Have you looked into health insurance without $dayjob subsidizing it?
Savings for 5 Years Living Expense: Is It Enough FU Money to Quit My Job?
21–27 of 27 posts
Re: Savings for 5 Years Living Expense: Is It Enough FU Money to Quit My Job?
#22On my book, sufficient money to quit the rat race is: I own a place to live. Renting/mortgage is my biggest expense. As long as I don't own a place to live, I need to continue working.
There are lots of costs associated with owning a place beyond the mortgage. Paying off a mortgage with liquid cash is frequently not the most effective use of money since once you use money to build equity it is challenging to pull money back out if you need it. The better way is to look at your big picture finances. You will always have costs associated with housing - make sure you account for that in your withdrawa…
You just get a second mortgage, how is that "challenging", people do it every day.
Paying off debt is a safe thing you can do with liquid cash until the debt is gone (with sensible emergency funds). It's a perfectly sensible thing to overpay your mortgage.
Are you a bank shill or something?
Interest payments are a loss. The less you pay in interest, the less you lose.
Anything else you do with the money is going to have a risk attached.
Re: Savings for 5 Years Living Expense: Is It Enough FU Money to Quit My Job?
#23If you already can work remote on side gigs for your consulting firm consider moving to a low cost of living country in south/Central America, Thailand, or Eastern Europe.
No point paying living expenses in the west if you can generate a western salary remotely.
Re: Savings for 5 Years Living Expense: Is It Enough FU Money to Quit My Job?
#24My understanding is "FU money" doesn't mean you don't work again: it means you can quit a job you don't care for, and not worry about finances before finding a new job. And that's what I'd recommend. Nobody knows what the future will hold so I'd be a bit worried relying on money I've already saved up for the rest of my life. Plus, not working may cause stagnation and motivation issues. But you seem to have enough mon…
FU money definitely used to mean "I can quit and live a great lifestyle", not "I can quit and maybe find another job" in my circles.
Re: Savings for 5 Years Living Expense: Is It Enough FU Money to Quit My Job?
#25Earlier quoted context omitted.
There are lots of costs associated with owning a place beyond the mortgage. Paying off a mortgage with liquid cash is frequently not the most effective use of money since once you use money to build equity it is challenging to pull money back out if you need it. The better way is to look at your big picture finances. You will always have costs associated with housing - make sure you account for that in your withdrawa…
You just get a second mortgage, how is that "challenging", people do it every day. Paying off debt is a safe thing you can do with liquid cash until the debt is gone (with sensible emergency funds). It's a perfectly sensible thing to overpay your mortgage. Are you a bank shill or something? Interest payments are a loss. The less you pay in interest, the less you lose. Anything else you do with the money is going to h…
Getting a second mortgage is a big hassle and cost, especially if you don't have an income. You can get an asset backed mortgage but those are less common and can have higher rates.
A HELOC is certainly easier but there's no guarantee you will get approved, plus rates will likely be higher than whatever you're paying now.
My point is that getting credit is not guaranteed, and that having liquid assets has significant value. If you are not working I especially recommend prioritizing cash.
Re: Savings for 5 Years Living Expense: Is It Enough FU Money to Quit My Job?
#26Earlier quoted context omitted.
You just get a second mortgage, how is that "challenging", people do it every day. Paying off debt is a safe thing you can do with liquid cash until the debt is gone (with sensible emergency funds). It's a perfectly sensible thing to overpay your mortgage. Are you a bank shill or something? Interest payments are a loss. The less you pay in interest, the less you lose. Anything else you do with the money is going to h…
Getting a second mortgage is a big hassle and cost, especially if you don't have an income. You can get an asset backed mortgage but those are less common and can have higher rates. A HELOC is certainly easier but there's no guarantee you will get approved, plus rates will likely be higher than whatever you're paying now. My point is that getting credit is not guaranteed, and that having liquid assets has significant…
Having some liquid assets is obviously of some value.
That's not what you were advocating for though.
Re: Savings for 5 Years Living Expense: Is It Enough FU Money to Quit My Job?
#27Have you looked into health insurance without $dayjob subsidizing it?
I live in a country (outside the US) with good healthcare system and accessible and relatively affordable healthcare services. Health insurance is good to have, but not having it will not make a person like me teetering on the edge of poverty.