I started out my journey on $30k a year and ended at $100k. My wife has never earned over $30k. We used geoarbitrage to live “rich” lives while being really frugal. The reason for this is that in many countries, cheaper options aren’t that bad. We live in Japan. I own one of the cheapest condos in my area that still within a 10 minute walk to a train station. In the US, cheap housing often means higher crime or very rural. But, I live 20 minutes from the center of Kyoto and crime is almost non-existent. Also, we don’t own a car. That would be really tough in the states, but in Japan public transportation is inexpensive and very available.
Wow, Scott just falling off the cliff with this set of advice. WTF is he talking about about buying a 5 bedroom house making $45k. If you invest like Mindy said you have the benefit of time to exponentially compound. If you’re side-hustling a lot your not making $45k. Scott's clearly in a mood. I think he needs to change to Sanka. Chill dude, you're yelling in an obnoxious "agressive" tone.
This one didn’t make sense to me. You started out with a single person making $45k/year, but when you got to $100k/year, you started to assume that was combined married income. Just pick one and stick with it the whole episode.
The way they did it makes it way more relatable for the majority of the us population. Individuals making 100k+ single at the current time compared to a household income being at 100k is way more uncommon.
invest 15 percent of your income into index funds each month automatically, and then just live your life. Thats the best thing you can do. Stop obsessing about it and just make sure 15 percent is going into low cost index funds each month and live your life as normal.
Scott, just tell them to read Set for Life 🤣 You have it all set out in there and is what i followed. Got my house hack about three years ago in Chicago thankfully. Still possible in other areas in Midwest.
I’m kicking myself for not investing in stocks earlier, but relieved I kept my funds in the money market. Soon, I'll have $200k to invest in the stock market. As a beginner, what stable and growth-oriented stocks should I consider to safely build my wealth?
Good advise there . After experiencing losses in 2022, I took control of my portfolio and sought guidance from a fiduciary advisor. By rebalancing and diversifying my investments across dividend stocks, ETFs, mutual funds, and REITs, my $1.2M portfolio flourished, achieving an impressive annualized return of 128%
Glen Howard Chester’ is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
He appears to be well-educated and well-read. I ran a Google search on his name and came across his website; thank you for sharing. scheduled a call with him .
This is a great episode. It’s very realistic in telling people if you want a 10 to 15 year timeline to FIRE, it takes more income. It just does. It’s an honest take. This is much better than the “anyone can do it, no matter the income”. And for those of us that can’t hit FIRE in that short of time, it’s not like we’ve failed. We’re still in a much better position than not trying at all.
IMO, the issue that makes the original statement false is the word "all". If you can consistently save/invest 100% of your income, you are already FI, technically...but I do understand the intent behind what he's saying. You can technically become FI, even on a low income, but it's the leanest of FI and doesn't leave much room for growth or pivoting when life changes.
These are my tips that helped me on 45k a year. 1. I saved until i could house hack. From age 20 to 25. Bought multifamily. House hacking. Living in one unit renting the rest. 2. 401k match 5% ten total, vested in fidelity 500. Up 14%. 3. Paid off my truck in two years. 4. Roth Max since age 25. 5. Five month emergency fund in a high yield savings account. Adding a brokerage is the next step.
Couldn’t agree more with Scott. As someone who makes the lower bracket, house hack, live in flip, or building a business is a must. Roth and stocks alone will not get you there.
I reached FI back in 2020 at age 43. Still working full time at a new remote job....at least stress free to be honest. I hate to admit that....ER is not an easy mental decision even if the math is all clear....ER has been my dream and goal for the past 20+ years.
For the $45k earner I think there is a compromise between their two approaches. First, Scott is absolutely correct that increasing income is the surest and fastest way to move the needle. An investment in skills acquisition that leads to higher income can outstrip the gains on investments when you are working with a small asset base. I think the $45K earner can aggressively stockpile cash inside their Roth IRA first and then outside it once contribution limits have been reached. The contributions in a Roth can be withdrawn at any time without penalty. If that business opportunity comes along, use that cash. If it doesn't, you have preserved that contribution room in your Roth for that year. Once the opportunity to contribute passes, it will never come back.
Jillian johnsrud was proof of getting to fire on a low income with 5 kids. Not an option where i live for that income - but possible with 6 figures fortunately 😊
Cash has lost 24% purchasing power since 2020. You can’t save your way to FIRE literally not possible since you’re not even making the hurdle rate of monetary inflation
Investing in crypto now should be in every wise individuals list, because in some weeks or months time you'll be ecstatic with the decisions you've made today.
Depends entirely on your savings rate vs your expenses. I'm only 31 but will have the ability to retire by 34 if I wanted to and I only make ~70k a year. My savings rate is ~66% after taxes
Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got to talking about investment and money. I started investing with $150k and in the first 2 months, my portfolio was reading $274,800. Crazy right!, I decided to reinvest my profit and get more interesting. For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family.
