March 11, 2010

2nd Anniversary of Free By 50

Today is the 2 year anniversary of Free By 50.

 My first post on March 11th 2008 was I want to be financially independent by age 50  and it had this short message:   "It is my stated goal that I plan to be financially independent by age fifty. I plan to chronicle and discuss my efforts towards that goal on this blog." Financial independence by age fifty is still my goal.


A lot has changed in two years but much has stayed the same.

When this blog started in March 2008, the unemployment rate was 5.1%.   It peaked at 10.1% in October last year and has now dropped to 9.7%

I was single and engaged two years ago and now I'm happily married.

I was eating out too much and spending around $900 a month, but since then we've cut back on our eating out and are now spending closer to $500 to $600.

I've got the same job but I got a pay grade promotion and a 14% raise in 2008.   In 2009 my company froze wages.

I live in the same house but we got the front yard landscaped and had the house air sealed and insulated which I figure has saved us about 40% on our heat this winter.

Our net worth grew by about $161k or about +34% from $467k to $628k.   A large chunk of that growth came from when my wife and I got married and combined finances so "my" net worth became "our" net worth.

On March 11 2008 the S&P 500 opened at 1,247.    It then climbed to a peak of 1,440 by May 2008.   Then it started to drop and around a year ago in March 2009 it had hit a low of 666.   Today it has recovered considerably and closed at 1,145.   If you had bought at the peak and sold at the low you'd have lost 54%.  If you'd bought at the low and held it until today you'd be up 71%.

2 comments:

  1. Congratulations! Keep up the good work. I love reading your blog.

    ReplyDelete
  2. Have you run across an MIT Press book titled "Housing Partnerships, Why the second have of your house may be the worst purchase you will ever make"?

    I think you will find it an interesting help in achieving Free by 50.

    John Frazier

    ReplyDelete

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