A Real Path to Wealth: SlowFI and Our Current Income Streams

Hello FIRE community!

I wish I could tell you that you can just magically make $2 million and retire in a few short years by investing in cash cow real estate, picking hot stocks, buying a guru’s course, or whatever other get-rich-quick scheme. For most people, there is no shortcut or secret “hack” to building wealth. Unless you get lucky, receive a surprise inheritance, were born into wealth and connections…. wealth building takes time. It takes conscious money management, consistent investing, preserverance and patience. Because we have modest incomes (under $100k/yr combined for most of our life together) we chose the SlowFI route of saving for an “earlier than usual” retirement, but also prioritizing conscious spending of money and time building a life we love along the way.

Why Do Most Millionaires Have Multiple Income Streams?

A common theme of people who build wealth and reach millionaire status, is multiple streams of income. Meaning they usually make money in more than one way. This an often a natural result of using your earned income (money from a job or trading your time for money) to buy investments that then earn money on your behalf. As you invest, you are building a workforce of assets (🏠🏦📈) that earn “passive” income for you. Then, one day, the income from these assets is as much as you need to pay for your day to day life, and then the income from your job becomes optional extra. Here are the different ways we are earning income so far this year:

Our Multiple Income Streams:

Here are our 7 income streams:

1. My partner’s self-employed solopreneur freelancing 💰
2. My part-time income in marketing & design 💻
3. My part-time income from self-managing rental properties (rather than outsourcing to a rental management company) 📋
4. Rental property cash flow (and equity buildup as we pay off the mortgage and/or the property appreciates over time) 🏠
5. Dividends (and capital gains) from stock market investments 📈
6. Emergency savings and sinking funds in an HYSA earning 4.25% interest 🏦
7. Bonuses, cashback, points & miles from credit cards (which we pay in full every month) 💳

💡 Living Off Just One Income and Investing The Rest:

We live off Income Stream #1 (my partner’s 9-5 self-employed freelancing), and all of our other income streams (my income, our rental income, stock dividends) are used to invest for the future. Saving for things we value and investing for the future have always been important parts of our spending plan. We also use credit card bonuses, points & miles, and cashback to fund travel and fun discretionary purchases, but… very important: we are careful to only spend on what was planned and not to buy extra things for the cash back/points.

How did we get there?

Tracking Our Money:

Tracking the flow of our money (how much comes in, how much we invest, and where the rest goes) helps us understand and adjust our spending, saving and investing habits. We target minimum investment and savings goals first, keeping our spending within limits to achieve those future goals. We also keep track of our “total” net worth (includes personal residence, cash in our business accounts, sinking funds, and vehicle equity) and our “invested” net worth (only money and assets that are invested and earning a return).

If you’re struggling to get your finances on track or you want to start your own FIRE journey, being aware of your financial situation is the first step. You need to know what’s happening with your money to know where and how to make changes.

Lets get curious….

What role does budgeting play in balancing immediate desires with long-term financial security? How can you create a budget that supports both aspects effectively?

Imagine your life 10 years from now, having achieved financial independence. What does it look like, and what steps can you take in the next year to move closer to that vision?

Are there opportunities for you to reduce expenses and increase savings without significantly impacting your quality of life?

Have you tracked your spending and investments recently? Does where your money goes reflect your short-term and long-term goals for your life? Have you noticed any surprising trends or insights?

These are the sorts of questions you want to ask yourself if you want to design a life of abundance, flexibility and freedom. If you want to be able to retire with a comfortable nest egg and a sense of security. If you want to have more options in your life and more control over your financial stability.

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A Bit About Us

Our journey began with humble beginnings. We’ve navigated through the challenges of creating a life and a living we love, while earing low to median incomes. What started as a modest dream of being able to retire someday has turned into a concrete plan. We’ve been on the SlowFI path, consistently saving and investing for 20+ years. Our income over time has stayed roughly in the 50th percentile, so we are truely everyday Americans. We’ve achieved remarkable results through living below our means and consistently investing the difference. Now in our mid-40s, we are in the top 20% for U.S. household wealth for our age group. This has been possible through conscious spending, consistent saving, strategic investing, and a commitment to lifestyle design where we spend generously on things that bring us value and contentment, while cuting back on things we are ambivalent about. It can be daunting when you hear the stories of tech workers or doctors or other people with large income shovels. We want to share how an everyday couple with median US income has built wealth for the future, while also creating a life we love today.

Why Financial Independence?

Financial Independence means having the freedom to make choices that aren’t dictated only by the need for a paycheck. It’s about gaining control over your time and energy, and being able to pursue what truly matters to you. For us, it’s about creating time for friend & family, travel, and the experiences that bring joy and fulfillment.

Join Us on the Journey

In January 2021, I ran some calculations, projected our investment growth, and analyzed our current spending levels. After adjusting our spending assumptions for future inflation, I realized we could replace our earned income (trading time for money) with investment income (our money making money for us) in approximately 10 years. With 90 months left to go, we’re solidly on that path and we want you to join us. Whether you’re just starting out or well on your way to financial independence, Surprising Wealth is here to support and inspire you. Together, we can make every month count and turn dreams into reality.

Thank you for being a part of our community. Let’s embark on this journey to financial independence together!