Ten years or less to reach FI

Where are you and where are you going?
TenYearsOrLess
Posts: 28
Joined: Sun Mar 01, 2015 6:05 pm

Re: Ten years or less to reach FI

Post by TenYearsOrLess » Thu Jul 18, 2019 3:43 pm

CS wrote:
Thu Jul 11, 2019 10:07 am

As someone who has bought houses (twice), and felt trapped (twice), I don't know what to tell you. You have to live somewhere. At least a flat doesn't demand a lot of yard work and overhead for unused space. I think the best thing to do is to get your stash saved by not spending too much on consumables (furniture, clothes, etc) so you can trade that full time job as soon as possible. You could do that and keep your flat as a home base, or rent it out, or if you find some other place preferable, just sell it.
I wanted to ask you about this because no one that I know in 'real life' who owns a house and has a mortgage seems to relate to this feeling of being trapped. You say you bought a house twice and both items felt trapped - can I ask whether you have found a way to overcome this? Or have you just opted out of home ownership completely?

I'm not sure, but I think my feeling comes from having a mortgage, not the flat itself. I actually like the flat. I'm just not sure how to deal with these conflicting feelings. At the minute I'm telling myself that it's is a good long-term investment since it's in the middle of a city with a relatively high demand for rental properties and decent rental income. For some reason thinking of it like this makes me feel better about it.

CS
Posts: 387
Joined: Sat Dec 29, 2012 10:24 pm

Re: Ten years or less to reach FI

Post by CS » Fri Jul 19, 2019 11:13 am

@tenyearsorless

I agree with the trapped feeling coming from the mortgage, but also I wanted to do other things.

But also, the overhead of the house (paying for lawn mowing and snow shoveling while gone) as well as taxes and utilities in addition to the mortgage payments kept me in my old job. And I wanted to do other things. This was for 1600 square foot house in a relatively low tax area.

How have I handled this? Lol, I live in my mother's art studio while I contemplate what to do next. I have about 200 square feet, half of which I can use, plus nice porch and huge yard. I sleep on my couch, if that gives you a sense of scale. This made a lot of sense when I was traveling more than half the year for work. It was more of a storage place than a home. Now, with the superheated market & stupid cheap money I find it impossible to commit to anything but a tiny apartment and those are snatched up by flippers to put fingerprint magnet appliances in and sell for massive profit. Plus HOAs scare me. Too many jerks in the world, lol.

Don't get me wrong. I have moments that I miss my old house intensely. I want my bathtub back - the one that had a clear view of the TV in the living room. I could watch a movie soaking in luxurious hot water. Or opening the front door and sitting on the front step to enjoy the front yard. There are times I curse myself for having sold it, especially in 2013 where the market was not an easy sell. I could have paid it off by now.

But then it would still demand a lot to maintain it. A lot of mental energy, not just financial.

This carries on to other things. I also have a twenty one year old car because I don't want to financially commit to another hunk of metal that I will most likely drive 7k miles a year or less. Ironically I know exactly what car I would buy if I did so (Honda Accord sedan manual, new). The issue for me is I love my current honda, but the cost of a new one is more than I willing to commit when I have no idea where I'll be in the future. I did the math and a new accord is the cost of my honda civic in 1998 dollars. Cars are cheaper now. This surprised me. Also climate change and how stupid am I to buy a flying couch for myself, new? I have a visceral reaction of 'no' to it.

Statistically, I of the age when people shift away from material goods and more towards other priorities (early fifties). I wish I could remember where I saw that but someone on this forum probably has a good memory for it, since most likely it was here.

I'm considering land somewhere with running water and the possibility of being self-sufficient. Maybe even in some remote area. Or a gypsy lifestyle for a few years checking out other places slowly.

I have avoided any commitments for now, so that is the solution, for now: avoidance. Long term I have no idea how I'll handle it.

prognastat
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Re: Ten years or less to reach FI

Post by prognastat » Fri Jul 19, 2019 12:43 pm

I can attest that downgrading from a 1500 sq ft house with 3 bedrooms, 2.5 bathrooms and a yard to a bedroom close to work allowing me to also not have a car has for the vast majority been a massive improvement as it has nearly eliminated the vast majority of maintenance work.

Eventually i'll probably have a house again, but probably not until I'm FI and have more time to deal with the maintenance and even then I probably wouldn't go as large unless I had started a family.

TenYearsOrLess
Posts: 28
Joined: Sun Mar 01, 2015 6:05 pm

Re: Ten years or less to reach FI

Post by TenYearsOrLess » Sat Aug 03, 2019 6:01 am

Trying to get in the habit of posting more frequently to keep myself on track! On that note, it's about a week out from payday and I am currently on target to achieve a 45% savings rate this month.

Mentality wise, I'm feeling okay-ish about the flat and the mortgage. Definitely an improvement compared with a few weeks ago. I calculated my monthly interest charge for the mortgage as £463, which was initially depressing... but then I realized that it's actually cheaper than what I've spent on rent every month for the past 10 years. In fact, to rent my current flat would cost between £800 and £850 a month! So it's a win. And it's a good investment because once I build up a bit more equity there's definitely money to be made by renting it out. I am not trapped, I'm just temporarily living in my future investment vehicle to set myself up for my next stage of life.

mooretrees
Posts: 55
Joined: Sun Jan 27, 2019 1:21 pm

Re: Ten years or less to reach FI

Post by mooretrees » Sat Aug 03, 2019 7:49 am

Going from 30% to 45% so quickly has got to feel great TYOL!

