Buy you telling me. And the worst of it is most of the people that sicken me on my job. No other place would take their ghetto asses. So there's no hope that one day I will not have to deal with them. So. Off I go. But I wasted a lot of years around some very vile humans. Just for a paycheck.
I paid off one credit card today. 4400, and it didn't hurt at all, actually it made me feel a lot better because come next month, that's one less headache I have to deal with.
It is also worth mentioning that while you aggressively lower your monthly expenses, that also vastly increases the amount of money you have available for investments. So getting that $250k-$500k will be even more attainable in a very short amount of time. Yeah, I know its common sense but lowering your expenses is by far the most powerful thing you can do when you are shooting for early retirement.
TheRosswise ...I agree. I learned the lessons well from RICH DAD POOR DAD and his financial compass (asstes vs liabilities vs income (cash flow) vs capital gains). WEALTH CREATION is first wealth accumulation then wealth conservation. Accumulation starts with eliminating all liabilities before you build assets (otherwise you end up working to pay someone else). Accumulation then goes (after liabilities) first step.. build a cashflow (income to build up capital). With capital you can build up assets with value. Value is when assets generate more income for you (passive income)...and with more passive income you can stop work /retire and do what you want knowing your expenditure is going to be taken care off. Conservation is about keeping and maintaining and growing your assets once you have them. Is easier to correct losing value in an asset than buy more assets to replace assets lost. Peace out!
I have been an entrepreneur for my entire life and I can tell you the benefits it has paid in so many ways have been incredible. Once you get something started and really get behind it, it's like rolling a 10,000 lb ball bearing down a hill. Working for yourself is definitely not for everyone, but for self starters it can carry you through a whole lifetime with all kinds of interesting opportunities that you may never have had. There is a lot of help and encouragement out there like Beat the Bush, but you are the one that has to have the guts to go after it. Mistakes can be corrected along the way but never be afraid to start and DO NOT listen to any dream killers. If they knew any better they would be doing it themselves instead of being trapped in their own negative world. Like Beat the Bush has said, do something you like and find interesting and not just for financial gain. That will come once you find your niche. You may not become a billionaire, but doing your own thing and being successful at it will keep you happy, satisfied and well compensated for as you progress. Thanks for helping all the folks out there Beat the Bush. You are a sharp young man. This is a very well needed daily program for just about everyone. God bless....
Yes, either way is good. Because of the way I was raised I was taught to just to go out and get yourself a bucket of guts and get going. Don't be afraid to take a punch as it will come somewhere along the line. I have never regretted making mistakes because it has taught me what I needed to learn to progress. Some people need plans to go about their goals and others just jump in and get wet. Both ways work. The trap that can stall everything for either type of person is getting to get ready, to get ready, to get ready and finally doing a big Zero. Trust me, I am well old enough to retire but I'm having too much fun everyday and making a solid income legally, ethically and morally. Anyone can still make it if you can focus on a subject, stick with it. Tiny flames build into roaring blazes. Once you are "off the ground" you can spread out to all kinds of other projects, but first build a strong foundation to rely on. That's my take on it.
So essentially, principles of leanfire. That's what I am shooting for. I had 10 days off and I was bored to tears. You have to work on something or a project, otherwise, retirement will literally kill you and turn your brain to mush.
Take the 10 days off as training for retirement. You need to build up things you enjoy doing and get excited about. Sometimes it wont last, you need to continually line things up for yourself to do.
I disagree with this (and agree with Mark S). The fundamental reason why people enter a depressing state of boredom is that they have been working their entire lives and never had any time to develop any hobbies or meaningful activities/things/relationships in their lives as a result of working so much.
I love my job. I'm a cataloguing technician at a public library --when you search an online public access catalogue and you see the entries those are what I enter.
I do some original cataloguing with Dewey etc., but I also download files with the records, but it's still a lot of work with proof-reading, authority control, etc. There's always something new to learn and teach!!!
You really put into perspective what retirement means. It has a lot to do with our own viewpoint about what we are doing to keep busy or earn “extra” money. Thank you
I’m an old timer. Find something you love to do and earn money doing it. Live within your means. Save what you can in a diversified portfolio and make it a lifetime commitment. Don’t live your life stressed out over the bills. Exercise daily. Avoid alcohol and tobacco. Enjoy your youth and be social and active (outdoors not on your devices)!
Your video is excellent in showing that freedom is possible and there are many versions of retirement part time work or work that you enjoy to live the life you want sooner rather then later
My house is 160 sq ft though I do need 40 sq ft more. I got a storage build 4 years @ $177/mo for 3 years = $6,372 but if I cash I could have bought it $3,500. Though one still need to finish inside. My monthly budget is is $788.06, I but live on disability. Land $50 Food $100 Cigs $36.16 Electric $95 Internet $97.45 Cell phone $79 Car Payment $115.21 Car gas $25 Car Insurance $50 Car Maintenance $20 Pocket money $20 Credit card $40 Dental $25 Home Upgrades $50 Audible $15.96 Dog care $25 Dog food $21.72 Saving 2.736% $21.56 Total: $788.06
This is extremely simplified. It may work when you're young, healthy and single with no dependents, but it's not sustainable for life. Even with a decent emergency fund (separate from a portfolio), life happens. Does your formula take cost of living into consideration? Does it take into consideration marriage, kids, divorce, or losing your physical health to something like an accident or cancer? How about taking care of aging parents who probably paid for your BS & MS so that you graduate without student debt. You are where you're at today because you didn't start out under water.
bunny wabbitt ..stop your negativity and get with the programme. Yes you can retire early without pension pot, he says if u eliminate your mortgage and reduce yourexpenditure a low grade job ( low paying job) can cover your expenses. The underlying assumption is he is only making provision for one risk... (he is single and his basic living maintenance costs). If you want to cover other risks (like health, family commitments, emergency spending)...you make separate financial provision. Checkout my other posts on this comment list....see if you can see any ideas to help u...look for my words ("mid risk investments", "high risk investments") to manage more risks by generating more income in retirement. Peace out!
