Thinking about that, I catch myself not appreciating the day for what it was. Recently I’ve caught onto Mustachianism and become infatuated with saving more aggressively for retirement (defined as the point I no longer have to work but for sure will keep working on certain things). This mindset is problematic in that it has me preoccupied thinking about the future more than ever before. This is good if it gets me to invest instead of wasting money on dumb things, it’s bad if it clouds my ability to see the moment I’m in. There’s a lingering fear that if I stop thinking about it, I’ll backslide into old habits and not change my behaviour at all.
Overall I’ve got it pretty good. I enjoy my work, mostly, and I’m already living how I’d like to be living. So why save for retirement at all? Why not just keep doing what I’m doing if it’s enjoyable?
The answer, for me, is about a core principle that I wrote as a note to myself late one night in Hawaii:
Always move toward greater freedom and happiness.
More net worth means more freedom. Debt is the opposite (unless it’s “asset” debt). The happiness part is in my head.
I think of saving for retirement as a very difficult challenge presenting a massive payoff. I played around with this compound interest calculator to figure out where my current rate of saving was going to land me in 14 years. I currently buy $200 of Mutual Funds every month. That puts me at $62,000 by the time I’m 45 years old. Not horrible but not retireable either. Further tinkering with the compound interest calculator indicates that Lia and I will need to sock closer to $20k annually if we’re to hit our retirement goals. It’s just doable on our current income, but we’ll have to be much more intentional about our spending than we’ve ever been before. Sushi once a month instead of once a week. Not buying a bunch of drinks at the bar on a random weeknight. Not buying expensive toys whenever I want.
The only question left is: Which do I value more? Being in a position to retire 20 years early or grabbing sushi/drinks/toys every time I get the urge? I really hope it’s the retirement option.
I’ve heard there’s a lot of power behind making goals public, and providing measurable evidence of one’s progress or lack thereof. And it’s probably true because I’m really second-guessing whether to proceed with this or not. In kicks the Neil Gaiman quote I really love:
The moment that you feel, just possibly, you are walking down the street naked, exposing too much of your heart and your mind, and what exists on the inside, showing too much of yourself…That is the moment, you might be starting to get it right.
Remembering that quote always makes me man up and take the risk.
So here it is, in black and white for everyone to see: our progress toward retirement. I’ll post an update quarterly, with actual figures. This holds me accountable to at least two other people, Kyle and Tyler, both of whom I know read these blog posts religiously.
And the numbers are…
Rainy Day Savings: $3,436
Our first priority is to save $20k in a savings account for “rainy day” situations/seriously slow times at Butter/etc. Once this $20k layer of fat is in place we’ll be able to invest in mutual funds with the confidence that we won’t need to sell them prematurely out of a sudden need for cash. For those of you interested in tracking our progress, “rainy day” money is what we’re currently trying to save up.
After that, you’ll be able to track the growth of our mutual fund holdings because they’ll be getting all spillover once the “rainy day” account hits $20k.
I’ll report back on this again in July!