Your savings rate is awesome. It looks like your rent is subsidized which is great.
I was an ESL teacher in Japan , similar culture. Hopefully you're picking up the language , it will make a world of difference to learn more then just survival level Korean. I took lessons in Japanese for a small charity donation at a community centre once a week for awhile. The return on investment was very high and in many ways unexpected.
I assume there aren't any Tanzanian Vanguard funds. Is there any special tax considerations in your home country on dividends and capital gains brought in from the foreign funds? I know if I get dividends from a stock owned in certain counties they will withhold a certain % from me.
This may sound strange but you have avoided hedonic adaption marvellously through your own innate personality and your third world heritage. This is a great thing for you, having never lived in the lap of luxury like us westerners you are probably far better prepared psychologically then a typical westerner pursuing ERE.
Good luck!
Third World ERE - FI Achieved!
Re: Third World ERE
Yes, my job has a number of benefits. Rent and internet are entirely subsidized, lunches are partially subsidized, and I get half my medical and pension payments from the school.
I haven't done as well with learning Korean as I'd intended to, but I have gone beyond survival Korean in a few areas. I'm hoping to get something better set up for this next semester.
You may find it interesting that poverty can have a very negative effect on your psychological preparedness. If there's never enough money (and you'll be socially obligated to give excess to relatives) there is a tendency to view money as a temporary commodity that needs to be spent as quickly as possible. I've seen a lot of people obtain middle class lifestyles (for Tanzania) and save absolutely nothing, because they've never experienced a situation where saving is a viable strategy. There are a lot of different barriers to getting ahead long term.
I haven't done as well with learning Korean as I'd intended to, but I have gone beyond survival Korean in a few areas. I'm hoping to get something better set up for this next semester.
Yeah, I couldn't even use Vanguard's site from Tanzania, I had to set up my accounts while I moved through the US on my way to Korea. Right now, most of my money is held outside Tanzania in such a way that it's exempt, but if I ever move it back I'll face some stiff fees and taxes.BlueNote wrote:I assume there aren't any Tanzanian Vanguard funds. Is there any special tax considerations in your home country on dividends and capital gains brought in from the foreign funds? I know if I get dividends from a stock owned in certain counties they will withhold a certain % from me.
Thanks. I shouldn't understate the level of luxury I've experienced, though; I've had it very easy compared to many people.BlueNote wrote:This may sound strange but you have avoided hedonic adaption marvellously through your own innate personality and your third world heritage. This is a great thing for you, having never lived in the lap of luxury like us westerners you are probably far better prepared psychologically then a typical westerner pursuing ERE.
Good luck!
You may find it interesting that poverty can have a very negative effect on your psychological preparedness. If there's never enough money (and you'll be socially obligated to give excess to relatives) there is a tendency to view money as a temporary commodity that needs to be spent as quickly as possible. I've seen a lot of people obtain middle class lifestyles (for Tanzania) and save absolutely nothing, because they've never experienced a situation where saving is a viable strategy. There are a lot of different barriers to getting ahead long term.
Re: Third World ERE
I do find that quite interesting, thank you for educating me.Ian wrote:
You may find it interesting that poverty can have a very negative effect on your psychological preparedness. If there's never enough money (and you'll be socially obligated to give excess to relatives) there is a tendency to view money as a temporary commodity that needs to be spent as quickly as possible. I've seen a lot of people obtain middle class lifestyles (for Tanzania) and save absolutely nothing, because they've never experienced a situation where saving is a viable strategy. There are a lot of different barriers to getting ahead long term.
What are you strategies for getting ahead in the long term despite the barriers? Are you thinking of emigrating?
Social obligations are difficult to avoid, and if my family was extremely poor I would also feel obligated to share with them. I am lucky that they are in Canada and will probably never have to live near the levels of poverty experienced in other parts of the world.
Also you mentioned hyperinflation, I bet that makes people inclined to spend their money quickly as well.
Re: Third World ERE
Some of the same strategies discussed on this forum still work (that's why I'm here), they just need to be used in different ways. Of course, my advice to a young Tanzania would be completely different from a middle aged or older person, and likewise those in rural vs urban environments. The biggest barriers are actually fundamentally the same: getting people to change their views of the world and question their assumptions.BlueNote wrote:What are you strategies for getting ahead in the long term despite the barriers? Are you thinking of emigrating?
