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I created a second income stream through real estate investing. I would work during the day and look for opportunities in the evenings. By late 20s I had my first mill. It’s not easy but it allowed me to create a passive income which I live off today. Highly recommended.
What did you do to get started with real estate investing
One of the main tenants of FIRE is that your target is based on the income of your career, so it scales to most situations and standards of living. For example, if you earn and live a life around a $80k annual comp, then your target might be $750k and your expense goal might be $35k annually.
On the other hand if you have a $150k annual comp in a higher paying career path, then your spending amount might be $70k per year and your asset goal might be $1,500k. In both cases the targets are different but the time to goal should be similar.
An obvious way to think about it is that while employed your spending is relative to your income, so why shouldn’t your retirement spending be as well?
Now answering your question indirectly.. I reached my goal in 8 years. It was no one thing but consistent low spending relative to my income (which increased) and a combination of shrewd investments (no yoloing). The direct things you can change are either your spending rate or your earning rate.
It’s really like a result/input to the “% of income saved = years til retirement goal hit” from the mr money mustache chart
29. No undergrad debt (didn’t go). Into workforce directly from high school. Avoided lifestyle inflation at all cost. Got extremely lucky at least twice.
Say more BCG1
Maybe late 30’s?? It starts to grow at a faster rate as the balance goes up. 47 now and around 2.5M including real estate (Bay Area) and retirement.
Just wondering if you’ve ever done what I call a “FI-RR”...it is useful for folks like myself who have used their own income to reach FI. You basically just use your gross Medicare earnings on your social security statement to solve for an IRR given your current net worth. The resulting IRR(internal rate of return) will show you how much you have accumulated in excess of what not only your spending has consumed, but also taxes, etc. It can paint a picture that I found helpful. I graduated as a pharmacist in 2009 and reached a zero net worth that year(paid off student loans)...I took each year’s monthly gross pre-tax earnings and used a cash flow calculator to see what IRR would allow me to reach my 9/1/2020 net worth of $2.058M...the answer was 7.79%...this gives me confidence that I will remain FI going forward...I made some silly mistakes(did Roth 401k the year I had my highest earnings:$140k...which made an effective tax rate of around 20%...paid $20k for a new car in 2011 for a ridiculous opportunity cost)...but if you can earn 7.79% on every single dollar you’ve earned even after your expenses and your taxes and mistakes...then your golden in my book. FYI: first million at 32 years old, second million at 36(this year). It is definitely strange how compound interest works because I lived extremely frugally for the first 7 years to make it to one million and I have spent at least triple each year since the first million and it only took another 4 years to double my net worth...however, my “inflated” lifestyle now is still probably only $2k/month...I know some people think that’s impossible but if you get the big expenses right you can make a lot of mistakes...I had a $89k condo with 80% LTV at less than $100/month payment for all of those first seven years(now I own half of a larger condo mortgage free)...one month libor based mortgage and drove a hybrid Honda that had very low maintenance(I still drive that same car 9 years later). Anyway, I would be interested to have other folks who are attempting FI or consider themselves post-FI, Fat-FI, etc. to calculate their “FI-RR” just to see what is typical when someone thinks about retirement preparedness.
Mentor
31-32.
Good income and savings rate.
Mentor
Just YOLO and get lucky and you could be there tomorrow
Mid to late 30s. Lived paycheck to paycheck most of my life by living the good life until I discovered FIRE. More than halfway to my FIRE goal so never too late
12, I’m a slacker.
40. Then I kinda lose the motivation to continue at my high-paying job. What would you change after hitting your first million?
Thanks!