Our 12-Year FIRE Plan: How We’re Building Wealth and Retiring Early
Our 12-Year FIRE Plan: How We’re Building Wealth and Retiring Early
So, here we are: two people with big dreams, some savings (finally), and a mildly concerning obsession with spreadsheets. We’re Derik and Jasmin, and today we’re spilling the tea on our 12-year plan to achieve FIRE—Financial Independence, Retire Early. Will it work? Who knows. But hey, at least we’re going into this chaos with a plan and a sense of humor.
Step 1: Know Your FIRE Number
First, we had to figure out how much money we’d need to live off our investments without resorting to eating instant noodles for the rest of our lives. The magic formula? Multiply your annual expenses by 25. For us, that’s around $2.1 million. (Yes, our jaws hit the floor too.)
Why so much, you ask? Well, we’re planning for two kids, occasional splurges on tacos, and enough cash to fund Jasmin’s ambitious goal of living to 120. Derik’s not so sure he’ll make it past 90, but hey, better safe than sorry.
Step 2: Reverse Engineer the Madness
To hit $2.1 million in 12 years, we’ll need to invest $72,000 annually. Sounds terrifying, right? But when we broke it down into three focus areas, it started to feel… less terrifying (only slightly).
- Increase Income: Freelancing, side hustles, and maybe selling some of Derik’s dad jokes online. We’ll be diving headfirst into every income-boosting opportunity we can find.
- Reduce Expenses: Goodbye, overpriced dinners we’ll barely remember. Hello, budgeting like responsible adults. We’re also saving big by living in countries like Guatemala, where the rent is low, and the avocados are fresh.
- Optimize Taxes: We’re maximizing RRSPs, TFSAs, and every acronym Canada’s tax system throws our way. (Fun fact: “TFSA” might as well stand for “Totally Fabulous Savings Account.”)
Step 3: Balance Hustle and Happiness
Listen, we’re not about to spend the next 12 years locked in a room working 24/7. Life is short, and tacos are delicious. So while we’re chasing FIRE, we’re also making room for travel, beach days, and the occasional splurge on a fancy sushi dinner. (We’ll just skip the $100 sake next time.)
Our secret weapon? Budgeting for fun. Yes, it’s a thing. We’ve created travel budgets that let us explore the world while still saving aggressively. The trick? Stick to the budget. Easy in theory, harder when Derik discovers a new food truck festival.
Step 4: Adapt and Adjust
We’re fully aware that life might laugh in the face of our plans. (Looking at you, 2020.) But that’s okay. The important thing is having a direction. If we hit bumps along the way, we’ll adjust. Flexibility is key—like being able to pivot from tacos to ramen when the budget demands it.
Why It’s Worth It
At the end of the day, this isn’t just about money. It’s about freedom: freedom to travel, freedom to spend time with future little humans, and freedom to enjoy the life we’re working so hard to create. FIRE is our way of building a life that’s not just financially secure but also ridiculously fun.
Join the Chaos
If you’re still reading, congrats—you survived our rambling. Want to join us on this wild journey? Here’s how you can:
- Subscribe to our newsletter for more updates (and probably more taco jokes).
- Follow us on social media to see how we’re doing (or failing spectacularly).
- Comment below with your own FIRE goals—or just tell us your favorite taco topping. We’re always open to suggestions.
Cheers to the next 12 years (and hopefully not running out of guacamole along the way). Let’s FIRE up our future together!