Many people I know that are still working. ( People in their 70's and 80's) are in good health with a sharp mind. They love keeping busy. I love working myself, and hope to never retire. I am blessed with good health.
Yes, I love people. I schedule mystery shops, do product demos, exit interviewing, telephone mystery shops, and my you tube channel. My favorite thing is giving people free food!!!
You are a pretty smart guy. I am practicing FI and well on my way to retirement goal. I was originally watching your videos for FI, now I watch for everything cause I think you got many great life hack tips. Thanks for the video.
I agree about engineering output eventually surpassing pay. So I now do contracting, which is less hours and more flexibility and satisfaction for the same pay and use my spare time to go paragliding, etc. and design my own products to sell. The improvement in mindset is immeasurable.
All but a small part of the greater organization sometimes. Many people already know this of course but I bet if their worth is put in dollar amount and they see they get paid 1/4th of that, it wouldn't slip by so easily.
Yes, a lot goes under the radar because people are unaware. (Insert Francis Bacon quote here) I once heard how much my company charged clients for my time and nearly had a panic attack.
this is exactly what I was looking for I am 56 I do not want to work until 67.I don't have a house, is it favorable to get a house? I feel I can rent for the rest of my life and use my money to travel instead
I don't even really get many new ideas from those videos, but I still love watching them, because of how well they click with my world views. It's very reassuring. :D
A great book on this subject is Early Retirement Extreme. It's more of a philosophical book rather than "tips and tricks" you usually get with other career/self-help/finance books. So far I'm loving it.
In the FI/RE (Financial Independence / Early Retirement) community we call this level "Barista FI". It is basically the level of investment income/paid off house where you could quit your stressful job and do something like be a barista part time to pay the remaining bills. Doesn't have to be a barista, basically any job not too stressful that you would enjoy doing.
Nice! I like that phrase. But then for me, I'm not sure if I want to be a Barista. I MUST be something you will do IF you won the lottery anyway. Will one really want to still make coffee then?
I did actually see a show a few years back called, "Radical Sabbatical" where people quit the rat race and did their hearts desires, and yes, a finance professional quit to work at a coffee shop. Crazy to most but courageous and inspiring also.
You have some really great videos with excellent advice backed by real life personal experience. I love your channel and look forward to seeing more from you! Keep up the good work! :)
Always great advice, that I follow on a daily basis. It's all about the management of your passive income and monthly savings rate, as long as you're able to cover your monthly expenses at the end of each month, with a surplus, you're in great shape! Retirement here we come!
I enjoy your videos but I think I said it before, you are thinking from a perspective of a single person. Remember that most people may not be single and even if they are they may be taking care of someone, so they can't just think of their own needs. So yes, if you are single, you may want to do exactly what you are suggesting, but most people passed 40 will either not be single or will be divorced with some child support etc. So not many are lucky to be able to do what they want at that early age.
I had to run to emergency one night. My insurance covered only $1500 and the balance was $4k. In San Mateo County, the hospital considered income less than $60k/yr as low income.. they forgave the rest!
@@sarasuperid When I got the bill, I tried to negotiate $50/month to pay it off. The clerk kept trying to get me to pay $300. I told her I simply couldn't afford it. It was then that she offered to send me an information packet. In that packet I read that there was a $60k threshold. I sent 2 payments while they processed my application. They then forgave the balance. I went in to see if I could get my payments back but they ignored me.
Great video. Being able to retire early is so worthwhile, after all no one knows when we will pop off this mortal coil. The flexibility to do things increases greatly, and you can take it easy if not feeling 100%.
Exactly. How many times do people force themselves to go to work even when they feel a bit ill? Many are afraid to take vacation or sick days because they have limited amounts and want to use it for actual vacation.
omg this is basically me... I love my job, I work my own hours whenever I want. I can't think of anything else I'd rather do. It's enough to sustain my lifestyle. I'm.... retired...! :O
It's not an either-or question. Most jobs, whether salaried or freelance, include components that suck. You can't just pick the parts of the job that you love and "outsource" the parts that suck, no matter how rich you are (if you try to do that, you will find yourself teaching other people and overseeing them working for you, e.g. being a manager, which by itself sucks). So the basic question is whether you want to enter obligations toward other people or not, but it's easier to have fewer such obligations when you don't need the income.
Not true for high-level corporate IT freelancing. Actually, freelancers are hired to do things that employees don't want to or can't do. If you jump out of contract in the middle without delivering what you promised because "it's not fun any more", not only won't you ever be hired again by this client, they can actually sue you for damages or lost income. There are very few serious freelance jobs in IT that don't demand this sort of responsibility. Many clients even demand 100% on-site presence (something I won't do any more). Freelancing is very similar to employment, except you must pay attention to your client instead of your boss.
Great video...love all those number examples...really helps in showing you what's all possible...but your Ice-Bat really doesn't like being all squeezed in like that...lol
That's one way to retire happily. Don't forget the other ways to retire happily that you could feature in future vids, especially if what you love to do costs money!
My advice to anyone once you find that you do not like the work enviroment and the type of people they hire and keep. Even if the the money is the most you've made. Run like a mutha forkaaaa!!!!!!
No where near retirement yet, but the countdown to saying goodbye to the mortgage is ON. Roughly 4.5 years to go (I hope- income circulates some). We'll have a lot of fun once that payment + the extra we've been throwing at it will be OURS again.
Much harder to do when you have kids. Also, what about health insurance and unknown health issues? My wife just had to remove her gallbladder. Just that would eliminate the $20K yearly budget in no time.
WoW , 126K in subscribers ... That's a lot considering the short time you have been doing it. Your comments are for the most part favorable , everyone seems to like you and your content. Keep up the good work , I know you will. Tom
Question sir: I seldom hear people talking about the inflation rate when discussing retirement cash flow needs and living off the interest. Being that the historic inflation rate is ~3.2%, wouldn’t $60k now need to be closer to double in 20 years and closer to quadruple near end of life?Am I just overthinking it? (That’s even before getting into likely exuberant geriatric medical costs)
Is it? It averages 2% really. When you do the 4% withdrawal, you increase your withdrawal with inflation. But you really should try to earn more even if you hit that magic number. For margin of safety.
