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How much do you know about financial independence?

Dec. 7, 2014, 4:04 a.m.
Posts: 14467
Joined: Jan. 27, 2003

This is something I've been thinking about a lot lately. I never used to have money so it wasn't on the radar but now that I've been saving hard for a few years and actually have a decent nest-egg I get stressed that I'm not doing enough with it. I would like to semi-retire in 10-15 years and that is actually seeming reachable at this point.

I'm thinking the best thing I can do with it is buy some property in a developing area when I come back but now you guys have me thinking I should be investing chunks here and there. It's so confusing it almost makes me miss being poor.

www.natooke.com

Dec. 7, 2014, 8:49 a.m.
Posts: 17768
Joined: Oct. 28, 2003

Here are some things that people often forget …

If you invested $10,000 in 1944 compounded 5% annual return, it would be worth $186,791.86 today. Sounds great, right?

PS I love going to work ….

$0 invested today is 100% guaranteed to be $0 in 50 years.

Dec. 7, 2014, 9:38 a.m.
Posts: 3
Joined: July 4, 2003

This is something I've been thinking about a lot lately. I never used to have money so it wasn't on the radar but now that I've been saving hard for a few years and actually have a decent nest-egg I get stressed that I'm not doing enough with it. I would like to semi-retire in 10-15 years and that is actually seeming reachable at this point.

I'm thinking the best thing I can do with it is buy some property in a developing area when I come back but now you guys have me thinking I should be investing chunks here and there. It's so confusing it almost makes me miss being poor.

Its confusing now, because excess capital has made even traditionally boring and safe investments, like real estate, over valued and dangerous.

Its a weird time to be investing in anything because of how volatile every investment instrument has become.

Regardless of where you look, something is at an extreme;

- Bonds yields hitting lows.
- RE prices hitting highs.
- Commodity prices crashing.
- Stock markets hitting new highs.

Some of this can be attributed to cyclical changes, but most has to do with too much money and not enough productive places to park it.

That being said, a chunk of productive land, with a nice pre-fab on it ( see http://www.turkeldesign.com/products/axiom-series/axiom-2340.html) , and some money invested in decently yielding bluechips sounds like a huge win to me.

Dec. 7, 2014, 10:01 a.m.
Posts: 934
Joined: Feb. 5, 2011

I'm curious if we're all invested in carbon frames and tubeless tires…

This is one thing I was always curious about - a lot of people here sees to be upgrading bikes every year to always have the latest [HTML_REMOVED] greatest bike (carbon, 650b, etc.) - how the heck does everyone afford to do this? Is everyone just rich or are they making bad financial decisions by spending a disproportionate amount of their income on a $6k bike every year that is only marginally better than their previous bike?

Dec. 7, 2014, 10:13 a.m.
Posts: 14380
Joined: Nov. 20, 2002

Buy a house with a GOOD suite and rent it out for pretty good $ which is maybe not as much as the income from a rental home BUT then you DON'T have another property tax bill every year and when you sell you DON'T have capitol gains or RE fees

becuz you live right there you keep an eye on the place, you are right there to grab the rent $, the tenant helps defray utilities/upkeep/all your costs of your home

Most people I talk to (especialy the wife) seem almost disgusted at the thot of sharing their home, putting up with a little noise but OTOH they don't mind complaining about money

Dec. 7, 2014, 10:34 a.m.
Posts: 26384
Joined: Aug. 14, 2005

Buy a house with a GOOD suite and rent it out for pretty good $ which is maybe not as much as the income from a rental home BUT then you DON'T have another property tax bill every year and when you sell you DON'T have capitol gains or RE fees

becuz you live right there you keep an eye on the place, you are right there to grab the rent $, the tenant helps defray utilities/upkeep/all your costs of your home

Most people I talk to (especialy the wife) seem almost disgusted at the thot of sharing their home, putting up with a little noise but OTOH they don't mind complaining about money

If you live close enough to a Uni or College campus definitely do it.

www.thisiswhy.co.uk

www.teamnfi.blogspot.com/

Dec. 7, 2014, 11:18 a.m.
Posts: 14380
Joined: Nov. 20, 2002

Everybody needs to live somewhere IME what you want is to find a tenant who you can keep for the longer term, a year+ is pretty good, a good job is key, couples are usually quieter than singles whereas students tend to move when the term is over, they are more often single and they party more

Dec. 7, 2014, 11:49 a.m.
Posts: 6449
Joined: Nov. 19, 2002

I took the semi-retirement option at 19, started working seasonally for 8 months of the year so I'd have time to enjoy life and learn valuable skills which will benefit me in the long run when I wasn't working. For the last 10 years I've been on the path to fincancial independence and it seems to be working out alright.