Social obligations are difficult to avoid, and if my family was extremely poor I would also feel obligated to share with them. I am lucky that they are in Canada and will probably never have to live near the levels of poverty experienced in other parts of the world.
Also you mentioned hyperinflation, I bet that makes people inclined to spend their money quickly as well.
Yes, it's very likely I won't retire in Tanzania. I believe I made reference to some of the reasons in one of the early posts of this thread. In a way this is a cop out, since it simply trades many Tanzanian problems for western ones.
The issue of social obligations is complicated, because while I do feel it's a structural problem, you need to be careful or you risk blaming people for their poverty in unfair ways. One difference between many countries and Canada is that family bonds can extend almost indefinitely, so no matter how wealth you become, there will always be more relatives that need money. It's an effective system for keeping everyone alive, but not for helping anything improve.
Hyperinflation doesn't help at all, though Tanzania hasn't had much of a problem with that compared to other countries. However, it does have a lot of currency instability, which also makes money seem more arbitrary and unreliable.
Re: Third World ERE
July 2014
Net Income: $2000.83
Food: $142.92
Gas: $4.85
Electricity: $6.39
Household: $12.78
Misc: $14.18
Total Expenses: $181.12
Saved: $1819.71
I spent almost twice what I did last month; I am ashamed of my insane shopping spree. Kidding, of course, since I actually expected higher after such a low month. I feel positively about the money I spent and I'm still on track for my goals this year. It may have actually found a way to get better food for less; we'll see how things work out over the coming months.
This month I've begun research on real estate investing. I'd like to diversify into that perhaps as early as 2015, so the plan for now is to learn what I can while gathering cash reserves. I know many people think turnkey companies take too much, but they seem like the right level of passivity for my time and interest right now, so that's where I'll start.
Net Income: $2000.83
Food: $142.92
Gas: $4.85
Electricity: $6.39
Household: $12.78
Misc: $14.18
Total Expenses: $181.12
Saved: $1819.71
I spent almost twice what I did last month; I am ashamed of my insane shopping spree. Kidding, of course, since I actually expected higher after such a low month. I feel positively about the money I spent and I'm still on track for my goals this year. It may have actually found a way to get better food for less; we'll see how things work out over the coming months.
This month I've begun research on real estate investing. I'd like to diversify into that perhaps as early as 2015, so the plan for now is to learn what I can while gathering cash reserves. I know many people think turnkey companies take too much, but they seem like the right level of passivity for my time and interest right now, so that's where I'll start.
Re: Third World ERE
This journal has officially been around for a full year of expenses, as of this month:
August 2014
Net Income: $3909.10
Food: $81.77
Gas: $4.84
Electricity: $6.33
Household: $0.91
Phone: $9.09
Misc: $1.82
Visa Fees: $54.55
Total Expenses: $159.31
Saved: $3749.79
Though I had to pay additional fees in order to renew my work visa, their effect on my savings rate was canceled out by the bonus I got for renewing. I didn't think things would line up that nicely, but my coworkers put everything off until the last second, like usual. But that's done and so I'm here through August 2015.
While it has been interesting to track my monthly expenses and I'll continue doing so, I'm going to stop reporting them here. Part of what appeals to me about FI is being able to ignore money to some degree and so I'm going to shift toward that. That means this journal will cover more general thoughts instead of the numbers.
In a few days I'll calculate my total yearly expenses and make some projections. After that, I have some new thoughts on my job here and what the future might hold.
August 2014
Net Income: $3909.10
Food: $81.77
Gas: $4.84
Electricity: $6.33
Household: $0.91
Phone: $9.09
Misc: $1.82
Visa Fees: $54.55
Total Expenses: $159.31
Saved: $3749.79
Though I had to pay additional fees in order to renew my work visa, their effect on my savings rate was canceled out by the bonus I got for renewing. I didn't think things would line up that nicely, but my coworkers put everything off until the last second, like usual. But that's done and so I'm here through August 2015.
While it has been interesting to track my monthly expenses and I'll continue doing so, I'm going to stop reporting them here. Part of what appeals to me about FI is being able to ignore money to some degree and so I'm going to shift toward that. That means this journal will cover more general thoughts instead of the numbers.
