Financial Independence Weekly “Help Me FIRE!” thread. Post your detailed information for highly specific advice. - October 12, 2020 |
- Weekly “Help Me FIRE!” thread. Post your detailed information for highly specific advice. - October 12, 2020
- Daily FI discussion thread - October 12, 2020
- Weekly FI Monday Milestone thread - October 12, 2020
- FIRE journey: 27(F) in Brazil
| Posted: 11 Oct 2020 11:08 PM PDT Need help applying broader FIRE principles to your own situation? We're here for you! Post your detailed personal "case study" and ask as many questions as you like, or help others who've done the same. Not sure if your questions pertain? Post them anyway…you might be surprised. It'll be helpful to use our suggested format. Simply copy/paste/fill in/etc. But since everybody's situation is different, feel free to tailor your layout to your needs. -Introduce yourself -Age / Industry / Location -General goals -Target FIRE Age / Amount / Withdrawal Rate / Location -Educational background and plans -Career situation and plans -Current and future income breakdown, including one-time events -Budget breakdown -Asset breakdown, including home, cars, etc. -Debt breakdown -Health concerns -Family: current situation / future plans / special needs / elderly parents -Other info -Questions? [link] [comments]  |
| Daily FI discussion thread - October 12, 2020 Posted: 12 Oct 2020 01:09 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]  |
| Weekly FI Monday Milestone thread - October 12, 2020 Posted: 12 Oct 2020 01:09 AM PDT Please use this thread to post your milestones, humblebrags and status updates 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! 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]  |
| Posted: 11 Oct 2020 03:18 PM PDT I've been a long time lurker on this sub on my main account. It's mostly US and high earners focused which can be a bit discouraging but I've seen a few posts here and there from people outside this profile so I created a new account to add mine to that list. This post will be in local currency as it doesn't seem to make any sense to convert anything. For context, I live in a HCOL city in Brazil and our city's annually adjusted minimum wage is R$1045/month which you can only barely survive on even if you live in a favela. By law, you receive an additional 13th salary at the end of the year, paid 30 days vacation (salary + ⅓). Companies are also required to pay, out of their pocket, to the government, a monthly amount based on a percentage of your salary and you receive that (+ an additional percentage) if they fire you for no justifiable reason. This account is called FGTS. Before, you could only access your FGTS when fired, buying a house, seriously ill or retiring but last year government made it possible to withdraw a % from the account annually. It's also customary for companies to pay or subsidize transport and health insurance. Most companies also provide you a card, recharged monthly with a fixed amount, for groceries or eating at restaurants. With context out of the way, I'll move on to my earnings. After college, in 2015, I got a job earning minimum wage, after taxes and other deductions, and worked there for slightly over 4 years with nothing beyond the annual corrections required by our union. Early last year, rejected company's offer to promote me with a 25% salary increase and accepted an offer with a competitor for 40% more and better benefits. Which still isn't much as I earned R$23,683 in 2019 after taxes and the usual deductions. It'll be, at minimum, R$6000 more for 2020 due to a mixture of company bonuses, 22% salary increase this month and receiving this year's % of my FTGS that I signed up for. With the salary increase this month, my new annual earnings (salary, company bonus, 13th salary, vacation, FGTS) will come to an estimate R$34.483. I also help an elderly friend every week for an hour for R$60/hr which is an additional R$2100/year (discounted 7 weeks of the year as there are times he or I are not able to meet). Budget is as below: Fixed expenditures Rent: R$500* Internet: R$45 Streaming Services: R$33 (Netflix and Spotify) Money for grandma: R$100 Chinese course: R$316** Variable expenditures Electricity: R$50 - 70 Food: R$50*** Medicine: R$50 Elective expenditures Clothing and Shoes: R$100 Social Life: R$50*** Public Transport, Uber: R$50 *Rent is incredibly low because I live in a favela though I live in the "nicer" part. I've always mostly lived in this neighborhood. Everyone knows each other, relatively clean, relatively safe and everything is either closeby or not far(supermarkets, bars, shops, beach). 75 minutes away from work by public transportation. I'd move away from here to get closer to the subway and shave 30 minutes off my commute. Would only do that if it's not more expensive and my company doesn't increase the amount of days we work from home. We already worked from home once a week before COVID-19 and have flexible entry hours. **This is a hobby that I decided to invest in and that I think will help not only with my career but also with my financial independence plan which I will explain better below. *** It's in my budget but most months I spend R$0 on food or social lifebbecause I receive over R$900 combined monthly from my company in my restaurant and supermarket benefits cards. The restaurant cards are accepted by most bars and restaurants so I end up eating out a lot and spending that too when I go out to drink with friends. There are companies you can sell your balance on the card to but they usually charge 15% to 20% so I don't think it's worth it. Elective expenditures are stuff that I budget for in case of need but go months without spending money on them. I don't go out much and the transportation subsidy from my company covers public transportation. Once in a while I pay an Uber if I'm out late or out with friends. My budget comes to a total of R$1364, but it's just that - a budget. I actually spend less but I know I need a minimum of that while working and to substitute chinese for food when I'm not working. This way, my emergency fund is R$1500/month. My current net worth is about R$60.500 with R$3000 as emergency fund, 77% of investments in ETFs and 23% in government bonds. I'm 100% invested in the brazilian market. I know I should have more in emergency fund and I did, but I couldn't resist investing part of it, as even though my portfolio went down R$8000 due to COVID hitting brazilian economy, I believe it will recover and I wanted to buy investments at a lower price. If fired from my job, unemployment benefits plus severance package will last me minimum of 6 months. I signed up for the annual withdrawal of the FGTS because it's going to be my new emergency fund. This way, I gain liquidity and I can dedicate my money to investing. I don't really know how to find or calculate an analysis of the brazilian market vs. inflation like the trinity study did for the US but if I'm going by that with a 50% savings rate and target 3% SWR, I'd need at least R$620.000 to RE and it will take me 15 years according to the networthify calculator. Honestly, I think I'm more of a FI person and not the RE kind. Left to my own devices, I'd stay home, watch netflix all day and visit or go out with friends. It'd be nice for the first few weeks but after I'd feel like shit. I'm kind of an indisciplined person with passive, solitary hobbies but who needs to be doing things. The wiki on the fireyfemmes subreddit talks about figuring out your why and for me it's basically that I want to protect my financial independence from my family. Being financially independent means I can support lgbtq rights openly, be an atheist openly and generally just free to have and express my opinions openly even if it contradicts my family without fear of reprisals. So I've decided that I'll adapt the mini retirement idea I saw on one of the FIRE subreddits I'm subscribed to. This means, I will take 1 year to 2 years breaks from working throughout my working life. That's where my chinese classes come in. My plan for my first mini retirement will be studying chinese in China for a year or two. I'm fluent in 3 languages, intermediate in one and i've always loved languages. I took up Chinese because I wanted something non european and that's challenging and grew to enjoy it. I'm taking the chinese course not only as my hobby but also to prepare for one of the scholarship programs China has to study chinese in China. There are lots of free resources online but I enjoy the classes as it gets me out of bed on the weekends, I meet new people, it gives me a structure and makes me accountable. My current company allows us to take a one year sabbatical off work so I intend to take advantage of that if I go for the one year scholarship program. My plan is to do that in 3 to 4 years time. I guess that's it. I just wanted to share in case anyone relates to this. It's kind of nice writing this stuff down. I'd also like to know what other people on this part think as my friends accuse me of being obsessed with money whenever I mention this. [link] [comments]  |
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