Financial Independence Daily FI discussion thread - Friday, May 07, 2021 |
- Daily FI discussion thread - Friday, May 07, 2021
- Financial Dependence vs Financial Independence and the struggles
- Weekly FI Frugal Friday thread - May 07, 2021
- After a life of struggle I finally got a good job, now what?
- Buying A Rental Property With IRA (To Cut Stock Exposure)
- Books written by people who have actually FIREd
| Daily FI discussion thread - Friday, May 07, 2021 Posted: 07 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]  |
| Financial Dependence vs Financial Independence and the struggles Posted: 07 May 2021 04:10 AM PDT The majority of my friends at this point in my life are not interested in finance and investments and would have a hard time connecting with any of them on financial matters. None of them understand the concept of financial independence and retiring early. In fact, all of them are stuck in the rat race with an odd few that have family wealth but also stuck in the race to some extent. Because I lack a place to really discuss my passions and hobbies without feeling like a complete jerk I thought it would be better to share here with like minded people with a similar place in life. So, my family and I grew up poor with barely anything to eat and lived in a very poor part of town. My parents saved every penny and were able to buy a home and got us out of a bad place. From them, I learned how to save and be frugal and am deeply grateful for the their traits and attributes that shaped me and the shelter they've given me to grow my myself and to achieve my vision of freedom from the system. I started my journey out of high school in sciences as all Asian parents want their kids to become a Doctor. From there I learned of debt.. bad debt. On top of my scholarships I had to take out approximately 10k in student loans. This 10k did not sit well with me and I was constantly stressed that I had this debt under my name and that it would only grow in time. I sat in psychology class in the summer semester and wondered how I was going to ever pay off this debt if I never made it to become a Doctor and ended up in a science career. I made the conscious decision to stop sciences to pursue a field that handled money and finances. I went right into my first choice; which was accounting. I use to think that I would have to work for the rest of my life for an hourly wage to save for a retirement fund that would dwindle away. My mindset changed when I worked for an Accounting firm from where I saw how every client was living their life through business and and investing their monies. I thought to myself "why am I stuck in this hourly wage grind doing this for people when I can be doing it myself? what do they know that I don't?". All I could think of was getting out of public practice accounting as that wasn't my passion and start running a successful business. As soon as I received my license and absorbed all the accounting knowledge I could I switched gears. My friend offered me an opportunity to start a business that I had completely no knowledge of and boy was that a bad idea. I crashed and burned and wasted 2 years of my time and hardly earned money. I got lucky that I broke even and got out. I was back to square one.. depressed and out of luck and beat down by the competitive world of corporate and the crash and burn world of business ownership - both equally grueling and unforgiving. Though freshly graduated and recently given a reality check, at I least I had no debt as it was all paid off from working full time while schooling full time. I've hit rock bottom. I'm still at home in my parents basement and I literally laid in bed wasting away for nearly a year before I could snap myself out of it and get myself back in order first physically then mentally. I've always been an advocate of a healthy life and religiously went the gym but letting myself go for 3 years and by doing so gave me the worst gout and I was closing in on becoming a diabetic. I went back to the gym and convinced myself to move forward and get out of this mental state I put myself in. I looped back into Accounting to get myself back on track and worked a couple years and saved every little penny. All my birthday monies I received, donations from my grand mother, selling away my valuables on online. I was able to save up a decent chunk of change. I finally took the correct steps after preparing so many wealthy peoples' tax returns to actually invest like them. So, immediately I shifted my monies towards saving for investing into real estate and stocks. I bought my first rental property at 27. I bought a rental town home at 29. I upgraded my job to a dream job that anyone in finance would die for. Not a extremely high paying job by any means but one that is secure and very very flexible with great progression. I then sold my town home and refinanced my first rental to buy an even nicer rental triplex at 31. Today, at 32, my net worth is hovering just over a million in real estate equity and cash. Income from employment, cashflow from properties, principal pay down, annual appreciation and miscellaneous tax work.. I am bringing in around 220-250k a year. I've finally made it happen. My situation is mild compared to most but I thought I'd share with you all the mental struggles of financial "dependence" and what it does to one mentally. Achieving independence will set you free to do the things you love. I can now buy a meal without ever thinking of the cost, buy a friend a gift with no real limits, donate monies to causes I believe in, and most importantly; buy my own time back [link] [comments]  |
| Weekly FI Frugal Friday thread - May 07, 2021 Posted: 07 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]  |
| After a life of struggle I finally got a good job, now what? Posted: 07 May 2021 02:07 PM PDT So.. I'll try to keep this brief but provide some context. I'm married with three kids, and my wife is a stay at home mom. When she got pregnant the first time she was really sick the entire time, so much so that she quit work. Since then I've been the sole provider. We went from one kid to three... For a long while we had a lot of credit card debt think like $15-20k, I was able to pay about 80-90% of this off a few years back with some help from my dad. I've been just getting by since for the past few years. Not able to save any money or really afford anything extra like a vacation, or putting money into savings etc etc. But I've been getting by, we have a nice little house that I got at the bottom of the market collapse. and I have a new car courtesy of a nice bonus from my old work. I just got a job offer today, I'm going to accept it. It's a game changing amount of money for my family, almost 30% increase in salary. I'll be able to afford my monthly expenses and be nowhere near spending what I'm bringing in. So my question is... Now what? What does one do when they find they no longer have to struggle to get by? What should my first order of business be? Then what after that? Tempting as it is to run out and buy a Ducati I think it's probably best that things like that wait. [link] [comments]  |
| Buying A Rental Property With IRA (To Cut Stock Exposure) Posted: 06 May 2021 08:42 PM PDT My wife and I just closed on our first rental property purchased via one of our IRAs. I searched the sub and the last post on the subject seems to be 7 months ago with the feedback being that it was difficult to do this. Our experience was the exact opposite. SUPER EASY. We really couldn't be happier with our choice. Backing up a bit, we wanted a plan in retirement that pencilled out without much exposure to the 37 CAPE stock market. By buying our second rental through the IRA, we were able to reduce our stock market exposure to 17% of investable assets, which helps us sleep at night. Back to the "self-directed IRA"... Here were the steps, associated costs, timeline and hassle factor:
Going forward the process should continue to be easy, unlike the comments I saw in the older thread. We ARE allowed to manage the property. However, we are not allowed to work on it. (I would be hiring contractors for anything much more than changing the carbon monoxide alarm batteries anyway.) We do have to keep our money entirely separate from the self-directed IRA's money. But that's no biggie so long as I don't screw up on which credit card I use ordering stuff from Amazon. Anyway, if you feel that you have a better investment opportunity with real estate and have enough money in your IRA to buy a rental, it's not very hard! We decided to move forward in mid March and our tenant moves in tomorrow. [link] [comments]  |
| Books written by people who have actually FIREd Posted: 07 May 2021 05:11 AM PDT Can I get some help collating a comprehensive list of books written by people who have FIREd (or who are at least working towards FIRE)? With the help of r/FIREUK I have this so far. I'm keen to get your suggestions for additional books and your thoughts on each book. Thanks!
[link] [comments]  |
| You are subscribed to email updates from Financial Independence / Retire Early. 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