RJMacready73
Simps for Amouranth
so basically skip enjoying yourself and traveling when you're young only to retire when your older and live frugally?? gotcha...
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FIRE Movement, Financial Independence, Net Worth; not so personal finance discussion
- Thread starter juliushandle
- Start date
juliushandle
Member
you can save for retirement while still traveling and enjoying your life.
StreetsofBeige
Gold Member
One thing about these retire young plans is it assumes the person is willing to live alone or with a partner who shares the same values and earning power. And by the looks of it, having kids are not part of the plan.
Maiden Voyage
Gold™ Member
No not all.
AJUMP23
Parody of actual AJUMP23
That is not it at all. What you need to ask is what type of life do you want as you get older. You can set yourself up early in life for financial freedom late in life with some financial discipline. If you make good choices when you are young, and do not spend everything you earn partying and drinking or just on stuff you want but don't really need. Get some of it, but not all of it. Live well within our means, not at the edge.
Omega Supreme Holopsicon
Banned
? This depends on taxation salary, etc.
There are multikid FIRE families with youtube channels.
Also if a couple together makes near a million dollars. They could live frugally for like 5-6 years and savings would create a perpetual motion investment vehicle.
Also depends on how old you are when you start. If you start at 20, even 10-15 year of compounding can take place and there should still be some level of fertility.
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Maiden Voyage
Gold™ Member
For those who don't think it is possible to retire early and have a good quality of life, here's my situation at present:
Knowledge is power. Know what you're making and where/why that money goes to where it goes. Know what actually brings value to your life and what that cost is to you. Know yourself well enough to make your plan something you can adhere to.
- I live in a low cost of living area
- My wife and I are in our 30s
- My wife and I have a combined income now that puts us in the upper class, according to Pew, but both grew up in poverty; note that we only reached this level within the past few years
- We own our home & it's paid off entirely
- Our monthly expenses are $5.6k ($67.6k/year)
- If we retired today, our cost of comfortable living goes down to $3.6k/mo ($2k lower because non-401k savings & investment stops)
- Absolute barebones cost per month would be $2.6k/mo (removing vacation, new car payments, Apple One sub, gifts, & eating out); IE being poor again
- The only debt we have now is on a car loan that's 0% APR for the life of the loan
It took years to get here and our combined income was roughly $50k when we first started dating. We both had student loan debt and our net worth was 5 figures in the red back then. It took years to dig out of that and begin to increase our net worth into the green.
After paying off our debts, being able to save/set-aside money allowed us to have a 20% downpayment + moving costs (new furniture, etc.) AND pay off our entire mortgage on our first home purchase in less than 2.5 years.
...And we took vacation every year while doing this. We celebrated the mortgage being done with by going to Iceland for 2 weeks the same month we made our last mortgage payment. This year due to an insane bonus payout, we are doing 2 large vacations for the first time (2 weeks in Utah and 1 week in Florida). Our quality of life is quite high, even compared to some of peers who make the same as us, because of how we prioritize our finances.
Those "sacrifices" were absolutely worth it those first years together. Had we not adjusted our ways of handling money and understanding what actually mattered to us, we would never go on vacation and we'd likely still be working dead-end, low paying jobs, living paycheck-to-paycheck.
And early retirement? If we have no major changes to our lives, we should be able to retire in 2032 at the latest. The returns on our investments will outpace our cost of living + inflation beginning then. We could stop saving/investing entirely today and still comfortably retire at 60. Our figures & projections are incredibly conservative so we may end up being able to retire much earlier. Our target nest egg has a 94% chance of surviving more than 50 years using Monte Carlo simulation.
And yes, if we have a kid, this will absolutely change the value equation. It's a good reason to save as much as we can now, before we decide on kids, so that money has time to grow & compound.
Knowledge is power. Know what you're making and where/why that money goes to where it goes. Know what actually brings value to your life and what that cost is to you. Know yourself well enough to make your plan something you can adhere to.
juliushandle
Member
wow, revisiting this thread to report I've hit my FIRE number (yearly expenses times 25 = your FIRE number) in my late 40s.
gonna quit my job, still work, but it will now be under my terms. still gonna vacay with my fam twice a year but stay busy with my little to no cost hobbies.
hoping everyone we'll with their journey.
gonna quit my job, still work, but it will now be under my terms. still gonna vacay with my fam twice a year but stay busy with my little to no cost hobbies.
hoping everyone we'll with their journey.
Congrats. Admittedly I want to join this for a simple reason. I work in IT and layoffs are a bitch. Just trying to get my finances to a point where I don't care if I get laid of again. Anyway one piece of advice for everybody, don't buy annuities. (In my defense I wanted to save for retirement so I went to my banks investment services and figured of course they sell investments. I didn't know they tend to actually sell insurance.)
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Trogdor1123
Member
Frankly, this is a dream for me. I make about 200k a year (plus extras) but have a wife (who works part time in a family seasonal business) and 3 kids in expensive sports . Sadly it doesn’t apply to me. I’ve been able to give the wife around 75k to play in the stock market relating to strictly dividend paying stocks (she reinvests) so we have a goal but we’re mid 40s and will probably work another 20 years (her less).
I’ve had to pay off student all the way till I was 40 which in my mind was the biggest impediment.
Best wishes to all that can pursue this.
I’ve had to pay off student all the way till I was 40 which in my mind was the biggest impediment.
Best wishes to all that can pursue this.
I don't know if i could ever do it. Hard to give up solid income for time + a fixed amount that you now gotta watch. Still, planning on early(ish) retirement at 60 when the youngest is out of high school (don't wait folks! have those kids early!!) but who knows. By then college may cost $150k/yr for anyone not on the government dole.