BeatTheBush So the withdrawal percentage goes up over the course of retirement to compensate for inflation? Okay, I get it, thank you. I had assumed the principal could work in perpetuity given no crazy expenditures or med bills...wishful thinking on my part. Darn 😕 BTW, I had gotten that historical rate from inflationdata.com . It makes it a little easier if it’s only 2%.
I just finished a Canadian publication that outlines how to draw down your income in retirement. I don't feel quite as desperate as I did before I read it.
You should do a video on winning the lottery. Not everyone wins the multi-million jackpot; note that a fairly common occurrence is that someone wins a secondary prize on the order of 50k to 1mm which is enough to pay off some debts but not retire. Not everything you love working on can be accomplished as an entrepreneur; if you love rocket ships you must work for NASA or similar.
This is more a shift in mindset and outlook than actually retiring. Better to think financial independence than retirement and set incremental goals that progress towards its’ attainment. We travel the globe ( it’s the thing that makes us happy) and our next goal is to achieve a passive income from our TH-cam channels that covers the cost of our annual travel. Imaging how awesome it would be to build a passive income that not only covers the cost of your lifestyle, but also allows you to provide for your wider family members, contribute to your local community and support charitable causes? This is not about getting rich, it’s about leading a quality life and making a positive impact on the lives of others. Travel safe everyone 😎👍❤️
I wouldn't say travelling the globe makes me all that much happier. I'm so happy to sleep in my own bed and do my thing most the time. Just short trips is fine with me.
BeatTheBush Actually I don’t like being on a plane much more than a few hours and generally end up feeling quite fatigued after long journeys, so where possible we break our longer journeys up with multiple stops. This means not only do we get to see new places that we would not get to see by taking direct flights but also we feel less tired and usually only on board a plane for a few hours at a time. It’s a great way to see the world and meet people from different cultures, whilst creating fantastic memories 😎👍❤️
I’m just curious about why you quit your engineering job before you paid off your mortgage? I would have kept that engineering job a minimized my expenses to pay that mortgage down.
probably because he has a million dollar mortagage since he lives in San Fran. he figured that he does not want to torture himself for another 10-15 years at work)))
CTay 1707 his investment dividends and interest (with the 3%rule) probably exceed his living expenses and mortgage. He most likely calculated that into his retirement plan.
I think I the reason for why will become clear later on. I have my reasons. Btw, I'm not strictly retired. I.e. I cannot lay on a beach all day nor do I want to.
I mean, if you're going to retire at 40 with $250,000, why not retire at 45 with $500,000 by saving $50k a year for 5 more years. Is 5 years of your life really that big of a deal out of the 30+ years you have left to live? Also, retiring with only $250k at 40-years-old in a country like the US is a HUGE risk. 1 car accident, 1 major surgery, or 1 cancer diagnosis later, you're nearly broke with no job, and medicare & social security doesn't kick in for another 20 years. It's just way too much risk for most Americans. One option would be to take that money and move to a cheaper or socialized country. Now if you have $1 million at 40 with a paid-off house, have at it. You could retire quite comfortably pretty much anywhere.
Great discussions on engineering jobs and the value of your own worth at a company. I'm in engineering consulting, clients pays 100-230 dollars per hour. We earn 30-60 an hour...even considering benefits it's not worth it to work for 40 years.
I like the video. One question for you: how do you expect to pay for healthcare? Eventually, everyone may have unexpected high medical bills. Would you just be on minimum gov insurance policy? I'm considering early retirement as well
I fix/sell old design washing machines and dryers people throw out. Many apartments have hook-ups. The big eye'd Samsung computerized washers drive customers to me in droves!
I meant would you consider going back to software engineering as a freelance, project basis, or work from home (commute free) given all your education and years of experience?
I might. If anything i have plenty of personal projects to keep me busy engineering wise. I get product ideas all the time and this is the perfect time to develop something like that.
I will work online to support the greedy landlord, utilities and Medicare, who stole our 2018 SS. i am busy online..lol I travelled from 20-72 on my paid vacations, and I helped non Beggars. I have been in a second retirement for 6 years. At 58, I retired after working since age 7. I returned to work at 61;and then retired a second time at 70. I will only teach Conversational English, if I need additional income, but for the momoment, I am doing great.I will never beg for money.
So maybe I missed it by the end of the video, but what would you suggest investing into where I could receive that 4% income return every year (or most years); IRA's, ordinary stocks, stocks with dividends?
As an engineer myself I’m starting to completely understand where you’re coming from. I would trade my engineering salary to do what I Love in a heartbeat if i can get to the point where my side income is self sustaining. Great video as always!
Doing nothing is boring! Need to do something! Retirement for me is being financial independent, not sitting around watching price is right everyday. Even if you retire rich enough to travel all the time and you think "that would be the best".. That gets boring too after a while.
Things will change. I'm guessing your in your 20's? In my 20's I hated structure and had no idea how I was going to retire, nor would I even think about it. Sounds to me like you live a life of leisure, and unless your family is rich that wont get you too far. I work harder now, in my mid 30's, so when I get to the point when my metabolism slows down and my body cant take long hours, that I will already be financially comfortable enough to not have to stress money. Dont let yourself turn 40 or 50 and say "I wish I did this & and wish I did that" take your opportunities as they present them self and set the bar higher than you expect to need.
Getting paid in proportion to the value that you're generating...have you read Atlas Shrugged? It's a mostly-awful book but it does explore that idea of one's work being compensated in proportion to the value generated.
Well, shux, thats exactly what I want to do but, it seems like what you've mentioned does not apply to teens like me whose about to grad from highschool.. Feelsbadman.
