This post: http://earlyretirementextreme.com/a-pla ... at-35.html; plan to financial independence was on the main page a few days ago and i instantly liked it because i'm a little ahead and am going at about the same rate.
So, i looked at rachels website and see that she hadn't put up a post of where she is to becoming fi since 2011 and she wasn't fi then. so, i don't know if she quit, got sidetracked or what but i wanted to urge those that have gotten complacent or decided they really wanted things that smell and look new to not give up !
it is so worth becoming FI. the freedom that being FI gives you is worth the effort !
you have to remember it's your life and you'll only get one shot; so get those thoughts of keeping up with the jones out of your mind ! the jones do not care if you're keeping up with them, but every time you throw hundreds of dollars out the window each month that you could be piling up so you can do whatever you want at 50 or 40 or 30 is much more worth it !
you just gotta keep running the race for you !
to keep up the pace and increase it, watch it every month, heck every paycheck ! if you are saving 50% just in a savings account; it'll start going up like a rocket !
use something like a line chart and you'll see in 6 months that you are really moving to permanent freedom !
then just start counting down the months until you become FI and when you get there it's like a weight has been lifted !
even if you keep working, when you go to work; you know you can walk away from anything, any overbearing boss or coworkers or job and stand on the street corner in your robe and watch the world have to go to work to pay for all their debts they believe they have to have.
but not you, you're different; you placed out of the consumer trap and gained your life !
I challenge you to become FI, its worth all your efforts !
Re: I challenge you to become FI, its worth all your efforts !
Thank you for these uplifting words. When in the midst of this journey, things like this are so helpful.
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IlliniDave
- Posts: 3872
- Joined: Wed Apr 02, 2014 7:46 pm
Re: I challenge you to become FI, its worth all your efforts !
For me the most important thing was having something for which achieving FI was just a means to an end. Also for me FI was not a crisp moment, rather it came in degrees. Can I survive without employment? Can I have a generally content lifestyle without employment? Can I have the freedom to really do what I want to do without employment? Hitting that third level is where I went from thinking of it as tentative FI to FI. I don't know if it is a requirement, but I watched it transaction-by-transaction. That doesn't mean I always made the most frugal choice possible, I strove for balance, but the FI journey was a constant consideration.
FI is launching me from a pretty decent life all things considered. It's an endeavor where you really should do the work to reach an understanding of where you want to go. And it's a grind, no question. I didn't have the big moment of elation striding across the finish line as we all probably imagine. But once I had a plan and a track record of sticking with it, knowing I was going to get there, a lot of concerns my friends, neighbors, and colleagues juggled gradually melted away. It seems like it was worth it, but I'll be better able to judge that a few years down the road.
FI is launching me from a pretty decent life all things considered. It's an endeavor where you really should do the work to reach an understanding of where you want to go. And it's a grind, no question. I didn't have the big moment of elation striding across the finish line as we all probably imagine. But once I had a plan and a track record of sticking with it, knowing I was going to get there, a lot of concerns my friends, neighbors, and colleagues juggled gradually melted away. It seems like it was worth it, but I'll be better able to judge that a few years down the road.
Re: I challenge you to become FI, its worth all your efforts !
I remember Rachael from the old days...hope she is doing ok
Re: I challenge you to become FI, its worth all your efforts !
@IlliniDave
Yeah I sort of see FI in this manner. Degrees of FI....Several ways to look at this from the low of I could take a few months off to a few years off to being eventually in a situation where money can grow and outpace expenses - keeping one forever away from having to work for money.
For instance, right now I am at this degree of FI: If I got fired and lost my job. Unemployment Insurance + 4% of my investments right now > Current Spending. I call it "if I got fired the world would not be over FI." Or short, UnEmploymentFI (UFI). In fact...I could almost even play the long game on unemployment and with careful spending and if I kept my withdrawal rate low enough, I might even see my net-worth grow during this period.
Full FI would be if I didn't have to rely on unemployment insurance. It would just be 3-4% of my net-worth including whatever options premiums I could gather with super safe bets (covered calls far OTM).
Speaking of degrees of FI - the # required is the subjective part obviously. Some members on this board could take my networth right now ($437k) and be done. I'll have to see their journals - would be curious to see who is getting expenses this low with kids as I have one. I think this is where the Wheaton Levels come in. Improving ones level decreases this required amount.
Getting to the next Wheaton Level for me is the challenge. It is not a logical barrier but a mental one. How to break these mental barriers? The ERE book touches this briefly when it speaks of behavior. Under the section of "Barriers to Change" - Vision, Practicality, and Dissatisfaction. Speaking of practicality - I have these conversations with my Spouse. The thing is like with people, anyone 2 levels + away is "crazy." Or is it 3, I can't remember? Either way if both partners are same Wheaton level - Awesome (this may even include teenagers possibly, I am not sure). One levels +/-, early retirement can be done with maturity and compromise. One Spouse is done, the other may choose to keep working. 2+ levels, now we're looking at partner conflict.