In a few days I'll calculate my total yearly expenses and make some projections. After that, I have some new thoughts on my job here and what the future might hold.
Re: Third World ERE
Big Picture Time
During my first twelve months in Korea, I spent a little over $3200. That includes an unusually expensive first month as I got established (actually a month and a half compiled into one for the sake of simplicity). If we recalculate with a worse exchange rate that brings expenses to $3500. I'll throw in creative expenses (even though I made that money back) and round up a bunch to bring me to an even $4000.
That seems like enough hedging that I'm confident my core yearly expenses shouldn't rise too much over that. That means I'd need about 130k at 3%, though my returns are much better than that. At my current rate of savings, it would take me three years to get to this point. Unless I've miscalculated, that's pretty secure, so the big issues are...
Housing and Health Insurance
Since my FI number is 130k + housing + health insurance, the real puzzle now is figuring out those latter two. Health insurance is an ugly asterisk on any attempts to plan for the future because it's such a volatile issue. While the US seems like a good location for stability and investments, the political controversy makes this highly uncertain. Right now I'd be subsidized by the government, but I don't know if that's sustainable and I certainly won't be planning based on having it.
Housing is a much more complicated question because there are so many options. Renting seems like the only one I can dismiss out of hand, since it would easily become the majority of my expenses. There are a variety of cheap options for buying/building a house (it's not out of the question that I'd buy land and build a cob or strawbale house myself) but I'm not really at a point where I can begin calculating this.
So really, little has changed. I am still in the capital accumulation phase, not looking toward FI any time soon (by the standards of this forum, anyway). I'll put together my thoughts about how I'll get there in another post.
During my first twelve months in Korea, I spent a little over $3200. That includes an unusually expensive first month as I got established (actually a month and a half compiled into one for the sake of simplicity). If we recalculate with a worse exchange rate that brings expenses to $3500. I'll throw in creative expenses (even though I made that money back) and round up a bunch to bring me to an even $4000.
That seems like enough hedging that I'm confident my core yearly expenses shouldn't rise too much over that. That means I'd need about 130k at 3%, though my returns are much better than that. At my current rate of savings, it would take me three years to get to this point. Unless I've miscalculated, that's pretty secure, so the big issues are...
Housing and Health Insurance
Since my FI number is 130k + housing + health insurance, the real puzzle now is figuring out those latter two. Health insurance is an ugly asterisk on any attempts to plan for the future because it's such a volatile issue. While the US seems like a good location for stability and investments, the political controversy makes this highly uncertain. Right now I'd be subsidized by the government, but I don't know if that's sustainable and I certainly won't be planning based on having it.
Housing is a much more complicated question because there are so many options. Renting seems like the only one I can dismiss out of hand, since it would easily become the majority of my expenses. There are a variety of cheap options for buying/building a house (it's not out of the question that I'd buy land and build a cob or strawbale house myself) but I'm not really at a point where I can begin calculating this.
So really, little has changed. I am still in the capital accumulation phase, not looking toward FI any time soon (by the standards of this forum, anyway). I'll put together my thoughts about how I'll get there in another post.
-
TheFrugalFox
- Posts: 22
- Joined: Sun May 25, 2014 9:23 am
- Location: South Africa
- Contact:
Re: Third World ERE
Great journal. Quite a few similarities as I live in South Africa - but lived in the UK while in my twenties. Saving a first world salary while planning to retire in a third world country certain made it easier to save knowing what you could get "back home".
BTW, been back in SA for 10 years now and do not regret it at all. That said, we probably only a couple of votes away from a despot, so who knows!
BTW, been back in SA for 10 years now and do not regret it at all. That said, we probably only a couple of votes away from a despot, so who knows!
Re: Third World ERE
From Here to FI
I'm not sure what this path is going to look like. It certainly won't be working full time, not unless I have an incredible offer. I realize that locks away a lot of the high salary positions people here have, but even half time feels like it sucks up an enormous amount of my life. Spending more years working less than that is a tradeoff I'm happy to make.