If you do it right off the bat, you have the risk of no safety net. If you make just enough to survive, you can indeed do it for a while at a job you are very happy with. But with no security behind you, it doesn't work as well.
looking back at this older video in the context of what has been going on is very interesting I remember you had another video that was like, the economy would essentially crash if all the consumers were as frugal as you.... and then covid happened and this is exactly what happened lol. but right now there is a crazy amount of political distraction going on because workers all the sudden have an extreme amount of bargaining power, it is a workers market and they are demanding higher wages. that being said, what would happen if every engineer went from working ages of 22-67 (45 years) to instead 22-37 (15 years) inorder to keep everything the same with the same pool of workers, they would need to graduate 3x the number of engineers each year. the inflation and credit debt traps that are constantly being marketed have the subtle intent of doing just that. by increasing everyone's burn rate with inflation, cc debt, rent/cost of living increases.... the system essentially guarantees workers have to work longer which has the hidden effect of growing the workforce and lowering wages, thus increasing cooperate profits. covid gave a lot of people the first taste of freedom by essentially letting us experience 2 years of retired life and we will be feeling the psychological effects on workers advocating for themselfes more for the next decade or two.
I like your idea of retiring with no income, but it has a few challenges. 1) People need to change from wasteful spenders into non-materialists. Most Americans are materialists because America is a materialist society. People do not easily change their mindsets, given peer pressure and all the advertising that encourages people to spend their hard earned money. 2) Health Care cost could be mentioned. If you don’t work for an employer, you have to pay for your own health care, which is expensive and can easily cost up to half of the $20K earnings (for older people). I’d like to mention Obamacare’s subsidies for which one qualifies (on a sliding scale) when one has lower income. This helps make health care affordable. The Republicans have been trying to sabotage Obamacare and they actually did remove the individual mandate, which will increase premiums for everybody, even for those who get subsidies.
hey, my retirement plan has a fund that in average grows at a 7% clip each year with a .02% yearly fee, and one that grows at 11% with a .77% fee. So my question is over a 20 year course which portfolio would have had grown more? Is the extra 4% yearly growth worth the higher yearly fee or not?, The math is to much for me to figure it out on my own. It would be cool if you did a video about it " is if worth it paying a higher fee for a greater yearly return? "
It generally refers to the safe withdrawal rate when invested in the stock market over a long period of time. Some years it might be -30% but averaged over many years, it's more like 8%.
BeatTheBush It is like airbnb for cars. If you don't use your car, you can rent it out. I thought it was a cool concept but if you are not familiar with it, nevermind! Thank you for these videos 😊
Very true. Life is too short to be spent on a job you don't enjoy!
How many will still keep working after winning 100 Million?
Buy you telling me. And the worst of it is most of the people that sicken me on my job. No other place would take their ghetto asses. So there's no hope that one day I will not have to deal with them. So. Off I go. But I wasted a lot of years around some very vile humans. Just for a paycheck.
I agree. Humans were not meant to just lay around. There is an innate drive to use one's gifts.
There are indeed rewards to be had in working on things you enjoy.
curiousgeorge555 humans are not meant to be debt (tax) slaves either.
@@blissbliss4168 is it debt or tax? Make a decision.
I paid off one credit card today. 4400, and it didn't hurt at all, actually it made me feel a lot better because come next month, that's one less headache I have to deal with.
One less thing to deal with frees up your time to think about other things. It adds up day after day.
It sure does. Good thing I found your channel to help me with that new years resolution. Thank You.
bigbullbk What a feeling right ?
It is also worth mentioning that while you aggressively lower your monthly expenses, that also vastly increases the amount of money you have available for investments. So getting that $250k-$500k will be even more attainable in a very short amount of time. Yeah, I know its common sense but lowering your expenses is by far the most powerful thing you can do when you are shooting for early retirement.
TheRosswise ...I agree.
I learned the lessons well from RICH DAD POOR DAD and his financial compass (asstes vs liabilities vs income (cash flow) vs capital gains).
WEALTH CREATION is first wealth accumulation then wealth conservation.
Accumulation starts with eliminating all liabilities before you build assets (otherwise you end up working to pay someone else).
Accumulation then goes (after liabilities) first step.. build a cashflow (income to build up capital).
With capital you can build up assets with value. Value is when assets generate more income for you (passive income)...and with more passive income you can stop work /retire and do what you want knowing your expenditure is going to be taken care off.
Conservation is about keeping and maintaining and growing your assets once you have them. Is easier to correct losing value in an asset than buy more assets to replace assets lost.
Peace out!
I have been an entrepreneur for my entire life and I can tell you the benefits it has paid in so many ways have been incredible. Once you get something started and really get behind it, it's like rolling a 10,000 lb ball bearing down a hill. Working for yourself is definitely not for everyone, but for self starters it can carry you through a whole lifetime with all kinds of interesting opportunities that you may never have had. There is a lot of help and encouragement out there like Beat the Bush, but you are the one that has to have the guts to go after it. Mistakes can be corrected along the way but never be afraid to start and DO NOT listen to any dream killers. If they knew any better they would be doing it themselves instead of being trapped in their own negative world. Like Beat the Bush has said, do something you like and find interesting and not just for financial gain. That will come once you find your niche. You may not become a billionaire, but doing your own thing and being successful at it will keep you happy, satisfied and well compensated for as you progress. Thanks for helping all the folks out there Beat the Bush. You are a sharp young man. This is a very well needed daily program for just about everyone. God bless....
Thanks for your comment! Guts to go after... or you find out more info until the decision is easy.
Yes, either way is good. Because of the way I was raised I was taught to just to go out and get yourself a bucket of guts and get going. Don't be afraid to take a punch as it will come somewhere along the line. I have never regretted making mistakes because it has taught me what I needed to learn to progress. Some people need plans to go about their goals and others just jump in and get wet. Both ways work. The trap that can stall everything for either type of person is getting to get ready, to get ready, to get ready and finally doing a big Zero. Trust me, I am well old enough to retire but I'm having too much fun everyday and making a solid income legally, ethically and morally. Anyone can still make it if you can focus on a subject, stick with it. Tiny flames build into roaring blazes. Once you are "off the ground" you can spread out to all kinds of other projects, but first build a strong foundation to rely on. That's my take on it.
So essentially, principles of leanfire. That's what I am shooting for. I had 10 days off and I was bored to tears. You have to work on something or a project, otherwise, retirement will literally kill you and turn your brain to mush.
