Hello - I'm 26 and I want to retire by 31, if not earlier. I make somewhere in the area of $120k annually, have paid off my student loans, and owe about $40k on a $110k house. I'm lucky to be making as much money as I do at such a young age. I am not big onto consumerism for political and philosophical reasons and I was raised frugal, so I'm basically socking all of my money away.
As soon as I can convince myself that I will be able to feel secure in my ability to house, feed, and get medical care for myself I'm totally quitting this full time employment thing, in favor of just occasional consulting to pay for luxuries.
Soundoff
Hello from Pittsburgh, PA
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jasoninmississippi
- Posts: 101
- Joined: Mon Sep 20, 2010 3:17 am
Thanks Jason!
Dragoncar, I work with computers. I do a mix of systems engineering/administration and software development, and I work for a very large california-based internet company that often ranks as one of the "best places to work" - you can probably guess which one, but I'd prefer to not explicitly mention it. And the only thing else I want to stay about my compensation, now that I've more or less estimated it and given hints about where I work, is that that is an estimate of value of salary+bonuses+stock.
However, as nice as my job is, I think not having to work for anyone would be even nicer. I want to do community organizing and open source development with my day, and lots of the options for getting paid to do that tend to compromise my values.
Dragoncar, I work with computers. I do a mix of systems engineering/administration and software development, and I work for a very large california-based internet company that often ranks as one of the "best places to work" - you can probably guess which one, but I'd prefer to not explicitly mention it. And the only thing else I want to stay about my compensation, now that I've more or less estimated it and given hints about where I work, is that that is an estimate of value of salary+bonuses+stock.
However, as nice as my job is, I think not having to work for anyone would be even nicer. I want to do community organizing and open source development with my day, and lots of the options for getting paid to do that tend to compromise my values.
Hey soundoff!
If you work at a large California based internet company how did you manage to find a house for $110k? Was it a foreclosure or do you have a long commute or something?
However, as nice as my job is, I think not having to work for anyone would be even nicer.
You can fill a cell with coffee machines, buffets and colorful furniture, but it's still a cell.
If you work at a large California based internet company how did you manage to find a house for $110k? Was it a foreclosure or do you have a long commute or something?
However, as nice as my job is, I think not having to work for anyone would be even nicer.
You can fill a cell with coffee machines, buffets and colorful furniture, but it's still a cell.
I would imagine he telecommutes or they have an office in Pittsburgh...considering he lives in Pittsburgh. Which, is a spectacular ERE city if you want to live in a major city.
I lived there for 6 years and still go back to see friends. It's virtually free when compared to other major cities. My 2 bedroom apartment was on Mt. Washington with a view of the entire city...$250 each for my roommate and myself. I could have bought it as a condo for less than $35,000, but I hated my job and didn't want to tie myself down.
@soundoff
If I were you I would by a duplex in Mt. Lebanon. Live in one side and rent out the other. That's my plan if I ever get published.
I lived there for 6 years and still go back to see friends. It's virtually free when compared to other major cities. My 2 bedroom apartment was on Mt. Washington with a view of the entire city...$250 each for my roommate and myself. I could have bought it as a condo for less than $35,000, but I hated my job and didn't want to tie myself down.
@soundoff
If I were you I would by a duplex in Mt. Lebanon. Live in one side and rent out the other. That's my plan if I ever get published.
Yeah I hear you on working for an employer. I like complete control over my schedule and would probably do 4 hours of "work" per day if freelancing (although once I started doing 4, who knows if I'd then say 2?).
That said, Pittsburgh is probably one of the better geo-arbitration locations for people who like cities. I think one of my criteria for final location is a place with at least one major university.
That said, Pittsburgh is probably one of the better geo-arbitration locations for people who like cities. I think one of my criteria for final location is a place with at least one major university.
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jeremymday
- Posts: 132
- Joined: Mon Oct 11, 2010 1:06 am
- Contact:
Hi Soundoff,
Got another Pittsburgh native here that transplanted to Denver. I absolutely love Pittsburgh! I would have moved back already if I didn't make the dumb decision to buy a house out here in Denver before the crash. such is life...
Pittsburgh has awesome housing prices that have remained stable for many years.
You can't beat the combo of the University of Pittsburgh and Carnegie Mellon University. Both great world renowned universities!
Everyone I talk to loves Pittsburgh as a city. They only thing anyone ever complains about is the weather. Summers are still amazing though!
So if you can handle the cloudy weather and a bit of cold (its not as cold as it was when I was growing up,... global warming...) its one of the best ERE cities you can get.
Cheers,
Jeremy
Got another Pittsburgh native here that transplanted to Denver. I absolutely love Pittsburgh! I would have moved back already if I didn't make the dumb decision to buy a house out here in Denver before the crash. such is life...
