Financial Independence is a FANTASY
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- Опубликовано: 28 сен 2024
- Today I'm responding to a comment that I received about financial independence and whether the FIRE movement is promoting a fantasy of an illusion. Let me know what you think in the comments!
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With the boycotts of celebrities and massive corporations right now, this video is perfect because it shows that you can really save a lot of money by not participating in "keeping up with the joneses"
Very much agree!
Its been really cool watching this channel grow, I'm 23 and this place really helps make the seemingly uncertain future more certain. Thanks!
Thanks buddy! Really appreciate you being around for the ride
I've got my savings rate to about 50-60% and I'm so proud of myself but I can only do it because I've lived in the same apartment for 12 years so I got in before rents went so crazy
Cost-of-living crisis; happening globally. It's not you.
Yeah you’re right that rent has gone wild. My girlfriend got our place at the time in 2020 when prices dropped quite a bit and I’m very thankful for that because it’s quite a bit lower than what it would be if we were looking now. That’s awesome you’re saving so much - thanks for sharing your experience!
Definitely show us the spreadsheets! Great video!
Me too!
Financial independence is impossible for me in the current circumstances. Period. If I cut my expenses on food or meds, I'll just die. I don't get enough money for living anyways, so cutting it even more would end up with me surviving on just fresh air and sunlight, which will likely ruin my health just enough that I don't see my retirement years anyway.
I pray for you🙏
That sounds really tough, I’m sorry to hear you’re going through this. Wishing you all the best & keep holding on!
@@spencers-adventures Thanks again for this channel, as I'm trying to find as many corners to cut as possible, that's a matter of survival for me here.
I'm more worried about my finances being mine and not the State's or bank's via debt. That is what independence I want
Wow great episode, such a good response to that comment, thanks for making a whole video about it. Yes get the gf on to share her tips.
Thank you :) and I’ll let her know you want to see the spreadsheets!
I'd love to see the spreadsheets and how your girlfriend does it
Inflation enters the chat. 🔥🔥🫠🫠
FIRE movement burns out
Or, and hear me out, don't buy a new phone every year, or a new car every 4 years. FIRE is 110% dependant on self control and being anti-consumerist. Spencer even mentions keeping your savings up with inflation 4:30 into the video.
@@ABunchOfSpannersI've heard you out and haven't bought a car since 2005 and my phone is 3 years old but I'm still getting burnt by inflation. Why? The biggest drivers of inflation are housing and food, where it's difficult to control the costs. Obviously everything counts but your comment is just blaming people.
I agree with everything here! Inflation is a big hindrance to FIRE but it doesn’t cause it to burn out completely. Food is something I want to talk about more on the channel - cooking from scratch is key to keeping cost down. However like mentioned, no category is untouched by inflation - except perhaps a Little Caesar’s pizza lol. It is complicated but saving is still possible. And it’s not the fault of the individual, but it is (in most cases) possible for the individual to keep their head above water. Thanks to all for commenting, I’m glad to see that people are discussing this with each other!
I understand the whole message you try to sent but I live in the Bronx nyc we a family of 5 but believe each state have their ways and maybe people from central or west of the country can save more but who ever is living in the east cost of USA 🇺🇸 the financial life have change big time but hart to save even the minimum something, I better minimum then nothing so who ever can can minimum it’s a progress
It's a great video! For the average person with kids like me, this just isn't possible. I save £50 a week and I think that's quite good. Often atm I have to dip into it though but most weeks I can save that.
Would love to see your girlfriend with her spreadsheets Spencer! You've dangled the carrot for us all now 😉😅
Agreed that it’s pretty tough when you have a lot of responsibilities - but I think saving a little is a lot better than saving none and we’ve all got a few areas where we can do a bit better! I’ll let her know the spreadsheets are requested. As an OG, your name has a lot of pull around our house!
@@spencers-adventures yeah I agree, it just feels like, especially this year, with our shopping rising to £100 or more each week, keeping that £50 in the savings is a lot harder some weeks and I just have to use it unfortunately.
Aww that's lovely to hear ☺️ can't believe I'm an OG as well, thats quite cool 😅
Yeah get that patreon or member subscription set up as well, I will support it 👊 there's about 3 channels I support on various levels atm that I watch each week like yours.
Also on another note, I've noticed so much recently that I need cash more and more! I think I might have to withdraw maybe £20 a week if I can just so I've got some when I need it. Some in change as well, I'll have to get one of those purses you recommended lol!