You can get to FIRE on 45,000 salary. Cut expenses, invest aggressively, after 15yrs, move to Equador, Nigeria etc lol. America isn’t the only country on earth. $500 a month in Nigeria is seriously good money. Selling covered calls on $200,000 portfolio of SPY will do it
I got started when making $41,5k in 2018, married with one baby at 45yrs old. Recently immigrated. Living in 🍊 County, California. It's been hard. But now I own a condo, and have other assets by more than 100k. I also double my wage since then. Thanks to all good content in BP. And others like Graham Stephan, Meet Kevin, Ramit Sethi, etc.
I totally agree with Scott. It’s what I have done for the past 5 years. I purchased a duplex. Live one side than rent the other side by the room. I live rent and utility free. That has allowed me to build a house in the The Dominican Republic, purchase ls a farm there as well. Just bought another duplex this year. Plan on buying a si for family in the next year with a finished basement to help pay for the mortgage.
hodling cash is a big no, buy quality income etf and get paid weekly/ monthly/ quarterly, your suggesting greater liabilities vs faster rate of return. plus this method will also increase stress/ baldness
Just curious if anyone knows or might even remember. what ever happened to josh and brandon? are the still around and just quit the podcast or gone completly?
!I recently sold some of my long-term position and currently sitting on about 250k, do you think Nvidia is a good buy right now or I have I missed out on a crucial buy period, any good stock recommendation on great performing stocks will be appreciated
I don't really blame people who panic. Lack of information can be a big hurdle. I've been making more than $100k passively by just investing through an advisor, and I don't have to do much work. Inflation or no inflation, my finances remain secure. So I really don't blame people who panic.
I started out my journey on $30k a year and ended at $100k. My wife has never earned over $30k. We used geoarbitrage to live “rich” lives while being really frugal. The reason for this is that in many countries, cheaper options aren’t that bad. We live in Japan. I own one of the cheapest condos in my area that still within a 10 minute walk to a train station. In the US, cheap housing often means higher crime or very rural. But, I live 20 minutes from the center of Kyoto and crime is almost non-existent. Also, we don’t own a car. That would be really tough in the states, but in Japan public transportation is inexpensive and very available.
The issue is visas and long term stay…
Wow, Scott just falling off the cliff with this set of advice. WTF is he talking about about buying a 5 bedroom house making $45k. If you invest like Mindy said you have the benefit of time to exponentially compound. If you’re side-hustling a lot your not making $45k. Scott's clearly in a mood. I think he needs to change to Sanka. Chill dude, you're yelling in an obnoxious "agressive" tone.
Not everyone that makes $45,000 a year are just starting out.
If that is your situation it’s time to brainstorm increasing your income.
I know. A significant percentage of people make $45k or less.
@@missmaryjanegreen it’s not MY situation but ik there are alot of older ppl who only make $45k. Not everyone has the opportunity to earn more.
@@KS-cl8br exactly.
@@KS-cl8br then it’s time to side hustle.
This one didn’t make sense to me. You started out with a single person making $45k/year, but when you got to $100k/year, you started to assume that was combined married income. Just pick one and stick with it the whole episode.
The way they did it makes it way more relatable for the majority of the us population. Individuals making 100k+ single at the current time compared to a household income being at 100k is way more uncommon.
invest 15 percent of your income into index funds each month automatically, and then just live your life. Thats the best thing you can do. Stop obsessing about it and just make sure 15 percent is going into low cost index funds each month and live your life as normal.
Index funds? Have you considered Bitcoin?
Scott, just tell them to read Set for Life 🤣
You have it all set out in there and is what i followed.
Got my house hack about three years ago in Chicago thankfully.
Still possible in other areas in Midwest.
just got a house hack, live in flip and brrr all in one. Thanks to set for life
I’m kicking myself for not investing in stocks earlier, but relieved I kept my funds in the money market. Soon, I'll have $200k to invest in the stock market. As a beginner, what stable and growth-oriented stocks should I consider to safely build my wealth?
Hire a pro to manage your money - get a CFP! I prefer ETFs and individual stocks for my investments.
Good advise there . After experiencing losses in 2022, I took control of my portfolio and sought guidance from a fiduciary advisor. By rebalancing and diversifying my investments across dividend stocks, ETFs, mutual funds, and REITs, my $1.2M portfolio flourished, achieving an impressive annualized return of 128%
Your advisor must be really good, how I can get in touch with them as my porfolio isnt doing well.
Glen Howard Chester’ is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
He appears to be well-educated and well-read. I ran a Google search on his name and came across his website; thank you for sharing. scheduled a call with him .
This is a great episode. It’s very realistic in telling people if you want a 10 to 15 year timeline to FIRE, it takes more income. It just does. It’s an honest take. This is much better than the “anyone can do it, no matter the income”. And for those of us that can’t hit FIRE in that short of time, it’s not like we’ve failed. We’re still in a much better position than not trying at all.
