Financial Independence Daily FI discussion thread - Tuesday, April 27, 2021 |
- Daily FI discussion thread - Tuesday, April 27, 2021
- 5 Year Financial Milestone (NW $0 - $250K) 30M
- Buying a home as a part of FIRE in this crazy market
- Comparison, Happiness and FIRE mindset
- Inflation fluctuations
- Auto loan help? Upside down.
| Daily FI discussion thread - Tuesday, April 27, 2021 Posted: 27 Apr 2021 02:00 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]  |
| 5 Year Financial Milestone (NW $0 - $250K) 30M Posted: 27 Apr 2021 11:55 AM PDT Wanted to share my financial journey and a huge shoutout to everyone in this community that helped me with this journey! In April 2016 I had just turned 25 and officially paid off OSAP (student loans) and financially had a net worth of $0. Prior to this I was making $40-45K and was making $1000 monthly payments while paying rent to OSAP. Since then this is how my net worth has grown: April 2016 - NW $0 Dec 2017 - NW $38,125 Dec 2018 - NW $63,868 Dec 2019 - NW $136,666 Dec 2020 - NW $217,731 April 2021 - NW $250,615 Major Milestones:
2020 was the first year where I started actually monitoring my expenses n my savings rate. In 2020 my savings rate was 53.75% and when you factor in mortgage payments that go to principal as savings then its 67.15% Here is a chart of how I spent my income: My Current Balance sheet is: RRSP $34,422.29 TFSA $118,027.61 Employer RRSP $4,585.46 House $456,000 (50% ownership with GF) Credit Card debt $800 Loan from GF $72,08.98 (Her incremental investment into house) (HUGE help from her!) Mortgage $288,811.56 Net Worth $250,615.53 Whats next? In 2021 I will be going back to school for a masters in Data Science in the hopes that it helps me with getting a higher salary so that I can continue to save more. In 2021 I would also like to increase the actual amount I saved by $10K but will also be taking a massive dent into my assets due to school fees but hopefully its a good investment in the long run. If anyone has any advice on what I can do better please let me know! anyone looking for advice send me a PM! EDIT: Expenses are in half because GF pays the other half. [link] [comments]  |
| Buying a home as a part of FIRE in this crazy market Posted: 26 Apr 2021 07:43 PM PDT I need some advice and I am making this an individual post because it might help others. I can't be the only one wondering. I live in a MCOL, rapidly growing area (Raleigh NC, if you are here too lets grab a drink). I am currently renting a 2300 sq ft house for 1600 in an area I hate. Terrible decision but I needed a place quick and took the first thing available about 2 years ago. I hate renting and have wanted to buy for a long time. I'm finally in the position to do so but feel like it could not be a worse time. Houses don't last 48 hours on the market, people are offering 20% over asking. I viewed a new build today that my realtor estimated is roughly 40k over priced and the builder is demanding 40k in earnest money to go under contract!!!! For reference, my dad bought a house 1.5 years ago that is less than 5 minutes away, is marginally bigger AND nicer for 95k less than what they are asking. As my first home purchase, this will potentially have a pretty huge impact on my FIRE path. I keep shying away from biting the bullet due to these insane prices and demands from sellers but the longer I look, the more I wonder if it just is what it is. Should I just bite or should I wait it out? Am I throwing my money away on this stupid over priced rental I don't like or am I wisely awaiting the burst of the bubble? Not sure if it matters but for context here's my numbers: 26M w/ 2 kids. Partner has modest income from unemployment at the moment but I don't factor that in as she is actively job hunting and its a finite resource. I have a tax free pension of 43k annually (military since I know someone will ask), I make 55k before taxes at my day job and also receive an irregular stipend from the GI Bill. Looking to purchase in the 300-400 range but had to go up to 500 to find anything close to what we wanted. I know I am in a good position for my age and fortunate - I just am freaking out about what will be my biggest ever purchase, one of my biggest ever life decision and I really don't want to mess it up. Edit* The buying the house in this market is relatable to many I think. What makes it specific to my FIRE journey is that I feel emboldened to jump in feet first due to my tax free pension. I think that offers me extra stability that most don't have. I guess I am FI but would like to keep it that way by not over leveraging myself [link] [comments]  |
| Comparison, Happiness and FIRE mindset Posted: 27 Apr 2021 01:20 PM PDT This is something I've been fighting psychologically my whole life. I can think back to being a kid and being envious of those with a bigger house than me, bigger bedroom than me, louder clothes, Air Jordans etc (my parents would never buy them for me and when they told me I could buy them with my own money if I wanted them that bad....and I didn't!). I like to think FIRE principles, my own balance sheet, maturity and the like have made me a confident self-assured person, but the truth is when I walk into a contemporary's 5k sqft house, cigar room, man-cave, 4 car garage etc etc, I am jealous and it rattles my confidence. I have a few tools at my disposal, such as: "Compare yourself only against your former self" "if you want to live someone else's life, you have to live their WHOLE life and what they've sacrificed to get there, not just what you see" <- very applicable in the Instagram age. "I have ABSOLUTELY everything I could ever need and more, and live better than 99.99% of people that have ever lived" ~drumroll~ "my lifestyle allows me to not work starting tomorrow if I didn't want to Again these tend to fly out the window when I picture myself on someone's gigantic sectional looking at high ceilings with 1500sqft of space for each family member. Just curious on how/if members of this sub deal with this. Some context: 41M, L/MCOL, $2.1MM NW, ~50% savings rate, $1.65MM investable, housing is about 15% of our take home income. We live a great lifestyle with a country club and modest vacation home/rental. <-only bring that up because I know many would look at us and say "how in the H are they not happy!!??" We are very happy and grateful, but the materialism still gets to us now and again and wonder if it's something others deal with. Cross-posting on ChubbyFIRE. [link] [comments]  |
| Posted: 27 Apr 2021 02:47 PM PDT Hi all, So a lot of the posts here are dollar based and aren't indicative of country specific inflation. I'm neither financially independent nor ready to retire but I have a massive fear of hyperinflation in my (South African) economy. I am working towards a goal of being financially independent but I feel like I am being undermined by inflation (this isn't a surprise being in a "developing" country). I have searched online and there have been no good sources but, our country has accepted unbelievable amounts of debts with the "intention" to continue the economy. Despite the intent there are literal billions unaccounted for. Question 1 When we get that massive loan, is it turned into "currency" and devalues my holding Question 2 How can I avoid inflation sensitivity without investing in a different market [link] [comments]  |
| Posted: 27 Apr 2021 03:23 PM PDT Hi all, I am in a situation where the car is more than half of our income. Yes, I rolled other negative equity into it. Yes I am dumb. The value of the car is about 26.5k to 27k. We owe 34k Would we be better off getting a personal loan to cover the negative equity and sell it? Thanks all [link] [comments]  |
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