Hi! I’m SP (short for Smart Provisions).
I’m currently in my 20s and am on the path to Financial Independence (FI), with a touch of Early Retirement (ER) on the side.
The terms FI for Financial Independence and ER for Early Retirement for simplicity sake continuing forward.
For those who don’t know what FI is, it means to be in a state of having sufficient personal wealth, without having to work for basic necessities. To me, it would mean having enough assets to generate more income than I would use, therefore I would not have to work as my expenses will be covered by my passive income.
ER comes as a little bonus when becoming FI. When your expenses are already being covered by the income generated by your assets, you don’t quite have to work anymore. There are, however, people who FI, but not ER, as they either start their own business, want to increase their own assets to cover a larger expense number, or more.
Personally, I think I’m a simple and minimalistic enough to not need that much to live with, so once my passive income is greater than my expenses, I will retire.
Currently, that target is $1,000,000 in investments, which is expected to generate $40,000 a year according to a Safe Withdrawal Ratio (SWR) of 4% mentioned by the Trinity Study, or $30,000, if going with a more conservative SWR of 3%.
If I were to extrapolate my current savings, I should be able to reach $1,000,000 in investments in my 30s. This blog will be a diary of sorts on my progress to hold myself accountable, so you can see my progress.
In addition to FI and ER, I will dabble a little bit on Travel Hacking with Credit Cards and just a few Lifestyle posts.
All in all, this blog will focus primarily on FI, ER, and Travel Hacking. If you like what you see so far, I encourage you to follow and subscribe to the blog and join me on my adventure.