Being frugal is better than dragging myself out of bed every morning to deal with a stressful job for a whole long day with only a short weekend to enjoy life.
But what's the use of being so frugal that you are turning off your heat. He is driving a Tesla and he is trying to save a few bugs by saving on heating. I just don't understand the logic. Instead drive a Honda or Nissan car and put the money in stocks. One will multiply that amount.
@@mrinal2100 That’s true. I never understood the luxury car obsession, I think it’s a California thing. Your value as a human being seems tied to what you drive there. To me a car only serves the purpose of transporting me. Not dictating my social class, attracting mates, or whatever else people tie it to.
@@clownpocket Yeah. Nowadays people work in their late 60's. What is the use of being happy looking at the bank account? For whom are we earning. Days won't rollback.
Nothing wrong with being frugal in this very materialistic and commercialized world. In fact, people need to be happy with what they have that is still working instead of trying to get the latest gadget or anything trendy. Replace things that are truly worn out or can't be salvaged. Recycling is always a good idea.
Better to save more on the frugal side than spend money in so many ways especially on rent on a bigger place and eating out. Companies want good slaves who are married/have kids. After about 20 years working, I'll tell young people you should not have any loyalty to any organization, they will turn on you in a second when its convenient and fire/replace you. Also to ensure no slavery, young people dont get married and dont get a girl pregnant, make sure she takes the birth control pill daily in front of you and both wear protection. You will just condemn your new child to increasing poverty and freedomless slavery and these control/money/job trends worsen. Promote this idea in videos and social media to help prevent more young people into this new slavery.
I can see how someone will want to be more frugal as they reach FIRE...but personally I noticed that the closer I get to FIRE the more money making opportunities open up. I think it's attributed to having more abundance mindset. Happy Holidays man!
Although the hoarding of money would be one out of a million or the rich. The average middle class or working class barely get by and will he homeless if they don't receive a paycheck in 1-3 months due to have almost no savings.
I experienced the opposite. Approching FIRE, more of my networth increase came from asset appreciation and much less from savings. I worked less and spent more and of course, covid happened. Much of the leisure budget of last 2 years will be re-invested and/or donated. I still hunt for deals and avoid spending unnessarily. It has became a sport.
instead of spending money on glasses or contact lenses, have you considered lasik surgery? It was one of the best decisions I made, since I could not wear contact lenses, and I had to change glasses every few years when my vision got worse.
Talk about pushing the edge of the human envelope in the context of extreme frugality.😂 You seem to have covered all bases.👍 I think the key to exercising frugality is to ensure your happiness is not severely compromised. Merry Christmas!
I am about the same age as BTB, software engineer, have about $2M in accumulated wealth and have made the decision to quit the 9-2-5 life. I knew it was time, because I just built up a degree of apathy for the job. The projects I was working were really interesting, but I felt like there was just something more. It was just time to go. While not as frugal as our friend here, I do tend not to spend at ridiculous levels. After leaving, I think I'm working far more. I'm using my experience to build out my own company. For me this is so much more rewarding than just doing the day to day grind.
Able to enjoy results, that is why we put such of hard work in our life in the earlier stage. following you a few years now. Happy for your success and find the enjoyment
I am frugal. Not cheap, just careful of what I spend and what I spend it on. Need replaces want. I don't buy on "want" very much. I usually regret it. Like a purse I bought that I really liked, and it didn't cost much, but I didn't really need it, and worse, my wallet won't fit inside. That's the problem with online purchases. But I have enough of everything except a bookcase or two. That's my big wahoo. Plenty of clothes, shoes, kitchen stuff, even though much of it is old. If it works, is not full of holes, if it fits, still does it's job, etc. I'm good. The only person I have to impress is me. More stuff is just more stuff.
@BeatTheBush. I am living in frugal because inflation at 6.8% in US now. And I only go to the supermarket if I have no more foods in the freezer and I will not replace anything if it still use it. Thanks for your video. 🙂
I see the frugalness as a range. For those on the upper range, they should learn to expand it to lower range and vice versa. It’s hard to expand beyond the range for any person, be it to be more frugal, or to spend more.
I realized as I come close to FIRE, my investment strategy is far more important than my frugality. Also NW grows pretty fast once we reach a million or two. So it's much easier to work an year more rather than try to be frugal during the last few years to FIRE
I only turn my heat on to keep my bird and cat alive. The bird is a cockatiel and they need 65 degrees minimum. If it were only me I'd just wear more layers.