Pittsburgh has awesome housing prices that have remained stable for many years.
You can't beat the combo of the University of Pittsburgh and Carnegie Mellon University. Both great world renowned universities!
Everyone I talk to loves Pittsburgh as a city. They only thing anyone ever complains about is the weather. Summers are still amazing though!
So if you can handle the cloudy weather and a bit of cold (its not as cold as it was when I was growing up,... global warming...) its one of the best ERE cities you can get.
Cheers,
Jeremy
Hi Jeremy - the winters are something, but I'm a New England native (and that's where most of my family is) so I think I'm used to it. I've lived in Pittsburgh for a total of about 7 years, and it really is 'home' to me. The cost of living is something else. I've read Jacob's writings warning of perils of homeownership, but I actually don't think it works out that way for me financially: if I sold my house and invested the proceeds, I wouldn't have enough to cover my living expenses. Plus I have roommates, which actually means I live here just for utilities, and if I got more roommates (we have empty bedrooms at the moment) I'd be living here for free.
bigato, I'm sure I do that now. I have only owned a car for the last year and a half of my life, but it's a $3800 car that I've spent maybe $1000 on. One way that I know I waste money? I've had much of my work done at the dealer, because it's very close and an easy decision for me. When I get to ERE I figure I'll lose the car entirely, so for now I just file that under expense for convenience.
I've been at my current employer for almost a year. To be blunt: it's the best job I've ever had, but it's also very demanding and stressful, so I have found a lot of my non-work life struggling over the past year.
One of the perks is free meals at work (although maybe I'd feel better about my work-life balance if I didn't eat at work as much?), so I really don't have that many expenses. My car, restaurants for weekends, and traveling to see family around holidays are my major expenses. So, am I falling into this trap? Almost definitely. But I don't enjoy it - I would be much happier if I spent less, which would be easier if I spent less time at work.
I've always viewed employment as a means to an end, and my plan was always to do something like ERE, even when I was making a third of what I'm making today (which was only a few years ago - and only a year or change ago I was making half). Now that I've got a high-paying job, the only difference is I plan on doing something like ERE sooner. Much sooner. I can probably pay off my mortgage sometime in 2012, and when that happens, it'll basically just be a question of "how much money do I want to have monthly / how little stress do I want to feel to find occasional work" but I can't imagine that I'll find myself working a full time job in, say, 5 years. The only thing that might change my plans is if I decide I want to have kids. Kids seem like they would ruin ERE.
I'm single at the moment, so that seems like forever away.
bigato, I'm sure I do that now. I have only owned a car for the last year and a half of my life, but it's a $3800 car that I've spent maybe $1000 on. One way that I know I waste money? I've had much of my work done at the dealer, because it's very close and an easy decision for me. When I get to ERE I figure I'll lose the car entirely, so for now I just file that under expense for convenience.
I've been at my current employer for almost a year. To be blunt: it's the best job I've ever had, but it's also very demanding and stressful, so I have found a lot of my non-work life struggling over the past year.
One of the perks is free meals at work (although maybe I'd feel better about my work-life balance if I didn't eat at work as much?), so I really don't have that many expenses. My car, restaurants for weekends, and traveling to see family around holidays are my major expenses. So, am I falling into this trap? Almost definitely. But I don't enjoy it - I would be much happier if I spent less, which would be easier if I spent less time at work.
I've always viewed employment as a means to an end, and my plan was always to do something like ERE, even when I was making a third of what I'm making today (which was only a few years ago - and only a year or change ago I was making half). Now that I've got a high-paying job, the only difference is I plan on doing something like ERE sooner. Much sooner. I can probably pay off my mortgage sometime in 2012, and when that happens, it'll basically just be a question of "how much money do I want to have monthly / how little stress do I want to feel to find occasional work" but I can't imagine that I'll find myself working a full time job in, say, 5 years. The only thing that might change my plans is if I decide I want to have kids. Kids seem like they would ruin ERE.
I'm single at the moment, so that seems like forever away.
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DividendGuy
- Posts: 441
- Joined: Sun Dec 05, 2010 9:58 pm
soundoff,
Welcome! It sounds like you're on a great track. I could only DREAM of making that kind of money. I make about 1/3 of that. I'm on a 11-year track. We'll see.
As for your last comment, I'm seriously with you on the kids thing. I'm serious enough to do a vasectomy soon.
Take care, and keep up posted on the progress!
Welcome! It sounds like you're on a great track. I could only DREAM of making that kind of money. I make about 1/3 of that. I'm on a 11-year track. We'll see.
As for your last comment, I'm seriously with you on the kids thing. I'm serious enough to do a vasectomy soon.
Take care, and keep up posted on the progress!
