Financial Independence Daily FI discussion thread - Friday, May 28, 2021 |
- Daily FI discussion thread - Friday, May 28, 2021
- Seven years after 100k [Update #7]
- Fairly detailed story about couple who achieved FI
- The Value of Investing Early (i.e. Why you might reduce your savings later in the journey)
- Your top financial books.
- Time > Volatility (x-post from /r/dataisbeautiful)
- Left high stress, high paying job for _hopefully_ less stressful job
- Weekly FI Frugal Friday thread - May 28, 2021
- FI journey update post
- What’s your tips for FI when you have a child and mortgage? Stresses me out.
| Daily FI discussion thread - Friday, May 28, 2021 Posted: 28 May 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]  |
| Seven years after 100k [Update #7] Posted: 28 May 2021 05:00 AM PDT This is my eighth yearly update on my FIRE journey after reaching 100k 7 years ago. You can read the previous posts below:
------This Year's Stats----- 37, Married, childfree, petfree, lowcar Mint Snapshot and Net Worth History Total Net Worth = $1.04M. FI Goal = $1.1M + a paid off mortgage. Debts = 361k mortgage at 2.500%, monthly expenses on credit cards paid in full monthly. Income = SO's income (~140k/yr) + Airbnb (~16k/yr). Expenses = Average $5.1k/month over the last 12 months. -----Other Details-----
-----Asset Allocation for reference-----
GLTA! [link] [comments]  |
| Fairly detailed story about couple who achieved FI Posted: 27 May 2021 07:11 PM PDT CNBC did an in-depth interview of a couple who achieved FI in their 30's. I appreciated how the story describes them in a relatively positive light. They did make $230k in their peak earning years, but started FI with only $870k in assets. They keep a tight budget but also live a reasonable lifestyle: home gym, dog, dabbling in side hustles for enjoyment and a bit of income. Overall, I liked the read because I'm assuming CNBC vetted the facts and posted a pretty believable picture of a couple who live the road less traveled. https://www.cnbc.com/2021/05/27/this-millennial-couple-retired-in-their-30s-with-870k.html [link] [comments]  |
| The Value of Investing Early (i.e. Why you might reduce your savings later in the journey) Posted: 28 May 2021 07:59 AM PDT Every few weeks there is a question to the effect of "can I lower my savings rate?". I've also been thinking about the things I can control in the journey to FI. This is mostly a) spending and b) savings amounts. Market returns have a really large affect, but we can't control them. So the question then becomes "what effect does varied savings amounts change the time it takes to reach $xxx amount?". It turns out that after a while of saving, the answer is "not much". Those first dollars you put in really do matter the most. The last dollars - not so much. I know this is obvious in math, but plenty of us are visual learners and could stand to see this in actual numbers. What I've done is an NPER based on a few scenarios. We usually save $55k annually. Questions are:
Notes: I've held the return rate at 5% and the target values at those values so as not to have to account for increased spending in our "FI number". [link] [comments]  |
| Posted: 28 May 2021 06:13 PM PDT What're your top 3 (preferably in order) financial books that you've read. I want to buy one but don't know where to start. [link] [comments]  |
| Time > Volatility (x-post from /r/dataisbeautiful) Posted: 28 May 2021 04:56 PM PDT For a long time I have known and seen reinforced on /r/fi that investing is a long-term activity. This visualization really drives that home. Even the great recession is reduced to a blip by time (well 30 years later but still). https://v.redd.it/4tyts8yv7w171/DASH_1080.mp4 Anyways, it just made me breathe and remember not to time the market and to play the long game - not sweat the the day to day. [link] [comments]  |
| Left high stress, high paying job for _hopefully_ less stressful job Posted: 28 May 2021 06:27 PM PDT I have been working for awhile to pay off debt and reach FI. My job is intellectually challenging and I have a great team. But is is stressful as all hell, which has lead me to quite a few panic attacks and anxiety issues. I tried seeing a psychologist, but you can't fix an environment that way. My wife and I hit coastFIRE this year. I found what I think is a lower stress job for less pay recently. And I took it! Taking a pay-cut is hard. But I am so excited for the future. But FI enabled this gamble. I'd love to hear if others have taken this chance before? I will let you know if it works out for me! [link] [comments]  |
| Weekly FI Frugal Friday thread - May 28, 2021 Posted: 28 May 2021 02:00 AM PDT Please use this thread to discuss how amazingly cheap you are. How do you keep your costs low? How do become frugal without taking it to the extremes of frupidity? What costs have you realized could be cut from your life without pain? Use this weekly post to discuss Frugality in general. While the Rules for posting questions on the basics of personal finance/investing topics are more relaxed 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: 28 May 2021 08:36 AM PDT Hello - another journey-updating post! I'm 30M, single, living in Sydney. I've moved over from India in mid-2019, so my numbers are on the lower side as I had 7 years of earnings in India. This community has been massively inspirational and I wanted to thank you all! Net Worth: $240K (split as $170K Australia, $70K India) FI Target: $2.1M by 2030 (aged 40) Asset Distribution:
Australian Equity Distribution:
Savings Rate: In Australia, I'm able to maintain a savings rate of 70%+ on my income ($160K base + bonus + super). I do support my parents in India for expenses however, and after accounting for that, my net savings rate becomes 50%. Yes, my Indian expenses are occasionally high, but I don't want to skimp on them as they're for parents. Investment Strategy: I'm conscious if it is over-simplified. Mid-last year I worked with an advisor to arrive at the $2.1M FI figure and after all calculations, we arrived at a sum of $80K to be invested every year (growing by 8% every year). I no longer invest in India and will direct all investments in Australia as per the above equity distribution. I invest in the above ETFs via Self Wealth (I do it in packets every couple of months to minimize the fee). Property: I have no plans for purchasing property as of now - partly because it feels like a mountain to climb with respect to the research involved, and partly because since my current strategy has been to invest in ETF packets on a regular basis, I do not hold more than 6-month emergency funds in my HISA. Australia living plans: I'm eligible to apply for PR in a year's time and I shall do that with my company. I'm still not sure where I want to retire, but I'm quite certain it wouldn't be India unless absolutely required. However, to be safe, I'm still only considering only 65% of my super in the 'Retirement' part of my portfolio above to account for the DASP tax. Any thoughts / comments / feedback would be welcome. It's been a bit of a learning curve for me this past year! P.S. I'm an Excel geek and love maintaining a monthly portfolio - here's a sneek peek! Thanks. [link] [comments]  |
| What’s your tips for FI when you have a child and mortgage? Stresses me out. Posted: 28 May 2021 04:43 PM PDT I try to be as frugal as possible. But it's hard, especially with a child now & I have to think about his future. I have a $305K mortgage @ 2.5% (only debt) , $135,000 in a IMMA account that gains about $900/year at my local bank, and $80K in stock/roth/401K—but I feel like I'm making 0 gains towards FI anymore. I'm just breaking even right now. What else can I do?? It stresses me out. How to cope with that feeling of I'm not doing it right? Does anyone else feel like this? 32 years old for reference. TIA. [link] [comments]  |
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