If it even got me to FIRE a few months sooner, leaving the heat off would be worth it to me. But it's a fair point - there are a few things I won't give up for it - the occasional treat that I don't have to make myself etc. I've relentlessly pushed the limits of what I can endure for the goal - and some things I've tried to save make the journey less pleasant to the point of endangering the whole project, so I try to relax on those.
If a ten is not turning on the heater and not having a phone I’m at a 6-7 out of 10. I save 70% net income. It’s a good amount but I live at home so once I move out I expect that rate to drop substantially probably down to 30-45%
Hi , I been watching your videos for past few years ( 4 years ), now question : how much you think is enough as lump sum amount : here are the some info on variables : 1. Age 48 years old 2. single guy 3. Making income around 60 k from property rental and bank interest 4. Health insurance is free 😀 ( as I don’t live in US ) 5. No loans nor mortgages payment 6. Expenses around ( 90-100 k yearly ) 7. No pensions , and not invested in any stock market .. 8. Total net 3.5 M .. ( 50 % cash , 50% properties ) So in your opinion , is above net is sufficient ? Or how much is enough in lump sump is sufficient as not to work anymore ever and achieving FIRE? Thanks
Here is my back-of-the-envelope calculation on how long your current assets will last. I’m assuming a constant rate of inflation of 2.5% (slightly above fed target and well below what it currently is but let’s assume that is a temporary anomaly) and an interest rate of 0.6% on your cash (not sure how realistic that is but even an interest rate of 0% will only affect the calculations by 3 years). This means you get about ~$50K from property rent and ~$10K from interest payments and you would make up what is needed to cover yearly expenses from drawing down your cash (as it’s not going to hold it’s value like your real estate holdings). You will run out of cash around age 75 and will have to start selling properties to generate cash. Assuming both the property value and rental increases match inflation, you’ll be in your early 90s when you have no assets.
@@chrisnott1970 thanks a lot for insight on the case .. I have also option if I rent my place ( around 40 k yearly just in case ) and move to smaller unit I could pay rent for 15-20 k yearly ) just to adjust if needed .. knowing that I am from country where no income gain tax 😀
Not investing in stock market is your biggest mistake. Invest atleast 70% of your cash in stock market (total market index, no individual stocks). It's hard to FIRE just on bank interest
I have a huge question SR . im about to leave my company next year and i have around 60,000 in a traditional 401k there. i opened a vanguard PERSONAL INVESTING ACC, not a 401k or Roth IRA and plan to invest in a index fund such as VTSAX or VFIAX etc. would I be able to do a rollover of my 401k to my vanguards personal investing account or thats not possible? because i wont be able to contribute to both. whats your suggestion? thank you !
@@fastdeliveryl708 it has to be a IRA. If you don’t roll over, you will pay crazy tax and penalties. You can’t just transfer it to a brokerage account.
@@ryanvboy he has a traditional 401k so it must be rolled over to a traditional IRA. If he rolls over to a Roth IRA he would have to pay taxes on the entire amount in the same year!
Wearing a jacket and not turning on the heat makes sense to me, I think if it was super hot and refusing to turn on the ac or fans would be more extreme imo
@beatthebush can you do a video on 4% withdrawal mechanics from a portfolio once you've reached your FIRE number? Is it 4% of your initial FIRE number inflation adjusted, or is it 4% of the current value? Also, you can't just take 4% out every year because some years are up, and some years are down? Is it a monthly withdrawal, or once per year? ...
4% always assumes inflation adjusted thereafter. Some people opt to vary their withdrawal based on market conditions. With trading fees at zero, you can dollar cost average out monthly.
Bro, You spent the money on buying Tesla, and on the other hand, you were saving a few bugs on your heating. I didn't understand the logic. I think life should be balanced. Instead of saving on heating, you could have spent $ 10k less on the car and put that money in stocks. You would have earned more but what's the use of torturing oneself on a daily basis.
