Fully Funded Lifestyle Change (FFLC): Origin Story
Our journey down the path to Financial Independence Early Retirement (FIRE) began with the usual suspects, unhappiness at work and a doggedly busy schedule. While Mrs. SSC was convinced that we could do it, I wasn’t so on board with the idea. This was because the few examples I saw were too extreme and so I resisted. It took years for me to come around to the fact that our plan didn’t have to be like anyone else’s.
What didn’t take that long to come around to, was the concept of a Fully Funded Lifestyle Change, or FFLC as we call it. What’s different about that concept is that it isn’t focused on FIRE, it’s focused on making the best lives for ourselves now. In short, we wanted to be able to abandon the fast paced, hectic days filled with long hours away from the kids. What we didn’t want to do was abandon the safety and security of not worrying about money, bills, and more that we had grown accustomed to. So, we made a plan that when we hit a certain number in savings, brokerage accounts, and 401k’s we would jettison our hectic lifestyle here and relocate to a better lifestyle somewhere else. The better lifestyle for us meant more time with family and freedom of schedule, even if it came with a greatly reduced income. This was the basis for our Fully Funded Lifestyle Change concept.
Retirement Didn’t Motivate Us
We were pushed more into thinking about the “FIRE concept” from a Fully Funded Lifestyle Change perspective for a few different reasons. One was that while we could appreciate having the free time to do whatever we were passionate about, neither of us wanted to quit working just “to quit working.” We just weren’t motivated by the “retired” lifestyle, even though it would be really early retirement. There’s always talk of “retiring to” something, so we decided for us, it could be a third career since we both had a previous career prior to oil and gas. Plus, we didn’t see an early retirement lifestyle of both us un-employed and being stay at home parents any more sustainable than our current one. Instead, at least one of us would be doing something that would bring in income, even if it was, gasp, A JOB… This would most likely be Mrs. SSC as she is a bit more worried about finding her purpose, or ikigai, in retirement than I am. This meant that we had to tailor our relocation appropriately and this had its own set of problems.
Our Degrees are Limiting, Whoops
Another reason is that with our advanced degrees in geology and geophysics, there are surprisingly limited job opportunities available. This isn’t to say there aren’t jobs out there, just that they are limited, especially in academia as Mrs. SSC found out when she started looking at teaching jobs.
We found that most jobs fit a few categories such as teaching, environmental work, or government work. Also, most of the positions that came up in our job searches had salaries ranging from $30k/yr to ~$50k/yr. I did get a job offer from the Bureau of Ocean Energy Management (BOEM) that I had to turn down because even with a $112k/yr salary we couldn’t get the numbers to work out to make it worth moving. Most of that was driven by the fact it was located in Camarillo, CA and while beautiful, it’s pretty damn expensive.
However, this led us to realize that while these jobs may not be high paying, they were almost always located somewhere beautiful AND in a low cost of living area. This sparked our thought that if we could front load our retirement, and cover that gap between 40’ish yrs old and 59.5 yrs old when we could access our 401k’s it would allow us to be able to take a lower paying job without worrying about funding retirement savings. As long as we kept our spending low enough that our expenses were covered by whatever job one or both of us took, we saw it as a great way to fund our Lifestyle Change.
Won’t Someone Think of the Children
Having kids, and even more than having kids, moving to Houston amplified the ridiculousness of our crazy lifestyle. Sure, prior to Houston we had our son and our social life took a hit, but we were still able to keep a good social network. Also, we were only 15 minutes from the office, so we still kept easy schedules, and our oldest wasn’t in daycare for more than 8-9 hrs a day tops. This afforded us a lot of time to hang out as a family.