Take the 10 days off as training for retirement. You need to build up things you enjoy doing and get excited about. Sometimes it wont last, you need to continually line things up for yourself to do.
I disagree with this (and agree with Mark S). The fundamental reason why people enter a depressing state of boredom is that they have been working their entire lives and never had any time to develop any hobbies or meaningful activities/things/relationships in their lives as a result of working so much.
I love my job. I'm a cataloguing technician at a public library --when you search an online public access catalogue and you see the entries those are what I enter.
Huh.. interesting! Must be a lot of work to catalog so many things.
I do some original cataloguing with Dewey etc., but I also download files with the records, but it's still a lot of work with proof-reading, authority control, etc. There's always something new to learn and teach!!!
papermason thank you! We all benefit from your work!
You really put into perspective what retirement means.
It has a lot to do with our own viewpoint about what we are doing to keep busy or earn “extra” money.
Thank you
I’m an old timer. Find something you love to do and earn money doing it. Live within your means. Save what you can in a diversified portfolio and make it a lifetime commitment. Don’t live your life stressed out over the bills. Exercise daily. Avoid alcohol and tobacco. Enjoy your youth and be social and active (outdoors not on your devices)!
That's basically the consensus in living life to the fullest. I think there are a few one on top of that too though.
Your video is excellent in showing that freedom is possible and there are many versions of retirement part time work or work that you enjoy to live the life you want sooner rather then later
My house is 160 sq ft though I do need 40 sq ft more. I got a storage build 4 years @ $177/mo for 3 years = $6,372 but if I cash I could have bought it $3,500. Though one still need to finish inside. My monthly budget is is $788.06, I but live on disability.
Land $50
Food $100
Cigs $36.16
Electric $95
Internet $97.45
Cell phone $79
Car Payment $115.21
Car gas $25
Car Insurance $50
Car Maintenance $20
Pocket money $20
Credit card $40
Dental $25
Home Upgrades $50
Audible $15.96
Dog care $25
Dog food $21.72
Saving 2.736% $21.56
Total: $788.06
You could save 30 bucks by giving up smoking.
This is extremely simplified. It may work when you're young, healthy and single with no dependents, but it's not sustainable for life. Even with a decent emergency fund (separate from a portfolio), life happens. Does your formula take cost of living into consideration? Does it take into consideration marriage, kids, divorce, or losing your physical health to something like an accident or cancer? How about taking care of aging parents who probably paid for your BS & MS so that you graduate without student debt. You are where you're at today because you didn't start out under water.
bunny wabbitt ..stop your negativity and get with the programme.
Yes you can retire early without pension pot, he says if u eliminate your mortgage and reduce yourexpenditure a low grade job ( low paying job) can cover your expenses.
The underlying assumption is he is only making provision for one risk... (he is single and his basic living maintenance costs).
If you want to cover other risks (like health, family commitments, emergency spending)...you make separate financial provision.
Checkout my other posts on this comment list....see if you can see any ideas to help u...look for my words ("mid risk investments", "high risk investments") to manage more risks by generating more income in retirement.
Peace out!
The plan looks good. When the house is paid, imagine all the money available to invest. Huge difference.
Huge. And of course, everyone wants that but it's hard to achieve.
Many people I know that are still working. ( People in their 70's and 80's) are in good health with a sharp mind. They love keeping busy. I love working myself, and hope to never retire. I am blessed with good health.
Hopefully working on something they would do anyway even if they won the lottery.
Yes, I love people. I schedule mystery shops, do product demos, exit interviewing, telephone mystery shops, and my you tube channel. My favorite thing is giving people free food!!!
Life can end in seconds at any age, so please be a nice and kind person to yourself and others.
Fungwai Poon I was blessed to enjoy my job, and it paid well. Some of the evil demons on the job, had to be ignored.
so worth saying!!!
I've listend to lots of your videos. Very well done and the info is good too. Thanks.
You are a pretty smart guy. I am practicing FI and well on my way to retirement goal. I was originally watching your videos for FI, now I watch for everything cause I think you got many great life hack tips. Thanks for the video.
Wow, thank you for branching out to watch my other vids as well. You're welcome. =D
I agree about engineering output eventually surpassing pay. So I now do contracting, which is less hours and more flexibility and satisfaction for the same pay and use my spare time to go paragliding, etc. and design my own products to sell. The improvement in mindset is immeasurable.
All but a small part of the greater organization sometimes. Many people already know this of course but I bet if their worth is put in dollar amount and they see they get paid 1/4th of that, it wouldn't slip by so easily.
Yes, a lot goes under the radar because people are unaware. (Insert Francis Bacon quote here) I once heard how much my company charged clients for my time and nearly had a panic attack.
this is exactly what I was looking for I am 56 I do not want to work until 67.I don't have a house, is it favorable to get a house? I feel I can rent for the rest of my life and use my money to travel instead
I don't even really get many new ideas from those videos, but I still love watching them, because of how well they click with my world views. It's very reassuring. :D
As they say... how can there be new ideas? Someone out there has uttered everything everyone said before.
True... In fact, I believe it was Confucius who said "Choose a job you love and you will never have to work a day in your life."
Beatthebush, you are very smart, I like your videos and keep following them, keep the work !
Thanks!
A great book on this subject is Early Retirement Extreme. It's more of a philosophical book rather than "tips and tricks" you usually get with other career/self-help/finance books. So far I'm loving it.
You need the philosophical view in order to give you reasons to do it. Otherwise, it just sounds nice.
In the FI/RE (Financial Independence / Early Retirement) community we call this level "Barista FI".
It is basically the level of investment income/paid off house where you could quit your stressful job and do something like be a barista part time to pay the remaining bills. Doesn't have to be a barista, basically any job not too stressful that you would enjoy doing.
Nice! I like that phrase. But then for me, I'm not sure if I want to be a Barista. I MUST be something you will do IF you won the lottery anyway. Will one really want to still make coffee then?
I did actually see a show a few years back called, "Radical Sabbatical" where people quit the rat race and did their hearts desires, and yes, a finance professional quit to work at a coffee shop. Crazy to most but courageous and inspiring also.