I wonder if you can rent an extra room in your flat? I don't recall you saying if you have the space, but perhaps if you can stomach a roommate, that extra money will push your savings rate higher. We have a mortgage and I'm ready to jump ship on owning a home. I'm not capable of keeping it as clean or tidy as I want so I feel I'm chasing my tail trying to catch up on my days off, we have more space than we need, and it will take a lot of working years to pay it off. We have the space to rent out a room, and have someone lined up which will cut our mortgage + utilities by a third. It is worth any extra hassle to feel like big progress is being made on that front. However, not everyone is up for a roommate, but for us that is going to help a ton.

Good luck and keep posting!

Zanka
Posts: 59
Joined: Tue Aug 01, 2017 2:33 am

Re: Ten years or less to reach FI

Post by Zanka » Sat Aug 03, 2019 10:13 am

Nice read. Following :)

TenYearsOrLess
Posts: 28
Joined: Sun Mar 01, 2015 6:05 pm

Re: Ten years or less to reach FI

Post by TenYearsOrLess » Sat Aug 17, 2019 6:11 am

mooretrees wrote:
Sat Aug 03, 2019 7:49 am
Going from 30% to 45% so quickly has got to feel great TYOL!

I wonder if you can rent an extra room in your flat? I don't recall you saying if you have the space, but perhaps if you can stomach a roommate, that extra money will push your savings rate higher. We have a mortgage and I'm ready to jump ship on owning a home. I'm not capable of keeping it as clean or tidy as I want so I feel I'm chasing my tail trying to catch up on my days off, we have more space than we need, and it will take a lot of working years to pay it off. We have the space to rent out a room, and have someone lined up which will cut our mortgage + utilities by a third. It is worth any extra hassle to feel like big progress is being made on that front. However, not everyone is up for a roommate, but for us that is going to help a ton.

Good luck and keep posting!
This is a great idea and definitely something I would seriously consider had I not bought a one bedroom flat. I definitely think that if I decide to stay here long term, I will sell my flat and move to a cheaper house further out of the city with additional rooms to let out.

TenYearsOrLess
Posts: 28
Joined: Sun Mar 01, 2015 6:05 pm

Re: Ten years or less to reach FI

Post by TenYearsOrLess » Sat Aug 17, 2019 6:19 am

About a week out from payday and my spending is looking a bit crap this month. Three of my friends had birthdays this month and the presents, trips and activities have blown a hole in my budget. If I had been more organized I could have ordered better presents online, but because I left it until the last minute I ended up buying expensive generic gifts.

I've been using my own excel sheet to budget for the past few months but have decided to go back to YNAB since I find that it keeps me more accountable. It's going to be damage control for the rest of the month with no unnecessary spending.

TenYearsOrLess
Posts: 28
Joined: Sun Mar 01, 2015 6:05 pm

Re: Ten years or less to reach FI

Post by TenYearsOrLess » Sun Sep 08, 2019 5:22 am

It's annual performance review time at work. Got mine over and done with asap because these things always stress me out. It went fine though, and there were some hints at possibly taking on more senior work such as reviewing other people's work and getting involved in business development. This COULD be a sign that I'm being considered for promotion, or it could mean that I'm just going to take on more senior work this year in preparation for promotion next year. I'm trying not to get my hopes up too much because promotion would definitely come with a pay rise, although I honestly have no idea how much that would be. If there's no promotion then my pay will probably increase ~ 6% like last year, but I'll find out the exact amount in October/November time. Should also get told what my bonus will be. Looking forward to being able to put away more money each month because I feel like my savings rate is still too low currently.

YNAB is going well this month and am on track with all my budget categories. Feels good to be in control after last months spending fail.

TopHatFox
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Re: Ten years or less to reach FI

Post by TopHatFox » Mon Sep 09, 2019 2:23 am

jacob wrote:
Thu Jul 11, 2019 9:58 am
From the perspective of extremely high savings rate (75%+), I don't think "the grind" exists. First, the accumulation period is short (~5 years), so it feels more like a sprint than a marathon. This also creates more flexibility in terms of stopping and restarting. If you take time off, the savings drain will be low and if you restart, the NW quickly moves up again. Going fast, I've never felt a need to do countdowns, that is, whether it took 5 years or 6 years because I took a 1 year break (I didn't) or whether I would reach NW goals slower because I killed my income potential (I did) was not an issue because I knew that slightly slower than really fast is still fast.

I agree with this for sure. I've quit like 5-10 jobs already and have still gone from 1K to 20k to 40K to 60K to 50K to 90K and to 100K. The underlying factor? Whether I could stand a job for 3 days or a year, my expenses were anywhere from 0-7K/yr, and everything was tax optimized. It'd still be nice to find something I could do for longer than a year...

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