Great discussion because your both showing the different routes of achieving FIRE
Saving all $45k a year for 10-15 years is $450k to $675k at 0% interest. If you can’t be FiRE on that, you’ve got issues.
IMO, the issue that makes the original statement false is the word "all". If you can consistently save/invest 100% of your income, you are already FI, technically...but I do understand the intent behind what he's saying. You can technically become FI, even on a low income, but it's the leanest of FI and doesn't leave much room for growth or pivoting when life changes.
These are my tips that helped me on 45k a year.
1. I saved until i could house hack. From age 20 to 25. Bought multifamily.
House hacking. Living in one unit renting the rest.
2. 401k match 5% ten total, vested in fidelity 500. Up 14%.
3. Paid off my truck in two years.
4. Roth Max since age 25.
5. Five month emergency fund in a high yield savings account.
Adding a brokerage is the next step.
Couldn’t agree more with Scott. As someone who makes the lower bracket, house hack, live in flip, or building a business is a must. Roth and stocks alone will not get you there.
I reached FI back in 2020 at age 43. Still working full time at a new remote job....at least stress free to be honest.
I hate to admit that....ER is not an easy mental decision even if the math is all clear....ER has been my dream and goal for the past 20+ years.
401k company match is not free money. It's part of your compensation package and it's money for the work you're doing for the company.
For the $45k earner I think there is a compromise between their two approaches. First, Scott is absolutely correct that increasing income is the surest and fastest way to move the needle. An investment in skills acquisition that leads to higher income can outstrip the gains on investments when you are working with a small asset base. I think the $45K earner can aggressively stockpile cash inside their Roth IRA first and then outside it once contribution limits have been reached. The contributions in a Roth can be withdrawn at any time without penalty. If that business opportunity comes along, use that cash. If it doesn't, you have preserved that contribution room in your Roth for that year. Once the opportunity to contribute passes, it will never come back.
Jillian johnsrud was proof of getting to fire on a low income with 5 kids. Not an option where i live for that income - but possible with 6 figures fortunately 😊
Cash has lost 24% purchasing power since 2020. You can’t save your way to FIRE literally not possible since you’re not even making the hurdle rate of monetary inflation
Investing in crypto now should be in every wise individuals list, because in some weeks or months time you'll be ecstatic with the decisions you've made today.
Crypto is really profitable
Most intelligent words I've heard.
I wanted to trade Crypto but got confused by the fluctuations in price
Williams Brown Holds the credit of being crucial about the mrkt and also a knowledgeable broker to be proud of>
I heard that his strategies are really good
10 years is just hard. Even on 2x these income levels. 20 years for sure doable.
Depends entirely on your savings rate vs your expenses. I'm only 31 but will have the ability to retire by 34 if I wanted to and I only make ~70k a year. My savings rate is ~66% after taxes
Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got to talking about investment and money. I started investing with $150k and in the first 2 months, my portfolio was reading $274,800. Crazy right!, I decided to reinvest my profit and get more interesting. For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family.
You can get to FIRE on 45,000 salary. Cut expenses, invest aggressively, after 15yrs, move to Equador, Nigeria etc lol. America isn’t the only country on earth. $500 a month in Nigeria is seriously good money. Selling covered calls on $200,000 portfolio of SPY will do it
I got started when making $41,5k in 2018, married with one baby at 45yrs old. Recently immigrated. Living in 🍊 County, California. It's been hard. But now I own a condo, and have other assets by more than 100k. I also double my wage since then. Thanks to all good content in BP. And others like Graham Stephan, Meet Kevin, Ramit Sethi, etc.
I totally agree with Scott. It’s what I have done for the past 5 years. I purchased a duplex. Live one side than rent the other side by the room. I live rent and utility free. That has allowed me to build a house in the The Dominican Republic, purchase ls a farm there as well. Just bought another duplex this year. Plan on buying a si for family in the next year with a finished basement to help pay for the mortgage.
hodling cash is a big no, buy quality income etf and get paid weekly/ monthly/ quarterly, your suggesting greater liabilities vs faster rate of return. plus this method will also increase stress/ baldness
Great vid
A lot people FIRE on just the stock market with less than 1million. Mr Money Mustache, A Purple Life etc.
Loved all the tips! Great show and easy to understand.
Just curious if anyone knows or might even remember. what ever happened to josh and brandon? are the still around and just quit the podcast or gone completly?
@@user-xt8es5nj4n they each have their own channel.
!I recently sold some of my long-term position and currently sitting on about 250k, do you think Nvidia is a good buy right now or I have I missed out on a crucial buy period, any good stock recommendation on great performing stocks will be appreciated
I don't really blame people who panic. Lack of
information can be a big hurdle. I've been
making more than $100k passively by just
investing through an advisor, and I don't have
to do much work. Inflation or no inflation, my
finances remain secure. So I really don't blame
people who panic.