When we moved to Houston, that all changed. Because we carpooled and both worked at Megacorp, the kids days got substantially longer, even with a “short” 30 minute commute to the office. The kids would get dropped off at 6:30am and picked up at 5:45pm IF traffic went smoothly. That is a long time to be in daycare. Poor kids… Plus, our days were now about 12 hours long before we even started dinner and getting the kids ready for bed. Since they went to bed at 7pm we had very little time with them during the week, and not much more time with each other. That was when it was driven home that this was an unsustainable lifestyle we had created for ourselves and we needed a change now more than ever.
Recessions, Industry Downturns, and Tracking Our Spending
The final reasons we were looking towards a Fully Funded Lifestyle Change were that we didn’t want to end up like so many people that we saw being affected by economic downturns. We experienced our first industry downturn and round of layoffs at the very beginning of our career, and it was eye opening seeing people being laid off and stressing about money, house payments, car payments, school loan payments and more. Of course, we were also experiencing a recession and being aware of how it was affecting our family members, neighbors, and friends kept us from inflating our spending and debt in accordance with our new salaries.
This made paying down my $64k in school loans and ~$16k in credit card debt high priority, so we were throwing a lot of money towards both of those early on. While we had some early creep into our lifestyle, when we got diligent about tracking our spending, we were able to notice many “financial leaks.” By stopping the outflow of cash from those financial leaks, we were able to accomplish a few things that helped achieve our Lifestyle Change goal. The first was that our overall yearly spending was lowered to a number that could be supported by most of the jobs that we found were available. The second was that we had more money available each month to put towards our brokerage accounts to bridge that gap from whenever we transitioned from our high paying jobs to lower paying jobs with a better lifestyle.
It’s Happening!
We were able to baby-step towards FFLC when Mrs. SSC left the oil industry. Man, what a difference that made for our lifestyle. It was a huge increase in happiness and amount of time with family. That came with a 6 figure pay cut, but it was fine because we had been working towards that all along. Our new plan is more true to our original version of the FFLC concept in that Mrs. SSC will continue to work and pursue a career that she is passionate about and I will be able to be a stay at home parent and spend more time with the kids. Plus, with our new schedules Mrs. SSC will have more time to spend with the family as well. We think it will be a great change to our lifestyle.
That’s how we came up with our Fully Funded Lifestyle Change concept and what the driving factors for it were. It wasn’t trying to dodge the retirement police, but more of us trying to dodge early retirement. It was realizing that by taking lower paying jobs in lower cost of living areas, we could have a lot better lifestyle for our family and we could achieve that a lot easier and sooner than achieving “full FI” and ER status. Keeping our eyes focused on what was a priority for our family really helped with that. When Mrs. SSC got the offer for this new job, it was a no-brainer to take it because it fit what we’ve been looking for this whole time.
Let us know what you think about our Fully funded Lifestyle Change concept. I’d love to hear about it!
Mrs.Wow
April 9, 2018More free time? Now that sounds utterly fantastic! I’d love some too. Oh and the ‘financial leaks”. Its crazy how they just creep up on you sometimes and if you don’t catch them early enough, they can turn into a steady stream of disappearing money. Sounds like you guys are making big strides in you lifestyle change and I can not wait to read more about how your story unfolds.
Mr SSC
April 10, 2018Our financial leaks were pretty substantial once you combine them all. The crazy part is that we couldn’t even tell you what most of it was. Like, how many throw pillows do you need and how often do they need replacing? It’s going to be a crazy summer, but it is exciting looking at what is coming up. Huge changes coming indeed!
Mr. PIE
April 9, 2018“Our degrees are limiting, whoops”
INDEED.
With three degrees in chemistry between Mr and Mrs. PIE, we have literally choice of three geographies to work in biotech/bio-pharma. Boston, San Francisco or San Diego. Unless of course we go all “Breaking Bad” on you and manufacture product in a bunker/laboratory in the White Mountains. Could call it White Pie and make a killing on it…:>) Now there is a radical lifestyle change for you…..although being “retired” to a prison in frozen Nebraska is not how we intend to see out our golden years.
