Financial Independence Daily FI discussion thread - November 28, 2020 |
- Daily FI discussion thread - November 28, 2020
- Offensive financial planning vs. spending rationalization?
- What Is Your End Goal With FIRE? Quiet Cabin In The Woods? "Beach Bumming" it? What Are Your Goals?
- Six figure check, where to distribute?
| Daily FI discussion thread - November 28, 2020 Posted: 28 Nov 2020 12:08 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]  |
| Offensive financial planning vs. spending rationalization? Posted: 28 Nov 2020 08:52 AM PST I'm living in the Bay Area, 29 years old, ~250k NW (~300k in a month or two). I have been working since 27 years old. In that time I've spent a lot of money (extra 700-1000 per month to live alone, extra couple hundred on good food to make sure I am fueling myself well, extra money to get my groceries delivered, etc.) in order to make sure I keep my performance up at my job. As a result, I've gotten promoted rapidly in a relatively high paying field and my next promotion looks like it is rapidly approaching as well which will be an extra 30-40k/yr. The polar opposite strategy would have been to just live with a bunch of roommates, spend my time penny pinching on groceries, etc. I really doubt I would have had the energy to perform as well at work and I really doubt I would have been promoted already (maybe, though). I've been fine with this strategy so far and it has worked well, but now I am considering getting a car and debating between used and new and having trouble making the same decision. There is this common trope out there about how millionaires don't buy new cars and lower/middle-class people do, and it haunts me every time I think about buying new. At the same time, buying a new car removes the variable of having to deal with repairs/maintenance for a few years for the most part, removes a lot of unknowns, etc. However, I've spent so much time researching and trying to get a good deal on something that is decent that the past couple weeks I've noticed my job performance suffering since I am thinking about it at work instead of the intensive engineering tasks at hand. This is bad, particularly because I am working on a big project that could in large part help determine whether I get a raise or not. Also, I completely got rid of interview preparation (LeetCode since I am in SWE). Worse yet, I haven't spent the time I usually do on my health and hobbies which help give me the energy to do well at my job. It dawned on me that I am just trying to save a few thousand bucks but possibly missing out on generating an extra 30-40k per year and also stopped doing interview preparation which could help generate far more income in the future than saving just a few grand. I'm not talking about insane lifestyle creep here: just living alone and getting a reliable car so that I can live my life and focus my energy where it counts. I rarely see this type of strategy touted on reddit. I assume because it is easier to focus on the defensive side, but I'm not sure that makes it better. It seems to me it doesn't make a different what side of the equation you focus on, but at least if you focus on the offense you can end up with a higher recurring revenue and then if you dial things back later and focus on the defensive you would end up with a way higher savings rate than if you had been defensive the entire time. Am I being rational here? Or is this just rationalization to spend on a new car? EDIT: although this post was originally about financial strategies, people want to know my income and what car I was thinking of buying so including those. 200k income, looking at a new ~22k Mazda. [link] [comments]  |
| What Is Your End Goal With FIRE? Quiet Cabin In The Woods? "Beach Bumming" it? What Are Your Goals? Posted: 28 Nov 2020 03:36 PM PST This is beyond just cash, we all know we want to live comfortably...but where, what are you guying going to do? Hopefully this picks us up toward the end of the week. [link] [comments]  |
| Six figure check, where to distribute? Posted: 28 Nov 2020 04:35 PM PST I'm about to close on selling my home and will be netting about $200k. 36yr old, got married this year, no kids but hopefully some on the near term horizon (1-2 years). $200k income. $265k total combined income. I currently have the following breakdown (not counting my significant other)
I bought a new home 20% down all in cash out of pocket $125k. Monthly mortgage+tax+utilities+reserve fund = $2731/month Monthly expenses are about $2k/month My cash flow will have $6k/month I can save (after maxing out 401k) I am about to get $200k from the sale of the home. Do I just put it all lump sum in $VT and buy $1,500 worth of VT every week? Do I diversify with a bunch of stocks? I don't need any of this money in the immediate short term but you never know what life brings. Many thanks. [link] [comments]  |
| You are subscribed to email updates from financial independence / early retirement. To stop receiving these emails, you may unsubscribe now. | Email delivery powered by Google |
| Google, 1600 Amphitheatre Parkway, Mountain View, CA 94043, United States | |
No comments:
Post a Comment