I have mixed feelings about continuing to teach here in Korea. After the end of this contract, my tax exemption runs out and that will likely eliminate the raise I get going into my third year. There would be another raise two years after that, but then I'd have maxed out the payscale. The top bracket is 35 million won per year, or about 31k USD. Probably more like 27k after taxes, 23k saved after expenses.
While that feels poor to me, I try to keep in mind just how easy my job really is. I calculated my actual working hours for the previous semester and the total was... low. While writing this it occurred to me to estimate my hourly wage and I was surprised by how good the results were.
However, there are negatives. The biggest one is that the new freshman class is horrible. That's not just my impression - I've seen their grades for all classes and talked to the other teachers. This can take a bit of a toll on me at times.
On the other hand, we'll see how things change after this semester. My worst co-teacher will retire and I'll get to see another freshman class that might not be so awful. While a third contract would mean I have to put up with these freshmen for two solid years, I'd finally have a full curriculum and cut down my working time further by reducing planning time.
I've seriously considered other options: teaching in the Middle East can be more lucrative and trying to get into an elite or international school would give me more meaningful teaching work. However, it's unlikely that I could find a position in either that would be as laid back as this school, so my hourly wage might actually go down while stress and time sacrificed would increase.
There's another unknown variable that could change my timeline: all of my creative pursuits. But I'll have to wait to type those up another day.
I'm not sure what this path is going to look like. It certainly won't be working full time, not unless I have an incredible offer. I realize that locks away a lot of the high salary positions people here have, but even half time feels like it sucks up an enormous amount of my life. Spending more years working less than that is a tradeoff I'm happy to make.
I have mixed feelings about continuing to teach here in Korea. After the end of this contract, my tax exemption runs out and that will likely eliminate the raise I get going into my third year. There would be another raise two years after that, but then I'd have maxed out the payscale. The top bracket is 35 million won per year, or about 31k USD. Probably more like 27k after taxes, 23k saved after expenses.
While that feels poor to me, I try to keep in mind just how easy my job really is. I calculated my actual working hours for the previous semester and the total was... low. While writing this it occurred to me to estimate my hourly wage and I was surprised by how good the results were.
However, there are negatives. The biggest one is that the new freshman class is horrible. That's not just my impression - I've seen their grades for all classes and talked to the other teachers. This can take a bit of a toll on me at times.
On the other hand, we'll see how things change after this semester. My worst co-teacher will retire and I'll get to see another freshman class that might not be so awful. While a third contract would mean I have to put up with these freshmen for two solid years, I'd finally have a full curriculum and cut down my working time further by reducing planning time.
I've seriously considered other options: teaching in the Middle East can be more lucrative and trying to get into an elite or international school would give me more meaningful teaching work. However, it's unlikely that I could find a position in either that would be as laid back as this school, so my hourly wage might actually go down while stress and time sacrificed would increase.
There's another unknown variable that could change my timeline: all of my creative pursuits. But I'll have to wait to type those up another day.
I know the feeling. There's instability anywhere, but some countries have a lot more reason to be nervous about it than others.TheFrugalFox wrote:Great journal. Quite a few similarities as I live in South Africa - but lived in the UK while in my twenties. Saving a first world salary while planning to retire in a third world country certain made it easier to save knowing what you could get "back home".
BTW, been back in SA for 10 years now and do not regret it at all. That said, we probably only a couple of votes away from a despot, so who knows!
Re: Third World ERE
Vacations
I took my first non-subsidized vacation in Korea over the long holiday weekend. My part of the bill was a total of $121.95 - more than I'm used to spending, but not bad compared to the average holiday. I note that over half of that amount was due to hotel and bus costs on the days we couldn't stay at someone's apartment. Just using public transportation to get around to all the places we actually wanted to visit was remarkably cheap, but the incidental costs sure add up fast.
My next vacation will be over winter break, sometime in December-February depending on my schedule. I'll try to roll what I learned from this experience into the next one and see how much I can get out of Jeju Island without wasting money.
Winter may be my last real vacation opportunity, because I'm looking toward...
The End of My Time In Korea
Multiple factors are aligning that make staying in Korea after the end of my current contract less attractive. As I detailed above, I'll lose my tax exemption. But more importantly, I've discovered that there's a little-advertised policy that may mean I would be moved from my current school if I decided to sign a third contract.
