Yearly financial, mental, and other checkups (2025): A path to FIRE (financial independence retire early) and journey of early retirement…

 

Martin Luther King Jr.: “You don’t have to see the whole staircase; just take the first step.”

It is that time of the year everyone!  It is time to reassess, reevaluate, and to take into consideration everything that happened the previous year.

For my wife and myself personally, we had a very good 2024 overall.  We embarked on another road trip during the last winter (December 2023-February 2024) to the American South, stayed in Ocean City, New England, and also spent good amount of nights at hotels in the process.

Looking back, we are reminded daily of how much we appreciate our early retirement and amazed by how quickly 4 years have passed on by since we said adios to the rat race!  Each day brings awesome realization that we no longer have to go to work, dealing with ever more demanding, difficult and entitled humans we must face these days…

Saying goodbye to the rat race and being able to enjoy this ride of early retirement is one of the absolute best things we have ever done in our lives.  Despite all the trepidations and worries we initially felt when jumping off into the unknown that is early retirement, we are happy to say we are so grateful and happy we are living our best version of our lives right now.

With that said, here are some of the highlights of our past year.  Included are topics we feel are equally important to living through early retirement, namely financial, mental, and relationship matters.  Here goes…

Financial

• Stock & bond markets stabilized

After living through the popping of the financial bubble in almost everything (stock, bond, cryptocurrency) in 2022, the march back up started to gain momentum in 2023, then kept on going higher in 2024.  Even though the bond market hasn’t recovered completely compared to 2021, at least it’s stabilizing.

With the Federal Reserve cutting interest rates the past few months, we anticipate the stock market will do well for the upcoming year.  Stock market on the whole, has done very well for the year 2024, with AI (Artificial Intelligence) related companies bringing up the entire market.  

With strong re-shoring and friend-shoring happening the past few years, bringing with it manufacturing jobs back to the USA (and nearby Mexico), the job market has been a growth story, and we expect that to continue for the next several years.  Consumption has also been an engine that seems to be going strong, especially among retired Baby Boomers spending their hard earned money which is propping up the economy in the United States.

We are constantly reminded of the utmost importance of the US economy as the driver of world economy, 

able to consume goods manufactured from abroad and here at a fairly remarkable rate.  The growth story of the United States is also remarkable considering it has been eking out 2-3% GDP growth rate the past few years, while other advanced economies are not having the same type of success.  

We are just grateful we are living here in the United States, able to take advantage of the US dollar as the world’s currency and also to take advantage of the robust and stable stock/bond markets that sets the tone for the rest of the world.  In this turbulent period we’re living in, when the US is no longer interested in propping up other countries like we used to since World War Two (the famous “Bretton Woods” agreement), it’s definitely beneficial to be living here in the most stable country in the world, one that is able to produce its own food and energy right here.

If you don’t think these two are important, just think about it.  What makes modern day possible is energy.  It runs everything we use everyday like electronics, smartphones, internet, cars, computers.  We produce most of our electricity right now from fossil fuels (natural gas, coal).  If you don’t produce fossil fuels yourself, you have to import it from elsewhere.  That can get dicey in a turbulent world…

Oh, and don’t forget about the importance of food.  We’re lucky to have plenty of food here in the United States because we produce food right here.  Elsewhere in the world, this is no easy task.  There are still famines in parts of the world today.  This is the norm.  We’re just so spoiled that we don’t even think about it.

Where would we be if we hadn’t lived here?  We’re able to live this early retirement lifestyle thanks to us living here, the country with the most stable financial markets, with plenty of food and energy production right here.  Very grateful for that!

Health (Mental)

• Important no matter when it is; pre-retirement or post-retirement 

I’ve always been a firm believer in having a healthy mind & body.  Usually, one goes hand in hand.  After I work out, I feel better.  Why not exercise to feel better naturally, rather than take medicine?  And, one more benefit:  exercise is free when done inside your home using your own body and light equipment, like dumbbells.

I read somewhere that in Canada, some doctors will prescribe a national park pass to treat depression.  What a great idea!  Doctors will ask their patients to take hikes at national parks as treatment.  Studies have shown hiking/exercising improve mental health of patients suffering from depression.  We should learn something from the Canadians.

