Blueglobo's journal

[Blueglobo]

Glad to join this community and endeavour to achieve FI. Still lots to learn so I don't know all the lingo yet. I have questions especially about how to do ERE with children, elderly parents, and multinational family.
Here's a little intro to my situation.
Age: late 30s (and planning to stay that way!)
Family status: married to my husband of 7 years, two kids (3 and 5 years)
location: western Canada
Current occupations: physician (me), consultant scientist (aka post doc but not on academic track) (hubs), parents
Aspirational occupations: community do-gooder, homeschooling parent, part time doctor (me), scientist, entrepreneur (hubs)

Multicultural family with immediate family in three countries (uk, canada, mexico). hence a need and desire to travel a lot to see family.

ERE appeals to me because I want the freedom to raise my kids in an anti consumerism mentality, do work that is meaningful (paid or unpaid), travel when we want or need to be with family, and leave the rat race.
BUT.
I am feeling a little snared by our financial situation. Presently my husband is working overseas for health and career reasons and we don't see Canada as a good fit for him in the long term. Obviously neither do I want to live apart from him, but our income will take a significant hit if I leave Canada because I won't be able to work as a doctor there. However, if we live ERE style, I could see it as doable if I were to work also at a lower paying job.
Right now though, we are definitely not ERE. Large mortgage, two car payments, childcare. We can't reduce expenses unless we move, but the local housing market is poor and we would likely lose money on the house. We can't reduce car or childcare due to the location of our house (suburbs with no public transport) and my work hours.

Regrettably, we bought the house 3 years ago fully intending to stay for the long term, but life happens, I guess. I estimate we would lose up to $20 000 if we were to sell, but I am wondering if this is what we have to do. Renting the house would not cover our costs.

[Blueglobo]

What we are doing to go along the right path in small steps:
- no tv, just internet and netflix
- few personal hobby expenses - I rely on library, internet and community outings that are free (except for food costs sometimes)
- eating mostly from staples
- members of community toy library
- pay as you go mobile only, free for me from work
- low clothing costs, mostly second hand

Things to work on:
Well, the big items I am rather stuck on and some may say tinkering around the edges is a waste of time, but they are:
- eating out for lunches and on weekend with kids ( usually too tired to cook with no respite childminding for the whole weekend)

[jennypenny]

What we are doing to go along the right path in small steps:
- no tv, just internet and netflix
- few personal hobby expenses - I rely on library, internet and community outings that are free (except for food costs sometimes)
- eating mostly from staples
- members of community toy library
- pay as you go mobile only, free for me from work
- low clothing costs, mostly second hand

Things to work on:
Well, the big items I am rather stuck on and some may say tinkering around the edges is a waste of time, but they are:
- eating out for lunches and on weekend with kids ( usually too tired to cook with no respite childminding for the whole weekend)

Welcome.

All of the things you listed above are great, but none of those can offset the dent from a large mortgage and car payments. Are you also paying for two households because of your husband?

The one thing you'll find different about the ERE approach is that the 'latte factor' stuff, albeit important, is secondary. The big items are housing and transportation. You have to be willing to address those costs.
--You might need a car where you currently live, but you don't need a financed one. Trade them in for older models that won't require financing. You can do that without moving. Also, do you need two cars if your husband isn't living at home most of the time?
--You have to do the math on the house to see if your mortgage/taxes/utilities on the house are more than the hit you would take from selling at a loss. You also have to look at how a move would lower other costs, like transportation and child care.


I would read the book and poke around the wiki. It might help you see that statements like "We can't reduce expenses unless we move" and "We can't reduce car or childcare due to the location of our house" might not be accurate. Read through some journals. You'll see that many people here made big moves to reduce those costs.

I'm not trying to be harsh, so I hope it doesn't sound that way. It's hard to look past what's considered 'normal' and find (much) lower cost solutions. That's why I would suggest reading the book, blog, and wiki. They will help you get into the right mindset for making changes.

[JamesR]

Seems quite tough that your husband needs to stay overseas for work & health. That's in the UK I'm assuming? I'm guessing that the need for him to be in the UK for the health reasons is very specific and has nothing to do with cost?