Considering that a large part of the appeal of my current job is specifically related to my current school, that would be a bad deal. Especially if I have little control or information about where I'd be headed next contract. Knowing that I can't keep my present low key position makes traditional job hunting a more attractive option.
That choice wouldn't be without its own downsides, however. There are also a lot of other variables involved. But I won't get into those, because this decision will be made early 2015 at the soonest.
I took my first non-subsidized vacation in Korea over the long holiday weekend. My part of the bill was a total of $121.95 - more than I'm used to spending, but not bad compared to the average holiday. I note that over half of that amount was due to hotel and bus costs on the days we couldn't stay at someone's apartment. Just using public transportation to get around to all the places we actually wanted to visit was remarkably cheap, but the incidental costs sure add up fast.
My next vacation will be over winter break, sometime in December-February depending on my schedule. I'll try to roll what I learned from this experience into the next one and see how much I can get out of Jeju Island without wasting money.
Winter may be my last real vacation opportunity, because I'm looking toward...
The End of My Time In Korea
Multiple factors are aligning that make staying in Korea after the end of my current contract less attractive. As I detailed above, I'll lose my tax exemption. But more importantly, I've discovered that there's a little-advertised policy that may mean I would be moved from my current school if I decided to sign a third contract.
Considering that a large part of the appeal of my current job is specifically related to my current school, that would be a bad deal. Especially if I have little control or information about where I'd be headed next contract. Knowing that I can't keep my present low key position makes traditional job hunting a more attractive option.
That choice wouldn't be without its own downsides, however. There are also a lot of other variables involved. But I won't get into those, because this decision will be made early 2015 at the soonest.
Re: Third World ERE
Phones
When I arrived, I made the choice to go with a used, prepaid service phone. I've wondered several times if that might have been a case of being cheap instead of frugal, but today an issue was resolved and I have some more perspective.
One of the major objections is running out of credit, but I have far more than I need. The cheapest PPS plan was definitely the right choice.
Recently, however, the screen on my phone died. It still received calls fine, and I could call numbers I'd memorized, but that's obviously less than ideal. Fortunately, there's some kind of freecycle program my coworkers knew about that got me another used phone for free.
It's actually an upgrade, though the main features that concern me are "functioning screen" and "adequate phone for a few years."
Buying a new but low end phone would not have been a terrible choice either, though. That's likely what I'll do when I end up at a more permanent location. But so far, used has been working very well for me.
When I arrived, I made the choice to go with a used, prepaid service phone. I've wondered several times if that might have been a case of being cheap instead of frugal, but today an issue was resolved and I have some more perspective.
One of the major objections is running out of credit, but I have far more than I need. The cheapest PPS plan was definitely the right choice.
Recently, however, the screen on my phone died. It still received calls fine, and I could call numbers I'd memorized, but that's obviously less than ideal. Fortunately, there's some kind of freecycle program my coworkers knew about that got me another used phone for free.
It's actually an upgrade, though the main features that concern me are "functioning screen" and "adequate phone for a few years."
Buying a new but low end phone would not have been a terrible choice either, though. That's likely what I'll do when I end up at a more permanent location. But so far, used has been working very well for me.
Re: Third World ERE
It's unsurprising that I've let this thread lapse, since I've never been much of a journaling person. I don't like abandoning things completely, however, and I don't want to leave the impression that this financial lifestyle can't work. So I'll be back for occasional updates.
Looking back over 2014, my expenses were substantially below my previous estimate of yearly expenses. My savings rate varied month to month, but overall I was well over 90%. That's not much on my salary, but my net worth increased to about 60k.
A lot of that is in cash right now, as I'm gathering capital for a hypothetical real estate investment (probably via turnkey). That will balance my current equities somewhat, plus any decent property provides a fairly solid return. Compared to my yearly expenses, even one modest rent could significantly change the FI timeline.
It's hard to judge how my other pursuits are going. Nothing I wrote this year was a breakout hit, but I made more money than in previous years. My Kickstarter and game had a solid start and I'm ranked in the top 25 games on Steam Greenlight, but it hasn't reached the store yet. It's very difficult to predict how either of those things will progress next year, but I think there are at least a few signs these side gigs will grow.