The sad part is you probably would have been much wealthier had you spent more. Penny wise dollar foolish. Look at Kevin he spent probably a few hundred thousand on his studio and now makes 23 million a year on RUclips. Just think if you spent a bit more on editing software etc you could be making a lot more with your RUclips channel. Think about all the connections with people and potential partners you missed out on because you are too cheap to go out and stay home instead. The examples are endless…. My Asian friend didn’t want to rent her basement because istwould cost 5-6k to get a fridge and put up a wall between upstairs and down stairs plus misc other Renos. It’s now been rented for the last 3 years and she has made 40k in rental income. Only took me a year to convince her to spend the 6k to rent out… sounds like you have Asian frugal disease. That’s sht is hard to break.
Being frugal is better than dragging myself out of bed every morning to deal with a stressful job for a whole long day with only a short weekend to enjoy life.
He’s forgotten his 9-5 job misery
Exactly when your expenses are low you can work part time or gigs or leave any full time job if it gets too stressful or heavy work losd.
But what's the use of being so frugal that you are turning off your heat. He is driving a Tesla and he is trying to save a few bugs by saving on heating. I just don't understand the logic. Instead drive a Honda or Nissan car and put the money in stocks. One will multiply that amount.
@@mrinal2100
That’s true. I never understood the luxury car obsession, I think it’s a California thing. Your value as a human being seems tied to what you drive there.
To me a car only serves the purpose of transporting me. Not dictating my social class, attracting mates, or whatever else people tie it to.
@@clownpocket Yeah. Nowadays people work in their late 60's. What is the use of being happy looking at the bank account? For whom are we earning. Days won't rollback.
Nothing wrong with being frugal in this very materialistic and commercialized world. In fact, people need to be happy with what they have that is still working instead of trying to get the latest gadget or anything trendy. Replace things that are truly worn out or can't be salvaged. Recycling is always a good idea.
Better to save more on the frugal side than spend money in so many ways especially on rent on a bigger place and eating out. Companies want good slaves who are married/have kids. After about 20 years working, I'll tell young people you should not have any loyalty to any organization, they will turn on you in a second when its convenient and fire/replace you. Also to ensure no slavery, young people dont get married and dont get a girl pregnant, make sure she takes the birth control pill daily in front of you and both wear protection. You will just condemn your new child to increasing poverty and freedomless slavery and these control/money/job trends worsen. Promote this idea in videos and social media to help prevent more young people into this new slavery.
I can see how someone will want to be more frugal as they reach FIRE...but personally I noticed that the closer I get to FIRE the more money making opportunities open up. I think it's attributed to having more abundance mindset. Happy Holidays man!
Letting money control your life, whether it's spending too much or hoarding for fear of spending it, is never healthy.
I like to setup my auto invesments and spend the rest guilt free. Its a nice medium because I dont really have to think about it.
@@sweis12 what do you invest in?
@@jlina index funds. I use a mix of the fidelity zero funds in my roth ira and hsa. I use a vanguard target fund in my roth 401k.
Although the hoarding of money would be one out of a million or the rich. The average middle class or working class barely get by and will he homeless if they don't receive a paycheck in 1-3 months due to have almost no savings.
Love when you have charts in your videos
I experienced the opposite. Approching FIRE, more of my networth increase came from asset appreciation and much less from savings. I worked less and spent more and of course, covid happened. Much of the leisure budget of last 2 years will be re-invested and/or donated. I still hunt for deals and avoid spending unnessarily. It has became a sport.
Used your $200 Chase Freedom and $200 Capitol One bonus sign-up tips. Paid my future electric, gas, and WIFI bills. Loved this advice - Thanks!
Very nice and thank you for using the links! I'm so glad you used that trick! Been doing it myself and getting many hundreds back. =D
Im a big fan of the new ending song
Thanks for putting this video out today BtB! Nice & Simple
Being overly frugal is a mental disorder, a limiting belief. You can always earn more.
Did the Christmas future ghost visit you last night?
instead of spending money on glasses or contact lenses, have you considered lasik surgery? It was one of the best decisions I made, since I could not wear contact lenses, and I had to change glasses every few years when my vision got worse.
Talk about pushing the edge of the human envelope in the context of extreme frugality.😂
You seem to have covered all bases.👍 I think the key to exercising frugality is to ensure your happiness is not severely compromised.
Merry Christmas!