You have some really great videos with excellent advice backed by real life personal experience. I love your channel and look forward to seeing more from you! Keep up the good work! :)
Thanks! Seems like you just found it. Welcome!
Always great advice, that I follow on a daily basis. It's all about the management of your passive income and monthly savings rate, as long as you're able to cover your monthly expenses at the end of each month, with a surplus, you're in great shape! Retirement here we come!
You do need a slight surplus... or rather a great surplus is better of course to not feel stressed trying to make ends meet.
The 4% rule is not about preserving your entire principal, it's about not exhausting it before you die...
It's about not running out with high probability.
Right, you just said otherwise in the video.
I enjoy your videos but I think I said it before, you are thinking from a perspective of a single person. Remember that most people may not be single and even if they are they may be taking care of someone, so they can't just think of their own needs. So yes, if you are single, you may want to do exactly what you are suggesting, but most people passed 40 will either not be single or will be divorced with some child support etc. So not many are lucky to be able to do what they want at that early age.
I love how real you are. Keep doing you ✨
=D Thanks!
BeatTheBush you’re welcome
So clever. Great way of explaining this! I'm inspired
=D Thanks!
Sure now you are in good health, but what if in a few years you need an expensive medical procedure?
Better have some savings to back it up. Same if you have a job. You need insurance either way.
I had to run to emergency one night. My insurance covered only $1500 and the balance was $4k. In San Mateo County, the hospital considered income less than $60k/yr as low income.. they forgave the rest!
@@obsoleteprofessor2034 a really important point! Thank you.
@@sarasuperid When I got the bill, I tried to negotiate $50/month to pay it off. The clerk kept trying to get me to pay $300. I told her I simply couldn't afford it. It was then that she offered to send me an information packet. In that packet I read that there was a $60k threshold. I sent 2 payments while they processed my application. They then forgave the balance. I went in to see if I could get my payments back but they ignored me.
Great video. Being able to retire early is so worthwhile, after all no one knows when we will pop off this mortal coil. The flexibility to do things increases greatly, and you can take it easy if not feeling 100%.
Exactly. How many times do people force themselves to go to work even when they feel a bit ill? Many are afraid to take vacation or sick days because they have limited amounts and want to use it for actual vacation.
Afraid that was me when working....and, with hindsight, it was so draining. :-)
omg this is basically me... I love my job, I work my own hours whenever I want. I can't think of anything else I'd rather do. It's enough to sustain my lifestyle. I'm.... retired...! :O
Thank you. I love your way of thinking. I am working on all now. Great to find like minded people! Happy New Year 2018!!! 😊
Happy new year! =D
Thanks for the video Francis! Can you make another video on "How to DIY Blue Apron yourself"? :)
What do you mean by that? Make your own food?
Yes, so we don't have to pay for their food and receipes. :)
I'm currently taking advantage of the fact that I'm at a full time job to think of ways to make side income. :)
It's not an either-or question. Most jobs, whether salaried or freelance, include components that suck. You can't just pick the parts of the job that you love and "outsource" the parts that suck, no matter how rich you are (if you try to do that, you will find yourself teaching other people and overseeing them working for you, e.g. being a manager, which by itself sucks). So the basic question is whether you want to enter obligations toward other people or not, but it's easier to have fewer such obligations when you don't need the income.
You can indeed pick and choose and have more freedom to do so in a freelance position. It can be minimized to almost nothing.
Not true for high-level corporate IT freelancing. Actually, freelancers are hired to do things that employees don't want to or can't do. If you jump out of contract in the middle without delivering what you promised because "it's not fun any more", not only won't you ever be hired again by this client, they can actually sue you for damages or lost income. There are very few serious freelance jobs in IT that don't demand this sort of responsibility. Many clients even demand 100% on-site presence (something I won't do any more). Freelancing is very similar to employment, except you must pay attention to your client instead of your boss.
Great video...love all those number examples...really helps in showing you what's all possible...but your Ice-Bat really doesn't like being all squeezed in like that...lol
Wut? He got in there by himself. They do what they want just like retiring early.
All very practical and doable. Thanks, BeatTheBush!
You're welcome!
I'm struggling to find a meaningful side gig I enjoy that will be like non-work! I totally agree with what you say!
That's one way to retire happily. Don't forget the other ways to retire happily that you could feature in future vids, especially if what you love to do costs money!
My advice to anyone once you find that you do not like the work enviroment and the type of people they hire and keep. Even if the the money is the most you've made. Run like a mutha forkaaaa!!!!!!
No where near retirement yet, but the countdown to saying goodbye to the mortgage is ON. Roughly 4.5 years to go (I hope- income circulates some). We'll have a lot of fun once that payment + the extra we've been throwing at it will be OURS again.
I'm trying to follow your lead. Thanks BTB!
=D Question is... what will you do today to get you closer?
Great video! Thank you!
Then may I ask how can one retire without money, even without money to invest please?
Much harder to do when you have kids. Also, what about health insurance and unknown health issues? My wife just had to remove her gallbladder. Just that would eliminate the $20K yearly budget in no time.
WoW , 126K in subscribers ... That's a lot considering the short time you have been doing it. Your comments are for the most part favorable , everyone seems to like you and your content. Keep up the good work , I know you will. Tom
My comments? I assume you meant the comments in the vid. Thanks!
BTB works hard. A video a day.
Very true !! Love this video
Thanks!
Question sir: I seldom hear people talking about the inflation rate when discussing retirement cash flow needs and living off the interest. Being that the historic inflation rate is ~3.2%, wouldn’t $60k now need to be closer to double in 20 years and closer to quadruple near end of life?Am I just overthinking it? (That’s even before getting into likely exuberant geriatric medical costs)
Is it? It averages 2% really. When you do the 4% withdrawal, you increase your withdrawal with inflation. But you really should try to earn more even if you hit that magic number. For margin of safety.
BeatTheBush So the withdrawal percentage goes up over the course of retirement to compensate for inflation? Okay, I get it, thank you. I had assumed the principal could work in perpetuity given no crazy expenditures or med bills...wishful thinking on my part. Darn 😕 BTW, I had gotten that historical rate from inflationdata.com . It makes it a little easier if it’s only 2%.
