This month was pretty brutal for the market. Lots of ups and downs. Even with contributing almost $4500, my net worth still dropped. It’s annoying to watch, but better now than after I FIRE, and I’m looking at it as an opportunity to buy on sale. I may not be making progress now, but when the market reverts, the money I’m putting in now will give me a big chunk ahead. But months like this are why you plan for Sequence of Return Risk and build up a bond tent.
Note: For the purposes of my calculations, these are the definitions I use:
- Poverty Fire – This is the lowest amount I could live on. It’s my current average spend.
- Lean Fire – This is Poverty Fire + 50%.
- Regular Fire – This is Poverty Fire x 2.