Financial Independence Update 2023

A reader requested I give an update on my financial independence journey for 2023. I had written back in 2022 that I reached financial independence and they thought it would be cool to see where I am today, one year later. 

Financially, my net worth has grown $280k in 2023, even with the market being down and recovering over the last several months. I had the mindset that I didn’t want to invest that much in 2023. I figured I would let compounding do its work. Instead, I focused on saving cash so I could buy another property or two in the near future. I still maxed out my 401k, IRA, and HSA for the tax incentives. I did not contribute further into my brokerage account. 

My goal for the year was to only work 6 months. Did I reach this goal? Nope. It was harder than I anticipated to work less. I started the year with a 3-month assignment in FL. Then I took 3 months off to travel to Europe and spend time with family. Afterwards, I had another 3-month assignment in CO. But I ended up extending for an extra month (making it 4 months) since they were in need and I was not burned out. I then took November off to be with my boyfriend. I was hoping to take December off too but I allowed a site to convince me to work with them starting that month. Thus, I ended up working my usual ~8 months per year. 

There are several reasons it was more challenging than I thought to cut down working to 6 months per year. The first reason is – feeling guilty. When a site is desperate for my help and I do not feel burned out, and they are flexible, I am more inclined to agree to work. I feel guilty saying “No I can’t work because I just want to do nothing”. Haha. It’s so easy for me to show up to work and prescribe that patient a medication to help with their depression; place the referral they desperately need for a neurologist; or treat a simple UTI.

Another reason it was hard to only work 6 months is that I do not like to take more than 3 months off at a time. Since I worked so hard to gain my NP skills, I do not want to lose them. The 3 months off period is the sweet spot for me to keep up with my skills and not need a refresher. I know medicine can be like riding a bike, it will all just come back to you once you start practicing again, but I like being sharp and quick on my feet. 

The third main reason is that I am accustomed to being a high earner. Sure, I have enough money to sustain me for life in investments. But it is harder than I thought to give up the mental aspect of having a large paycheck hit your bank account each week. Even though I only spend 10% of my income each year, I like knowing that I have enough income to provide me with options. 

I realized that being a nurse practitioner is a bigger part of my identity than I expected. It would be hard for me to give that up completely and I see myself forever having “one more year syndrome”. (This is when you keep saying you will retire next year, but when next year arrives, you push it off to next year). Fortunately, nursing is so vast and flexible, that I can continue doing it forever even in a limited capacity. That’s what is amazing about being a traveling NP, I can work as little or as much as I want. 

As I am continuing to work, I am trying to get myself to “spend more”. Since there isn’t much I really want, I initially thought “spending on time” was the way to go. Meaning I would work less to utilize my free time more. However, I calculated that even if I don’t contribute another dollar to my investments I would have $14mil by the time I am 60 years old. Even with inflation I would not need all of that money, so it is a wake up call for me to start spending more now. 

I started in 2023 by treating myself to a monthly $100 massage. This clearly won’t break the bank. I do love cars but right now there is no point of me buying one since as a traveling NP, I am provided a rental car for free. In fact, I haven’t had a car for 5 years now. This has allowed me to save $60,000 which I have invested and has grown into $120,000 already. By the time I am 60 years old, this saving/investment will grow to $1mil. $1million just for not having a car payment for 5 years! When I do need a car again, it will be a luxury/sports car that I will purchase cash. 

My next plan in 2024 is to purchase a personal property that I can use when I am in Miami. Normally I stay with family because I thought it was wasteful to have a property I would rarely live in. But I am highly considering purchasing a condo on Miami Beach that can also serve as a “vacation property” to my family/friends when I am away. I am hoping that my boyfriend will be able to move to the USA by the end of next year. It would be nice for us to live in Miami Beach so that he can adjust more easily to life in the USA. It’s a big transition living in urban Europe to suburbia America (such as having to use a car to drive everywhere vs just walking or taking the metro).

2024 will be a redo – I will try again to only work 6 months out of the year. Let’s see how I do 🙂 In the meantime, I decided that a way to potentially reduce how much I work is by asking for a higher hourly pay. In the past, if I really wanted to work in a specific location, I was flexible and would accept a lower hourly rate. Now I am going to have a minimum hourly rate, and if the site and agency are unable to meet that, I will just turn down the job completely.

Additionally, I have started doing financial coaching on the side. I only accept a handful of clients per a 6 month commitment. I do charge for it, not because I need the money, but because I believe clients are more inclined to stay committed if it is costing them. It only takes a few hours of my time per month, and I enjoy helping others work towards their own financial independence. I realized by my peers that what is now common sense to me regarding finances, a lot of people are clueless about.