I just finished a Canadian publication that outlines how to draw down your income in retirement. I don't feel quite as desperate as I did before I read it.
Nice! Yeah, it's good to FEEL secure to have a happy retirement.
So basically, living of interests whatnot , California pays more in interests of the dollar and, their taxes are very high (Correct)?
You should do a video on winning the lottery. Not everyone wins the multi-million jackpot; note that a fairly common occurrence is that someone wins a secondary prize on the order of 50k to 1mm which is enough to pay off some debts but not retire. Not everything you love working on can be accomplished as an entrepreneur; if you love rocket ships you must work for NASA or similar.
Not everyone? lol... almost no one haha. Unless you are Elon Musk... he did it.
Great videos keep the great content
Great video. What the hecc is going on with icebat 😱?
He never blinks, he always looks like he has ptsd--Cquat
He wants to be more like a pea... a phase I think.
He looks cozy to me.
LDiableo - he looks very cold.
Yet the pea kicked out of the pod looks quite pleased to be expanding his horizons...
I love your videos! Thank you for this helpful information!! 💕
You're welcome!
This is more a shift in mindset and outlook than actually retiring. Better to think financial independence than retirement and set incremental goals that progress towards its’ attainment. We travel the globe ( it’s the thing that makes us happy) and our next goal is to achieve a passive income from our TH-cam channels that covers the cost of our annual travel. Imaging how awesome it would be to build a passive income that not only covers the cost of your lifestyle, but also allows you to provide for your wider family members, contribute to your local community and support charitable causes? This is not about getting rich, it’s about leading a quality life and making a positive impact on the lives of others. Travel safe everyone 😎👍❤️
I wouldn't say travelling the globe makes me all that much happier. I'm so happy to sleep in my own bed and do my thing most the time. Just short trips is fine with me.
BeatTheBush Actually I don’t like being on a plane much more than a few hours and generally end up feeling quite fatigued after long journeys, so where possible we break our longer journeys up with multiple stops. This means not only do we get to see new places that we would not get to see by taking direct flights but also we feel less tired and usually only on board a plane for a few hours at a time. It’s a great way to see the world and meet people from different cultures, whilst creating fantastic memories 😎👍❤️
I’m just curious about why you quit your engineering job before you paid off your mortgage? I would have kept that engineering job a minimized my expenses to pay that mortgage down.
probably because he has a million dollar mortagage since he lives in San Fran. he figured that he does not want to torture himself for another 10-15 years at work)))
CTay 1707 his investment dividends and interest (with the 3%rule) probably exceed his living expenses and mortgage. He most likely calculated that into his retirement plan.
I think I the reason for why will become clear later on. I have my reasons.
Btw, I'm not strictly retired. I.e. I cannot lay on a beach all day nor do I want to.
BeatTheBush i know you have something up your sleeves specially working for amazon at distribution center. Can't wait to hear it 😁
emikami1 why are you on his channel hating on him? He inspires many people to get off their ass and get to work!
you made my decisions so simple.
I mean, if you're going to retire at 40 with $250,000, why not retire at 45 with $500,000 by saving $50k a year for 5 more years. Is 5 years of your life really that big of a deal out of the 30+ years you have left to live?
Also, retiring with only $250k at 40-years-old in a country like the US is a HUGE risk. 1 car accident, 1 major surgery, or 1 cancer diagnosis later, you're nearly broke with no job, and medicare & social security doesn't kick in for another 20 years. It's just way too much risk for most Americans. One option would be to take that money and move to a cheaper or socialized country.
Now if you have $1 million at 40 with a paid-off house, have at it. You could retire quite comfortably pretty much anywhere.
"Is 5 years of your life really that big of a deal out of the 30+ years you have left to live?"
Yes, it is.
Great Video. You are my inspiration.
Good stuff man
=D
Great discussions on engineering jobs and the value of your own worth at a company. I'm in engineering consulting, clients pays 100-230 dollars per hour. We earn 30-60 an hour...even considering benefits it's not worth it to work for 40 years.
You get in, make some initial money. Pivot to something that makes more. Work on it on the side during your day job.
If I happened to win the lottery, I would finish work yesterday 100%!
This channel is Mr.MoneyMoustache of youtube. 👍 love it.
=D Ahhh MMM, that guy! =D
A news channel said the average age where income tapper off is in the mid 30s, but I proved that wrong when I got a pay increase over 20% Last year.
Nice!
What do you do about health insurance if you want to retire early (under 65) and lose your employers health plan?
Here th-cam.com/video/zztaG_VP5no/w-d-xo.html
Having no money means just that so, I can't see how Ithis helps.
Step 1. Move in with Francis(spelling?)
Step 2. Repeat step 1
Lol... no moving in over here.
Hoping to position myself as a lacky or sidekick like Mr.Beast's friends.
Really good video content here, tfs.
You're welcome!
Good Video. Good Advice.
It's more of a perspective thing. =D
I like the video. One question for you: how do you expect to pay for healthcare? Eventually, everyone may have unexpected high medical bills. Would you just be on minimum gov insurance policy? I'm considering early retirement as well
Just retired from Merck and now living in Florida .( Moved from Philly.)
Nice! How long and what activities do you enjoy mostly while retired?
Great video! I like your mentality.
Thanks!
I fix/sell old design washing machines and dryers people throw out. Many apartments have hook-ups. The big eye'd Samsung computerized washers drive customers to me in droves!
What part of no money you didn't understand
Think I am too old to really build any good retirement. Dk anything about investigating and don't have the money to pay some to help me figure it out.
Well said understandable and important. Thank you for sharing this. David Jenson Chicago-based
It's a bit philosophical and if you believe it, it can really change the way you look at life.
"I ain't gonna work in Maggie's call-centre no more" ....
I meant would you consider going back to software engineering as a freelance, project basis, or work from home (commute free) given all your education and years of experience?
