Hi Jacob,
Recently I found your blog and it's very informative. To retire means
not much to me but to be financial free that is a big deal. I wanna
have enough money to support myself so that I can do what I like (eg.
volunteering job) but not what I have to. Hence, I've been saving
since the first pay check back 10 years ago. Overall, I tend to save
70% of my gross income.
Since you seem very knowlegeable in that field, I'd appreciate if you
may give me some advice on how long would it take for me to be truly
financial free. Don't wanna get so called professional advice from
bankers coz they simply wanna sell me more funds and equities.
I am a single 31 yrs old woman and am working for an international
bank. My current financial situation is below:
Salary: HKD24,000 x 12 mths = HKD288,000 (HKD7.8 = USD1) + commission
(around HKD200,000 annually but not stable)
Assets: 3 homes. 2 paid off properties, one (worth approx. HKD2.5M)
generates mthly rental income HKD8,000 and another one (worth approx.
HKD1.6M) generates HKD5,700 (but I shall let my mom moves in when she
retires in 2 yrs time, that means this HKD5,700 income will
disappear); The only mortgage (HKD1.7M) I have is the one I am living
in which can be paid off if I cash out and sell my funds & stocks
(I'll do so if the interest rate rises, now is merely 1% same as my
bank saving rate)
Remarks: no insurance covered, I cancelled them a yr ago as I guess I
don't really need them (not sure it is correct decision though)
I expect to live long till 100 yrs old (coz I'm always healthier than
peers and maintain optimal fitness). So could you roughly calculate
how much more I need in order to achieve my goal?
Happy Lunar New Year!
Thanks with regards,
JC
Financial Free Woman
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AlexOliver
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jacob
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Spreadsheets are very good at tracking and projecting these things.
One column for expenses that rises with inflation.
One column for earned and rental income that rises with inflation.
One column for assets that equals previous year's assets + capital gains (I use 3% over the inflation rate. I consider this safe. ) minus expenses + the income.
Modify to suit your personal situation (taxes, different levels of inflation).
One column for expenses that rises with inflation.
One column for earned and rental income that rises with inflation.
One column for assets that equals previous year's assets + capital gains (I use 3% over the inflation rate. I consider this safe. ) minus expenses + the income.
Modify to suit your personal situation (taxes, different levels of inflation).
Hi Alex,
Everyone is responsible for their own finance, including women of course
I have been supporting myself financially since 14 yrs old (legal working age in HK)with part-time jobs and paid myself through college. Never see my dad since my paents divored ages ago. I don't blame them as I learn to take care of myself since then. It's better to start early than late.
Guess there's always reason for things happended. I'm sure there're more FI minded single women, just keep your eyes open.
Talking about the mortgage rate here, indeed it's less than 1% if one applies for HIRO rate. To be exact, I only pay 0.88864% after the bank revises it from this mth onwards. Of course, back in 90s ppl got to pay over 10% which was crazy. I was student at that time and often wondered if I'd stand the high rate. Luckily things have changed...
Everyone is responsible for their own finance, including women of course
I have been supporting myself financially since 14 yrs old (legal working age in HK)with part-time jobs and paid myself through college. Never see my dad since my paents divored ages ago. I don't blame them as I learn to take care of myself since then. It's better to start early than late.Guess there's always reason for things happended. I'm sure there're more FI minded single women, just keep your eyes open.
Talking about the mortgage rate here, indeed it's less than 1% if one applies for HIRO rate. To be exact, I only pay 0.88864% after the bank revises it from this mth onwards. Of course, back in 90s ppl got to pay over 10% which was crazy. I was student at that time and often wondered if I'd stand the high rate. Luckily things have changed...
@JC, Congratulations. You're really an ERE superstar.
Based on what you write, your expenses are roughly $640USD or $5000HKD per month, and your rental income on one property alone exceeds your expenses by more than 60%.
I am curious though... Your net worth is greater than 5.8M HKD, and based on your annual income you could save around 140k HKD per year. So unless you used to earn a lot more than you do now, you didn't get all of this by saving. If you feel comfortable sharing, did you invest well, inherit, etc?
Based on what you write, your expenses are roughly $640USD or $5000HKD per month, and your rental income on one property alone exceeds your expenses by more than 60%.
I am curious though... Your net worth is greater than 5.8M HKD, and based on your annual income you could save around 140k HKD per year. So unless you used to earn a lot more than you do now, you didn't get all of this by saving. If you feel comfortable sharing, did you invest well, inherit, etc?