Soundoff,
Welcome! I'm mostly a lurker around here, but wanted to chime in as I am also located in Pittsburgh. It sounds like you are well on your way to ERE! I'm impressed (I'm also impressed by your employer -- there's been a lot of talk around my office lately about how amazing it must be to work in your office).
I moved here about 8 months ago and I really don't see the appeal. But given how much everyone else seems to like it, I feel like I must be missing something. Other Pittsburghers, any tips on great things about the city?
Welcome! I'm mostly a lurker around here, but wanted to chime in as I am also located in Pittsburgh. It sounds like you are well on your way to ERE! I'm impressed (I'm also impressed by your employer -- there's been a lot of talk around my office lately about how amazing it must be to work in your office).
I moved here about 8 months ago and I really don't see the appeal. But given how much everyone else seems to like it, I feel like I must be missing something. Other Pittsburghers, any tips on great things about the city?
Eliza, all I can say is that Pittsburgh neighborhoods vary quite a bit in character and style. I live in a very walkable, pretty densely urban neighborhood. There are a lot of people around me who are my age and share at least some of my values. If you aren't liking the neighborhood you're in, try another one out.
It is my circle of friends that anchor me here more than anything.
It is my circle of friends that anchor me here more than anything.
Eliza... lets say it took me at least 12 months to start appreciating Pittsburgh. Actually, this is common for me -- I don't really like a new place until I've discovered some of it's hidden beauty.
It has low COL, intelligent people (at least wherever college students are), and good cultural opportunities. That's not to say there aren't downsides... it's just good bang for your buck.
It has low COL, intelligent people (at least wherever college students are), and good cultural opportunities. That's not to say there aren't downsides... it's just good bang for your buck.
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jeremymday
- Posts: 132
- Joined: Mon Oct 11, 2010 1:06 am
- Contact:
@ soundoff - If I ever get back to Pittsburgh I would love to rent a room from you! lol
@ Eliza - yes, what part of town you live in? Like any major city the part of town makes a big difference. PLUS, you have lived there since October. Not exactly the best 8 months. Summer is truly amazing there.
If you had the chance to move I would say move to Squirrel Hill or Shadyside. Get involved with the events at Carnegie Mellon and Pitt. They always have public events going on...
Cheers,
Jeremy
@ Eliza - yes, what part of town you live in? Like any major city the part of town makes a big difference. PLUS, you have lived there since October. Not exactly the best 8 months. Summer is truly amazing there.
If you had the chance to move I would say move to Squirrel Hill or Shadyside. Get involved with the events at Carnegie Mellon and Pitt. They always have public events going on...
Cheers,
Jeremy
Re: Hello from Pittsburgh, PA
this post looks really old, but i'm in pittsburgh too and I am trying to find others to talk to about Finacial Independence. If you still live in Pittsburgh and wouldn't mind getting together, please reply to this.
Re: Hello from Pittsburgh, PA
Three years have gone by since this thread has started. Hopefully soundoff stayed on track and is ERE'd already 
Re: Hello from Pittsburgh, PA
good point IwantLess... Is there anyone else here currently living in Pittsburgh?
Re: Hello from Pittsburgh, PA
Hey, maybe it's bad etiquette to update a 12 year old post, but I remembered I made this post a dozen years ago and thought people might be interested in an update.
1. I did not successfully retire at 31. I'm 39 and still working.
2. The main thing that changed was my target, and income. I was lucky to have my income grow 4-5x in the 5 years after I made this post. That kind of money was life changing. My 26 year old self was only a couple years removed from an ultrafrugal lifestyle of dumpstering for food and the like. With my income rising substantially, I've been able to be confident I'd survive if I retire at any point, but it's always been the case that working for a couple more years would significantly improve my quality of life. So, I kept working. I think healthcare costs for retirement were something I was never calculating correctly when I thought $1-2M was a suitable FI target. I possibly could have made it work, but making it work seemed like more and harder work than continuing to work.
3. I'm still planning to retire real soon now, but that will probably be age 39 or 40. Perhaps I don't have credibility here anymore, and maybe I don't fully trust my own projection. But I think at age 26 and a net worth of around $80K (where I was) I simply was less well positioned to estimate where I'd be in a few years. My net worth is now $4.2M and retiring at 40 (give or take) still feels early enough. My spreadsheets show that if I retired today my safe withdrawal rate would be in the 3.3% range; there's wide uncertainty/padding in the budget.
4. I relocated from Pittsburgh to New England to be closer to family; COVID brought about new remote work opportunities that enabled this
5. Never had kids. Have a relationship that fulfills me and neither of us want kids. I'm an Uncle now! But with the higher income I picked up goals I'd never had before: I am able to financially assist my aging parents and my nephew (I plan to cover higher educational expenses for them if needed) to a degree I wasn't considering at 26.