@@adamwragg4606 it’s tough for sure with the rising food prices - but its great you’re still able to put some away regardless! And buddy you’re for sure an OG! There’s a few people who have been here since close to day 1 and you’re pretty high up on that list lol. Appreciate you!
And that’s interesting to hear you’ve been using cash more often - keeping a bit on hand is a good thing for everyone. I think with summer power outages it’s important to have a bit of physical money on hand just in case. Keep an eye out for a change purse - I’ve seen some cool rubber ones too that are inexpensive!
@@spencers-adventures yeah I think we're lucky tbh as my wife is a neonatal nurse for the NHS and currently doing her masters, while I'm a decently paid postman 😅
Aww appreciate that, I love you and this channel 😊
Yeah I've found it has, strangely but I'm definitely going to try and have some on hand each week in change and notes too.
Summer power outages? We don't seem to ever get those here tbh. Very rare we get Powee cuts.
Oh really, I'll have to research them
Nice video 👍, don’t think this is possible with children without big privation. But many point are good for everyone, buy a good car and keep it as long as possible is simple . Don’t buy a ford f150 raptor and buy a Toyota hybride 😅. More easier to say in France than Canada maybe 😅
Completely agree! It's just not possible with children as well. If you're on your own or with a partner it could be but life is for living as well, especially with children
Believe me, people in Canada don’t need a pickup truck any more than someone in France does! That’s just pure North-America delusion lol. Appreciate your comment and I agree it’s definitely a lot harder with children. I can’t speak to that with experience of course but I have thoughts on it as someone hoping to have a child in the next few years. I think you have to get especially creative to make it work. Under The Median is a great channel I watch regularly and they are an older couple who paid off their house and raised their 4 children while making under the median income in the USA. Great watch for frugal tips while raising a family!
@@spencers-adventures i’ll Check it , thank’s 👍
@@spencers-adventures haha! No people do need a massive gas guzzling car I completely agree 😂 that's lobekt that you want a family in the next few years, you would make a great dad 😊
Oh I'll give that a watch, might help us a bit!
I think the fact that the cost of living is spiralling out of control (in the UK at least) and the stagnation of wages is a huge factor that needs to be considered. Increasing rent, food costs, transport etc eats into the potential I can personally save. I live pretty frugally and really, minus moving with my wife to my parents place I can't get rid of the biggest expense sadly. currently save about 25% of my wages though.
Same deal here in Toronto. Frugality is important and worth taking seriously, but only insofar as it actually moves the needle. If you're stuck paying 50% or more of your income just on very basic housing and you're already being very intentional about your spending... saving $15/month on a not-strictly-necessary streaming service or whatever isn't going to change a thing. This is basically where I'm at. I could ditch Crunchyroll and in about 15 years I'll have enough saved up for one more month of rent lol. If I want to actually get my savings percent up, it's pretty simple: Pay off student loans and earn more. Rent isn't going down, I already don't own a car, and if I want to get jobs that pay reasonably well I need to live near a big job market.
If you have several subscriptions going that you don't even use, constantly use Uber Eats, have more cars than adults to drive them, or generally keep buying shit on a whim that you don't even need or use... yeah, making an effort to live with some frugality has the potential to massively move the needle.
I’m with you both on this, the cost of living (especially in the big cities but also in smaller towns where employment may pay less to adjust for housing cost) is insane and really is the biggest thing that can hold people back financially. I think ultimately policy and big systemic change is needed to address that but other than voting and organizing we need to find ways to live leaner (while still thriving) in the present. I think anyone who is watching this video is likely of a similar mindset so like you mentioned, there is less fat to easily cut before hurting your day to day wellbeing. But I think for the average person this stuff is less of a consideration and bigger changes could be made. When I was living on my own I really considered moving into co-housing with some roommates so I could get ahead, and when I moved in with my girlfriend that is essentially what I did. I think for single people trying to get ahead during this housing crisis an option like shared accommodations is a viable solution for all ages, though not currently a socially acceptable one. Good to hear there’s another Toronto person in the comments! It’s not a cheap place to live for sure
@@spencers-adventures I appreciate the nuance, and I did note in the video that you took care point out that for many people, the prior advice you gave was just not even accessible.
I honestly love Toronto and would love to settle here long-term. Coming from Calgary a few years ago, it's interesting seeing how things have developed. Certain sectors in Calgary pay a bit more (ie. if you can work for an oil and gas company), but the job market is a fraction of the size, and it makes finding a job even more difficult than it already is. With cost of living increasing nationwide, the gap is honestly closing among all major cities. I'm actually coming out ahead here largely by not needing a car (converting hundreds per month in combined costs to tens per month in TTC fare) and being able to get fresh produce from local green-grocers way cheaper than I ever could in Calgary.