Looking back over 2014, my expenses were substantially below my previous estimate of yearly expenses. My savings rate varied month to month, but overall I was well over 90%. That's not much on my salary, but my net worth increased to about 60k.
A lot of that is in cash right now, as I'm gathering capital for a hypothetical real estate investment (probably via turnkey). That will balance my current equities somewhat, plus any decent property provides a fairly solid return. Compared to my yearly expenses, even one modest rent could significantly change the FI timeline.
It's hard to judge how my other pursuits are going. Nothing I wrote this year was a breakout hit, but I made more money than in previous years. My Kickstarter and game had a solid start and I'm ranked in the top 25 games on Steam Greenlight, but it hasn't reached the store yet. It's very difficult to predict how either of those things will progress next year, but I think there are at least a few signs these side gigs will grow.
-
Rural Kiwi
- Posts: 19
- Joined: Sat Dec 27, 2014 8:36 pm
Re: Third World ERE
I really enjoyed reading your journal Ian, impressive numbers and interesting thoughts 
Re: Third World ERE
2015 Update #1
I thought I was going to end up updating this yearly, but it looks like I'm here for a mid-year update. It could be interesting to get a snapshot of the situation now, because by the end of the year I'll have significantly more perspective on a number of issues.
Expense-wise, there's little to report. I'm lower than my base predictions but not as low as last year - though I expect to be reimbursed for certain expenses later. We'll see if I can keep them at this level under different conditions, because unfortunately my current comfortable situation is coming to an end.
Due to changes to the program, I will not be renewing my contract in August. 70% of positions are being cut, so I would have to fight tooth and nail just to get a job that would be inferior to my present one (potentially substantially so, depending on variables I wouldn't learn until after the contract signing). I decided that if I had to break the status quo, I may as well try something with more known positives.
Through August I'll keep saving. At the end of my term I'll get a solid bit of pension and severance. I have lodging planned for several months after that, as well as part time work that should at least let me break even for that period.
After that, I'll be applying for a position teaching in Saudi Arabia. They offered me the job this semester, but the contract overlapped with my present one. Applying in November isn't a sure thing, but it feels like a reasonably plausible option.
I'm beginning to consider, however, if I want to take the position at all. The reason is that since my last update, my income from creative work has risen substantially. Not as high as my teaching salary, but higher than my expenses. This is encouraging, but I'll remain cynical until I see how sustainable the numbers are.
Since I last posted in this thread, Cubicle Quest made it onto Steam. Even for a niche retro RPG, the platform drives sales. So far I've seen the biggest surges when the game goes on sale (which I can set every other month), but it remains to be seen how long this residual income will last. If I had the creative team to do another game, I'd unquestionably try it, but for now I'm setting this aside.
Writing has actually been providing the majority of my creative income. I've used the copious free time at this job to enter a period of reckless creativity, attempting a large number of projects and seeing what stuck. Some are still trickling income, but one is showing significant potential. If I maintain anything like the current rate of acceleration, things will look very different by the end of the year.
I'm leery of attempting to live on creative income too soon, but I'm also reaching the point where taking a job could cripple creative profits. It's an unfortunate tension, which is why I'm glad I have six more months to watch the trends. As of right now, my plan is to reapply for the Saudi Arabia position, just to be especially sure. Provided I can maintain creative work, at the end of a yearly contract there my financial position would be far more secure.
I thought I was going to end up updating this yearly, but it looks like I'm here for a mid-year update. It could be interesting to get a snapshot of the situation now, because by the end of the year I'll have significantly more perspective on a number of issues.
Expense-wise, there's little to report. I'm lower than my base predictions but not as low as last year - though I expect to be reimbursed for certain expenses later. We'll see if I can keep them at this level under different conditions, because unfortunately my current comfortable situation is coming to an end.
Due to changes to the program, I will not be renewing my contract in August. 70% of positions are being cut, so I would have to fight tooth and nail just to get a job that would be inferior to my present one (potentially substantially so, depending on variables I wouldn't learn until after the contract signing). I decided that if I had to break the status quo, I may as well try something with more known positives.
Through August I'll keep saving. At the end of my term I'll get a solid bit of pension and severance. I have lodging planned for several months after that, as well as part time work that should at least let me break even for that period.