I believe in doing everything we possibly can, like exercising regularly, eating right, and having a plan for our futures, to feel better every single day.  I like to get to the heart of the matter when it comes to my mental health, and I refuse to take happy pills.  

During my pre-retirement years, I found out I got less anxious when I started to get my finances under control and when my retirement plan was slowly getting on track.  For me, the root cause of my Sunday blues (and all that entails mentally) was the job.  Once I retired, and got off the rat race, I feel so much better.

Being happy or content is a combination of things both physical and mental.  It isn’t easy, just like any pursuit.  It takes dedication, sacrifice, hard work, and constant effort to be happy.  Don’t take the easy way by taking medication for all your woes.  Figure out what you can do to make your life better then get to it!

Exercise regularly, eat right, get your finances in order, budget, and plan for your retirement.  You’ll feel better once you do it for awhile.

Health (Physical)

• Daily exercise does wonders…

Since May of last year, my wife and I have been doing daily mountain climbers as our morning routine as soon as we get up.  We do 100 of them that combine mountain climbers with occasional planks and with short rests in between sets.  We also do a 5 minute yoga stretching to wrap things up.  

The result:

We both lost several pounds and we’ve lost body fat while getting more muscular.  Neither of us have ever exercised daily but it’s something we feel will help us grow old gracefully and hopefully more slowly.  

We also like the fact that we’re getting muscles in places we didn’t have in the past, and our pants fit so much better!

We have also incorporated 3 days of doing strengthening exercises (weights) to supplement our daily exercise routine.  Honestly, I’ve never felt stronger.  

I’m also proud to say my wife has also cut down on sugar consumption for the past year like I’ve been doing for the past 10 years or so.  We’re trying to live better by eating better.  As much as both of us love baked goods, we’ve eaten much less of them the past year.  Little victories here and there…

You can’t underestimate the power of exercise and good diet.  We are seeing the results right now.  Remember what I said before about exercise?  Exercise equal happy state of mind.  It’s so true…

We hope to continue this routine going forth. 

Relationship

• With less things to worry about, there are less things to argue about…

There are so many things to fight about when you’re both working, trying to make ends meet, paying down debt, all while building up your retirement funds!  These are some of the toughest things about being adults.  I never would’ve imagined when I was younger that growing up equal dealing with all these things…

There were so many restless days, feeling helpless and hopeless, wondering how we were going to juggle all these competing, at times impossible tasks of being adults.  

Retiring early was one of the best things to happen to both of us, as that meant no more worrying about the future, no more worrying about going to work, and no more worrying about how we were going to make ends meet.  Of course, we argued in the beginning stage of our early retirement, when we sold our home of 14 years, to live a nomadic lifestyle without having a place to call home.  

After 4 years of that, we are actually enjoying this ride.  Staying at hotels to our existing accommodation options (AirBnB or Vrbo) has made our life that much more fun.  We really do feel like we are traveling like we used to when we both worked, always at hotels with hopefully free breakfasts!

Since about the past 2 years, we really cherish staying at suite hotels like Homewood Suites, Embassy Suites, StayBridge Suites for more spacious rooms and for free breakfasts and sometimes free evening receptions with free drinks and light snacks.  We must’ve saved plenty of money just by eating their included foods.

I notice we don’t fight much (if at all these days), and our relationship is as good as it can possibly be.  That is something we are totally grateful for!

Now, see below for our recommendations on what you should do for the coming year, while also looking back at the previous year.  These are some of the things we did to reach financial independence and to retire early.  

• Debt

Hopefully, you paid down your debt (mortgage, credit cards, student loans, etc.) the past year.  Keep doing it!

You can’t be financially independent when you have more debt than assets.  Even if a mortgage is considered a “good debt”, do what we did by paying down the mortgage with extra payments few times per year.  We usually paid around $4000-5000 extra per year towards our mortgage.  You can do it as well.

Same goes for other debt.  We paid off our credit card debt the same way.  Keep at it every month.  Stop thinking about spending money, instead think about what it would feel like to pay off your debt.  

Make a plan to pay down debt each and every month.  It was really fun to see how much we can save by not buying stuff.  With that extra money left, we would pay down our debt while adding more to our retirement accounts.  This is the mindset you have to have. 

Paying down debt is not easy to do, everyone knows that.   But just because something is difficult doesn’t mean it’s impossible.  Be disciplined, have a purpose, and set a goal to pay off the debt asap. 