Yeah I sort of see FI in this manner. Degrees of FI....Several ways to look at this from the low of I could take a few months off to a few years off to being eventually in a situation where money can grow and outpace expenses - keeping one forever away from having to work for money.
For instance, right now I am at this degree of FI: If I got fired and lost my job. Unemployment Insurance + 4% of my investments right now > Current Spending. I call it "if I got fired the world would not be over FI." Or short, UnEmploymentFI (UFI). In fact...I could almost even play the long game on unemployment and with careful spending and if I kept my withdrawal rate low enough, I might even see my net-worth grow during this period.
Full FI would be if I didn't have to rely on unemployment insurance. It would just be 3-4% of my net-worth including whatever options premiums I could gather with super safe bets (covered calls far OTM).
Speaking of degrees of FI - the # required is the subjective part obviously. Some members on this board could take my networth right now ($437k) and be done. I'll have to see their journals - would be curious to see who is getting expenses this low with kids as I have one. I think this is where the Wheaton Levels come in. Improving ones level decreases this required amount.
Getting to the next Wheaton Level for me is the challenge. It is not a logical barrier but a mental one. How to break these mental barriers? The ERE book touches this briefly when it speaks of behavior. Under the section of "Barriers to Change" - Vision, Practicality, and Dissatisfaction. Speaking of practicality - I have these conversations with my Spouse. The thing is like with people, anyone 2 levels + away is "crazy." Or is it 3, I can't remember? Either way if both partners are same Wheaton level - Awesome (this may even include teenagers possibly, I am not sure). One levels +/-, early retirement can be done with maturity and compromise. One Spouse is done, the other may choose to keep working. 2+ levels, now we're looking at partner conflict.
Re: I challenge you to become FI, its worth all your efforts !
I would take your NW and be done Lemur -- but then again I've got no kids.
As for teenagers and wheaton levels -- they may be at the same level as you but 1. you have to praise them for it and let them know you admire their thriftiness, and 2. they need to be saving for themselves, not for you. 2 works for you as a parent anyway - it imparts the lesson that as long as they're thrifty, they'll benefit.
As for teenagers and wheaton levels -- they may be at the same level as you but 1. you have to praise them for it and let them know you admire their thriftiness, and 2. they need to be saving for themselves, not for you. 2 works for you as a parent anyway - it imparts the lesson that as long as they're thrifty, they'll benefit.
Re: I challenge you to become FI, its worth all your efforts !
Thanks @ertyu
Seeing the range of possibilities (like in the journals) in motivating in itself. It opens up what one thinks is possible.
With kids - the parents are the enablers for sure. By themselves, they don't spend money at the end of the day until they're working for themselves. And at that point, that is their money. They can enjoy the fruits of their labor. Unless one is not in this privileged situation where the young adult is required to pitch in on expenses to keep the family afloat. Thankfully, I'll never have to require this of my son but when I was growing up, we had to pitch in for bills. In hindsight, if my parents controlled expenses, this may have not been required but it is what it is.
Additionally with kids - a lot of different lifestyle choices come in to play such as housing, transportation, schooling, hobbies, activities. Again, on the parents...these have a range of prices from free/cheap to very expensive. Public education with the standard books / supplies or expensive private education. Hobbies and activities .... what if your kid has aspiring musical talents or computer hobbies that you would like to mold/enable for growth or other reasons?
This is a choice on the parents that can be difficult for some. My son is not old enough for these requests yet but I am trying to think in theory how I would handle these situations. There is an age where they can't work yet and need your help. I think if my son were older, I would have to encourage one to work to purchase ones hobbies...with emphasis on doing so without getting into debt and still saving cash aside. I like the easy advice here - "Son, do whatever you want, but don't get into debt and try to save 50% of your income in a growing asset." Just that lesson alone can go far...and the kid can see that likely.
Seeing the range of possibilities (like in the journals) in motivating in itself. It opens up what one thinks is possible.
With kids - the parents are the enablers for sure. By themselves, they don't spend money at the end of the day until they're working for themselves. And at that point, that is their money. They can enjoy the fruits of their labor. Unless one is not in this privileged situation where the young adult is required to pitch in on expenses to keep the family afloat. Thankfully, I'll never have to require this of my son but when I was growing up, we had to pitch in for bills. In hindsight, if my parents controlled expenses, this may have not been required but it is what it is.
Additionally with kids - a lot of different lifestyle choices come in to play such as housing, transportation, schooling, hobbies, activities. Again, on the parents...these have a range of prices from free/cheap to very expensive. Public education with the standard books / supplies or expensive private education. Hobbies and activities .... what if your kid has aspiring musical talents or computer hobbies that you would like to mold/enable for growth or other reasons?
This is a choice on the parents that can be difficult for some. My son is not old enough for these requests yet but I am trying to think in theory how I would handle these situations. There is an age where they can't work yet and need your help. I think if my son were older, I would have to encourage one to work to purchase ones hobbies...with emphasis on doing so without getting into debt and still saving cash aside. I like the easy advice here - "Son, do whatever you want, but don't get into debt and try to save 50% of your income in a growing asset." Just that lesson alone can go far...and the kid can see that likely.