Financial Independence Saved more in the last two years than the rest of my life combined! |
- Saved more in the last two years than the rest of my life combined!
- How do you compare higher wage (e.g. quicker FI) vs. more work/life balance over a working career?
- Daily FI discussion thread - November 08, 2018
- Non-financial planning in early retirement - input on a tool/site to keep life interesting
- my FI causing bad blood with non-FI boyfriend
- What advice would you give yourself when you first started your FI journey (with the knowledge you have obtained now) ?
- FIRE for Canadians (Vancouver)
- Friends with startup in round B investment, offered me USD 100K ticket
- $300k gross, $229k net, $90k savings -- Good or room for improvement?
- Theory: high income people want to FIRE because their jobs are not good jobs.
- How closely do you track your withdrawal rate?
- Employer is deterring after-tax to Roth IRA (mega Backdoor Roth), thoughts?
- Will a MBA from a small, online program help me achieve FI quicker in the long run?
- [22m]Scared of missing out on my youth or it being too late to enjoy life, preventing me from being aggressively FI. Is this a good approach?
| Saved more in the last two years than the rest of my life combined! Posted: 07 Nov 2018 11:10 PM PST This may not seem like a huge accomplishment to some, but 2 years ago I couldn't have imagined I would be debt free with savings. 2 years ago I was struggling to get by. Maxed credit card, overwhelming student debt, a landscaping job that I had hit the ceiling at $18/hour, and no marketable skills that would get me a better job. Life kind of sucked. I was depressed and I never found the motivation to cook, and eating out all the time just kept the cycle of debt going. It was almost easier back then to convince myself to buy a meal because what's another drop in the debt bucket? My perspective has completely changed now. I started viewing my job and current life situation as a prison that I had to escape from, which mentally it was. I decided to start looking for my own landscaping jobs that I would do after work or on weekends. Some of my customers would ask about gutter cleaning, window cleaning and pressure washing. Didn't want to give business away so I added those services to my budding company. I worked my 50 hour a week job, and did my own work after hours for a year. At the time, I was swept up in the extra money I was making, and the boost to my confidence that being semi self employed brought me. Looking back on that year...it was fucking terrible haha I have never worked so hard in my life, but I got through it. The first year went well, but I was still depending on my day job to get by. Decided to take the leap, quit the day job and the last year I've been 100% self employed. Worked my ass to the bone for the whole year, kind of burnt myself out a bit, but I payed off $15,000 worth of tools and $20,000 student and credit card debt within the two years. The end of the second year is coming up and not only am I debt free now, but I've managed to save $12,000 as well. I would never have imagined this possible 2 years ago. Next year I plan on hiring an employee to help me, and maybe another 1 or 2 the next year. The possibility of bringing in some real money is on the horizon and it excites the hell out of me! [link] [comments]  |
| How do you compare higher wage (e.g. quicker FI) vs. more work/life balance over a working career? Posted: 08 Nov 2018 07:05 AM PST First off, this is my first time posting in this subreddit, so I apologize if this isn't the proper place for this type of question. I had originally posted this on r/careerguidance but haven't had much of a response. I realize that this is somewhat FI related, and thought I might get a bit more discussion going if I posted here as well. I've added a few more details on the financial side (that I didn't really want to get into) that I thought would make this more of a financial question. I am currently employed at a job that I enjoy a lot. I'm happy with my pay, I have great benefits (7% matching contribution to a pension plan, health, dental, vision), and I get a LOT of work/life flexibility (7 weeks of vacation time, 12 paid sick days a year (with about 70 banked up already), pressing necessity leave and family leave (I can use up to 5 in a year and they are drawn from my sick days), etc.). My wife also works. We live well within our means and are very comfortable with our current wages. We are able to make extra mortgage payments and we have been putting extra money away into Canada's versions of tax advantaged accounts (RRSPs and TFSAs). The downside, though, is that I've been working in this area for nearly 15 years and in this particular job for over 5 years now. There is not really any room for advancement that I can see with my current organization and I am at the top of my current pay range. I'm happy doing what I'm doing, but things are starting to become routine and I feel like I'd be happy with a new challenge (maybe not now, but certainly within a couple of years at the latest). I've been approached by another company and have been offered a job that sounds like it would be enjoyable from a learning perspective (though stressful because it's an industry I've never worked in). They have offered me a decent enough raise that I'm certainly considering the job. There is also room for further career and wage advancement with this new opportunity. The downside, though, is that I would basically get half of the vacation I currently get, sick leave is unpaid, and there is no pension matching. I'm really torn on this one. I value my work/life flexibility (especially since my wife is pregnant with our first child), but I am starting to get the itch of wanting to learn something new and I worry about missing out on this opportunity and being bored out of my mind in a couple of years still stuck in my current role with no way of changing it. Although the added pay isn't huge right now, the fact that I would again be able to get raises and that bonuses are fairly standard in the new industry, we could certainly increase our savings rate and be further along the FI path. So, after that long winded post, I'm looking for some suggestions on a couple of things: 1) how do you compare competing benefits like work/life balance vs. potential for job growth and learning? 