I have zero debt, savings in the bank that grow every month for a down payment on house or land when the time is right, eat good organic food, have plenty of expensive hobbies, take extended holidays to warm countries every year, have original art hanging on my walls and really own more material shit than I know what to do with. All while only working part of the year and snowboarding, mountain biking and enjoying life as much as possible in between work. Da fuck?

Since I don't make piles of money, I can't count on investment returns to earn me alot of money every month so I do well for myself by keeping my costs low, being self sufficient wherever possible and saving money that way. Regardless, no matter how much or how little you're investing, the same principals apply though..if you're buying precious metals, you buy low and sell high. Duh. If you're bank is offering promotional interest for 6 months and it'll earn you more money, stick it in one of those accounts. It's free money, so why not do it?! Pretty simple if you ask me. I make half what most of you make every year but probably put twice as much in the bank.

I didn't get a university education right out of high school even though peers, family and society told me I'd never amount to anything without one. Look at all the poor fuckers out there with $60k in student loans and nothing to show for it.

I do, however speak 3 languages fluently, play several instruments, know how to frame, plumb and finish a home, build forms for foundations, rebuild an engine and repair just about anything that can break on a car, bike, chainsaw or what have you, fell trees, grow and make my own food, brew beer, distill alcohol, catch fish and live pretty darn well. If I don't know how to do something, I have the time to do the research and teach myself what I need to know. Over the years I've had the opportunity to work for friends, sometimes for money and other times for work trades, which has led to learning all kinds of skills which in the long run save me piles of money every year and are setting me up for financial independence. I think about everything in life as a learning opportunity, not just about making money.

Every time you're able to do something yourself, you're saving money, saving taxes you'd have to pay and you get the Manly satisfaction of saying "I did that myself!". I fucking hate paying taxes, and so do you. We all have to pay taxes though, it's a fact of life. But by doing things for yourself you cut out the tax-man and have more money in the bank at the end of the day. Win/Win if you ask me.

Build your own house? Yup you can do that. Fix your car? Yup that's actually pretty easy too. Cook wholesome food that rivals most 5 start restaurants? Yeah, just follow a recipe. Ride a 3 year old, aluminum framed mountain bike with small wheels? You're damn right you can shred on that fucker, especially if you have the time to learn to be a good rider instead of hoping that bigger wheels/matching helmet, shoes and jersey will make you better.

Eating well is expensive, but it doesn't have to be. I buy 1/2 of a cow with a friend every year, bought from a little old 80 year old-hard-as fuck lady a few hours from where I live. I get to see the cow before I eat it, support a local farmer and fill my freezer with organic, grass fed locally raised cuts of the finest meat you can buy for way less $$$/lb than it costs to buy shitty hormone filled ground beef from the grocery store. The other half of my freezer is full of 25lbs of frozen Pine Mushrooms I picked behind my house, huckleberries and blueberries from the mountains around where I live, some fish I catch etc. I buy organic grains for pennies on the dollar by buying in bulk compared to what I would spend on smaller amounts from the grocery store every week. I bake my own bread, the kind of shit that a French bakery sells for $7/loaf and it costs me less than 50 cents to make.

Our society is programmed to think that we need everything instantly, that we can't possibly wait for something, that we need to throw down cash (or credit card) every time we want something. It takes a while to start thinking differently but once you do, you'll realise how easy it is to live within your means and start putting money away - and have more time to enjoy life as well.

Ya, I'm a bit of a hippie with a rather red neck but at this rate I'll be retired, living in a house I've build with my own hands from skills I've learned for free, from trees I've felled on my own property and able to live a nearly completely self sufficient lifestyle before I'm 40 while having lived an incredibly rich and fulfilling life until then. It's not hard, you just need to reprogram your brain to think outside of the box. The rest takes care of itself.

Dec. 7, 2014, 1:31 p.m.
Posts: 14380
Joined: Nov. 20, 2002

Up in the Kispiox they call them "Hipnecks"

Dec. 7, 2014, 2:12 p.m.
Posts: 18446
Joined: May 29, 2004

I took the semi-retirement option at 19, started working seasonally for 8 months of the year so I'd have time to enjoy life and learn valuable skills which will benefit me in the long run when I wasn't working. For the last 10 years I've been on the path to fincancial independence and it seems to be working out alright.

I have zero debt, savings in the bank that grow every month for a down payment on house or land when the time is right, eat good organic food, have plenty of expensive hobbies, take extended holidays to warm countries every year, have original art hanging on my walls and really own more material shit than I know what to do with. All while only working part of the year and snowboarding, mountain biking and enjoying life as much as possible in between work. Da fuck?

