Gen Z Guide to FI

My dad asked me a few weeks ago how I planned on funding my unemployment for 2 years. So I started trying to figure out my plan since I’m ending work in a few weeks. If you’re new to the blog, I’m moving to New York to start an MBA program in Fall 2024. I got a full tuition scholarship but I will have to pay my own living expenses and student health insurance.

Step 1: Cash

The first order of business is to run through my cash especially my money in my Ally HYSA which I still love and recommend. Based on my cash, I have about 8 months of survival money. For the rest of 2024, I hope to not have to pull out any of my investments. This is also for tax reasons. I don’t want to pay taxes on my bonds.

Step 2: I-bonds

I put in $20,000 into I-bonds like 2 years ago when the interest rate was really high in 2021 & 2022. I think I have earned about $2000 in interest since I left it there. So $22,000 should last me 6 months if I can live off of ~$3,666 a month. Obviously, if I’m lucky and able to get a few roommates, then I can reduce my costs significantly and stretch this money for longer.

Also, I’m hoping maybe I’ll get a tax refund but I won’t keep my hopes up too much.

So the I-bonds (I’m hoping), will get me through from January to June 2025. Manifesting it will last longer! I also plan to get a job in January to get some supplemental cash for experiences & travel.

Step 3: Internship

From June – August 2025, I’m hoping to have an internship. One that will offer me some serious cash money. That way, I can use the cash to cover my June – Aug expenses plus have money to start of the next school year.

Step 4: Leftover internship cash & stocks in brokerage

For the rest of 2025, I’m really really hoping I’d have enough leftover to cover my costs. I will also sell my stocks currently valued at $7000.

Step 5: Roth IRA & thoughts and prayers

By 2026, If I’m completely out of money, I’ll turn to my Roth sadly and pull my contributions. I have about $20,000 in contribution. I’ll graduate in May 2026. I need to live for 6 – 9 months before re-entering the workforce. 

I’m hoping to run into cash here and there and maybe a sugar daddy will come my way (I’m kidding). But, I still have quite a while till 2026 so I’ll revise this plan before then.

XOXO Gen Z Fire Baby