FIRE Starters (Financial Independence, Retire Early)

Yep, with a spending rate over 70k usd in 2021.
That's about $92,000 aud in expenses only. Before tax over $125,000 aud.
Mostly coming from RE rents.

And a few cars along the way


And a couplr ppors "we still live in a 61sqm (650 sq ft) apartment but, from a few weeks back we also live in a 74 sqm (794 sq ft) house."

Seems like around $150k aud would be equivalent.
These were 2 highly paid professionals, and unlike his bio it's not normal and they sit around 1-2% of household wealth.
Well done to them.

I reckon I could rought it up on 150k a year...maybe.

 

Thanks for sharing! That blog and Livingafi's was alot to reflect on.

Went on a 7 month sabbatical a few years back and couldn't wait to go back to work towards the end of it Much prefer to take shorter breaks sprinkled throughout the year.

 

Horses for courses but between looking after kids, planning and undertaking renos on a budget, managing the property portfolio, planning holidays so I get a good deal etc, I find it hard to fit in the 9-5 a lot of the time.

In many ways, the property portfolio is my work - am constantly looking at avenues to increase the yield and value etc. It's stressful - but 'good' stress.

And in terms of exploring the world and living 3 months in US, then Asia, then Europe, then Oz - I can't think of anything better.

 

We are a family of 4 living on sub $40k a year with mortgage.

Its easy to do, we buy what we want but we dont want much, we have a big tv, 2 xbox, 3 computers, 2 cars bought new in the last 7 years, we live 5 mins from the beach and there is plenty to do that is free. The kids still love football, gymnastics, martial arts and other paid activities too so there is no 'missing out'.

Once the kids leave home our expenses will drop, sell 1 car and they drop further, pay off mortgage and they drop down to around $20k a year.

We buy what we want, we live how we want, we dont need all the fancy crap that people surround themselves with. We eat well, we enjoy life and family.

Whilst sipping $300 bottles of wine while wearing my lacoste polo shirts? Pass

Does your definition of a decent place to live have anything to do with the actual house or is it just a $$$$ value to tell your "mates" how much your house cost in your local ******* competition of how rich each of you are?

Our house cost less than $300k, is that below the poverty line? Is the floor dirt and the roof made of thatch? No.

Sorry to say our new cars are also just base model Mitsubishi Lancers, sub $20k each, wow I feel so destitute that were not driving Audi's or Mercedes, woe is me!

What hyperbole BS, it just shows how detached you are from how people live in the real world and enjoy their lives without ******* money everywhere.

There is a difference between Financial Freedom and Thoughtless Consumerism

 

Lol someone else brought up expensive wine too. Is there a fire forum where people just pay out on wine snobs or something.

If I'm not mistaken it's the FIRE people that are obsessed with posting wealth updates on a monthly basis.
And then they have their miser competitions on saving $3.32 this months cause they collected rain water in a few buckets.
I did mention a number refering to others that did as well. But If I was counting wealth for FIRE purposes I would not count my PPOR, only income generating assets.

Poor people don't own houses, and some not even cars.
But there is actally an official poverty line income level, which the banks and ATO use as a yardstick, which I am below almost every year.

Sure, but in this country more money than 20k pa does make it more enjoyable and less stressful.

And yet you seem to resent my freedom of choice and opinion that 20k is not enough.
Sure it depends on the situation and age. At 65+ than the 20k is good. Under 40 not so much.

If I own a PPOR, a number of maintanance issue such as fences, roof, gutters will require a considerable amount of the 20k. 5k+ maintenance leaves only 15k. Then theres rates, electricity, insurance, water. And dentist visits are just a matter of time. A cataract? Even with medicare it costs.
I concede I'm used to sydney prices and they're cheaper in SA, still there ain't much room to wiggle.
How can i be financially free when I have to scrounge every dollar. It's an oxymoron.
If my income was 50k, and a 5k issue came up it's no big deal and I have a lot more choice or freedom.
At 30-40yo the difference between 20k or 50k is an extra 5 or so yrs imo. Meaning I reckon it takes 10-15 yrs solid work, investing, saving and sometimes scrounging to get to a solid asset base. Stopping in the 30s with 20k or even 30k, like a lot of the FIRE people preach is setting themselves up for trouble.