2) For those of you who have raised a family, what was more important to you, increased earning potential and job satisfaction, or being able to be there for all of the important family events? 3) How do you compare shortening your time to FI based on higher a higher wage vs. working nearly an extra month a year for the next 25ish years? If you've read this far, thank you very much. I appreciate any advice you might have to offer. I realize this comes down to prioritizing and weighting each pro/con, just having a hard time trying to compare what seem like very different pros/cons. [link] [comments]  |
| Daily FI discussion thread - November 08, 2018 Posted: 08 Nov 2018 03:07 AM PST Please use this thread to have discussions which you don't feel warrant a new post to the sub. While the Rules for posting questions on the basics of personal finance/investing topics are relaxed a little bit here, the rules against memes/spam/self-promotion/excessive rudeness/politics still apply! Have a look at the FAQ for this subreddit before posting to see if your question is frequently asked. Since this post does tend to get busy, consider sorting the comments by "new" (instead of "best" or "top") to see the newest posts. [link] [comments]  |
| Non-financial planning in early retirement - input on a tool/site to keep life interesting Posted: 08 Nov 2018 06:46 AM PST Coming up on 6 years of early retirement here. When I was working, I occasionally helped clients with developing annual strategic & operational plans (e.g. enter new market -> build plants in country X). By developing some targets (financial, projects, underlying strategies), they were usually much more successful, and could focus on the projects/goals that would get them the best return for their efforts & investments. In early retirement, with some good input from the Zelinski book (how to retire happy, wild, and free) and a bit of self-imposed structure, I've discovered lots of great hobbies/activities, developed a few big goals for each year, and have done some pretty awesome things. Unequivocally, my life is 100x less stressful, much more fun & fulfilling than what I experienced when working. Now that I'm at the 6 year mark and have checked off some of my biggest initial goals (get in shape / develop good athletic fitness / win some big races, develop skills in areas that were lifelong interests, visit a few bucket list places), I'm in a bit of a lull and am starting to run the risk of turning into the typical retirement home tv/internet/netflix (and yes - porn) watching zombie. Although my current lack of structure has probably helped me take advantage of opportunities that came along at the last minute (w 10 trips this summer), with another 50 years of retirement ahead of me, I've realized I could use some tools to nudge me towards other fulfilling ways to spend my time. I was starting to ponder what I could/should use, and was thinking that a personal non-financial planning site might make some sense. Key tools might include:
I would love some input from the rest of this community, especially those who have retired for input on:
Thanks! [link] [comments]  |
| my FI causing bad blood with non-FI boyfriend Posted: 07 Nov 2018 06:56 PM PST I am FI, but my long term boyfriend is not. He works in construction, but I dont have to work at all (though I have had a few jobs in the 4 years we have been together, they are usually seasonal and just for extra spending cash.) We just moved in together, and recently have gotton into a few arguments over this inequality. We split rent and utilites, and take turns buying groceries, so I am covering all my costs, but he feels like he is working harder because he has to get up and go to work every day. Because he does have to be out working daily but I am home, I typically get stuck cleaning and cooking. Which is fine, I'm the one here all day so a lot of it is my mess. But he is getting very entitled about food and chores. He basically expects me to make his work lunches, and have dinner on the table ready for him when he gets home, and do laundry and dishes. I like to sleep in so he is already upset that I dont get up and make him eggs before work every morning. Im no hardcore feminist, but its bothering me that he expects me to be his little housewife. I feel like he should have to contribute to chores even though he has to work. (r/AITA ?) I dont know if this is the right place to post this (maybe r/feminism ?), but does anyone have any advice? I have explained it to him a few times, but there is still some bad energy every time food comes up. Esp. when food isnt ready when he gets off work. [link] [comments]  |
| Posted: 07 Nov 2018 08:43 PM PST |
