How to Retire in Your 30s With $1 Million in the Bank - page 4.

theyRmose

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Quote from: renggileh on September 04, 2018, 12:54:44 PM

Quote from: hyadumadha on September 03, 2018, 10:20:25 AM

Its ridiculous when you say about the lambo things, the point is not for being more consumptive to save the planets, not the contrary. The millennial should concern about long time-simple living, being more spiritual, understand about their self and be more environmentalist, not those who party everyday and spend those money to buy shit product.

you are right, no matter how much money we have if our lifestyle is too luxurious I think it will never be enough.
simple life is good, because I think money is not a guarantee of a happy life, there are things that are more valuable than money.

very wise, I agree
Our lifestyle determines how much money we will spend on daily living needs. and a simple lifestyle is the best choice.
just don't be too stingy for yourself. Grin

renggileh

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Quote from: hyadumadha on September 03, 2018, 10:20:25 AM

Its ridiculous when you say about the lambo things, the point is not for being more consumptive to save the planets, not the contrary. The millennial should concern about long time-simple living, being more spiritual, understand about their self and be more environmentalist, not those who party everyday and spend those money to buy shit product.

you are right, no matter how much money we have if our lifestyle is too luxurious I think it will never be enough.
simple life is good, because I think money is not a guarantee of a happy life, there are things that are more valuable than money.

trecore4

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CryptoTalk.Org - Get Paid for every Post!

I highly doubt that this can be done in the current era. I mean people are earning loads of money everyday with the crypto currency but lets just be practical and think about the current situation of market, real life expenses and personal expenses. They are huge and any kind of amount you earn will have 50-60% of share will have spent on these expense. So you will have to earn 2x more to keep loading your bank accounts with huge money savings. Also, people will have to start their earnings as early as their 17's or 20's max so that in the next 10 years they can have billion in their account. I am sure that would be the money which they will need for their next 60-70 years if they wanna get retired by 30's. Wink

warriorcryptobar

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Or one could just sell their classy car they own to justify the life presented in the article. Buy 100 eth and be doing nothing. A million dollars isnt rocket science. Its eth at $29,000 for a 100 coins, or the price of a honda accord new, which many people seem to own, yet so few a millionaire in 10 yrs.

odolvlobo

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Quote from: pawel7777 on September 04, 2018, 04:59:21 AM

This looks nice and all, but you ignored inflation, which is a very important factor here. Assuming inflation at 2.5%, your interest effectively goes down from 5% to 2.5%, resulting in this:
With median income for US of ~$45k (quick google search), that gives $10,087 annual interest, so less than half of what you need to maintain the same, frugal (dis)comfort of life, unless you manage to get better yield for your savings.

I purposely ignored inflation because it would add complication. On the other hand, a 5% return is on the low side. If you get 7.5% return with 2.5% inflation, you would be back on track.

BTW, you have shown how destructive inflation can be on retirement savings -- even at 2%, which the Fed considers to be "healthy".

pawel7777

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Quote from: odolvlobo on September 04, 2018, 12:22:37 AM

For every $10,000 income ...
Yearly Spending: $5000
Yearly Savings: $5000
Interest: 5%

This looks nice and all, but you ignored inflation, which is a very important factor here. Assuming inflation at 2.5%, your interest effectively goes down from 5% to 2.5%, resulting in this:

Year   Spending     Interest     Total Savings
1    $5,000.00    $0.00     $5,000.00
2    $5,000.00    $125.00     $10,125.00
3    $5,000.00    $253.13     $15,378.13
4    $5,000.00    $384.45     $20,762.58
5    $5,000.00    $519.06     $26,281.64
6    $5,000.00    $657.04     $31,938.68
7    $5,000.00    $798.47     $37,737.15
8    $5,000.00    $943.43     $43,680.58
9    $5,000.00    $1,092.01     $49,772.59
10   $5,000.00    $1,244.31     $56,016.91
11   $5,000.00    $1,400.42     $62,417.33
12   $5,000.00    $1,560.43     $68,977.76
13   $5,000.00    $1,724.44     $75,702.21
14   $5,000.00    $1,892.56     $82,594.76
15   $5,000.00    $2,064.87     $89,659.63
16   $5,000.00    $2,241.49     $96,901.12

