Financial Independence Daily FI discussion thread - Sunday, September 12, 2021 |
- Daily FI discussion thread - Sunday, September 12, 2021
- How do I let go of the scarcity mindset on my way to FIRE? Sanity check please
- FIRE Parenting
- Thoughts as I approach (near) total financial freedom
- Buy or rent to fire
| Daily FI discussion thread - Sunday, September 12, 2021 Posted: 12 Sep 2021 02:02 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]  |
| How do I let go of the scarcity mindset on my way to FIRE? Sanity check please Posted: 12 Sep 2021 04:37 AM PDT I'm 29, grew up poor with no concept of financial literacy, let alone retirement planning. I also spent most of my twenties doing odd jobs and travelling which I feel has set me back a few years compared to my peers. It wasn't until a couple of years ago that I would start taking my career and retirement planning seriously. My current salary is at 50k which isn't much but i think it's good enough for my level of experience. I can probably expect to be on at least 70k within the next year or two. I have 7k in cash, 5k in my retirement fund, and 28k in student loan. Even though I try to live as frugally as possible without sabotaging my mental health, I constantly feel like I'm falling short. I think growing up poor has permanently shaped my relationship with money, and amplified by my lack of early career planning, I just feel so behind and find myself always penny pinching. I don't want to be fucking cheap, I don't want to be calculating everything in terms of cost, I don't want to be checking my bank account 20 times a day, I don't want to put so much time and energy into finding bargains just to save a few dollars. In order to combat this I started putting away $30 a month of 'generosity fund' for things like donations to a charity or supporting friends' businesses but in general I hardly feel like I can afford to be spontaneous or generous. Im feeling frustrated cause my journey to FIRE is slow and I'm not able to live by my values while trying to play catch up game. How do I find the balance? I'm mostly concerned about being cheap, it's not who I want to be nor how I want to live. Any tips or ideas on how to liberate myself from living with such a scarcity mindset? [link] [comments]  |
| Posted: 12 Sep 2021 04:19 AM PDT I'm a cheapskate and follow the Financial Independence/ FIRE communities. Wife and I both 30 and doing reasonably well. We're having a baby early next year and I feel like buying for a new baby is like weddings: companies will tell you everything under the sun is absolutely essential, anything less than £2000 for a baby stroller is child abuse, and will take as much of your money as you're willing to spend. Is there a guide anywhere for the best/cheapest baby equipment? One that quickly explains what are the essentials, what we can do without, etc. and some suggestions according to budget/location [link] [comments]  |
| Thoughts as I approach (near) total financial freedom Posted: 12 Sep 2021 07:11 AM PDT My SWR is about 2% of my NW. My business is being sold in Dec, which will take it to 1% (or, more likely I'll try and increase annual spend dramatically so that it stays around 1.5%). The hedonic treadmill is about to get a little workout. I don't know how similarly everyone feels when they achieve complete financial freedom. Basically, almost all jobs lose attractiveness from a financial perspective. I'll be very well paid after my business sells, but the compensation does nothing in terms of motivation once you achieve financial freedom. I am trying to motivate myself by thinking that I need something to do. I enjoy my work and I like developing others and building their careers. So I'll probably cut back, delegate a lot, and choose the things I work on and the people I work with (to some extent). I never thought I'd be "that" guy, but I find myself thinking of doing stuff around the house. Fixing things and making improvements. I'll probably still continue to heavily hire people to do most things (mowing etc.), but I'll get involved with projects that sound somewhat fun. I'll be focusing more on family and even a little more on friends. Health and sports. I'd be lying if I said that there wasn't a sense of "loss" involved in getting to the top of mountain that I set for myself. The loss of the drive that fueled me for 40 years. The dream of making it, getting to FU money, even the struggle for financial freedom itself. I am sensing a bit of a void. I don't feel "hungry" as I used to. Maybe because I'm older, or maybe because I need to find something else to feel that hungry about. Or maybe I need to be OK with not having that or a different hunger fuel me. I've felt a lot of pressure in my life to feel the hunger, to do something to elevate standard of living and status. Through pop culture, friends and family, and even societal dynamics and hierarchical relationships - what is there to do if not struggle to do more and get more? It took me more than a decade to de-program religion from my brain. Might take me till I'm 50 to learn how to replace money, prestige of a job, or social status being the battery running my heart. With any luck, I'll get there sooner! [link] [comments]  |
| Posted: 12 Sep 2021 04:16 PM PDT Due to life situation changing I've had to sell a property and now find somewhere to live. Im in the lower mainland BC. My budget to buy would be 500k. But I've been crunching numbers and if I can find a rental for 1200 or less I'm making way more cake for myself renting and investing. See as follows. 100k down-payment 1.45% 30 year amortization Monthly payment $1370 ( about half is interest for the first 5 years) Purchase + 5 year term black hole money: Appraisal 365 Legal 1200 Tax adj 650 Inspection 600 Transfer tax 8000 $11,315.00 cost of purchase $26,956.22 cost of borrowing for 5 year term $18,000 strata (300 month and that's low and without increase in 5 years very unlikely) $12,000 ($50 hydro, $50 gas, $100 wifi per month x5years) Total "black hole" as i call it cost of: $78,271.22 Now add opportunity cost of the down-payment out of the market, 100k at say hopeful 10% a year: $46,410. Where as rent for 5 year= 1200 14400 1220 14640 1240 14880 1260 15120 128015360 Total after 5 year $74,400 Buy $124,681.22 Rent $74,400 Rent nets me $50,281.22 more. Over the 5 year term. Now I know my number skew if the strata goes up. And I only accounted for 2% raise in rent yearly. But I guess why this is why they say it's worth it if you stay 10 years or more. I got lucky and made %35 on my townhouse in 3 years. So basically I know this is a loose crunch but I need to figure out if it's worth buying a condo in the area or just rent for year or so and invest the 100k down-payment, which was sale money from last home. 28 100k a year Tfsa 75k Savings 21k Company euro stock: 30k No debt. Rent or buy.. or buy and rent it out in a few years and bugger off Thanks if you made it this far. [link] [comments]  |
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