State of the F.I.R.E. Update for 2019

Inflation could turn out your FIRE. What is FIRE? FIRE is an acronym for financial independence retired early. A movement where some folks are seeking to go against the traditional norm of retiring in their 60’s to retire earlier.

This FIRE movement is catching some attention lately and growing quickly. I came across the acronym only a few years back myself. It was an awesome surprise to see a community thriving for those who share similar financial goals. The ultimate goal to achieve financial freedom.

It’s been 4 years since I have reached FIRE at the age of 35 and once a year, I examine the strength of my financial independence. The strength of my F.I.R.E. The goal is to improve my financial strength year after year by making sure my FIRE burns strong by investing regularly, enjoying life and maintaining a healthy level of happiness. Not only for myself but for those around me.

So, let’s get to the state of the FIRE update!

 

State of the F.I.R.E

Electricity

2016 – $847.56

2017 – $837.86 (-1.1% decrease from previous year)

2018 – $883.70 (5.4% increase from previous year)

2019 – $1,025.73 (16% increase from previous year)

Water

2016 – $729.05

2017 – $615.60 (-15.5% decrease from previous year)

2018 – $569.10 (-7.5% decrease from previous year)

2019 – $574.50 (0.9% increase from previous year)

Gas

2016 – $418.72

2017 – $381.21 (-8.9% decrease from previous year)

2018 – $352.21 (-7.6% decrease from previous year)

2019 – $428.38 (21.6% increase from previous year)

Trash

2016 – $418.72

2017 – $381.21 (-8.9% decrease from previous year)

2018 – $352.21 (-7.6% decrease from previous year)

2019 – $195.66 (-44.4% decrease from previous year)

Trash collection company in my neighborhood has changed to another company who offered lower rates.

Internet

2016 – $659.88

2017 – $659.88

2018 – $687.77 (4.2% increase from previous year)

2019 – $658.32 (-4.2% decrease from previous year)

Called my internet provider to give me better rates. My monthly costs went from $58.98 to $48.99 starting August of 2019.

Mobile Phone

2016 – $1,660.93

2017 – $1,297.45 (-21.8% decrease from previous year)

2018 – $1,761.17 (35.7% increase from previous year)

2019 – $1,510.10 (-14.2% decrease from previous year)

Made some adjustments to my family plan. I noticed 20GB of data was too much and reduced it down to 10GB per month.

Auto Insurance

2016 – $1,343.98

2017 – $1,574.90 (17.1% increase from previous year)

2018 – $916.16 (-41.8% decrease from previous year)

2019 – $1,201.75 (31.1% increase from previous year)

• The increase was due to adding Umbrella Insurance which came with a requirement to increase liability coverage to $300,000/$300,000 and property liability to $100,000. My previous liability coverage was $100,000/$200,000 bodily injury and $50,000 property damage.

Auto (Gasoline)

2016 – $1,284.29

2017 – $1,879.82

2018 – $2,104.86

• Higher gas expense due to a road trip to Yellowstone.

2019 – $1,446.67 (-31.2% decrease from previous year)

Auto (Maintenance)

2016 – $700.37

2017 – $1,582.82

2018 – $1,721.14

2019 – $1,315.52 (-23.5% decrease from previous year)

Groceries

2016 – $5,422.43

2017 – $9,087.15 (67.5% increase from previous year)

2018 – $7,556.50 (-16.8% decrease from previous year)

2019 – $7,297.41 (-3.4% decrease from previous year)

• We managed to convert nearly all groceries to organics and healthy foods while maintaining expenses in check. Eating healthy isn’t so expensive as I thought.

Shopping

2016 – $5,422.43

2017 – $9,087.15 (67.5% increase from previous year)

2018 – $7,556.50 (-16.8% decrease from previous year)

2019 – $3,596.89 (-52.4% decrease from previous year)

• 2019 was about organizing, donating and simplifying. My focus was strong all year long to reduce my shopping expense but I never expected to cut the expense by 52.4%!

Murphy Strikes in 2019

(Murphy’s law is an adage or epigram that is typically stated as: “Anything that can go wrong will go wrong usually at the wrong time.”.

2019

• $1,350 – Roof leak at rental property

Thankfully, Murphy did not visit too often in 2019. Murphy is no match for a well-established emergency fund! So make sure to shield your assets with a strong 3  to 12 months EF.

Total Annual Expenses

2017: +59.9% Since previous year

2018: -33% Since previous year

2019: -11.7% Since previous year

Total Annual Income

2015: F.I.R.E

2016: -69.5% Since previous year

2017: +37.6% Since previous year

2018: +23.3% Since previous year

2019: +12.4% Since previous year

My income dropped like a rock when I sold my business. My expenses have also but seem to be stabilizing. I finally see a good trend between the two and looking forward to a wider divergence going forward. 🧐

State of the FIRE Review

The trends are going in the favorable direction. Thankfully my annual income growth is enough to cover any rising costs in living expenses. My annual expenses have come down which boosted my savings rate and cash flow. My original projections prior FIRE was to keep my income growth above at minimum 4% annually. Luckily, I have been having some better than expected income growth.

As for expenses, even with the increases in taxes and insurance, I was able to keep a lid on lifestyle inflation creeping in for the most part.

Focusing on the living expenses such as utilities and housing related expenses, I was surprised to see the increase for the year has not been as high as I had expected. My projections prior FIRE was 3% rise in living cost every year.

The great part is, I never had to be an extremist when it came to conservation efforts. I simply lived my life normally. Which makes me feel like I have room for improvements if times get rough.

If I had to grade myself on how the year turned out, I would give myself an 8 out of 10. It’s been a great year with better than expected results. Just the way I like it. In the mean time, I will continue throwing wood to my flame! 🔥