6. I stayed super frugal with transportation. When that $3800 junker failed I was car free for several years. I spent years making mid 6 figures and commuting by city bus. I eventually bought a new Honda fit in 2017 and I'm still driving it. The time spent dealing with repairs on the junker wasn't worth it to me
7. I definitely learned that spending money can make work more tolerable. The big living expense upgrade I made was to move into a house alone around age 32; I sold the old place to a friend. I also splurged a bit when buying my house in New England, but it's a duplex (using both sides for personal use now) which means I can produce income from it again if needed in retirement.
8. I'm active in various FIRE subreddits these days.
9. Living with housemates until my 30s was worth it but wore on my mental health. Obviously I ended up making a ridiculously high income and that's why I'm doing as well as I am today, but I think the years living and accumulating would have meant I could have been OK (without the changes to goals) due to the years spent accumulating and investing and living frugally back then.
10. Investing in my mental health has totally been worth it. Anxiety disorders are/were no doubt a factor in both why work stressed me so much, why I wanted to gain FI so badly, and part of my motivation to RE. Therapy has helped me to make decisions from a more solid foundation. Worth every cent.
I hope it isn't a disappointment to those reading this to hear that I'm still working 12 years later when I was hoping to retire in 5, but I think I'm going to be kind to myself on this one because it's absolutely fine when your goals change. I couldn't have comprehended making what I make now at 26, and if I had imagined it I would have thought "great, I'll retire even sooner!" but I now know that level of compensation really does bring about changes to your goals because it the calculation of "how much better will my retirement be if I work 1-2 more years" is always going to be relevant.
1. I did not successfully retire at 31. I'm 39 and still working.
2. The main thing that changed was my target, and income. I was lucky to have my income grow 4-5x in the 5 years after I made this post. That kind of money was life changing. My 26 year old self was only a couple years removed from an ultrafrugal lifestyle of dumpstering for food and the like. With my income rising substantially, I've been able to be confident I'd survive if I retire at any point, but it's always been the case that working for a couple more years would significantly improve my quality of life. So, I kept working. I think healthcare costs for retirement were something I was never calculating correctly when I thought $1-2M was a suitable FI target. I possibly could have made it work, but making it work seemed like more and harder work than continuing to work.
3. I'm still planning to retire real soon now, but that will probably be age 39 or 40. Perhaps I don't have credibility here anymore, and maybe I don't fully trust my own projection. But I think at age 26 and a net worth of around $80K (where I was) I simply was less well positioned to estimate where I'd be in a few years. My net worth is now $4.2M and retiring at 40 (give or take) still feels early enough. My spreadsheets show that if I retired today my safe withdrawal rate would be in the 3.3% range; there's wide uncertainty/padding in the budget.
4. I relocated from Pittsburgh to New England to be closer to family; COVID brought about new remote work opportunities that enabled this
5. Never had kids. Have a relationship that fulfills me and neither of us want kids. I'm an Uncle now! But with the higher income I picked up goals I'd never had before: I am able to financially assist my aging parents and my nephew (I plan to cover higher educational expenses for them if needed) to a degree I wasn't considering at 26.
6. I stayed super frugal with transportation. When that $3800 junker failed I was car free for several years. I spent years making mid 6 figures and commuting by city bus. I eventually bought a new Honda fit in 2017 and I'm still driving it. The time spent dealing with repairs on the junker wasn't worth it to me
7. I definitely learned that spending money can make work more tolerable. The big living expense upgrade I made was to move into a house alone around age 32; I sold the old place to a friend. I also splurged a bit when buying my house in New England, but it's a duplex (using both sides for personal use now) which means I can produce income from it again if needed in retirement.
8. I'm active in various FIRE subreddits these days.
9. Living with housemates until my 30s was worth it but wore on my mental health. Obviously I ended up making a ridiculously high income and that's why I'm doing as well as I am today, but I think the years living and accumulating would have meant I could have been OK (without the changes to goals) due to the years spent accumulating and investing and living frugally back then.
10. Investing in my mental health has totally been worth it. Anxiety disorders are/were no doubt a factor in both why work stressed me so much, why I wanted to gain FI so badly, and part of my motivation to RE. Therapy has helped me to make decisions from a more solid foundation. Worth every cent.
I hope it isn't a disappointment to those reading this to hear that I'm still working 12 years later when I was hoping to retire in 5, but I think I'm going to be kind to myself on this one because it's absolutely fine when your goals change. I couldn't have comprehended making what I make now at 26, and if I had imagined it I would have thought "great, I'll retire even sooner!" but I now know that level of compensation really does bring about changes to your goals because it the calculation of "how much better will my retirement be if I work 1-2 more years" is always going to be relevant.