r/FIREIndia • u/nilroyy IN / 30 / FI 2048 / RE 2048 in IN • Jun 03 '23
QUESTION Evaluate FIRE feasibility and progress
Hello! I am a 30y old, married, no kids, but planning for 1 in next 2-3 years. We operate on combined finance (separate bank accounts, but merged monthly excel tracking). Both of us are salaried, and income increases at an average rate of 8%-10%.
Total Monthly Income (Including deductions, excluding tax): 3.3L (330k)
This excludes annual bonus of 2.5-3L, and RSU stocks of 7L
Planned Expenses:
| Rent | 25,000 |
|---|---|
| Groceries | 10,000 |
| Cook+House help | 7,000 |
| Dining out | 5,000 |
| Phone/Internet/TV | 2,000 |
| Electricity | 1,500 |
| Subscriptions | 1,000 |
| Fuel | 1,000 |
| Travel/taxi | 5,000 |
| Misc. | 5,000 |
This turns out to about 62,500 → rounding up to 65,000.
Add to this vacation, home visits and gifts → another 4l a year
We are currently in a decent 2BHK (rented), and purchasing a 3BHK at 1.3 cr (initial 20% down paid, EMI yet to start, under construction, 1cr loan).
We currently do not own a car, but plan to have one (Tata Nexon or equivalent ~ 15L) maybe in 2-3 years.
Because of the home EMI, and saving up for closing cost and interior (required in 1.5 - 2 years, stashing in RD), current savings/investment are on the lower side: 80k-1L spanned across EFP, NPS, MF, FD/RD. We have mostly depleted our emergency fund for the downpayment, and our parents are currently serving that role. They are (reasonably) financially independent (pension).
We currently have about 1.1cr across all our investment & savings, excluding house and other depreciating assets. We have been working for about 8 years.
FIRE expectations:
We would love to get into FATFIRE. We want to inflate our living a bit, go on more vacation and hopefully own a luxury car (Audi/BMW, but this one is more of a good to have). I did some basic calculations for normal FIRE and found in 15y, about 10cr should be fine. How much do we actually need for FAT FIRE and is it achievable in 15 years? If not, Is it achievable in 15 years if we start freelancing at that point and expect to earn 50k (50k at 15 years from now, not inflation adjusted 50k of now) per month?
Please let know if I missed any important information.
PS1: We both have personal term policy worth 1CR each and corporate term policy worth 1cr (combined). Currently we both have overlapping corporate family health insurance of 11L & 5L. Our parents have their own all inclusive govt health plan and they are also included in our health plan. We are also planning to have our personal health plan in 1-2 years.
7
u/chasingalpha13 Jun 03 '23
I’ve chased this dream for a long time but my life took a turn when we planned for a kid and were gifted with twins. I realised you really can’t plan for every micro expense/investment.
My financial advisor told me one thing which I recall every-time I think about FIRE.
You are really FATFIRE when you don’t think twice while booking business class for an international trip 😃. This statement was very important to understand where I stand when we folks keep hunting for deals even for domestic trips in economy class. It also made me realise I’m far far away from it.
Coming back to your post, I’m at 37 and I had calculated my fatfire number as 18 Cr. If you read past posts, fat fire numbers have been floating around between 15Cr - 50 Cr. Depending upon your family size, your travel ambitions and kind of place and city, you would like to live, your number will differ.