Originally Posted by swaayze

Increased income yearly is exactly the issue/problem. You cannot index yearly to inflation unless you have returns measurably over and above inflation. While that has been very easy for the last ten years that won’t always be the case. Soon (?) that will flip flop for a time and portfolios will decrease, but your minimum expenses will continue to increase, eating into your principal (unless you’re working some); the boat will take on water faster than you can bail without a bigger bucket (other income). That’s why the best of the promoters are quick to disclose that it’s more about FI than RE.

Yet this is what I worry that many of the younger FIRE folks really don’t get, because they haven’t lived a couple of market cycles as investors (or even employees). For instance, I can assure you that spending more by converting to a ROTH during my two furloughs was the last thing on my mind, tax savings be damned. Even Mr. Money Mustache, with whom I’m sure you’re familiar, is wishfully thinking on their expenses as they age. I have probably never been healthier, but passing 50 I also have more medical expense than ever, some almost directly attributed to an active lifestyle. My kids are about to go to college and I refuse to have them graduate with lots of debt, so if they stay good then I help out significantly. Not to mention the costs of their four years in HS marching band, a couple of ten year old cars to buy, maintain and insure, etc.

There are so many FI blogs and podcasts by young folks that are a bit idealistic compared to the buckle down mentality of a Dave Ramsey, and I’m afraid time will hurt some folks who think they’re prepared but really are not.

No doubt tough, there is great value in subscribing to many of these tenets (of both generations', the MMM and the DR). Although I don’t really expect, or even truly want, yet, to RE, I DO wish quite frequently that I already had FU money in the bank.


BTW: when I say “you” I’m being generic, not pretending to know how you specifically will fare. Sounds like your expenses are well controlled.