Seriously, I think your plan is more than awesome. I know it has taken some hard searching to get there but it is close. Very close. Stay patient with the transition and the annoying stuff it will through at you as you sell and buy homes. Pay attention to the stress levels rising and falling, especially due to the flakiness of so-called serious buyers who may turn out to be nothing more than time-wasters with their sketchy offers. You will get a real glimpse into the messy financial lives of folks, I tell ya!!
Mr SSC
April 10, 2018Yeah the oil industry is like that, but you can get a little more diversity in where to live.
I like the concept of White Pie, but like you, would not want to pay the piper if I got caught. Working at this job for another 10 years suddenly seems glorious compared to a federal penitentiary, lol.
I’m just excited that we are days away from getting the house listed. The to-do list has gotten whittled down to just a few remaining things and then it is just keeping it “show ready” which is almost worse than getting it show ready. 🙂 We are pricing it competitively, but I should say comeptitively low. It’s not a fire sale, but we think it is at a fair enough price and still under most comparable places that we’d rather see it move and get sold quickly than wait 4-6 months to make an extra $5-10k on it.
It will be interesting to see how it plays out for sure. Once the final paperwork is complete then we can start getting serious about making an offer on a place in our next area. It’s still a toss up between rural or city life though. There are some places we’ve seen that we could pretty much buy outright and not even have to deal with a mortgage and man, that is tempting. Good layout, good location, and even if it needs updates, we can put our stamp on it and make it ours. Especially at those prices!
Good luck with your sale, I hope this one goes thru for you guys!
MrWow
April 10, 2018You know, you guys are onto something. It’s a mantra that we’ve started to use around these parts…
If you need a vacation from your life, maybe you should design your life so you don’t need a vacation from it.
I like that idea… who cares if it takes a little while longer. You just gotta go with it and do your thing. Be happy with it!!
Mr SSC
April 10, 2018Nice! We realized we’d rather have more family time and focus on that than just bring in oodles and oodles of cash. Don’t get me wrong, I love making money, but it wasn’t coming from a sustainable lifestyle for us. That’s a real pisser.
Yeah we knew it would be longer to hit full FI, but we got to a point of having FU money pretty quickly and that alone changed our perspective on working and priorities and everything. We’d much rather have a life we didn’t need a vacation from than jobs that could afford nice vacations away from our lives. 🙂
Oldster
April 10, 2018Yours is an original and authentic voice in this space, SSC. While most in the FIRE region of cyberspace are focused on the RE side, you regularly discuss what it will take to make you and your family the happiest. Focus on FI over RE is the absolutely right path and gives one options they would not have otherwise. Kudos to you and Mrs. SSC and I hope this all works out as hoped.
As an aside, I was raised in Camarillo, CA in the 60s and 70s. It was a great place to live.
Mr SSC
April 11, 2018Thanks Oldster! We have been trying to focus on hitting FI while also doing what’s best for our family and lifestyle and after years of working at it, it has come to fruition. Funny how that works out sometimes. 🙂
Camarillo is beautiful and we were excited about it, but man… Without any income from Mrs. SSC it looked really tough trying to make ends meet. We estimated that we could make ends meet, but we wouldn’t be saving any extra money, and we would be dipping into brokerage accounts for anything that came up unexpectedly. It was too tight for us to make the move, but it looked like would’ve been a really cool place to live. 🙂
Jim P
April 13, 2018I like the concept! We relocated 20 yrs ago to Brooklyn, but were focused on paying off the mortgage fast. Now that that is done, we can still afford to live here (for now) and will hopefully RE values will continue to hold up until we decide to move somewhere else. I worry about having too much equity or % of our Net worth tied up in real estate. I want to explore options for tapping that, without treating it like an ATM. In our early 50’s wife works and I’m retooling. It’s nice to have options, and it sounds like that’s what you will have in spades. I look forward to following along.
