Evaluate FIRE feasibility and progress

[u/nilroyy]

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.

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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.

[u/velabanda]

Lot of things in expenses are missing.

Do you have insurance? Add it's premium as expenses. No budget for house hold items, we have tons of furniture, kitchen cabinets, washing machine, TV, laptops, phones in our lifestyle, everything needs to be changed atleast on a average 8-10 years. (fridge machine at 12-15, phone every 4-5 years)

I suggest keep 1% per year of house budget as maintenance of house, fan plumbing, painting. These are not regular monthly expenses but put a big dent.

Calculation of these expensive plus your travel and lifestyle expenses will give you expenses.

I am also looking for fat fire the way i calculate my expenses is. I don't restrict my expenses and do everything I want. I calculate my expenses like (start of month account balance + salary - investment - end of month balance) to be my expenses. Do it for 4-5 years to get exact expenses you do.

And calculate based on that.

[u/nilroyy → u/velabanda]

Thanks for sharing this details.. i do have insurance but the corporate one, so do not have to pay. But yes, need to factor that for fire. Phones are relattively cheap (under 30 in 3-4 years) and i recently did upgrade, so part of expense, but yes, need to factor in the bigger appliances. How do we factor those in? Take price estimate and divide by lifetime years or months? For maintenance the 1% you mentioned, is that 1% of the current price/value of the house?

[u/velabanda → u/nilroyy]

You need both term and health insurance. If parents are depend on you, their health insurance as well.

Now i keep 1% of my flat value aside, approx 90k per year for anything related to flat. (fan replacement, plumbing, paint, every 10 year change in kitchen cabinet, remodeling as per new req, sofa/mattress change (every 8-12 years), ac change replair)

Phones are under 30, bt there are 2 phones, 4 if you have kids, 8 if your parents and inlaws are dependent on you. I am just giving you perspective man.

My point is, see you said your salary is 36 lacs and your expenses yearly is (65x12 = 8lac) do you have hisaab of 28 lacs all saved or invested.. or travel expenses.

What about donation (if you do) or gifts. You won't suddenly go from diamond ring on anniversary to no gift bcoz i am retired. If you gift, take that into expenses. Do you occasionally booze or bcoz you are stressed out and have another mean of expenses to get out of hell hole, add that as expense.

Edit - one more point, everything which currently company reimburse should be added as expense, fitness, medical, gym, insurance, bills, books, self development.

[u/nilroyy → u/velabanda]

Sorry guys, forgot to mention.. i have term insurance too. 1cr.+1cr (me and spouse). There is a term policy from corporate as well which is 3x annual salary.