Would it be hard to transfer your medical credentials to the UK and get work there in that capacity? Would there still be a salary hit that way? I believe US makes it pretty easy for foreign doctors to transfer their credentials.

The house & car/location could be costing you a ton of money. It may definitely be worth taking the $20k hit to consider a rental (or smaller house) in a better location and drop the second car.

[Blueglobo]

Yes, the overseas factor is a major wrinkle, but you have to put health above all other needs, I think. UK is the only workable location that makes it possible to work and be healthy as we don't have a portable income stream at the moment.
Unfortunately with the medical bureaucracy + EU labour bureaucracy, I would probably not be qualified to work for 10 years, and even so, not at an equivalent salary. Canada is pretty accepting of UK qualifications but it doesn't work the other way round, and I have yet to find a Canadian doctor practicing in the UK. Meanwhile the UK is bleeding medics to come work here.

I do think the house has to go, but keep wishfully thinkng the market will improve drastically in a couple of years and we'll kick ourselves with "if only we had waited a little longer"...

Is there a point in paying off a car loan with a very low interest rate (1.5%)? Cash flow is not a problem right now.

[Chad]

Is there a point in paying off a car loan with a very low interest rate (1.5%)? Cash flow is not a problem right now.

Not if you are comfortable with the risk of going for a larger return by investing that money. I do this with my current car.

[sky]

A large mortgage is a problem. How many years till you pay it off?

Cars suck. Once you buy one, it is often best to keep it until it starts breaking down and costing a lot of repair bills.

Can you increase your income? The key measurement of your success is how much money you can deposit into an investment account.

[Blueglobo]

I have come to the conclusion that the house needs to be sold, even if we end up losing equity. We will likely make enough to cover the outstanding mortgage plus realtor fees, etc. As for the cars, we were planning to keep them forever, so will likely hang on to them and try to minimize the expenses rather than sell.
Childcare: in two years both will be in school thus reducing childcare costs but not completely. I will still need afterschool care which runs around $600 a month ( for 2).
Replacement Housing: hmmm. Don't think we could realize the $300/month/person ideal that would meet criteria of close to work, school, and enough space. Well, I know there are large families that live in one room. But I'm afraid it would lead to mental breakdown in my partner. He is a deep introvert and needs private space away from the kids. He could of course, live somewhere else (which he is doing now!) but I am rather attached to him being around the home.

[George the original one]

He is a deep introvert and needs private space away from the kids.

Isn't that how the English tradition of a manly shed came about?

[Blueglobo]

Yes, a man shed/cave would be ideal with soundproofing. However, how do you construct one living in a rental apartment? ( this is what would be affordable at the recommended frugal budget.) I have wracked my brain trying to think of alternatives....rent adjacent studio apt, rent small office space, public library ( too noisy and can't leave stuff there), small RV.

[George the original one]

Is there anything that says it has to be his space? Might a friend with such a space provide the necessary hangout?

[Blueglobo]

Due to said introversion, very few friends let alone hang out types. But a good idea to consider - bartering for use of another person's manshed. Thanks!

I am making my way through YMOYL. My life's purpose...at this point it all revolves around the kids. I am somewhat uncomfortable with this, as it seems to deflate the value of my years of careerism, largely propelled by feminist goals to reach my "potential", be independent, not waste my brains. But if I actually look at my daily activities, they are all oriented to what is supposedly needed to raise my kids.
It's a good purpose, I don't have a problem with that. But it's the getting to that purpose that is wide open, so many paths, and I have the sneaking suspicion that careerism is not the optimal path. But how do you get off the supermom track? Because it's not about "career" and "mom" coexisting, it's "career" in order to be "mom" - material provider, but also role model, self actualizing woman through her profession, business skills translated to the household, etc. Not easy identity to give up.

I fixed three pairs of pants in 10 mins. that had been sitting in my mending pile for months. At least this ERE stuff is stimulating some DIY energy. However, I have given up on the garden and will be hiring someone to cut the grass.