.

  81. Hi Jason,

    There are many websites for writing freelancing: Elance, ODesk, Guru, FreeLancer and Fiverr where you can earn income on a part time basis. You many want to check them out.

    Best wishes.

  82. Hey Zol, it’s pretty funny that this is so common and not that your pain and experiences bring me any joy but they’re almost comforting to see (it makes my mind rest a little easier to see I am not alone). It is so hurtful and destroys so much ambition, motivation and creativity when these things happen as it just clouds your mind and dwells there.

    How’d you figure I was an engineer……I will share with you some snippets of my past. I am only 26 and you clearly have a much stronger core than I (since I am over it already) but here goes. The first is something similar to you. I was a second year grad, coming up on my second annual review and the company (a massive global consultancy) changed their entire employee grading system. They standardised it. So were previously it was experience based it was subsequently changed to competency and responsibility based system. Essentially if you completed A,B and C as part of your duties you were pay scale point 1, grad. B,C, D, E, point 2, experienced grad. C, D, E, F, pay point 3, engineer, and so on. This is a very simplified version but fine for illustrative purposes. It also had an education accelerator, so with a BEng you add one to pay point, MEng add two to the pay point and phd add three. Pretty simple, pretty black and white. So the entire office went through this process, some were very unhappy and got ‘demotions’, titles changed but salary stayed the same as far as I know. For me, I had quite a change, I was on the D, E, F, G point of the scale as was really doing well, managing large projects on my own. I also had a MEng, so by the companies own procedures I was pay point 6 vs actual 2. So, I had my review. Key points to note, ‘I learn too quickly and expect others to learn as quickly and have little patience for people that cannot learn as quickly’….I responded to this one ‘I do take more time with others and do not have unrealistic expectations but I can only try so many times…’. ‘My ability to learn and absorb information and be able to teach it is great but sometimes you should just let people learn at their own rate and struggle along’….this was because I would often try to help the senior staff if they were struggling with something. My favourite……..’whilst you’re young and very curious and smart you should not get involved in discussions above your level, knowing the answers to complex issues is seen as you only demonstrating your knowledge and undermines your position’….because I would try and help if people (generally company seniors) if they got stuck. So their inability and my desire to be helpful undermined my position because I was exposing their inability and incompetency, hmmm. I did get some positive feedback….I was doing fantastically well and could be running the office in 5-10 years given my natural capabilities but would never get that far unless I understood one key thing ‘my way of thinking that those who work the hardest, know the most and are the most capable would succeed was wrong, I had to learn to play the game’. This was only my performance review.

    So the salary ‘review’ was a few weeks later. I say ‘review’ because the salary point was already decided, it was more please come to this meeting so we can let you know what salary you’re going to have next year. So I made my points, I had the highest billable time in the entire state….not office…state (my time was 99% billable vs the office average of 75% with the state being a lot lower). I had been doing all of my own training/development in my own time and only focusing on work at work (allowing me to benefit the company at my expense). I was doing over 10 hours per week on average in overtime, all billable time. I was currently at pay point 2 vs pay point 6 in their own system. I too would have to prove myself for another year because this year ‘was a transitional year’ in which I had taken on a lot more responsibility. I was to get a measly 2.5% raise with a 3% inflation rate…..thanks.

    So, fortunately for me all corporations value talent and another one currently valued mine. So two weeks later I called another meeting. To discuss my dissatisfaction with regards to my salary. I argued the same points and stated that I did not even want pay point 6…pay point 4 would at least be a compromise. They said no, they said check the market value on my position and I would see I was being paid fairly. I said I had and I wasn’t, they disagreed. Meeting over. So three days later I quit.

    They were astonished and furious with me. They felt they had resolved my issues and could not understand why I did not discuss the fact that I had another job offer at the salary meeting. My response was simple ‘You either value me or you don’t, I will never hold someone to ransom and if you feel that me wanting a pay rise and you denying the pay rise resolves the situation then you judgement is clearly clouded’. The astonishment continued when they realised I had quit to go to a better company, but for less money and in a less stable role (casual vs permanent). That just didn’t make sense.