| FIRE for Canadians (Vancouver) Posted: 08 Nov 2018 12:15 PM PST FIRE NATION, slightly less orthodox format for your eyes than I've been reading on here lately but I would love your advice on my situation if you've got a few minutes or yearn for these types of puzzles to solve. I'm a single 28 year old male who has grown up and still resides in Vancouver, Canada. I've worked various jobs since the age of 15, having both saved and enjoyed travelling to various other countries to broaden my perspective. I've now saved up a net worth of approx. $130K. By the end of 2018 I'll have maxed out both my RRSP's and TFSA's with ~ $30K leftover to invest elsewhere. I've been considering both direct investing in stock portfolios/ETF's and real estate, both of which I feel are at pivotal moments in their trajectory right now due to the recent trends having run as long as they have in recent years. Maybe I'm way off but I can't shake this feeling that we're due for a correction in both of these areas soon, although how soon and how significant I'm not sure. That said investing in one, if it dips, will preclude me from investing in the other when the timing might be right to do so without taking a potentially significant loss. I currently have a job that grosses ~ $68K/year, base rate, with a pension and plenty of overtime available due to recent rapid expansion. By the end of this year, with all the overtime (read: 72-84hrs/week) I will have grossed ~$150K, saving approx. $75K this year alone, although I'm not sure how sustainable this pace will be in years to come if my model remains the same. Despite this position I worry more than the next person about my financial future with the price of the Vancouver RE market over the last few years. I've reduced my expenses this year to approx $20K, walk to work and rent a basement suite but would like to one day own my own place (detached house ultimately). That being said, I'd much rather make my first purchase during an upswing in the market rather than at the high it's grown to over the last couple years or on the decline we're currently seeing. [link] [comments]  |
| Friends with startup in round B investment, offered me USD 100K ticket Posted: 08 Nov 2018 01:14 PM PST I can afford it, but only if I liquidate most of my current, healthy and conservative savings that I have been using to FIRE. The start up is legit, has serious investors and have have done my DD (I also help them Wirte their constitutional docs). I regret not investing earlier, but that would have been in the 5k range ! Am I crazy to do this ? 30 years old, steady job, no debt or dependents. My gut feeling says yes, I want to take a risk and potentially see 3x returns and get to FIRE sooner. But you, community, please let me know if this is unwise based on your experience ! Thanks. Edit: spelling and clarification [link] [comments]  |
| $300k gross, $229k net, $90k savings -- Good or room for improvement? Posted: 08 Nov 2018 01:57 PM PST Here is my exact situation -- Saving 30% vs. gross and ~40% vs. net. Is this "good" (i know this is subjective, but give me your opinion anyway). Also - do you folks consider principal as "savings"? technically it's building equity, but it's non-liquid cash (exception - equity loan). GROSS INCOME $307,150 DEDUCTIONS $80,450 TAXABLE INCOME $226,700 TOTAL TAX $78,559 NET INCOME $228,591 Federal Tax $42,987 State Tax $15,930 SocialS $14,055 Medicare Tax $3,287 CA SDI $2,299 Savings/Equity: 401k $18,500 401k $18,500 401k Match $7,500 Company share purchase $7,500 Mortgage principal $18,000 Cash savings $20,000 Total $90,000 [link] [comments]  |
| Theory: high income people want to FIRE because their jobs are not good jobs. Posted: 08 Nov 2018 10:17 AM PST Once in a while here there is a post from someone noticing how a lot of posts from people that are very serious about FIRE are from high income earners. It only makes sense that these folks would want to retire early because most high paying jobs are not nice. For example being a dentist or a pharmacist, do you want to touch people's saliva and have them breathe on you all day? Or work with people who are actively trying to deceive you each and every day to get pain killers? We are told from a young age that you need to get a "good job" and the jobs I've mentioned above are not good jobs. They are high paying jobs. Want a fun and easy job? Work at a fast food place or drive a truck! I've done both and had a blast, they were good jobs but didn't pay much. So I think that's why high earners tend to congregate here... they want out of the rat race more than most people. Perhaps the pressure to escape the rat race is not as great from people who have potentially more enjoyable jobs but don't earn as much. Would be interested to hear others thoughts on this. Edit: Thank you to all who have responded so far. It's interesting to hear everyone's view point on this. I've learned that (so far) my theory is mostly derived from my own life experience, which makes sense. Was the happiest during my working hours at blue collar jobs, am happiest during my non working hours in white collar work. [link] [comments]  |
| How closely do you track your withdrawal rate? Posted: 08 Nov 2018 04:46 AM PST |
| Employer is deterring after-tax to Roth IRA (mega Backdoor Roth), thoughts? Posted: 07 Nov 2018 07:08 PM PST Started working for a new employer this year, reached the $18.5k pretax/Roth limit and continued to invest in my 401k as after-tax. Attempted to rollover my after-tax contributions to my vanguard Roth IRA and was told that my employers matching would be suspended for six months if I attempted to roll my after tax money over. This puts me in a bind and I may lower my overall 401k contributions in 2019. Thoughts? [link] [comments]  |