I am about the same age as BTB, software engineer, have about $2M in accumulated wealth and have made the decision to quit the 9-2-5 life. I knew it was time, because I just built up a degree of apathy for the job. The projects I was working were really interesting, but I felt like there was just something more. It was just time to go. While not as frugal as our friend here, I do tend not to spend at ridiculous levels. After leaving, I think I'm working far more. I'm using my experience to build out my own company. For me this is so much more rewarding than just doing the day to day grind.
5:28...made me like this video. Merry Xmas!
Def worth spending money to save time.
*Money is time*
Able to enjoy results, that is why we put such of hard work in our life in the earlier stage. following you a few years now. Happy for your success and find the enjoyment
I am frugal. Not cheap, just careful of what I spend and what I spend it on. Need replaces want. I don't buy on "want" very much. I usually regret it. Like a purse I bought that I really liked, and it didn't cost much, but I didn't really need it, and worse, my wallet won't fit inside. That's the problem with online purchases. But I have enough of everything except a bookcase or two. That's my big wahoo. Plenty of clothes, shoes, kitchen stuff, even though much of it is old. If it works, is not full of holes, if it fits, still does it's job, etc. I'm good. The only person I have to impress is me. More stuff is just more stuff.
Merry Christmas! Glad you're enjoying life a little bit more.
@BeatTheBush. I am living in frugal because inflation at 6.8% in US now. And I only go to the supermarket if I have no more foods in the freezer and I will not replace anything if it still use it. Thanks for your video. 🙂
@@jonsl2000 copium
I see the frugalness as a range. For those on the upper range, they should learn to expand it to lower range and vice versa. It’s hard to expand beyond the range for any person, be it to be more frugal, or to spend more.
Merry Christmas 🎄🙏🏾
Happy New Year!
I realized as I come close to FIRE, my investment strategy is far more important than my frugality. Also NW grows pretty fast once we reach a million or two. So it's much easier to work an year more rather than try to be frugal during the last few years to FIRE
rhank you for this! happy christmas! 🎄
Your frugal behavior is like mine😬. I think when I reach retirement age, for the sake of mental security, I will keep on working until I die.
I am so proud of you for enjoying a few more things! Like labels you can read :)
Merry Christmas, Francis!!!
Merry Christmas from the Bush boys!
Extreme frugal here as well, I shared a room for 2 years, even when it costed me 2,83% of my monthly income, only moved because I got a girlfriend...
I only turn my heat on to keep my bird and cat alive. The bird is a cockatiel and they need 65 degrees minimum. If it were only me I'd just wear more layers.
sad...glad you have the bird!
@Stiffarm Stallion. My daughter likes cat, but she does not have money to feed it and take care of it. She has not graduate yet.
Merry christmas, btb!
For real, sometimes I got too crazy saving
If it even got me to FIRE a few months sooner, leaving the heat off would be worth it to me. But it's a fair point - there are a few things I won't give up for it - the occasional treat that I don't have to make myself etc. I've relentlessly pushed the limits of what I can endure for the goal - and some things I've tried to save make the journey less pleasant to the point of endangering the whole project, so I try to relax on those.
Merry Christmas Francis
Merry Xmas buddy!
Merry Christmas Francis.. Still with an iPhone 5s ; )
Ipad mini 2, just bought for €39. Best money i've ever spent.
If a ten is not turning on the heater and not having a phone I’m at a 6-7 out of 10. I save 70% net income. It’s a good amount but I live at home so once I move out I expect that rate to drop substantially probably down to 30-45%
Respect
Steady Mobbin
Hi , I been watching your videos for past few years ( 4 years ), now question : how much you think is enough as lump sum amount : here are the some info on variables :
1. Age 48 years old
2. single guy
3. Making income around 60 k from property rental and bank interest
4. Health insurance is free 😀 ( as I don’t live in US )
5. No loans nor mortgages payment
6. Expenses around ( 90-100 k yearly )
7. No pensions , and not invested in any stock market ..
8. Total net 3.5 M .. ( 50 % cash , 50% properties )
So in your opinion , is above net is sufficient ? Or how much is enough in lump sump is sufficient as not to work anymore ever and achieving FIRE?