Since I don't make piles of money, I can't count on investment returns to earn me alot of money every month so I do well for myself by keeping my costs low, being self sufficient wherever possible and saving money that way. Regardless, no matter how much or how little you're investing, the same principals apply though..if you're buying precious metals, you buy low and sell high. Duh. If you're bank is offering promotional interest for 6 months and it'll earn you more money, stick it in one of those accounts. It's free money, so why not do it?! Pretty simple if you ask me. I make half what most of you make every year but probably put twice as much in the bank.

I didn't get a university education right out of high school even though peers, family and society told me I'd never amount to anything without one. Look at all the poor fuckers out there with $60k in student loans and nothing to show for it.

I do, however speak 3 languages fluently, play several instruments, know how to frame, plumb and finish a home, build forms for foundations, rebuild an engine and repair just about anything that can break on a car, bike, chainsaw or what have you, fell trees, grow and make my own food, brew beer, distill alcohol, catch fish and live pretty darn well. If I don't know how to do something, I have the time to do the research and teach myself what I need to know. Over the years I've had the opportunity to work for friends, sometimes for money and other times for work trades, which has led to learning all kinds of skills which in the long run save me piles of money every year and are setting me up for financial independence. I think about everything in life as a learning opportunity, not just about making money.

Every time you're able to do something yourself, you're saving money, saving taxes you'd have to pay and you get the Manly satisfaction of saying "I did that myself!". I fucking hate paying taxes, and so do you. We all have to pay taxes though, it's a fact of life. But by doing things for yourself you cut out the tax-man and have more money in the bank at the end of the day. Win/Win if you ask me.

Build your own house? Yup you can do that. Fix your car? Yup that's actually pretty easy too. Cook wholesome food that rivals most 5 start restaurants? Yeah, just follow a recipe. Ride a 3 year old, aluminum framed mountain bike with small wheels? You're damn right you can shred on that fucker, especially if you have the time to learn to be a good rider instead of hoping that bigger wheels/matching helmet, shoes and jersey will make you better.

Eating well is expensive, but it doesn't have to be. I buy 1/2 of a cow with a friend every year, bought from a little old 80 year old-hard-as fuck lady a few hours from where I live. I get to see the cow before I eat it, support a local farmer and fill my freezer with organic, grass fed locally raised cuts of the finest meat you can buy for way less $$$/lb than it costs to buy shitty hormone filled ground beef from the grocery store. The other half of my freezer is full of 25lbs of frozen Pine Mushrooms I picked behind my house, huckleberries and blueberries from the mountains around where I live, some fish I catch etc. I buy organic grains for pennies on the dollar by buying in bulk compared to what I would spend on smaller amounts from the grocery store every week. I bake my own bread, the kind of shit that a French bakery sells for $7/loaf and it costs me less than 50 cents to make.

Our society is programmed to think that we need everything instantly, that we can't possibly wait for something, that we need to throw down cash (or credit card) every time we want something. It takes a while to start thinking differently but once you do, you'll realise how easy it is to live within your means and start putting money away - and have more time to enjoy life as well.

Ya, I'm a bit of a hippie with a rather red neck but at this rate I'll be retired, living in a house I've build with my own hands from skills I've learned for free, from trees I've felled on my own property and able to live a nearly completely self sufficient lifestyle before I'm 40 while having lived an incredibly rich and fulfilling life until then. It's not hard, you just need to reprogram your brain to think outside of the box. The rest takes care of itself.

/ thread right here.

This guy gets it.

Dec. 7, 2014, 2:22 p.m.
Posts: 7707
Joined: Sept. 11, 2003

$0 invested today is 100% guaranteed to be $0 in 50 years.

Yeah, but $0 buys you a lot more today than it will in 2064, cuz in the future, nothing will be free.

Dec. 7, 2014, 4:01 p.m.
Posts: 2114
Joined: Aug. 28, 2006

I took the semi-retirement option at 19……

… It's not hard, you just need to reprogram your brain to think outside of the box. The rest takes care of itself.

Great post. My hat is off to you.

Dec. 7, 2014, 4:14 p.m.
Posts: 26384
Joined: Aug. 14, 2005

Everybody needs to live somewhere IME what you want is to find a tenant who you can keep for the longer term, a year+ is pretty good, a good job is key, couples are usually quieter than singles whereas students tend to move when the term is over, they are more often single and they party more

Depends on the student. Noticed at least at Queen's after the first 2 years they tend to not want to do that partying. And they also tend to want to live not as close to student housing and other students.