Civility first (as my grandfather would admonish), So:
JC, Welcome to the forums.
And now, sorry to be a wet blanket and all that,
But I second Jacob in that this is a highly personal matter that shouldn't be outsourced. Every country has a fair share of inflationary numbers, supply/demand pressures (HK being an island), cost-of-housing and amenities, healthcare (HK population density being high), etc..... It would be far better if you did it yourself than rely on our numbers (Our numbers aren't wrong, but they're our numbers, and that's not the way to go about it).
Also, am I the only one that noticed that you actually work for a bank, and asked for advice in this forum on (when/if) becoming financially independent!? Hmmmm.
And yes, Happy Rabbit Lunar Year to you too. Other than food, I have many happy memories of Hong Kong (HK martial arts genre
)
JC, Welcome to the forums.
And now, sorry to be a wet blanket and all that,
But I second Jacob in that this is a highly personal matter that shouldn't be outsourced. Every country has a fair share of inflationary numbers, supply/demand pressures (HK being an island), cost-of-housing and amenities, healthcare (HK population density being high), etc..... It would be far better if you did it yourself than rely on our numbers (Our numbers aren't wrong, but they're our numbers, and that's not the way to go about it).
Also, am I the only one that noticed that you actually work for a bank, and asked for advice in this forum on (when/if) becoming financially independent!? Hmmmm.
And yes, Happy Rabbit Lunar Year to you too. Other than food, I have many happy memories of Hong Kong (HK martial arts genre
)Just back from a brief trip in China. The inflation rate there is bit high, so even our currency is pegged to the USD since 1972, HK economy enironment somehow is more influenced by mainland than any where else.
My expense was higher in the old days but with consious spending in the past few years, I managed to cut it down. So, averaging the expenses I save 70% of my gross income the last decade.
@Mo, I've been saving way more than 140K HKD per yr. My current paid is combined with basic salary & commission, plus I got side income from inv eg.stock, dividends, rental income. Say my annual income is 700K HKD x 0.7 which would be closed to 500K HKD.
In 2008 & 2009 I earned greater commission which contributed quite much to my net worth. Of course, one also has to see that the properties picks up since I bought them. Thus, it increases my net worth too (though paper gain at the moment unless I actually sell them to realise the profit)
You are right, I work for the bank but doesn't mean I know all financial matters. As the Chinese traditional wisdom goes, "three minds are greater than one" that I just wanna seek others opinion or get reassurance. Sharing is wht forum for, right?
Btw, if you guys come over HK to visit, I may show you around. Just leave me message here
My expense was higher in the old days but with consious spending in the past few years, I managed to cut it down. So, averaging the expenses I save 70% of my gross income the last decade.
@Mo, I've been saving way more than 140K HKD per yr. My current paid is combined with basic salary & commission, plus I got side income from inv eg.stock, dividends, rental income. Say my annual income is 700K HKD x 0.7 which would be closed to 500K HKD.
In 2008 & 2009 I earned greater commission which contributed quite much to my net worth. Of course, one also has to see that the properties picks up since I bought them. Thus, it increases my net worth too (though paper gain at the moment unless I actually sell them to realise the profit)
You are right, I work for the bank but doesn't mean I know all financial matters. As the Chinese traditional wisdom goes, "three minds are greater than one" that I just wanna seek others opinion or get reassurance. Sharing is wht forum for, right?
Btw, if you guys come over HK to visit, I may show you around. Just leave me message here
I must say that's pretty good savings for Hong Kong to avoid the consumerist lifestyle. The little time I've spent in Hong Kong, it *seems* everybody is fiddling with their iPhones at every stop light while carrying the latest designer handbags (even men).
I live in mainland China now (3 hours away in Taishan) and head to Hong Kong periodically to get new visas for my kids. I could use some recommendations for cuisines (like Mexican or Peruvian) I can't get in China.
I live in mainland China now (3 hours away in Taishan) and head to Hong Kong periodically to get new visas for my kids. I could use some recommendations for cuisines (like Mexican or Peruvian) I can't get in China.
No doubt HK is a shooping city. Ppl do like trendy things and spend tons on brand name things here. I used to spend more but the goods,fancy clothes, etc I bought didn't make me truly happier.
Soon I find peace in mind and to do the things I enjoy like reading, hiking and even simply sleeping mean much more to me. So, I stop following the crowd
Soon I find peace in mind and to do the things I enjoy like reading, hiking and even simply sleeping mean much more to me. So, I stop following the crowd