Autumn Expenditure Review: How much in Fiat do I need to get me through the next 8 years?
It's been a while since I've reviewed my Early Retirement Extreme Experiment, mainly because my life and expenditures have been in transition over the last year, but now I'm settled and in a life-situation which I anticipate sticking with for many years to come, NOW is a great time to do a few long-term income-needs projections based on my current expenditures.
Current Expenditures
I've based these post-rental income on my house back in the UK - one year into that and NO PROBLEMS at all, which should remain the case as I've no intention of putting the rent up going forwards, happy to pass on a bit of a break to the current tenants since they've just been so reliable....
Base expenditures = £1300
I've put my 'necessaries' in red above, these are what I can't escape - NB any large one-offs I may face once a year I've covered on the monthly - so 'car' for example pays for yearly insurance and the inevitable upgrades I'll have to do in coming years - brakes, tyres, clutch at some point - £1200 a year SHOULD cover all of this.
And 'savings' is designed to cover new electronics every few years - basically phones and computers and a few other gadgets.
In Blue is the stuff I don't need but what I'd like - $2400 a year on the land is the largest and that should be enough to pay for all the various building materials and labour and trees I want for projects going forwards - I'm happy to do this slowly. Obviously I MIGHT sub this with a capital outlay of a few grand too, but that's something I'm not thinking about right now.
SEO is another nice but not necessary work - I'm currently three months into paying a company to do some work for me, I haven't seen any results yet, so I might axe this - I'll give it a couple of months, hard to tell if it's worth it - they might just be holding me level, without them my rankings may well have sunk, who knows?!?
How much FIAT would I need to get me through the next eight years?
8 years for me is significant because that's when my mortgage is paid-off and my main monthly expenditure goes from £650 a month to £0, and my rental income becomes equivalent to 40% of my basic needs here in Portugal, so getting to that point is what I'm focussing on.
So how much do I need to get me to that point?
- £1780 times 96 = £170 880
- £1330 times 96 = £127 680
That is = QUITE A LOT OF MONEY. However, I do also have an income, multiple income streams in fact, and it's pretty unlikely they will all go to zero within the next eight years, although a decline is possible.
My brain thing thinks a nice 'buffer' amount would be enough in FIAT to cover 30% of my base needs and that's £450, and
- £450 times 96 = £43 200, or around $60 000
Getting there and a new Stables Target
I've got around £10 000 in shares and NSI Premium bonds already, not that I want to sell either but I COULD if required, the rest I'm planning on just covering in stables - so I guess that means my new stables target is around the $40 000 mark.
If I can get there, I'll be feeling VERY SECURE financially going forwards.
I don't know WHETHER I will end up stacking $40 000 in Stables, however, that sounds a bit much to have stacked up in stable coins, about 3 times as much as I actually want TBH - so whether i end up doing that, or just 'ring fence' some other cryptos as 'for cash out' I haven't decided yet.
Final Thoughts - Income needs going forwards
I'm pretty happy with these projections, hopefully life won't change too hard in the coming years and I'll be happy as Larry going forwards!
And as long as Larry remains happy, so will I!
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