Know 2 people who rent to student's here. But all they get is the students doing things like masters programs and it is all word of mouth.

www.thisiswhy.co.uk

www.teamnfi.blogspot.com/

Dec. 7, 2014, 4:18 p.m.
Posts: 26384
Joined: Aug. 14, 2005

/ thread right here.

This guy gets it.

Second.

www.thisiswhy.co.uk

www.teamnfi.blogspot.com/

Dec. 7, 2014, 4:47 p.m.
Posts: 3
Joined: July 4, 2003

I took the semi-retirement option at 19, started working seasonally for 8 months of the year so I'd have time to enjoy life and learn valuable skills which will benefit me in the long run when I wasn't working. For the last 10 years I've been on the path to fincancial independence and it seems to be working out alright.

I have zero debt, savings in the bank that grow every month for a down payment on house or land when the time is right, eat good organic food, have plenty of expensive hobbies, take extended holidays to warm countries every year, have original art hanging on my walls and really own more material shit than I know what to do with. All while only working part of the year and snowboarding, mountain biking and enjoying life as much as possible in between work. Da fuck?

Since I don't make piles of money, I can't count on investment returns to earn me alot of money every month so I do well for myself by keeping my costs low, being self sufficient wherever possible and saving money that way. Regardless, no matter how much or how little you're investing, the same principals apply though..if you're buying precious metals, you buy low and sell high. Duh. If you're bank is offering promotional interest for 6 months and it'll earn you more money, stick it in one of those accounts. It's free money, so why not do it?! Pretty simple if you ask me. I make half what most of you make every year but probably put twice as much in the bank.

I didn't get a university education right out of high school even though peers, family and society told me I'd never amount to anything without one. Look at all the poor fuckers out there with $60k in student loans and nothing to show for it.

I do, however speak 3 languages fluently, play several instruments, know how to frame, plumb and finish a home, build forms for foundations, rebuild an engine and repair just about anything that can break on a car, bike, chainsaw or what have you, fell trees, grow and make my own food, brew beer, distill alcohol, catch fish and live pretty darn well. If I don't know how to do something, I have the time to do the research and teach myself what I need to know. Over the years I've had the opportunity to work for friends, sometimes for money and other times for work trades, which has led to learning all kinds of skills which in the long run save me piles of money every year and are setting me up for financial independence. I think about everything in life as a learning opportunity, not just about making money.

Every time you're able to do something yourself, you're saving money, saving taxes you'd have to pay and you get the Manly satisfaction of saying "I did that myself!". I fucking hate paying taxes, and so do you. We all have to pay taxes though, it's a fact of life. But by doing things for yourself you cut out the tax-man and have more money in the bank at the end of the day. Win/Win if you ask me.

Build your own house? Yup you can do that. Fix your car? Yup that's actually pretty easy too. Cook wholesome food that rivals most 5 start restaurants? Yeah, just follow a recipe. Ride a 3 year old, aluminum framed mountain bike with small wheels? You're damn right you can shred on that fucker, especially if you have the time to learn to be a good rider instead of hoping that bigger wheels/matching helmet, shoes and jersey will make you better.

Eating well is expensive, but it doesn't have to be. I buy 1/2 of a cow with a friend every year, bought from a little old 80 year old-hard-as fuck lady a few hours from where I live. I get to see the cow before I eat it, support a local farmer and fill my freezer with organic, grass fed locally raised cuts of the finest meat you can buy for way less $$$/lb than it costs to buy shitty hormone filled ground beef from the grocery store. The other half of my freezer is full of 25lbs of frozen Pine Mushrooms I picked behind my house, huckleberries and blueberries from the mountains around where I live, some fish I catch etc. I buy organic grains for pennies on the dollar by buying in bulk compared to what I would spend on smaller amounts from the grocery store every week. I bake my own bread, the kind of shit that a French bakery sells for $7/loaf and it costs me less than 50 cents to make.

Our society is programmed to think that we need everything instantly, that we can't possibly wait for something, that we need to throw down cash (or credit card) every time we want something. It takes a while to start thinking differently but once you do, you'll realise how easy it is to live within your means and start putting money away - and have more time to enjoy life as well.

Ya, I'm a bit of a hippie with a rather red neck but at this rate I'll be retired, living in a house I've build with my own hands from skills I've learned for free, from trees I've felled on my own property and able to live a nearly completely self sufficient lifestyle before I'm 40 while having lived an incredibly rich and fulfilling life until then. It's not hard, you just need to reprogram your brain to think outside of the box. The rest takes care of itself.

Third.

That there is some solid life advice.

Good on you.

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