With median income for US of ~$45k (quick google search), that gives $10,087 annual interest, so less than half of what you need to maintain the same, frugal (dis)comfort of life, unless you manage to get better yield for your savings.

odolvlobo

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Quote from: Crypto one on September 03, 2018, 09:57:03 PM

How many regular people can save up 1.2 million dollars or more in just ten years, most people don't even get that kind of money from work in a whole work life.
Good for him that he had a good job with a nice salary, and he know how to save up, but for most people this is just not possible.

Maybe not, but you don't have to save 1.2 million dollars.

If you spend half of your income and save the rest at 5% interest, then the yearly interest on your savings will be enough to pay for your spending after 16 years. So, if you save half of your income and are comfortable with your standard of living, then you can retire in 16 years, no matter how much you make. Of course if you save less, it will take longer. If you save 30%, it will take 26 years.

For every $10,000 income ...
Yearly Spending: $5000
Yearly Savings: $5000
Interest: 5%

Year	Spending	Interest	Total Savings
1	$5,000.00	$0.00	$5,000.00
2	$5,000.00	$250.00	$10,250.00
3	$5,000.00	$512.50	$15,762.50
4	$5,000.00	$788.13	$21,550.63
5	$5,000.00	$1,077.53	$27,628.16
6	$5,000.00	$1,381.41	$34,009.56
7	$5,000.00	$1,700.48	$40,710.04
8	$5,000.00	$2,035.50	$47,745.54
9	$5,000.00	$2,387.28	$55,132.82
10	$5,000.00	$2,756.64	$62,889.46
11	$5,000.00	$3,144.47	$71,033.94
12	$5,000.00	$3,551.70	$79,585.63
13	$5,000.00	$3,979.28	$88,564.91
14	$5,000.00	$4,428.25	$97,993.16
15	$5,000.00	$4,899.66	$107,892.82
16	$5,000.00	$5,394.64	$118,287.46

Crypto one

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How many regular people can save up 1.2 million dollars or more in just ten years, most people don't even get that kind of money from work in a whole work life.
Good for him that he had a good job with a nice salary, and he know how to save up, but for most people this is just not possible.

shelemiah31

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You need to do a lot of hardwork for you to be able to do this.Have investment.Engage in crypto.Join bitcoin forum.Know about cryptocurrency.Be wise in investing.And most of all, save, earn and invest.

charlotte04

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BitHodler

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I'm currently on the side of having every bit of free income invested in Bitcoin, purely because of the fact that there is so much upwards potential, that I would be stupid to not fully go for it.

I know there are risks to it, but I'm well willing to expose myself to these risks. I can openly say that without Bitcoin I wouldn't be that interested in economics and having something to focus on to better my financial position.

I would probably remain an average joe just working from 9 to 5 without any variance in life. In other words, I have a lot to thank Bitcoin for, and that in more ways than one. There just isn't a viable alternative.

Jaycee99

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This is a long advice and a long situation for
I see that you have a link and notice that it is long. For me you do not did this just to show people what you want to spread or show. You should know that you can paraphrase this and summarize everything because it is verybery long

I say this is an lettle diverse talk. Time? Yes is good and it is having discipline body is a good thing while getting rich fir discipline is a better move for better future. Financial education on every way that we could use it.

pawel7777

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Reddit links:

https://www.reddit.com/r/financialindependence/comments/9choov/take_the_money_and_run/
UK: https://www.reddit.com/r/FIREUK/

Frugality-->accumulation-->early retirement sounds like sensible plan, but there are a lot of downsides to it, which need to be considered. Overdisciplining yourself with extreme frugality over the best years of your youth will surely leave some psychological mark. When you're finally ready to retire, you could find yourself either incapable of 'having fun' or worse - you could go into full stupid, money splashing mode to compensate for the lost years.