    Other random snippets…I am too relaxed, nothing shirks me or stresses me out. Not to say that I do not grasp the importance of a situation just that I should be stressed about it. It is wrong to assume that the company should take care of it’s workers as ‘we’re trying to run a business’. I could continue but I think this comment has been long enough.

    My last few years with the ‘other’ company have been great. I have jumped the ladder and am now part of the management of the site I work at. My salary has tripled and that is a much better exchange for my time. The same issues remain, the politics is just too much and for far too long no one has focused on systems. The other thing that irritates me and I have seen this at every large company, people build knowledge ’empires’ to make themselves indispensable. To me I just don’t get it, it means they’re doomed to do the same boring position for forty years. It is at this site too. I am open and give my knowledge away…for free…..and willingly. Others hoard it.

    Anyways, it is great to look back on life and the changes we make. The things that shape us. The direction we took. Sometimes it is not a pleasant thing to do but other times, it reminds you of just how far you have come. Maybe your job doesn’t change but your life and approach certainly does e.g FI and frugality.

    KM

  83. Hey DM,

    No worries. I think a journey traveled alone is rarely worthwhile one. Funnily enough we are not that aggressive at all. We live in a nice rental, eat nice food, do nice things (fantastic walks in the park) and have a good balance in life. We just try and do things smarter. It takes just a little extra effort to do it ‘smarter’ i.e spend less money on things. Some weeks we spend $250 on groceries, bulk buying great specials…I get some funny looks from checkout chicks. We live as close to work so I have to drive as little as possible….it is along a highway and you cannot live closer than I do. You can cycle but the heavy haulage/construction traffic is not something for the faint hearted. We don’t go to the movies ($16.5 a ticket!!!) we wait for a few months for movies to come out on rental $6 and we can get some pizza and relax at home…still works out cheaper. We don’t drink, smoke or have gas fuelled hobbies. We enjoy the simple things in life, always have. I am fortunate that that is the case, otherwise I may have had to actually make some sacrifices. I enjoy investing, renovating, DIY….all fortunate hobbies for those seeking FI. For many others we are going ‘full tilt’, we are just fortunate though. I never let myself forget just how fortunate we are.

    We will continue along this pathway though, I have to buy you that beer someday.

    KM

  84. Funnily enough i was referencing my own profession. Everything you said though echo(es) exactly my experience so it doesn’t surprise me. They love to chastise current employees with “we don’t respond to threats to leave or raise requests” but then chase people out the door with money. My friend literally laughed in their face and told them it was insulting when he left. Given he was grossly underpaid but still, not cool, he was one of the best guys i’ve ever worked with albeit young. I had no problem “playing the game” to a certain point. Unfortunately that point has reached its limit. I hope to one day find something like you’ve found.

  85. When i first read how you’re paid (no salary) i was pretty shocked and i have to ask – is that fairly normal? (Okay, i’m actually presuming it is otherwise you’d have found a salaried position or this way of working still means you’d make more money than on a salary.) It’s such a perverse incentive to customers – upsell and you’re paid, but if you upsell things customers don’t need won’t they leave your dealership? I’m in NZ and the service guys get only salary – some dealerships seem to offer a bonus once a year if you improve on your targets.

    Thanks for being so transparent on your income/expenses etc. Here’s to May!

  86. PIM,

    Thanks for that. It’s funny, but I’ve only looked into some of this stuff in passing. Obviously, I’m now taking it all a lot more seriously. I’ve just browsed through Elance and ODesk, and it seems there are some pretty serious writers there. Intimidating, but it seems promising! 🙂

    I appreciate you sharing. I’m hopeful that writing for a living is a real possibility for me.

    Best wishes!

