Embarrassed – but starting out

I stepped on the scale today.

It read 213.2.

Solidly in the overweight category with a BMI of 28.9.

Body fat based on the formula found here:

http://www.bodybuilding.com/fun/brewster26.htm

“Multiply your body weight by 1.082, add 94.42 to the result, save this number and then multiply your waist size by 4.15. Subtract this result from your first number, this is your lean body weight. The difference between this and your true body weight indicates how much fat you have.”

213.2 * 1.082 + 94.42  – 4.15 * 41 = 154.95

Body fat percentage = 27.32%

For posterity, below are a few nasty pics.

Stuff in the way – Blockers

In my mind, there are a couple ways to achieve FI.

1) Passive income – dividends, rental income, ad revenue, elearning, etc

2) Build a side business (or several)

I’m working on #1 – investing and saving for a down payment (or cash payment) on my first rental.

I think #2 will accelerate the move towards FI.

Projects I need to get out of the way:

Eagle Watch Junior Tennis Program site updates – Waiting on head tennis coach to approve updates (5/25/15)

Bridgepointe Church site updates – Waiting on church leader discussion (5/25/15)

– Otter Creek site updates

– Pack 994 site updates

Defining financial independence – for me

Defining financial independence…for me.

There are a ton of blogs that will define FI for you. Below is my formula for FI.  This might work for you…it might not. Everyone and every family is different. That’s ok.

Variable definition:

CI = Corporate Income. Monthly income from the job I do. My primary income source.

FIN = Financial Independence Number. The amount of monthly income I need to be financially independent.

II = Independent Income. Total monthly income from everything exceptCI

NCI = Non corporate income. This can be side jobs, a side gig, whatever. Stuff I or my wife or my kids work on outside of my real job I do  that brings us income.

PI = Passive income. Monthly income I receive from investments. Examples of investments include dividends, rental income, income from a website,  etc. Not that I have all of these right now.

E = Expenses. The stuff that costs my family money every month. How much we need to live.

EFI = Expenses of Financial Independence. These are extra monthly expenses I will have if I ever decide to quit my job. This includes things like insurance..

M = Margin. This is the multiplier on my expenses that I want to have covered by Independent Income.

Formulas:

II = NCI + PI

FIN = E + EFI + (E + EFI) x M

My formula for determining when I am FI (note: this is not when I quit my job, but when I am eligible to quit my job because I am FI)

NCI + PI > E + EFI + (E + EFI) x M

Real life example:

I don’t have a great grip on my monthly expenses, but I am starting to track them to get an accurate view of my month over month expenses.

I think they are around \$3200. That’s E.

If I quit my job I have to pay independent health insurance of around \$1200 for my family. That’s EFI.

I’m comfortable with a 20% cushion. That’s M

As of 9/25, my FIN is \$5280. Calculation: \$3200 + \$1200 + (\$3200 + \$1200) x .2

My wife Beth and my boys earned \$120 in dog sitting in September. That’s NCI.

We earned \$0 other income. That’s PI.

As of 9/25, my II for September is \$120.

\$120 is not greater than \$5280, so I am not financially independent. That’s ok. The goal is to be FI by September 25, 2019.

Tony

Writing style and personality

I’m not a great author.

I don’t come up with pithy, engaging quips to draw you in.

I’m raw.

I tell the truth.

I’m boring.

My hypothesis  is that the key to becoming financially independent is creating a plan and doing the same thing over and over for a long time. Tweaking as you go, of course, but minor tweaks.

We’ll see.

Hopefully this journey will help someone else.

Hello, my name is…

What? My name is…what…my name is…slim shady.

Ok, not really. My name is Tony and that’s my wife Beth.

We live in Woodstock Ga – a suburb about 35 miles north of Atlanta. We drive two cars, own a house in a neighborhood with an HOA, have two sons – Ryan and Adam. Ryan is 10 and Adam is 7 as of the date of this post. I work a full time job as a technology consultant. Beth stays home. We attend a local church. Ryan and Adam play tennis and are in scouts.

That’s our life.

And it’s great. I am blessed. My family is blessed. We really want for nothing.

Except time.

Probably like you.

That’s what this blog is about. I want to escape from the need to work a full time job for someone else. That’s called financial independence. I want to be able to go on a mountain bike ride at 10am on a Tuesday or take my kids hiking on a Thursday after school and not have to worry how it affects my career or my family’s future financial position.

What I promise is brutal transparency as we go through the journey. Hopefully there will be something you find useful.

I don’t promise anything substantial or mind blowing.

I do promise to share everything openly and be open to differing opinions and changing direction.

The goal: Financial Independence. Time.