Plus, frugality goes in line with increased (financial) risk aversion, which could lead to many wasted opportunities, ie. not starting own business, not investing in bitcoin etc.

acheampong64

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Financial independence is very important in this life. Every time, we need to make sure we have a residual source of income and we don't depend always on government or our employers for source of income. That is why people are always trying to find ways to invest their money and also to start businesses. It's better to make your own than to depend on some one which may not be sustainable.

St4yInTh3D4rk

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"STAY IN THE DARK"

Smell the money at the age of 11 can be a way to make us millionaire,there are lot of people who are millionaire now are not from the wealthy family but they earned lot of money in very short term just by the investing that is the only way to make more money and pay less taxes.

bitmover

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bitcoindata.science

This is my life's goal since I am 25.

First I bought a house, because my biggest expense was the rent.

Then I started accumulating.

Quote from: Hydrogen on September 03, 2018, 07:47:42 AM

I wonder if there is a similar movement revolving around bitcoin and crypto? I know there are many buying lamborghinis living beyond their expected means for their age group, due to being early adopters of crypto.

Perhaps in the future we'll see a crossover of sorts where FIRE adherants and crypto join forces. lol

Many people that were seeking to retire early discovered BTC soon enough and they could retire even earlier than planned.
I expect there is going to be a second wave for laters bitcoiners soon, I hope to get this one =D

Quote from: Hydrogen on September 03, 2018, 07:47:42 AM

Followers of FIRE tend to be male and work in the tech industry, left-brained engineer-types who geek out on calculating compound interest over 40 years, or the return on investment (R.O.I.) on low-fee index funds versus real estate rentals.

I see that low fee ETF are really the way to go on developed countries, however the situation is different in developing countries.
In developing countries ETFs are too risky, as our stock market is usually very volatile. Not suitable for early retirement.

In Brazil, for example, we have one of the highest interest rates in the world. This is a huge opportunity to invest in Brazilian treasure bonds. Treasure Bonds on Brazil pays ~6% plus inflation rates per year. (in the US they pay inflation + 2-3% a year)

There is also a specific bonds for early retirement, which pays you ~3% of all your investments twice a year. And the principal + inflation rates will be received at the maturation of the title.
If you invest $ 1,000,000 in Brazilian bonds, you would receive about ~70,000 every six months, what would be about ~5,800 per month.

I believe there are similar financial products worldwide...

Jhonthor

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I think bitcoin can make your dream come true

The Sceptical Chymist

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Top Crypto Casino

Quote from: Ladysmith on September 03, 2018, 12:05:51 PM

Free time is true wealth.

I don't know about that. I've known quite a few people who live in shelters and who have no job, and the lives they lead couldn't be considered "wealthy", and I'm not just talking about them not having money.

Living a life of ease is something we all want when we're working 40 hours or more a week, but many people end up doing nothing with their lives when they do have free time. Having a job has quite a few benefits aside from the paycheck, especially if you like what you're doing. I have no plans to retire right now, as I like working. It gives me purpose and a sense that I'm doing something worthwhile.

I do like the extreme saving aspect of this. Blowing your money on stuff you don't need is a recipe for disaster. Feeling like you have to work just to pay for all the extras is not a path to happiness.

Ladysmith

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I think we're entering into an age of "lifestyle optimization." People, in a general sense, are starting to focus more on happiness rather than pure profit. The internet and smart investing made this type of lifestyle possible in the first place, and will only evolve from here as the aspects of life that make people happy become less physical in nature. Free time is true wealth.

hyadumadha

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Its ridiculous when you say about the lambo things, the point is not for being more consumptive to save the planets, not the contrary. The millennial should concern about long time-simple living, being more spiritual, understand about their self and be more environmentalist, not those who party everyday and spend those money to buy shit product.

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