2022 was a tough year for FIRE hopefuls: rampant inflation, a significant downturn in the stock market, and instability in the tech sector. Distractions from the doomsday financial news were essential.
Expenses
My expenses dropped in 2022 despite high inflation, mostly because in 2021 I moved halfway across the globe and apparently that can be expensive. I ended up spending a fairly reasonable $31,500 despite living in an expensive city, going to Mexico twice, spending 3 weeks bumming around Italy, and buying a bunch of stuff for my apartment. I’m living proof that it’s possible to be both frugal and bougie 🙂
Here’s a rough breakdown:
| Rent including Utilities | $17,300 |
| Travel | $5,400 |
| Furniture & Home Goods | $1,650 |
| Groceries | $1,500 |
| Restaurants & Bars | $1,500 |
| Clothes & Shoes | $1,200 |
| Transportation (mostly train tickets!) | $500 |
| Phone bill | $150 |
| Misc Essentials (insurance, healthcare, TV tax, etc) | $800 |
| Misc Non-Essentials (gifts, sports equipment, movies tickets, ski passes, scuba diving, other random purchases) | $1,500 |
Portfolio
My portfolio is heavily invested in a mix of US and international low-cost index funds… and a bunch of individual tech stocks that I don’t want to sell quite yet due to high capital gains. Because tech took a particularly big hit in 2022, my net worth decreased this year despite setting new personal records for earnings and savings. On the plus side, I got a lot of stocks on sale! I also hold a small percentage of bonds and cryptocurrencies which I don’t plan on buying more of anytime soon.
How close am I to Financial Independence?
Uncomfortably close.
If I had made a few tweaks in 2022, like spending a little less or holding fewer volatile stocks, I probably would have been able to declare Financial Independence in 2022.
(Side note: in 2020 I stayed with my parents, you know, just for a few weeks until the whole covid thing blew over. I ended up staying for nearly a year. Technically my expenses were below my passive income but that was an unsustainable level of spending to say the least.)
So unless something really unexpected happens, I will likely reach FI in 2023. I thought I would be more excited, but now that the finish line is in sight, I’m freaking out a bit. I want more of a buffer before leaving my job and I need to spend more time in my current role before I can switch visas. This chart also does not include health insurance, which I still need to figure out.
But honestly I think this fear is what pushed me to start this blog. This blog is part journal, part (hopefully) cool ideas, and secretly “please somebody out there tell me to calm down and to take the plunge soon.”
Who knew finances could be so emotional?