| Will a MBA from a small, online program help me achieve FI quicker in the long run? Posted: 07 Nov 2018 04:32 PM PST Hello everyone, This might not be the place to post this question, but I am looking for advice since I don't personally know anyone that has gone to grad school for Business Administration. I graduated from college in May with a degree in Communication Studies (useless I know) at the age of 26. I feel obligated to always share I struggled with a drug/alcohol addiction but now I have been sober for 3.5 years. I sobered up, finished school, and found a great entry level position with a ERP software company as a business development representative. Sales has always been easy for me, in my past life and now in the present. I just finished Q2 with 300% to quota. I feel like am going to go far with my skill sets I naturally have and currently developing within my role. This first year with my company, I will probably will make around 55k. The next year I will make around 65-70 and the year after around 80. This is based on conversations I have had with other individuals at my company that have followed the same blueprint as me. My Fiancee makes around 75k and that will be consistent for the rest of her life. I contribute 6% of my salary to a few different Roth funds for my 401k. My company matches half of it, vested for 5 years at 20% a year. I also contribute roughly 1% to a HSA account. I have 15k in debt to student loans. That is the only debt I currently have. I do not own any assets. I spend roughly around 1,200 a month on all my expenses, bills/fun/travel etc. Maybe not super important to give all those details, but I want to give you context before my question. I am looking at starting grad school next summer. I found a 10-18 month online program at LSU-Shreveport. The entire program cost around 13k. My company will pay 5,200 per calendar year, so if I time everything right I could get my MBA completely free. Do you think I should do it? I keep reading that if your not going to a top 20 grad school, I will be wasting my time getting my MBA online. Obviously I want to learn more skill sets by taking the classes, but my end goal is to make more money the entirety of my life. Has anyone else had a similar blue print for their career? I want to make the best decisions I can to achieve FI and live comfortably the rest of my life, but I have no one to talk to about career advice. Any suggestions would be appreciated. Sorry for the word vomit if you felt like I wasted your time reading this. [link] [comments]  |
| Posted: 07 Nov 2018 06:05 PM PST Currently an intern in Toronto. $37k in debt $15k in the bank. Poor family. Will incur $10k more in debt before graduating at least. Pursuing B.eng in civil engineering and BA in economics. I can have very average careers with these though they might be able to pay low-mid six figures in managerial roles. Probably not gonna go to grad school just to not incur more debt. My dad was really hard worker from a thrid world country (Pakistan) and he died working majority of his life. In fact he died on his way to work at 48. That's not to say he didn't enjoy his life but the amount of shit he had to deal with I cant deal with quite honestly. (This'll become relevant in the later paragraphs) After his death my family sort of went broke and I got severe socal withdrawal, developed social anxiety and fell into a depression. Outside of uni I didn't do anything and my social skills went to absolute shit. I became a legit autist and spent all my days on r/NEET, r/incels, redpill/mgtow and other fringe forums. I still dont remember the majority of my life from 18-21 cause all the days just blended into one another and nothing was ever exciting or different in my life. I also didn't have any friends to hang out with and never have gone on a date. Why is all this relevant? Well because now im extremely apprehensive about not wasting anymore time and spend alot on entertainment. I was fortunate enough to get a 37.5 hour internship last year paying about~ $500CAD/week. I don't want a second job even part time cause of all the time I wasted in my room and not enjoying life. I feel like I have to make up a deficit I have to other normal people my age who actually lived and enjoyed there youth. I have to relearn social skills and literally how to be a normal 22 year old. I need to explore and see what I love and do that. So I pressure myself to have to do it while I have the chance now. Almost everyday after work at 5 I do something fun till 9-10 at night and even though it costs money I love it. Also from my dad's own example I realize there's a chance it'll be "too late" to have fun and I could become tied down with family/responsibility. I could also randomly die or develop a cripplig disease. Cancer and other expensive long term diseases are dangerously common in Canada. So aggressive FIRE may mean I'll miss out on my youth or whatever and all that saved up money wont mean anything without health which I currently have. And so I have become a bit exorbitant in my spending. Here's what I've spent on which can be considered extra to improve my life: $6000 braces ($250/month for 2 years from November. By far my biggest expense) $120/month on therapy (though I might cut this back) $ $240 improv for 2.5 months $50/month gym $60/month eating out with friends $50/month commute to nearest downtown city $250 for 1.5 months of salsa classes $30-50/ week getting healthier food and meal prepping $40/month in miscellaneous entertainment. Other then that I spend $500/month for rent+ helping my mom run the house, gas, bills etc But yeah. It's a weird dillema I guess. On one hand FIRE means I get to potentially enjoy life earlier. I work two jobs, save up like mad, invest smart and boom. By 40 I should be somewhere. but at the same time I really don't think I can afford on delaying anymore to somewhat enjoy my life. Anyways what are your thoughts on this? Am I just being spoilt? I know I could save more but I'm sure something similar has crossed some of your minds at some point in time. [link] [comments]  |
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