Thanks
Here is my back-of-the-envelope calculation on how long your current assets will last. I’m assuming a constant rate of inflation of 2.5% (slightly above fed target and well below what it currently is but let’s assume that is a temporary anomaly) and an interest rate of 0.6% on your cash (not sure how realistic that is but even an interest rate of 0% will only affect the calculations by 3 years). This means you get about ~$50K from property rent and ~$10K from interest payments and you would make up what is needed to cover yearly expenses from drawing down your cash (as it’s not going to hold it’s value like your real estate holdings). You will run out of cash around age 75 and will have to start selling properties to generate cash. Assuming both the property value and rental increases match inflation, you’ll be in your early 90s when you have no assets.
@@chrisnott1970 thanks a lot for insight on the case .. I have also option if I rent my place ( around 40 k yearly just in case ) and move to smaller unit I could pay rent for 15-20 k yearly ) just to adjust if needed .. knowing that I am from country where no income gain tax 😀
Not investing in stock market is your biggest mistake. Invest atleast 70% of your cash in stock market (total market index, no individual stocks). It's hard to FIRE just on bank interest
@@mmungara thanks 👍
@@mmungara I think because my strategy been always take zero risks .. so even if gain on other investment lower / but guaranteed I go for it ..
Ha, I set my thermostat at 66 in the winter too
I have a huge question SR . im about to leave my company next year and i have around 60,000 in a traditional 401k there. i opened a vanguard PERSONAL INVESTING ACC, not a 401k or Roth IRA and plan to invest in a index fund such as VTSAX or VFIAX etc. would I be able to do a rollover of my 401k to my vanguards personal investing account or thats not possible? because i wont be able to contribute to both. whats your suggestion? thank you !
You need to open a traditional IRA account with vanguard. Call them up and they can help you with the roll over
@@thedopplereffect00 so i wont be able to rollover that 401k to my personal investments acc , is has to be another traditional or roth ira then ..?
@@fastdeliveryl708 I think so. Both accounts will show up on the same log in though.
@@fastdeliveryl708 it has to be a IRA. If you don’t roll over, you will pay crazy tax and penalties. You can’t just transfer it to a brokerage account.
@@ryanvboy he has a traditional 401k so it must be rolled over to a traditional IRA. If he rolls over to a Roth IRA he would have to pay taxes on the entire amount in the same year!
Wearing a jacket and not turning on the heat makes sense to me, I think if it was super hot and refusing to turn on the ac or fans would be more extreme imo
A dollar saved is a dollar earned - nothing wrong with that.
Pushing yourself is what makes you a man
@beatthebush can you do a video on 4% withdrawal mechanics from a portfolio once you've reached your FIRE number? Is it 4% of your initial FIRE number inflation adjusted, or is it 4% of the current value? Also, you can't just take 4% out every year because some years are up, and some years are down? Is it a monthly withdrawal, or once per year? ...
4% always assumes inflation adjusted thereafter. Some people opt to vary their withdrawal based on market conditions. With trading fees at zero, you can dollar cost average out monthly.
@@BeatTheBush thanks! Is that 100% stocks portfolio, or is it a mixture of bonds also?
XXII Stock
GET KRITA ITS FREEEEEEEEE AND BETTTTTTERRRRRRR
This man is frugal and spend millions on Dogecoin.
Bro, You spent the money on buying Tesla, and on the other hand, you were saving a few bugs on your heating. I didn't understand the logic. I think life should be balanced. Instead of saving on heating, you could have spent $ 10k less on the car and put that money in stocks. You would have earned more but what's the use of torturing oneself on a daily basis.
just dont be too frugal to the point that ppl around start to feel uncomfortable.
Yeah they might report you to the police
Nah, if people judge you based on the quality of your clothes they are not people you want to hang out with
The sad part is you probably would have been much wealthier had you spent more. Penny wise dollar foolish. Look at Kevin he spent probably a few hundred thousand on his studio and now makes 23 million a year on RUclips. Just think if you spent a bit more on editing software etc you could be making a lot more with your RUclips channel. Think about all the connections with people and potential partners you missed out on because you are too cheap to go out and stay home instead. The examples are endless…. My Asian friend didn’t want to rent her basement because istwould cost 5-6k to get a fridge and put up a wall between upstairs and down stairs plus misc other Renos. It’s now been rented for the last 3 years and she has made 40k in rental income. Only took me a year to convince her to spend the 6k to rent out… sounds like you have Asian frugal disease. That’s sht is hard to break.
Ill give this a like. But i got issues w ur last video regarding financial regrets.
You sound lost my friend, being fugral does not always about saving money, look into your spiritual side.