• Budget

Hopefully, you’ve been budgeting the past year and if you’ve done that, then you should be well on your way to your ultimate goal of reaching financial independence.  You should know how much you spend per month vs how much you’re bringing in.

You can’t do anything good financially, without getting your spending under control!  We’re talking about budgeting.  Write down what you spend on each month until you get really good at not spending on frivolous stuff.  

You must know what you spend on to know how much you have left over after paying for necessities like housing, utilities, groceries, and transportation.  Remember, buy “needs”, not “wants”.  And whatever you do, do not go on expensive international vacations that cost what would equate to 3-4 months of your salary!

There are so many great places to visit here in the United States!  Just last year, according to an article from CNN, USA was the most popular destination for international travelers.  Why not see why that is, right here in the United States?

There are so many amazing natural wonders like Grand Canyon, Zion, Yosemite, Niagara Falls, and world famous cities like New York, Chicago, New Orleans, Boston to explore.  It’ll be cheaper to visit here vs international destinations.  

• Retirement accounts

If you have a company sponsored retirement accounts like the 401k, please make good use of it!  Learn about your 401k account from your 401k company, your company HR, or any number of finance blogs, websites, etc.

Remember, no one will plan your retirement and your future for you.  Take the initiative, plan, learn, then start adding money to your retirement accounts.  

Always look to increase your contribution each year by at least 1%, but why stop there?  If you have your budgeting under control, and you’re paying down your debt, then why not start increasing your contribution?  

There was a year when I increased my contribution from 10% to 17%, then again to 20% all within a year.  Was it tough?  Sure, but nothing worthwhile is attained without sacrificing yourself.  Looking back, it was one of the most important things we did to get to financial independence and to retire early.

If you’ve contributed 10% last year, see if you can increase it by another 2%.  If you think you’ve acclimated yourself living with less of your take home pay after couple of months, then increase it some more.  The goal is to max out your contribution eventually.  The sooner you can do that, the faster you’ll be financially independent.  

If you don’t have a company sponsored retirement account, then make sure you max out your ROTH IRA accounts.  Once you’ve maxed that out, then open up a brokerage account to start adding to that.  Don’t let your money do nothing in a checking account.  Make use of ways your money can earn more money by investing.

• Pat yourself on the back for the past year, and take the time to reaffirm your goals for the coming year 

The end of the year for us was a time when we got together to see how we did financially.  We tallied up our debt (and how much we paid off), our assets (retirement accounts, home minus mortgage and fees to sell our home), and to reassess and reaffirm our commitment towards the goal of reaching financial independence.

It’s important to pat yourself on the back for a good year, to look around at all that you’ve managed to achieve for the past year.  The next step is to continue on that path, but see if you can do better:  Spend less, pay off more of your debt, and increase your retirement account contributions.

It takes years of hard work, planning, sacrifice, and diligence to achieve financial independence.  No one said it’s easy, but you’re not like everyone else.  You have a goal and nothing will stop you from reaching that.  

In conclusion:

We have been retired for over 4 years now and we are just grateful we’re able to live this nomadic, carefree lifestyle thanks to us following the core principles of the FIRE (financial independence retire early) movement.  We couldn’t have done it without it.

With that said, I believe anyone can do what we did.  It takes hard work to get there, but it’s not impossible.  We’re proof of that.

If you see yourself reaching financial independence to live your life the way you want to, then do everything in your power to make the necessary changes that will change your future life.  No one will help you achieve your dream.  

You have to do it yourself.  Plan now for a better future, and don’t be afraid to live a contrarian lifestyle from everyone else.  If everyone else’s idea of a good life is constantly living on credit card debt to fuel that spend, spend, spend lifestyle, then what’s wrong with living the complete opposite of that?

Learn to spend less now and it’ll be easier later on.  Practice living with less and less, and you’ll notice why you never did this in the first place???

Buying stuff, or spending several months worth of salary to go on international travel is not the way to a happy life.  Living within your means, to enjoy the little things, living a normal/average life is not a bad way to live your life.  

Stop living to show off to your social media followers about your latest expensive international trip.  Live for yourself, and not for others!

That, is one of the ways you can reach financial independence…

Thank you for reading and be steadfast on your path to financial independence!

Jake

Wandering Money Pig 

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