Why Financial Independence Is Getting Easier

Discussion in 'Financial Independence, Retire Early (FIRE)' started by Redwing, 4th Apr, 2020.

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  1. Redwing

    Redwing Well-Known Member

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  2. Willy

    Willy Well-Known Member

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    Agree with those sentiments completely but feel that the coronavirus situation deserves more of a mention.
    Our view of the world is influenced by what we've experienced. Someone who was a child in the depression or lived through a world war will have a very different outlook on the world then a younger person who hasn't even experienced a recession. That has a lasting effect on their spending and saving habits.
    This pandemic will have an effect on everyone and changes our focus to whats real and whats important and a certain amount of that will stay with us after this is done. A form of reset if you like. If you're already in a good position and go forward with a few less unnecessary gadgets, less smashed avocado and a simpler lifestyle it may well be easier to achieve FI in the future.

    Willy
     
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  3. Omnidragon

    Omnidragon Well-Known Member

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    FI is easy if they didn’t need to go overseas and eat smashed avocado every weekend. Perhaps this crisis will drum some common sense into young people in western societies.
     
  4. Leeroy93

    Leeroy93 Well-Known Member

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    We live in one of the few countries where you can earn minimum wage, travel every year on an overseas holiday and still have some left over to have smashed avo for sunday brunch. Financial independence is thus not high on the agenda for most while they've got it so good. Maybe the temporary loss of jobs across the board may be a catalyst for a slightly better attitude towards our financial health.
     
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  5. PKFFW

    PKFFW Well-Known Member

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    Clichés aside, that would of course entirely depend on the expenses of the individual in question.
     
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  6. unicorntears

    unicorntears Well-Known Member

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    Why wait until they're 50 and financially independent to enjoy life if they can do so at 25? #YOLO
     
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  7. Robbo80

    Robbo80 Well-Known Member

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    Travelling at 25 vs at 50 with wife and kids is a much different experience. Also the latter trip is costing almost 10x as much offsetting my investment gains. :p
     
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  8. Trainee

    Trainee Well-Known Member

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    What if you include the growth if you had invested at 25?
     
  9. Robbo80

    Robbo80 Well-Known Member

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    3k vs 30k+ trip now. Adjusted for inflation probably not much and I wouldnt call it travelling now. It is mostly just being a tour guide/minder/body guard :)
     
  10. Robbo80

    Robbo80 Well-Known Member

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    Is it common sense or just one of the many ways one can choose to live their lives?
    Everyone has their own path.

    Money cannot buy your youth back. Building up ones character via experiences (investing in oneself) and networking through brunch/drinks/travel could yield better lifelong returns.

    For example, my cousin made some great networks in uni from hk through being a party animal basically. He decided to move over there pay crazy rent to pursue a year off work to work in a friend's bar and came across an opportunity to work in the crypto field. The rest is history.
     
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  11. datto

    datto Well-Known Member

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    Financial Independence from birth is the ideal situation.

    Otherwise, it’s gonna be a long hard struggle for most. And yep that could mean doing that European vacation at the ripe age of 50 with the family in tow. Imagine if you get smashed and also get lucky?
    What then? Do you just disappear for three days?
     
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  12. Robbo80

    Robbo80 Well-Known Member

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    Lose 50%+ of your wealth?
     
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  13. Stoffo

    Stoffo Well-Known Member

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    But what is considered the minimum wage these days ?
    The below wouldn't cover rent inner Sydney :(
    Most seem to reference the median wage, which is a skewed (likely seasonally adjusted) figure :eek:


    As of 1 July 2020 the national minimum wage is $19.84 per hour or $753.80 per week. Employees covered by an award or registered agreement are entitled to the minimum pay rates, including penalty rates and allowances in their award or agreement. These pay rates may be higher than the National Minimum Wage.
    upload_2020-11-8_11-59-9.png
    www.fairwork.gov.au › pay › mini...
    Minimum wages - Fair Work Ombudsman
     
  14. unicorntears

    unicorntears Well-Known Member

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    If they're in their 20s earning minimum wage, they're probably also living in an inner city sharehouse at $250 per week. More than enough to save a few k for an overseas holiday and the occasional smashed avo brunch. It's also worth noting that young people choose overseas holidays because it's often more cost effective than holidaying within Australia, even after flights.
     
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  15. Omnidragon

    Omnidragon Well-Known Member

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    True - not everyone wants to skimp a few dollars and watch normal tv and drive a 20 year old car. I certainly don’t do.

    Perhaps I should’ve said there should be a viable plan, and if there isn’t and you’re going broke from chasing 2 overseas trip a year, then you should replan. If you make $300k+ who cares I guess - go on 4 trips if you want.
     
  16. Angel

    Angel Well-Known Member Premium Member

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    We have spent two months overseas since turning 50. We left the kids at home to fend for themselves and house sit for us instead.
     
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  17. Angel

    Angel Well-Known Member Premium Member

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    My two sons and daughter in law are renting in a sharehouse out in the slums for $130 a week each inc electricity and wifi. They are all currently saving money each fortnight.
     
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  18. spoon

    spoon Well-Known Member

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    Need to put in an early application for my next life. Citing a disadvantaged current life hopefully will be on a priority queue. :D
     
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  19. inertia

    inertia Well-Known Member

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    We did our "gap year" at age 30. It was a very different experience than friends who went backpacking in their late teens/early 20s. Plus, my wife was doing her masters and I picked up an IT job - paying more than what I was on in Sydney. Then we came home with a bun in the oven.

    Cheers,
    Inertia.
     
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  20. datto

    datto Well-Known Member

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    Get in line.
     
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