 

This is probably fine for a few years but then your kids need orthodontic work, your car needs expensive repairs and your hot water system dies - and you need to cough up $20k in 6 months. Kudos to those that can do this and are happy. My rates, utilities, body Corp, insurances, rego etc are $20k per year alone! Would not work for me.

 

That is a great article. I have been thinking seriously about FIRE and this article has confirmed some of the real risks, which can be generalised as "things could change that require more money than I'd planned for". But then how much is enough? How can I optimise my time, which is my most valuable commodity? How can I avoid working too long?

My instinct is that absolute retirement may be too risky, and that flexibility in the hours I work is optimal. If I don't need to work I won't, but maintaining casual / part-time is mitigation for the risk described above. One way of achieving this may be a flexible income in a business that i have control.

I am thinking out loud and will go away and think some more. Thanks @Anne11 for sharing.

 

Did you read the comments? It was the comments that helped me with my decision to continue to work while gradually taking more time off each year. For some the decision to stop working is dead easy, for others (like me) it takes many books, blog posts to find the path that suits me. Still in progress, might take a few more years...

 

Yes, I read some of the comments. There is a range of outcomes sitting on a relatively continuous curve, which varies over time. One may be completely happy after, 1, 2, 3 4 and 5 years but then begin to become more unhappy over time. What is the control I have in place to be able to reverse that trend? In theory happiness comes from within, but I am not an ascetic, and unfortunately, or fortunately, my happiness is interdependent with those of my loved ones, whose happiness I can not change with mind control.

Basically I need the stoicism to be happy with nothing, but the wealth to keep my wife in bags, and the wisdom (and wealth) to maximise my kids' opportunities for achieving happiness. Life wasn't meant to be easy.

 

Seems JR my mentor was right, when he described what constitutes a good life:
Jim Rohn Articles - What Constitutes A Good Life?.
Productivity in some form seems required or at least perception of being productive in some other way, as is fulfilment and social contact, social interaction, many of such points outlined by the author of the attached blog.
Our attitude, our philosophy, our fulfilment or unfulfillment in times of adversity, what we think or perceive seems to be more important than anything else.
It was interesting to read the journey, the adversity and adaptability of such a young men, as was his conclusion and definition of what it means to live a happy life.
Seems life is a journey not a destination, as we age so does our views on that journey!

 

@MWI the latest rational reminder podcast episode may interest you. There is a large focus on happiness and, as you would expect from them, there are many references to various studies re happiness, including what provides increased long term happiness and how to get the most bang for your buck.

 

I have added this to my podcast list
For those who want to listen here it is
Episode 148: Investing in Happiness — Rational Reminder

 

I read the book that was based on maybe 10 years ago. It totally changed my mindset and direction in life - I don’t think I’d be who I am now if I didn’t read that book. Might not have a big impact on people who are already on a good path but I wasn’t (!) so it really helped.

 

Bugger, now I have another book to read.
The Happiness Hypothesis by Jonathan Haidt

 

I just purchased it on audible.

 

Oh, that is Ben Felix. Didn't realise.

 

Thanks @Terry_w, thoroughly enjoyed it.
Agree with so much content there... hence why I may seem quite content and happy in my life, even without realising it. Placed into perspecitive so many aspects of my life and situations.
I also liked this book below, "The Hapiness Curve" suggested by one of my friends who was quite unhappy or not so content in her life.
Life gets better after 50: why age tends to work in favour of happiness

 

Why Jeff Bezos' retirement from Amazon means big things for space

BEZOS getting into space exploration?

 

What is it about the super rich and wanting to go to space, If I was super rich I would just want to stay in bed.

 

Well for starters not having someone else define what a good life for me is and not telling me how productive I should or shouldn't be.