Freedom is what being a part of the FIRE community means to me. I love my job, but I don’t want to work for the next 30 years. The thought of retiring at 65 is arbitrary, so I picked 40, 35, or maybe even 37 instead.
My path to financial independence
I’m Amberly, and I achieved financial independence in February 2022 at the age of 34. It wasn’t easy for me to get here. I used to make between $13,000 and $20,000 per year up until five years ago. It wasn’t until I got my first job that paid $50,000 annually and kept my expenses super low — around $1,300 per month — that I started saving a ton of money. That was my entrance into the FI (financial independence) world.
Managing expenses and changes
My short term expenses have changed because of the recent addition to my family – a child born seven weeks ago.
I now spend about $3,400 per month on personal expenses. My partner is not working because their visa expired, so I am currently the only one earning money for our family. I support all three of us.
With these extra expenses, I am still able to save almost 70% of my income because I keep my other costs down.
Current financial standing
Here’s a snapshot of my current financial situation:
- 401(k) accounts: $119,000
- Taxable brokerage account: $55,000
- Roth IRA: $37,000
- HSAs (Health Savings Accounts): $12,000
- 529 education account for our child: $9,000
- Company stock account: $6,000
Actually, I could retire right now. I only spend $40,000 a year, so I need $1 million in a brokerage account (which I have) or $6,500/mo. ($40k/yr.) passive income stream that I currently get.
But I don’t think $40,000/year is enough money. So over the next 3-5 years, I’m going to keep working and saving another $140k-$200k until I have $750,000 saved up in cash. And remember, I’ll still have rental income coming in as cash every month.
Overcoming financial insecurity
Because I grew up poor, I have a mindset of scarcity. I always feel insecure about money, no matter how much I have. That’s why, if I’m being honest, even if I worked for ten more years, it wouldn’t be because I had to financially but because I’m scared about money.
Breaking away from tradition
In the beginning, I thought I would do the same old thing everyone does: go to university, marry my high school or university boyfriend, have some kids, and buy a house in Ottawa. But then one day, I chose not to apply to university—instead, I resolved to become a millionaire! It was this drive to do and achieve more that marked the start of my life as an adult.
Real estate as a game-changer
I used to work as a project coordinator at a tech company. I made $52,000 per year, which is higher than my parents’ income combined. During that time, I learned that real estate could help me reach FIRE much faster. Instead of saving half of my pay for 15 years, I could invest in real estate and make money.
My partner and I bought a house together in May 2019. We started with short-term rentals and this is our second property. I had only $60K for the down payment on this rental and needed $100K.
I got a HELOC (Home Equity Line of Credit) from our current property and took out cash to use as a down payment on the second. It took me almost a year, but I eventually put the HELOC back at zero. Even though I was nervous starting out at 5% down, it worked out.
Speaking and traveling
I travel all over the country giving talks, from places like Austin to California to Minneapolis. I’m essentially broke right now, in debt from going into the hole to do these speaking gigs, but I don’t think I’ll ever stop working. I mean, I’ll never retire early or otherwise. It’s all about FI for me: financial independence—that’s when you can do whatever you want.
The bottom line
FIRE gives us the ability to live a life of ease, where we can do anything we want each day without having to worry about money. To me, it means that I can do simple things like ride my bike to the store, hang out with my kid, or travel. I would love to live somewhere else for a year or two or go on trips to different places. Since we can be anywhere and live on our own terms, FIRE is what lets us do that.
We are not only trying to get to a place where we feel safe financially, but also designing a life in which we have freedom and options.