I hit my number, the FIRE number, the number that allowed me to tell myself and the rest of the world that I was financially independent. But my triumphs only lasted a few months; October, November, December 2021, January, and February 2022.
Then the stock market started dropping, and dropping some more and I just sat there, watching my savings evaporate. I did the right thing, the one thing I have preaching during many years, to let the market do it’s job. I am not in the business of predicting the future and really, no one knows the direction of the market. We all can throw our theories in air, but really, no one knows.
My self given title of “Financially Independent” was going, going, gone!
Now, I have to go back into the labor force. At a given moment I was working in order to have a purpose, now I work because I have to. It’s basically the same work, but the feeling and the urgency are different.
Maybe I wasn’t ready. Or maybe it was one of those instances when everything that can go wrong, goes wrong.
It was more than the stock market going down.
My mother needed a substantial amount of money to renovate her kitchen. In all my years alive, my mother has always been giving to me and has never asked for anything in return, so at the moment when she asked for something I did what it took to help her out.
Also, the taxing authorities found some discrepancies with taxes that I filed five years ago. Yes, I ‘forgot’ to declare some revenue that I was earning from my Airbnb properties, and I got hit with a huge tax bill; about two years worth of income.
All in all;
1. the drop of the stock market
2. my mother asking me for money, and
3. the huge tax bill I received.
All of those were the reasons for me to lose my FIRE title that took me 20 years to earn.
The way I see it, eventually I will become financially independent once again, until then I will have to go back into the labor force and work to pay my bills. like every one else.
How am I earning a living?
I have fallen back to my favorite side hustles.
I started teaching again at Dance Conmigo, the school where I am co-owner.
I started promoting a bit more my photography services. And I decided to start a new business as a Website Designer.
With all those side hustles, I should be able to pay for my lifestyle and pay to lower my tax bill.
I wouldn’t change anything
If I could go back in time, I wouldn’t change anything.
I am ready to help my mother at any time she needs anything from me.
The stock market went up for almost 10 years, it’s still the best way to earn passive income. It’s only normal that this year it has gone down.
I got caught under-reporting my income, but it was a risk worth taking a the time.
In spite of the stock market declining I wouldn’t have gotten out because no one knows how to time the market.
All in all, I just have continue working and enjoy the ride.