  87. dee,

    Well, I’ve worked for a few dealerships now in two states. And they all have similar pay structures. I’ve never worked for a dealership that was all salary. I’ve worked for a few that was partial salary/partial commission, and just one that was 100% commission (my current employer). I honestly wouldn’t mind a pay plan that was 100% salary, along as it was commensurate with the work being performed and hours worked. At that point you’re certainly not at odds with the customer, because it’s not all about the amount of work being sold. However, I’ve never considered that. I only sell what’s necessary and I’m always honest about what the car needs and doesn’t need. I think that honesty is easy to pick up on, and that’s why I’ve largely excelled at what I do.

    Hope you had a great April! And here’s to May indeed. 🙂

    Cheers.

  88. Another great month, Jason! Thanks for continuing to share your journey with us. I’m impressed that you’ve managed to find a balance with a partner that doesn’t necessarily share your financial goals. I’m still working on that with my boyfriend 🙂

  89. Addison,

    It’s been really interesting to try and balance our unique desires over the years, and I think, overall, we’ve done pretty well. Seeing as how I’m going to be by myself when I move back to Michigan it will be interesting to see how that translates to frugality. I won’t have concessions to make, but I also won’t have anyone else to blame for expenses. 🙂

    Best of luck finding your balance as well. It’s part of what makes it fun, right?

    Cheers.

  90. Good luck man, I think you are making a good decision.

    I am also in the midst of a significant restructuring, so I am right there with you.

    I also make a significant portion of my income online, and if you want to shoot me an email I’ve got a couple ideas for some easy ways for you to significantly increase your online revenue.

  91. TMM,

    Hey, I appreciate the offer. I’ll definitely shoot you an email! I’m always open to new ideas, because while I enjoy writing, I actually don’t know very much about how to make money with all of this. Sounds funny, but it’s true. I’m really lucky to be where I’m at.

    Good luck with your major changes as well. I hope we both end up better off on the other side. 🙂

    Cheers!

  92. Haha, Yes I guess you already had a move in mind! That’s not my industry so I can’t give you specifics, but you definitely don’t need experience to work in oil/gas exploration in either place, they’re that desperate for workers. If you get yourself a CDL license you can pretty much just show up and start working as many hours as you can handle, from what I’ve read (numerous times).

    Anyhow, don’t take my word for it, research that job market yourself like you would a stock. I think you’ll be pleasantly surprise by the opportunity available for an enterprising person like yourself.

    John Mauldin wrote at the end of one his weekly letters that he was accompanying his son to ND to find work up there. His son had no experience just a desire to find a good paying job. I don’t know if you’ve read Mauldin, but there’s a guy with a pulse on the economy (not so much on investments). If he’s taking his child all the way there for work, you know there’s something to it. If I come across the link to that letter I’ll send it your way.

  93. Purewater,

    That’s great info there. Thanks for sharing! Definitely something to keep in mind if I want to make a real aggressive 3-5 year run at total financial independence and just accumulate assets as fast as humanly possible. We’ll see how Michigan is treating me after a few months, but I’m going to keep all options on the table. 🙂

    And I have never heard of John Mauldin. I’ll have to look him up.

    Best regards.

  94. Hi,
    ifollow similar way, but i’m aged 48 now and not having reached complete financial freedem. Anyway the goal is visible and 50 could be the time possible to leave job.
    I have dividend stocks and i have 2 flast to rent. One is completely paid, the other one will be in 2015 and add the income.
    Secret is just : think on what you spend and if having more money don’t give it away for just consuming. Live nearly the level you feel comfortable without loosing ground.
    My car is 17. Questions ? no !

  95. egghead,

    Hey, I wouldn’t be disappointed at all with financial freedom at 50 years old. That’s a lot better than what most of society is able to muster.

    And I agree with you. Whenever I spend money I try to quantify the value I get from the dollars spent. If the dollars would be better off compounding on their way to buying me freedom, then that’s where I’d rather put them. If, however, I’d find better value through the purchase, then I’ll buy the object/experience instead. I just often find the former holds more true.

    Best regards.

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