I might. If anything i have plenty of personal projects to keep me busy engineering wise. I get product ideas all the time and this is the perfect time to develop something like that.
Hey beat could you please discuss personal income tax rate and how it is different when you’re retired?
I will work online to support the greedy landlord, utilities and Medicare, who stole our 2018 SS. i am busy online..lol I travelled from 20-72 on my paid vacations, and I helped non Beggars. I have been in a second retirement for 6 years. At 58, I retired after working since age 7. I returned to work at 61;and then retired a second time at 70. I will only teach Conversational English, if I need additional income, but for the momoment, I am doing great.I will never beg for money.
Interesting story but it is a bit hard to understand.
So maybe I missed it by the end of the video, but what would you suggest investing into where I could receive that 4% income return every year (or most years); IRA's, ordinary stocks, stocks with dividends?
As an engineer myself I’m starting to completely understand where you’re coming from.
I would trade my engineering salary to do what I Love in a heartbeat if i can get to the point where my side income is self sustaining.
Great video as always!
If you aren't generating 20X your salary, the company isn't going to keep you around. That's how they make money.
Great Video BTB.
Thanks!
Doing nothing is boring! Need to do something! Retirement for me is being financial independent, not sitting around watching price is right everyday. Even if you retire rich enough to travel all the time and you think "that would be the best".. That gets boring too after a while.
I guess that depends on that person. But if you just waste it away, it will be wasted away.
Things will change. I'm guessing your in your 20's? In my 20's I hated structure and had no idea how I was going to retire, nor would I even think about it. Sounds to me like you live a life of leisure, and unless your family is rich that wont get you too far. I work harder now, in my mid 30's, so when I get to the point when my metabolism slows down and my body cant take long hours, that I will already be financially comfortable enough to not have to stress money. Dont let yourself turn 40 or 50 and say "I wish I did this & and wish I did that" take your opportunities as they present them self and set the bar higher than you expect to need.
Getting paid in proportion to the value that you're generating...have you read Atlas Shrugged? It's a mostly-awful book but it does explore that idea of one's work being compensated in proportion to the value generated.
Well, shux, thats exactly what I want to do but, it seems like what you've mentioned does not apply to teens like me whose about to grad from highschool..
Feelsbadman.
If you do it right off the bat, you have the risk of no safety net. If you make just enough to survive, you can indeed do it for a while at a job you are very happy with. But with no security behind you, it doesn't work as well.
haha yeah, and I cant really say the thing I want to do can be classified as a job.
What's with the plushies? did I miss that video? lol
Anyway - great information ;-)
What are they up to now? They are always different in each one.
BeatTheBush - adorable ... they add a cute touch ... I love your videos! 😉💕👌
=D TY!
looking back at this older video in the context of what has been going on is very interesting
I remember you had another video that was like, the economy would essentially crash if all the consumers were as frugal as you.... and then covid happened and this is exactly what happened lol.
but right now there is a crazy amount of political distraction going on because workers all the sudden have an extreme amount of bargaining power, it is a workers market and they are demanding higher wages.
that being said, what would happen if every engineer went from working ages of 22-67 (45 years) to instead 22-37 (15 years)
inorder to keep everything the same with the same pool of workers, they would need to graduate 3x the number of engineers each year.
the inflation and credit debt traps that are constantly being marketed have the subtle intent of doing just that. by increasing everyone's burn rate with inflation, cc debt, rent/cost of living increases.... the system essentially guarantees workers have to work longer which has the hidden effect of growing the workforce and lowering wages, thus increasing cooperate profits.
covid gave a lot of people the first taste of freedom by essentially letting us experience 2 years of retired life and we will be feeling the psychological effects on workers advocating for themselfes more for the next decade or two.
I think many people are REQUIRED to be as frugal to get by now. Once you get a taste of retired life you wont want to go back.
I like your idea of retiring with no income, but it has a few challenges.
1) People need to change from wasteful spenders into non-materialists. Most Americans are materialists because America is a materialist society. People do not easily change their mindsets, given peer pressure and all the advertising that encourages people to spend their hard earned money.
2) Health Care cost could be mentioned. If you don’t work for an employer, you have to pay for your own health care, which is expensive and can easily cost up to half of the $20K earnings (for older people). I’d like to mention Obamacare’s subsidies for which one qualifies (on a sliding scale) when one has lower income. This helps make health care affordable. The Republicans have been trying to sabotage Obamacare and they actually did remove the individual mandate, which will increase premiums for everybody, even for those who get subsidies.
Your awesome bro thanks for helping me get my credit together
You're welcome!
This is great information but you spoke too fast! Can you make a PDF? Infographic? hahaha
Ahh... should I speak slower? You can use TH-cam to slow down the video.
hey, my retirement plan has a fund that in average grows at a 7% clip each year with a .02% yearly fee, and one that grows at 11% with a .77% fee. So my question is over a 20 year course which portfolio would have had grown more? Is the extra 4% yearly growth worth the higher yearly fee or not?, The math is to much for me to figure it out on my own. It would be cool if you did a video about it " is if worth it paying a higher fee for a greater yearly return? "
Wait a minute... this sounds like some sort of finance problem in a college homework assignment, lol.
I'd take the lower fee one because good returns are never guaranteed! Mathematically, the question isn't written out enough to solve.
I want a video on a healthcare bridge with early retirement.
You generally need to pay for this out of pocket.
Can someone put these levels down below . or does he have a Video on it ?
But what are these investments that pays 4% annually?
It generally refers to the safe withdrawal rate when invested in the stock market over a long period of time. Some years it might be -30% but averaged over many years, it's more like 8%.
I always wondering joe much cost on medical health plan after retired...
you are awesome dude
Great video! By any chance, can you tell us your opinion about turo- car lending business?
Not sure what that is.
BeatTheBush It is like airbnb for cars. If you don't use your car, you can rent it out. I thought it was a cool concept but if you are not familiar with it, nevermind! Thank you for these videos 😊
I found you because you sold your bitcoins, but you're such an interesting and smart person. Very enjoying your content :))
Interesting that bitcoin could help me get more subscribers. What a strange turn of events. Thanks for your sub!