The Full Throttle Methodology is a holistic and diversified approach to growing your net worth. Full Throttle is comprised of 4 Steps or Throttle positions. Each Throttle position has its own set of challenges for you to complete concurrently of each other. The goal is to reach maximum acceleration at Full Throttle. At this stage, your wealth rapidly accelerates as you enjoy life.
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Background
As a personal finance blogger, I have learned so much about debt pay off, budgeting, and saving strategies. There are many strategies for growing your net worth, but most of them are broad strategies and don’t focus on any specific population. Dave Ramsey would tell you to follow his 7 Baby Steps. Others who follow the F.I.R.E. Movement would tell you to live frugally and invest 50-75% of your income towards retirement so that you can retire as early as your 30’s. Those who follow the Velocity Banking methods would tell you to stop saving and put everything you can, savings included, into paying off your loans and mortgage so that you can potentially buy more properties and become a real estate investor. All of these strategies work, but they are not for everyone.
Over time I started to develop my own strategy, Full Throttle. Full Throttle blends methods used by several strategies to accelerate your net worth. It provides a way for the middle class to accelerate their net worth without living frugally. Full Throttle is not about retiring early. It is about living comfortably and not worrying about money anymore. It’s peace of mind that you can afford any emergency expense that comes at you with little to no stress.
Consult a financial professional when deciding what strategy you would like to follow. The Full Throttle Strategy does not promise financial success as everyone’s financial situation is unique to them.
Our Full Throttle Progress
I will be providing updates on my Full Throttle journey on this page. This is how we currently spend our income at 1/2 Throttle.
As you can see, 1/3rd of our income goes straight into paying off our mortgage debt and 21% goes into investing. The remaining 47% is everything else. We deliberately do not put any money away for savings. We only invest and pay off debt. The only savings we keep is our shared emergency 6-month account that we have not needed to touch in years.
We do travel quite a bit. As residents of the suburbs of Philadelphia, Pennsylvania, we typically take one international trip each year and we travel to Washington D.C., Maryland, and Virginia about 10 times per year to visit family and friends. We also try to visit family in Massachusetts, Canada, or California at least once a year. We don’t save for travel, but we pay off our credit card debt immediately using our home equity line of credit before using velocity banking to pay down our HELOC.
We budget using a method called the Envelope System. We have an envelope for Fixed Recurring Expenses, Variable Expenses, Pocket Money, Groceries, and Restaurants. Get your free copy of the Envelope Budgeting Tool here.
As of December 2021, we are projected to pay off our mortgage by the end of 2025. In other words, we expect to reach 3/4 Throttle in 2025 or 2026 while we are still in our 30’s.
$1 Million and Full Throttle by 40
The purpose of Finance Throttle is to help you accelerate your net worth. Our mortgage is projected to be paid off in 2025-2026, after only 7 years. Once our house is paid off, we plan to max out our contributions at 3/4 Throttle for at least one year. Our goal is to reach Full Throttle and a combined $1 million net worth by 40. Once we reach $1 million, we expect that compound interest will make our money grow much faster.
Using Velocity Banking and our Home Equity Line of Credit, we plan to buy one or two investment properties to give us a steady income in retirement.
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Note: I am not a licensed investment or financial professional and the Full Throttle strategy is what I believe will work best for my family. Consult with a certified financial professional when you are unsure of your financial decisions. There are several strategies out there and there is no such thing as a one size fits all financial strategy. Everyone’s financial situation is unique to them.
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