I'm definitely fortunate in that I live with my partner. Everyone single I know here off the top of my head lives with roommates, unless they managed to snag an older studio for a manageable rent.
Regardless, I do think it's worth promoting discussion that prompts people to re-think what they think they need, and optimize their spending towards what actually improves their lives and/or moves the needle on saving for retirement. As a millennial, whatever I'm doing is dramatically different from what my boomer parents were at my age, and I definitely don't expect or want a big house in the 'burbs and a bunch of cars. I overall quite like living in an apartment, and the big "one day" dream would be to own a modest townhouse. It just sucks that what began as having more sustainable expectations out of life is also still really damn expensive lol.
The real challenge is convince a woman why she should save any money. It's hard when you date, it's harder when you engage and it's much harder after wedding and children came up.
I still think financial independency is a fantasy (to family men).
Hi 👋! I just found your channel, and have been binge watching since this afternoon. Excellent content. Will be binge watching a great deal moving forward. I got a bunch of ideas to implement as I continue to pay off my debt, hopefully before I retire. Looking forward to watching more new videos. 😀
Thanks for the comment :) glad to hear you’re enjoying my videos! Hope to hear from you soon and enjoy the rest!
interesting video! I've been saving up to 90% of my income, and for a year 75% of my income. At this pace, i would retire in 7 years. (i have a high income and very low expenses)
That’s amazing! Keep going - you’re killing it!
I seen some news reports on FIRE and they all kept saying it not entirely 100% one size fits all solution it can really very vary, mainly on factors that you kind of have to figure out on your own. (AKA a lot of homework)
I've heard this from all the FIRE aspiring people as well. And also that it doesn't necessarily mean NOT working
Exactly! It’s just a freedom from mandatory work. Most people end up working still but they just do something they enjoy more or find less stressful!
I wouldn't call FI a fantasy but the math behind the "Rule of 25" that you mentioned is based on biased data (it's based on a 4% withdrawal rate which comes from the Bengen paper from the 90s). Fellow Canadian Ben Felix did an excellent video on why this outdated notion of "life expenses times 25"/"4% safe withdrawal rate" needs to be questioned (your point about people needing to be saving more still stands)
You’re right, and I’ve seen some people opt for the 3% rule as a more conservative estimate. It’s a good baseline and given that most people would continue to work/make money in some capacity when FI, I think for most the 4% is still a good thing to shoot for. Appreciate the comment my friend!
Yeah. I save 70-75% of my income and put it in the bank at interest. I have only been working for the second year, but my salary is above average and the state covers the cost of rent, so in essence I only spend on Food.
I'm 22 and very grateful to Spencer for advising me to buy a safety razor and also stop going to the hairdresser. I really enjoy taking care of myself. And the razor is much better than the plastic one Gillette.
I don’t know if it’s really possible to never work while living off interest in the bank, but having a huge financial cushion like I have now for 3-4 years adds confidence in life.
Uhm ok and how do you get the state to cover your rent cost? Like actually what are you even talking about?
@@simonrockstream Army maybe?
@@jenduck5520 No. Has to be something else. He said the state..The military gives you money for food too.
@@thinkforyourself9334 not in my country :)
That’s amazing buddy! Great job saving so much and getting that buffer in place. I’m happy to hear you’re using the safety razor too :)
Having that much of a buffer fund/emergency fund/whatever you call it, it adds so much peace of mind to your day to day. With me I found work became less stressful, because I knew if I was suddenly let go, I’d be alright. It’s so great you’re doing this at such a young age too - you’re setting yourself up for a solid future 👊
I agree with most of your points. However I'd note that your calculations don't take into account things like OAS and CPP. Those will help a lot of people to have an even smaller number assuming they continue to exist.
Another piece of advice I'd give to anyone wanting to get to FIRE is not to get married. Or at least not without a strong legal agreement beforehand. Working 25 years and passing your savings goals only to find out more than half of your savings and much of your future income are going away is no fun. Would not recommend to anybody.
Agreed! I think those extra funds you’ve mentioned would definitely help move that goalpost forward for many. With marriage I think it’s definitely important to not take it lightly and be as certain as you can that you’ll be together forever. I think another consideration is wedding cost - because some people spend a truly insane amount on their wedding and bachelor parties etc. I’ve heard stories of people getting divorced in the short years after marriage and still paying the debt on the wedding!