[ABC] Financially independent by 35?

Discussion in 'Financial Independence, Retire Early (FIRE)' started by Spiderman, 14th Feb, 2018.

Join Australia's most dynamic and respected property investment community
  1. thatbum

    thatbum Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    2,723
    Location:
    Perth, WA
    Well I wouldn't need to work so I wouldn't need much childcare.

    But I take the point that its probably less feasible with kids and a family. But I'm not really aiming for either in the foreseeable future.
     
    chylld and jprops like this.
  2. mikey7

    mikey7 Well-Known Member

    Joined:
    30th Mar, 2016
    Posts:
    1,067
    Location:
    Sydney, Brisbane
    I was thinking this.. im almost $20k/yr out of pocket due to my little one going to daycare 4 days a week.
     
    Kassy likes this.
  3. MTR

    MTR Material Girl Premium Member

    Joined:
    19th Jun, 2015
    Posts:
    16,508
    Location:
    My World
    Love this......Hehe..... but you can grow garlic
     
    Sackie, EN710 and Lizzie like this.
  4. chylld

    chylld Well-Known Member

    Joined:
    25th Jun, 2015
    Posts:
    1,572
    Location:
    Sydney
    This harks back to @sash's thread - the fewer hours you spend at work, the fewer expenses you will have.

    Unless you would still prefer to send your little one to daycare even when you're home, just so you can enjoy some quiet time ;)
     
  5. kierank

    kierank Well-Known Member

    Joined:
    20th Jan, 2016
    Posts:
    4,853
    Location:
    Brisbane
    Wait until you hit 60.

    You will REALLY find out how little you know and, then you will start forgetting what you did know :eek:.
     
    trinity168, fols, Sackie and 4 others like this.
  6. Lizzie

    Lizzie Well-Known Member

    Joined:
    9th Jul, 2015
    Posts:
    3,418
    Location:
    Hunter Valley
    .. and awesome wine pastes ... and moving into cut flowers ... alongside the usual renos and developments :D ... still know nuffin'
     
    Alex Straker, Nodrog and MTR like this.
  7. PropStar

    PropStar Member

    Joined:
    3rd Jul, 2015
    Posts:
    18
    Location:
    Nsw
    I was thinking the same thing...wait til he gets married, has a few kids, his perspective will change.
    And as David Lee Roth famously said, ' money can't buy you happiness, but it will buy you a big 'ol yacht that you can park right beside it.
     
  8. joel

    joel Well-Known Member

    Joined:
    23rd Jun, 2015
    Posts:
    872
    Location:
    Adelaide
    $40k is heaps if you don't have kids
     
    Observer and Jamie Moore like this.
  9. paulF

    paulF Well-Known Member

    Joined:
    29th Jun, 2015
    Posts:
    834
    Location:
    Melbourne
    Great mindset indeed but too simplistic and shortsighted. Unless his 1 million keeps compounding, he'll be short on cash in a few years just like many stated above.

    I believe something in between would be optimal. Like being debt/mortgage free, owning your own house and still doing some work in order to earn money. Not having to worry about a mortgage would at least give one the opportunity to look for a satisfying job.
     
  10. chylld

    chylld Well-Known Member

    Joined:
    25th Jun, 2015
    Posts:
    1,572
    Location:
    Sydney
    That requires saving up for a deposit, and paying off a mortgage; exactly what he is trying to avoid in the first place:
    He is not seeing the value of property as an investment vehicle, and all the fruit that the associated equity can bring. He is still delaying gratification but only for the medium term, not the long term.
     
    paulF likes this.
  11. paulF

    paulF Well-Known Member

    Joined:
    29th Jun, 2015
    Posts:
    834
    Location:
    Melbourne
    @chylld , i'd probably do the same if i was in his position and age at this point in time to be honest as in stay away from property wether it being an IP or a PPOR (Some markets at least...). I am 35 now and started with property in 2011.
    Needless to say myself and anyone who started back then should consider themselves very lucky(obviously depending on the market again)
     
  12. chylld

    chylld Well-Known Member

    Joined:
    25th Jun, 2015
    Posts:
    1,572
    Location:
    Sydney
    By the time he is 35 property may have calmed enough for him to acknowledge it as a viable investment... however it remains to be seen whether he'll save enough of his $20k/yr (assuming his other $20k/yr is spent on rent) and also if his investment income will service a loan.
     
  13. Morgs

    Morgs Well-Known Member Business Member

    Joined:
    7th Dec, 2017
    Posts:
    561
    Location:
    Sydney NSW
    $40k PA isn't enough for me but if I think back to when I was a kid, it probably was.... things change!

    My crystal ball forecast is that he'll hit 35 and he will have the $40k passive income he wants and he will retire, but he will end up back earning an income. Only difference is he will do something he enjoys and is passionate about it.
     
  14. See Change

    See Change Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    3,150
    Location:
    Sydney
    Only person I’ve met who’s said they were retiring early and turned out to have the financial capacity to do that was a guy who bought a servo on a side road which due to traffic changes turned out very lucrative . After working it himself to buy a house etc he leased it to a major for 4 k a week...

    There have been people who have announced on the forum that they’d retired but they didnt really .... and a song writing friend also announced he’d retired . Just got an email this morning saying he couldn’t write for a while as he was having to work hard .

    Of interest the first person mentioned got tired of playing golf with guys 20-30 years older than him and went back to work as an angel investor because he needed something to do or he’d go crazy .

    Cliff
     
  15. Biz

    Biz Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    2,523
    Location:
    Investard county
    He says he has 250k now and needs 1 mil to retire in 5 years. So he needs to make 750k in 5 years. He probably lost 20k last week...
     
    willair and See Change like this.
  16. Terry_w

    Terry_w Well-Known Member Business Member

    Joined:
    18th Jun, 2015
    Posts:
    22,853
    Location:
    Australia wide
    He has a great plan and his blog is pretty good too. He will get there I think.
     
    Parkzilla and Nodrog like this.
  17. @FruitCake@

    @[email protected] Well-Known Member

    Joined:
    28th Jan, 2018
    Posts:
    82
    Location:
    Australia
    The short time frame makes me feel he’s a little exposed to sequencing risk, but good on him for at least having a plan to begin with. Most people around his age wouldn’t even think about saving.

    I spend a lot of time lurking around the FIRE forums and for me FIRE is a spectrum and where you choose to be on that spectrum depends on the lifestyle you’re after and what suits your circumstances the best. But at the end of the day, you can’t really go wrong saving and investing what you earn.
     
    orangestreet likes this.
  18. joel

    joel Well-Known Member

    Joined:
    23rd Jun, 2015
    Posts:
    872
    Location:
    Adelaide
    Imagine being 35 and being able to **** away your entire engineering paycheck every week, on whatever you want!
     
  19. Parkzilla

    Parkzilla Well-Known Member

    Joined:
    2nd Nov, 2015
    Posts:
    85
    Location:
    Singapore
    Thought I’d share this article given the first half makes some relevant observations.

    I realise the person that is the subject of this thread is in a slightly different socio-economic situation to Barnaby, but just goes to reinforce that the incomes we desire are heavily influenced by what we get accustomed to (rather than what we “need”)!

    Of course Barnaby Joyce wants to stay put - he needs the money
     
    Snowball likes this.
  20. pwnitat0r

    pwnitat0r Well-Known Member

    Joined:
    27th Nov, 2016
    Posts:
    287
    Location:
    Sydney
    Tough crowd here.