Financial Independence Daily FI discussion thread - September 27, 2020 |
| Daily FI discussion thread - September 27, 2020 Posted: 27 Sep 2020 01:07 AM PDT 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]  |
| 26 Years 50% FIRE - small income country Posted: 27 Sep 2020 03:25 AM PDT So I am 26 years, from a small country in the EU. I work as a storekeeper in a factory, and used to be a cab driver part time for a fixed per hour wage. You expected to see Entrepreneur, YouTuber or Software Developer... right? I still live with my parents and have very little expenses, apart from taxes, gym membership and car fuel. I've been into this Retire Early mindset since I was very young. Never really saw the point of working till you're old. So I saved and invested 95% of my net income yearly. (We're talking 15k euros per year net wage). By last year I had about 180k euros invested in mostly local equities. Then I decided to purchase an apartment for 180k Euros (included closing fees and was undervalued by at least 30k) with 50% Down payment and keeping the other 90k in equities. I rented it out for about 8k euros per year. Now I decided to liquidate most of the equities to try and buy another apartment but the banks didn't like the idea so I decided to pay off all my mortgage instead. I now have a fully paid apartment which is now valued at 240k. Currently I have zero debt. I have about 20k between cash / crypto / equities. For a total Net worth of about 260k. My goal is to purchase another apartment and fully pay it by age 31 - which would also be my lucky birthday. Upon reaching my goal I would have approx Euro 550k net worth at 31. This would give me about 15k euros passive income per year which is 50% more than the current minimum wage in my country of 10k Euro. I would then semi retire to a point where all the passive income is completely reinvested. Then I would just relocate to a high income country in the EU working 60hour work weeks for 3 months and save everything. Also get refunded on tax because you don't reach the thresholds for income. Then have 9 months of traveling around in low cost countries around mountains, beaches and nature. I'll get a local media company to make an article on my odd successful life and start a YouTube channel documenting my journeys. Repeat the process for a couple more years till YouTube earnings are enough so as to never need those 3months of work a year. Being able to work 3 months a year at the age of 31 is a dream for 99% of the people including myself, but it doesn't come without some disadvantages:-
However there is the advantage that I learned to be alone. Go out alone, especially in quiet and around nature. I set gym goals at the age of 16 and 10 years later I barely do any effort to look & feel better than most people. I expanded my knowledge by completing a Diploma in Nutrition, in insurance, in IT and in Personal Training. I also find more time to read books that I borrow from libraries to avoid purchasing anything. I don't have to keep updating my wardrobe, since I barely use most of them, they look brand new hehe ;) i didn't write this post to brag. I wrote it as a means of motivation for low income people. Yeah you're going to sacrifice basically everything for just a couple of goals. But hell, once you reach them the satisfaction will be huge. 5 Years away. Let's do this. Edit: I see that a lot of people are posting regarding living off my parents. Well yeah. What's wrong with using all the opportunities at one's disposal to reach goals? In my country people tend to live with their parents until marriage anyway. Also, my parents have always been frugal themselves, so them helping me to achieve my targets is giving them a lot of satisfaction, although I must say they do not agree with me Retiring Early. So much so, that my father is of age to retire and get government pension and just chooses to keep working because he enjoys work. Apart from the fact that my parents have investments themselves. Let's say that they don't need my help financially. Edit 2: Geez didn't expect this amount of engagement. Here's my replies to most Questions:
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