Mr SSC
April 16, 2018Thanks for the comment and for following along. I hope I keep it informative and entertaining for you. 🙂 Yeah, having options is good and like I mentioned before, we both really like our work, it is just figuring out how to make more free time for family and ourselves. While full FI would be great, I would need to keep my current job and schedule another 10 years to hit that mark. In 10 years the kids will be all but out of the house at 15 and 17 yrs old.
Working towards redesigning our lifestyle to better fit a more flexible and open schedule was an easier and more enticing goal to chase for us. Good luck figuring out a great option for you and your wife!
Mrs. Adventure Rich
April 15, 2018Ok, first off, you have the cutest kids ever!
I think I’ve told you this before, but the FFLC is wayyy more motivating to me than full FI. There are so many jobs I’d love to do, but I would like to be in a place where I can make a move on FFLC terms… not full FI terms. With so many unknowns in life (kids, college, etc), I like the flexibility FFLC brings 🙂
I can’t wait to follow along with your journey to FFLC!!!
Mr SSC
April 16, 2018Thanks, those are some of my favorite pics of them and both happen to be from their 1st birthday celebrations. 🙂
We agree that full FI and even full ER just wasn’t motivating us. Yeah, the concept is good, but as I have said in other comments, to ht full FI I’d need another 10 years (at our current lifestyle/jobs) and by then the kids will be turning 15 and 17 and I would have missed any opportunities to get to know them and spend time with them. Spend additional time, we’d have what we have now, just not additional flexibility. Finding a good middle ground, like taking a lesser paying job for a huge improvement on lifestyle was way more motivating to us.
That was what we have been working towards since we came up with the FFLC concept in early 2015. Granted we’d been working towards FIRE before then, it just wasn’t as motivating or as easy to picture as our FFLC plans.
There will be more to come and I’ll try my best to keep it entertaining. Especially with the transition from the larger income to the smaller one, larger town to smaller town life, me finding purpose in my life since I’m not working anymore, and all sorts of other things that will pop up. It may be a whole retool on the blog focus, we’ll just have to see what happens. 🙂 Thanks for following along!
Mr. Groovy
April 16, 2018Nothing wrong with FIRE, but it isn’t for everyone. That’s why I love your FFLC concept. Sometimes taking a step back is just a fulfilling as retiring. And you guys are a sterling example of this. Bravo.
Kate S.
November 5, 2018Fully funded lifestyle change is a concept that really jumped out at me! I’ve just recently discovered the FIRE concept and have been trying my best to find ways to cut back in our budget to start getting on track. We have piles of debt and no savings and it sucks. My husband hates his job and has actually spent almost a year off due to injury which makes it feel like it’s unsustainable for him to keep working til traditional retirement age. Not to mention we are getting nowhere with paying off debt lr saving. I happen to love my job and it comes with a sweet pension (no 401k in Canada and a lot of jobs don’t come with pensions anymore) so I’d like to keep working until at least 55 to cash in on that. You only need 5 years of full time to max out your pension so I’m hoping to get full time soon and get my years in from 35-40 and then be able to cruise at part time for the rest of my career. I have been dreaming of some vague concept of being financially “comfortable” and now i have a firmer concept to grasp at. Financial independence for a FFLC. I dont mind working or even having a mortgage, but I want to be able to not freak out about every thing that comes up in life that costs money.
Mr SSC
November 12, 2018Congrats on the sweet gig at your job, and thanks for the kind comments on FFLC. We had a similar wakeup moment with our jobs when the oil crash and layoffs around 2008 happened and then in 2014 especially. We’d been saving aggressively by 2014, but that was what sparked our FFLC from FIRE transition. We realized we’d probably keep working in some capacity, so what jobs could we get to cover our lifestyle if our retirement was covered was our focus.
Good luck with getting your debt and saving back on track. That can be a big one, especially if you look at it as money that you could be putting toward padding your Lifestyle Change instead of “paying off debt”. That might help with wanting to attack it more. Let me know if you want some resources for debt payoff charts, or strategies or that sort of thing, or if I can help in any way. Thanks for the comment!