Playing with FIRE

Personally we hold $20,000 in the offset account. I also have access to another $20,000 which is an I/O split on our lending (also fully offset). So $40,000 back up money in total. $3-5000 in the everyday account.

(having said all this, we have additional funds at the moment due to our wedding in January)

Otherwise we have it all in the market. DCA every month or two.

In a few years time we will look at creating more savings as we look to move back to our home state (SA) and purchase the long term family home.

I guess what i am saying is that this is a constantly changing thing!

 

Wow 2 years is a decent amount. So what does that include?

I'm thinking 5k for medical emergencies, allow for 3 months of vacancy on one of the IPs plus maybe loss of one income (higher income earner) for 6 months to 1 year.

 

“Men are free when they are obeying some deep, inward voice. Men are free when they belong to a living, organic, believing community, active in fulfilling some unfulfilled, perhaps unrealized purpose. Not when they are escaping to some wild west. The most unfree souls go west, and shout of freedom.”

― D.H. Lawrence, Studies in Classic American Literature

 

Basically I just worked out everything I would spend in a year and that includes holidays, school fees maintaining 4 cars and the wife’s spending habit etc etc. Then 2 years worth of that. Funny thing is I’m fortunate enough to have gross investment income that’s now over 2 x annual spend. And since Im still earning income from work as well I probably don’t really need a cash reserve. But being a doomsday prepa I’m always planning for the doomsday scenario.

 

The Q&A chat session was great. Despite huge fears of public speaking I survived lol.

There was tons of excellent questions and engagement. Ended up going for about 2 hours!

The session was recorded too. Apparently the video should be on YouTube in the next week or so.

I’ll post it here if someone doesn’t beat me to it.

 

Great, I'll keep an eye for it.

 

Would be great if you can post it on your website

 

Will do!

 

Snowball it's a real credit all the great work you do with investing in general and sharing your wisdom and experiences on this forum and on your web site.

You certainly have a low stress (Aussie) way of approaching investing and life in general.

Thankyou.

 

The Q&A recording has now been uploaded - see below... (it’s also in my new blog post out today).

Apparently individual topics/clips will be separated and a playlist created soon to make it more consumable/shareable.



Looks like there’s a little background noise lol baby crying etc but hope you enjoy it.

I’ll be seeing it for the first time too. Some of my on-the-spot answers are possibly cringe worthy (the best answer comes to you the next day unfortunately )

 

@Snowball will there be autograph opportunities for PC’ers?

In the group you’re the only guy I thought was serious about FIRE, I could tell by the haircut.

 

It looked like he was drinking a beer

 

Shh... it’s courage juice! I demanded drinking on stage otherwise I cant work under these conditions

 

A day in the life of a 34-year-old early retiree who lives in NYC, grew his net worth to $1.25 million in just 5 years, and wakes up at 7:30 a.m.

Grant Sabatier, 34, retired at age 30 after spending five years building a net worth of $US1.25 million while working in digital marketing.

 

Can't wait to be on FIRE, it was the whole reason that I got into investing in the first place.
In five years' time, my wife will go back to full time work, which will allow us to refinance and would then allow me to drop two days a week (and my wife could do the same).
So we'll have to work more to be able to work less.

 

How one millennial managed to save almost $1 million in 10 years without ever earning a salary of more than $75,000

Hint: Living rent-free to start out has a little something to do with it

10 years working towards FIRE on a $55K-75K salary
2008 - $15 K
2010 - $55 K
2012 - $170 K
2014 - $250 K
2016 - $540 K
2018 - $730 K
Current - $930 K

“This absolutely proves success from early compounding, no student loans and living with parents for an extended period of time,” one wrote. “There is a huge stigma with living at home, but when you can save >80%, it’s a very attractive alternative lifestyle.”

Of course, this kind of run also wouldn’t be possible without a surging market for home prices and a raging bull stock market, which, of course, won’t last forever.

“I’m preparing for that drop, and it’s fine,” FluffayPenguin countered. “I’d be happy if it drops double digits since I’ll just stick more money in.”

 

Cheap dastard. Hope he mowed the lawns, did the washing for the family, all the cooking, drove he parents around and didn't expect them to pay for the petrol, all household maintenance as well as everyone's medical, dental, pharmaceuticals, optical needs, etc, etc.

 

Maybe he provided the parents with full-time company, which is worth sometime. Not always about give and take when it comes to family and if the parents don't mind, what's the problem? Joint families are pretty common in Asian countries.

 

As there doesn't appear to be a tongue-in-cheek Smilie available it was omitted from my previous post.

 

meanwhile the parents retirement has been delayed till their 70s...