![]() Now, if I sold my house and invested the proceeds, then my net worth would suddenly be higher in the FI Laboratory, and the timeline would adjust accordingly. My thought process is that it would take a certain amount of *invested* savings from which I could draw down to support me in financial independence, and, since I’m currently obligated to pay mortgage principal each month, my savings would have to cover that cash outflow (again, in my current situation). I’ve actually been taking the opposite approach, where I don’t include home equity in my net worth and I also categorize my mortgage principal payment as an expense. Your home equity is not generating investment income for you, right? I’m curious as to why you say that (in the context of the FI Laboratory’s calculations). It makes a huge difference in the length of time until FI… but has me FI at a time significantly before I can realistically pay off the house (because a large majority of my savings are in retirement accounts). I usually prefer to do my calculations using home equity as part of my net worth and my principal payments as part of my savings rate, but sometimes I wonder if I’m fooling myself as to their impact on how soon I can retire. I have some questions about what numbers you feel should be used to yield the best results: should I be including my home equity in my net worth? And, does it make more sense to count the principal part of my mortgage payments as “savings”, or just to count the whole thing as an expense? Thanks for putting this and so many other useful resources out there! Hey, I’ve just started playing with this tool and it’s really great! I discovered it just shortly after making my own custom spreadsheet which makes a similar graph, but this is a lot simpler and it’s nice to at least get some validation that what I was graphing on my own wasn’t totally nonsensical. The results look pretty reasonable to me. I put the actual expenses (as tallied by Mint) in the “expenses” portion. I put the total of all of this investing/savings in the “savings” field in the software. The monthly amount that we are setting aside in a “high interest” (LOL) savings account for a potential home purchase in 2015. ![]() Our monthly contributions to our 2 kids’ 529 plans.Ĥ. My Roth and my wife’s IRA contributions.ģ. My 401(k) contributions and company match.Ģ. What I did instead was go back and add up all of the actual investment/saving that I did in the first 2 months of 2014:ġ. ![]() using the method you describe would probably lead many to under-estimate their savings rates. So while these are part of the FI equation in a major way, calculating your savings, etc. The reason? These are scraped right off the top before my take-home pay, so it doesn’t appear as “income” in the software. Personal Capital), it doesn’t include my 401(k) contributions as income, nor, I suspect would it include any other pre-tax savings/invesments like an HSA. If I just look at my net income and expense in Mint (which I happen to use vs. Ok that makes sense, but I think this is leaving out some important pieces of the equation. You can keep track of all your credit cards and application/cancellation dates on the Manage Cards page. The My Next Card page recommends the best credit card offer currently available to you, based on the cards you currently have or have had in the past (see Manage Cards below). The final section of the FI Laboratory contains the travel-hacking tools I’ve built to help you earn frequent flyer miles/points as cheaply and efficiently as possible. The Safe Withdrawal Rate calculator was created for the Safe Withdrawal Rate post and utilizes the current Shiller CAPE ratio to compute an estimated safe withdrawal rate. The Triple Value of Income calculator was created specifically for the Triple Value of Income article. Money Mustache’s post on The Shockingly Simple Math Behind Early Retirement). The second calculator shows how many years it takes to go from $0 to financial independence for different savings rates (this calculator was inspired by Mr. The first calculator allows you to quickly compute how many years it will take you to reach FI based on your current net worth, monthly savings rate, and monthly expenses. In addition to the FI Tracker, the application also contains some FIRE calculators I’ve developed over the years.
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