After that, I'll be applying for a position teaching in Saudi Arabia. They offered me the job this semester, but the contract overlapped with my present one. Applying in November isn't a sure thing, but it feels like a reasonably plausible option.
I'm beginning to consider, however, if I want to take the position at all. The reason is that since my last update, my income from creative work has risen substantially. Not as high as my teaching salary, but higher than my expenses. This is encouraging, but I'll remain cynical until I see how sustainable the numbers are.
Since I last posted in this thread, Cubicle Quest made it onto Steam. Even for a niche retro RPG, the platform drives sales. So far I've seen the biggest surges when the game goes on sale (which I can set every other month), but it remains to be seen how long this residual income will last. If I had the creative team to do another game, I'd unquestionably try it, but for now I'm setting this aside.
Writing has actually been providing the majority of my creative income. I've used the copious free time at this job to enter a period of reckless creativity, attempting a large number of projects and seeing what stuck. Some are still trickling income, but one is showing significant potential. If I maintain anything like the current rate of acceleration, things will look very different by the end of the year.
I'm leery of attempting to live on creative income too soon, but I'm also reaching the point where taking a job could cripple creative profits. It's an unfortunate tension, which is why I'm glad I have six more months to watch the trends. As of right now, my plan is to reapply for the Saudi Arabia position, just to be especially sure. Provided I can maintain creative work, at the end of a yearly contract there my financial position would be far more secure.
-
jennypenny
- Posts: 6856
- Joined: Sun Jul 03, 2011 2:20 pm
Re: Third World ERE
Would living in Saudi Arabia limit your writing? Does the government limit access or content or subject matter at all for expats? I have no idea -- just wondering.
Not that my opinion is worth much, but your writing is good. Are you a member of a writing group where you get constructive feedback? That might help, especially if there are members with experience in your targeted genre. (I mean a small group, not a large, online group.)
Not that my opinion is worth much, but your writing is good. Are you a member of a writing group where you get constructive feedback? That might help, especially if there are members with experience in your targeted genre. (I mean a small group, not a large, online group.)
Re: Third World ERE
What would the visa situation be? Would you have to leave Korea?
I think that the whole point of your savings is that you now have the freedom to make a play like this where you see what happens with your writing since you're already getting an income from that, AND it's at the level where it covers your expenses. Definitely a no brainer.
I think that the whole point of your savings is that you now have the freedom to make a play like this where you see what happens with your writing since you're already getting an income from that, AND it's at the level where it covers your expenses. Definitely a no brainer.
Re: Third World ERE
This was one of my primary concerns, but a teacher currently working there says they have unlimited internet access.jennypenny wrote:Would living in Saudi Arabia limit your writing? Does the government limit access or content or subject matter at all for expats? I have no idea -- just wondering.
I'm a member of some online writing groups, but haven't found any in Korea.jennypenny wrote:Not that my opinion is worth much, but your writing is good. Are you a member of a writing group where you get constructive feedback? That might help, especially if there are members with experience in your targeted genre. (I mean a small group, not a large, online group.)
My visa is tied to my job - while I could try to transition to a different visa, I don't think it would be worth the trouble. It's unlikely I could find a job any better than those I can get elsewhere and staying will make pension/severance collection more difficult (also, my tax exemption in Korea will expire at the end of this contract, cutting any future salary by 18%).JamesR wrote:What would the visa situation be? Would you have to leave Korea?
I'll continue monitoring creative revenue and we'll see how I feel when I have to make that choice. Ideally I would have liked to reach my bare minimum FI point during my last normal job and then coast to a better safety margin on creative income, but creative income has risen too fast for that scenario. There are worse problems to have, certainly.JamesR wrote:I think that the whole point of your savings is that you now have the freedom to make a play like this where you see what happens with your writing since you're already getting an income from that, AND it's at the level where it covers your expenses. Definitely a no brainer.
-
jacob
- Site Admin
- Posts: 15980
- Joined: Fri Jun 28, 2013 8:38 pm
- Location: USA, Zone 5b, Koppen Dfa, Elev. 620ft, Walkscore 77
- Contact:
Re: Third World ERE
They certainly limit some kinds of writing:jennypenny wrote:Would living in Saudi Arabia limit your writing? Does the government limit access or content or subject matter at all for expats? I have no idea -- just wondering.
http://www.theguardian.com/world/2015/j ... hes-friday
You can also lose your head for practising sorcery:
http://www.theatlantic.com/internationa ... ft/278701/
Out of the 100 or so people beheaded in SA this year so far, about half were foreigners so I don't think there's any international lenience.
