New with FI questions!

[Hsiaokuo62]

Hello All, I'm trying to "do" the Your Money or Your Life book, and I have some questions:

*How do I calculate my "life energy" number when the greater part of my income comes from investments? I work VERY part-time.

*I just started following the book - but last month I bought a side of beef that may last 9 mos or longer! So how do I account for "inventory"?

* are there any others out there who are going through the book right now? I'd like to do it with a group, even if virtual!

Thanks :)

[kib]

Welcome!

I think a lot of folks here have gone through YMOYL at one point or another, it's been a while for me. IRR, it breaks "the point" down into two numbers and two charts, when your total income exceeds your expenses so you are living below your means, and then when your investment income exceeds your expenses, at which point you no longer have to work. Have you checked out Mr. Money Mustache? That site has a lot more hard-data type of analysis of income, investments and "FIRE" point (financially independent retire early).

I would include the cost of the beef / 9 in your monthly food expense. This is obviously going to be a very rough estimate, but putting it all up as one month's expense or ignoring it entirely isn't going to give you a good number for food cost.

Sorry this isn't more helpful, but welcome to the boards, I hope you find some info! :welcome:

[SteveinMN]

Welcome!

I, too, read YMOYL, but it's been several years and your situation is quite different from mine.

I think kib has a good idea on the "beef inventory" issue. As for the life energy number, maybe the guide can be either 1) getting to the point where you don't have to work at all (if that's something that appeals to you); or 2) being able to adjust your investments to meet different goals (for example, less volatility or maybe to avoid stocks in companies you don't like). If you don't need to draw so much money from investments, you'll have more flexibility in which investments provide the needed return.

[Hsiaokuo62]

Thanks kib and Steve. I'm not sure if the beef will last longer than 9 mos, but it sounds like a good start and I can modify it later if need be. Life energy is still a puzzle. I will definitely check out Mr Money Mustache, another friend has recommended him also.