Insights into Financial Independence Retire Early.

Understanding what F.I really is.

By Harry Brown

** To be read **

by Dave Ramsey

** to be read **

by EarlyRetirementNow

Traditionally, retiring involves saving 10 to 15% of your paycheck over your working life time, til you are about 60 years old. By that time, you will be able to access different income streams from the government through centrelink for different programs such as the pension or disability support payments. Around this time, you would be able to withdrawal from your superannualation fund. The idea is that through your hard earn cash, and different programs, you will be able to survive til you make the grave.

And that is not fine. Fuck working til I am 60 years old, with 2 broken knee and lower back problem. or til I get Parkinson. So the other way, is to FIRE. To FIRE, you need to step up. Be Proactive by saving at least 30-50% of your paycheck and can supplement that cash flow by working on a side gig.

By FIREING, you will be able to cut the accumulation of cash or assets by half.

Remember that that wealth is a two step process, wealth accumulation and wealth preservation. Building cash or cash producing assets and then spreading it out to make it last your entire lifespan.

It is worthwhile, reviewing the expenses of eating out and vehicle as it takes the largest slice of paycheck.

This chart from ERN illustrates the point.

by Billy Murphy

** to be read **

** to be read **

by JL Collins

** to be read **

by JL Collins

Expect crashes but market always recover. When the market does recovers, it always goes up.

Investing is like a main dish with a side course of panic. During crashes; hold on, let it self-correct the course and buy more.

Stock market are single best investment opportunity with ETF outperfoming mutural funds over the long run. ¹

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The market always goes up. VTSAX is the market and index funds are groupings of every publicly traded US based company. The market is self cleansing and non-stagnet. Old companies fades away and is replaced with new companies within index fund. Owning stocks is owning a part of living, breathing, dynamic companies and each striving to succeed. ²

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Most people lose money in the stock market. We panic when times are tough and buy when the market is high. We believe we can pick individual stocks and winning mutual fund managers. We play in the wrong end of the pool.

The stock market is 1) owning a operating company and 2) trading of pieces of papers and drama. Majority of news are bullshit and everyone is guessing what’s bullshit (foam) and what’s real. ³

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4th part is coming soon. ⁴

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The more complex the investment strategy, the less profitable it likely will be. When choosing a strategy, the following questions need to be asked; 1) What stage are you, wealth accumulation, wealth preservation or mix of the two 2) What level of risk are you willing to tolerate? 3) Is your investment horizon long-term or short-term?

Money buys fiscal freedom, it is worth to have some liquidity in times of emergency. You never want to have to sell your investments to meet emergencies.

At times of deflation, cash is goal in terms of buying power. You can buy more with your cash, as prices are slashed. But on it owns, cash has reliant on deflation alone to increase it value, so when inflation occurs, cash erodes.⁵

by Vicki Robbins & Joe Domingues

** to be read **

by Mad Fientist

1. Avoid debt, live on less than you earn, invest the surplus. ~ Jim Collins
2. Focus on one niche and one strategy on real estate and learn everything about it.
3. Freedom you get from FI, is worth anything you have to do to get there .
4. Find a frugal partner and not getting sucked into life style inflation. Learn to live on the income you started out with, ^ saving rates.
5. Listen and take advice from those you aspire to be like; ignore everyone else.
   1. Only listen to people that been in your situation and read/listen to everything they say.
   2. Knowledge scale quicker than money does.
6. Be a CFO of your own life guide.
7. Live on less money and be more sensible.
8. Frugality is key to figure out what is important. ~ Mr 5000
9. Knowing the long term cost of buying something as it can add up over the course of your life. ~ Mr 5000
10. Start early and save. Don’t keep up with the Jones. ~ Mrs 5000
11. Investing is risk management, risk does not equal reward (it’s a product oriented view). In investing, the less risk you take, the more you make. Is it the more efficient path? Does it have the most rewards for the risk?. Is volatile should be managed or accepted ? [No way to manage, can’t time the market]
12. The deal of the century comes along every year.
13. Two fastest path to wealth is entrepreneurial and real estate.
14. Track your net worth (assets - liabilities) gauge of your progress to FI.
15. Question everything in money and life and ask is this what I really want.?
16. For every decision, always know the financial implication. Run the numbers. - JLCollins.
17. There are two stages wealth accumulation which is 100% stock (advantage in volatility or dips in market) and wealth preservation phase which bonds (to smooth out volatility). The allocations depends on your tolerance of risk.
18. Save early and save often.
19. You can afford anything; but not everything.

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Footnotes

1. There’s a major crashing coming. (opens in a new window) ↩

2. The market always goes up. (opens in a new window) ↩

3. The most people lose money in the market. (opens in a new window) ↩

4. - ↩

5. Keeping it simple considerations and tools. (opens in a new window) ↩