Re: Third World ERE
2015 Update #2
Time for another snapshot update, since this is another potential turning point. I finished my job as planned and I'm now in my interim situation. I'm not sure how long I want to stay here, but it's a good option while I watch my creative income to see how it will hold up long term. I also need to acquire more data on rent, medical insurance, and self-employment taxes to see how real income compares to expenses.
But generally speaking, it's looking like creative income will exceed expenses. I'm at a point where a less cautious person might want to go professional, but I'll hold back to keep saving and see. Some of my forms of income are potentially fragile - Amazon, for example, has occasionally made changes that slash the income of some authors. Steam, meanwhile, is proving profitable but unreliable.
I don't have to make any choices about going to Saudi Arabia (or getting another job) for a while, so I'm staying the course. I have two accelerating projects now, plus scattered residual income from others. If current trends continue, I'll be in a very different situation overall in 2016. We'll see.
Time for another snapshot update, since this is another potential turning point. I finished my job as planned and I'm now in my interim situation. I'm not sure how long I want to stay here, but it's a good option while I watch my creative income to see how it will hold up long term. I also need to acquire more data on rent, medical insurance, and self-employment taxes to see how real income compares to expenses.
But generally speaking, it's looking like creative income will exceed expenses. I'm at a point where a less cautious person might want to go professional, but I'll hold back to keep saving and see. Some of my forms of income are potentially fragile - Amazon, for example, has occasionally made changes that slash the income of some authors. Steam, meanwhile, is proving profitable but unreliable.
I don't have to make any choices about going to Saudi Arabia (or getting another job) for a while, so I'm staying the course. I have two accelerating projects now, plus scattered residual income from others. If current trends continue, I'll be in a very different situation overall in 2016. We'll see.
Re: Third World ERE
2016 Update
So, I have a new status quo. I decided not to take the job in Saudi Arabia or anywhere else: I'm living off of creative income for now. I'm fairly close to family, however, so my living costs are a little lower than they would be normally.
How long I'll stay in this situation, I can't be sure. It will depend on if my creative income crashes, plateaus, or keeps accelerating. There were some uncertain points earlier in 2016, but they didn't impact my bottom line and things look stable and positive overall. I'll be saving the majority of it regardless, of course.
I've been moving more of my savings into investments, and my quarterly dividends have increased accordingly. If I reach a point where my returns exceed minimum annual expenses, I'll consider using some of my monthly income to upgrade my living conditions from "good" to "ideal" - but it's hard to say when that would happen. I could have a strange variant of "one more year" syndrome, but that's an enviable problem to have, so I'm not complaining.
The major potential roadblock to my long term plans would be one of my core sources of income shutting down completely. I am attempting to move in a direction of having more projects in different stores, thus reducing my reliance on any given source of income.
This will be a slow process, however, and may not show solid results for some time. Expect another update in a year or so.
So, I have a new status quo. I decided not to take the job in Saudi Arabia or anywhere else: I'm living off of creative income for now. I'm fairly close to family, however, so my living costs are a little lower than they would be normally.
How long I'll stay in this situation, I can't be sure. It will depend on if my creative income crashes, plateaus, or keeps accelerating. There were some uncertain points earlier in 2016, but they didn't impact my bottom line and things look stable and positive overall. I'll be saving the majority of it regardless, of course.
I've been moving more of my savings into investments, and my quarterly dividends have increased accordingly. If I reach a point where my returns exceed minimum annual expenses, I'll consider using some of my monthly income to upgrade my living conditions from "good" to "ideal" - but it's hard to say when that would happen. I could have a strange variant of "one more year" syndrome, but that's an enviable problem to have, so I'm not complaining.
The major potential roadblock to my long term plans would be one of my core sources of income shutting down completely. I am attempting to move in a direction of having more projects in different stores, thus reducing my reliance on any given source of income.
This will be a slow process, however, and may not show solid results for some time. Expect another update in a year or so.