Tag: t_ffreePeerCmp

[20]ffree^FOMO #9K/M #Gary/Yin

Posted on by tiger40490

See also my blogpost on

After talking to Gary.Guo, I realized that I could be ffree but not free from peerComp pain — when I notice so-called “peers” earning a lot higher, and their families enjoying those things I used to dismiss as unnecessary… I would feel FOMO/FOLB i.e. left behind in the slow track. I think Henry.Yin also said that RMB 500k salary felt too low for an unmarried tech worker. I would hear similar sentiments if I talk to more people.

On one hand, minimum acceptable food[1] cost is dropping globally, and I have way more than enough income to survive. On the other hand I feel lousy seeing some so-called “peers” earning 20 times more than that minimum, and twice my salary. Each of them seems to complain about cost of living.

[1] see globalization reducing minimum cost@acceptableFood

FOMO … The tendency to feel envious, and the tendency to compare to our neighbors are … basic human tendencies. Even a child would experience that. However, it takes a rational mind (wisdom) to control the tendency. Other people’s envy is the damper of my bare-bones ffree.

If we don’t compare to the (wrong) peer group we CAN actually feel pretty comfortable and carefree, basking in a glowing self-esteem.

So why do we choose to engage in the unnecessary comparison? In this question, I’m confronting the paradox of my adulthood. In pursuit of a more rational perception, I have a chance to find and restore some balance in my world view. I feel Theordore Rubin’s books shed some light. He introduced some good descriptors.

This is a confusing, subtle topic, with multiple layers. One of the analytical techniques is a list of questions.

Q: How much monthly (passive) income is enough ? Note Annual income is not very granular.
A: Philip Che said $5k would be comfortable for a family of 4. Wife said 4-5k for my family of 4, as discussed in SG: bare-bones ffree=realistic #WBank^wife^Che^3k

In the Chinese middle class family burn rate the single biggest poisonous element is top schools. Top schools entail humongous housing cost [1] + college funding. This single element has the (destructive) power to transform a carefree life into a stressful, miserable life.

Q: What did grandpa say when I said my son would go to an average American school while other immigrant Chinese families mostly live in top school districts?

Q: What would the early-retirement-extreme author say?

[1] actually you may be able to rent in a top school district.

— Q: With my low burn rate of, say, 3-5k, what if my wife earns 3k and I earn 6k from work like the Teo family? In theory my carefree easy life would be sustainable but would I really find Peace?

Main street tech jobs pay about SGD 5k.

A: I think most people in that situation would probably feel below-average in salary, and unsatisfied. Those without kids or not yet over the peak would feel /wasted/ at that salary.

With 9k salary, some exclusive “clubs” would reject my family members.

— See also the blogpost on khmer villagers and similar cultures in SEA, Latin America, and some Buddhist cultures — more satisfied, less striving.

j4 ffree analysis: jobless cashflow breakdown

Posted on by tiger40490

The fundamental concept and definition of financial freedom hinges on … Fuller wealth in a zero-wage situation.

My father said I don’t need to think about sudden and unexpected job loss and the cash-flow consequences. A few close friends I consulted probably felt the same way, though German, CSDoctor and Kyle seem to accept my analysis.

Now, I don’t need to convince other people about the validity of my projections. The more due diligence I do, the more validity I see in it. That due diligence gives me increasing level of inner confidence and consequently improvement in stress profile.

At a broader level, the amount of focused brainpower I apply on burn rate analysis is probably higher than my friends apply. My analysis gave me confidence.

In reality, long term cash-flow /concern/ is arguably the most visible and most common (possibly most important) source of household stress and livelihood pressure. As such, this concern has real, tangible costs and takes its toll on our lives.

financial independence=state@mind provides an agnostic and more cautious view.

 

[18]early retirement ] SG #YW.Chen

Posted on by tiger40490

ffree cashflow projection has the latest figures

Update: Today YW gave some numbers. He felt 60k/Y burn rate is the minimum for his family of three . With 2M asset he would need something like 3% annual return but he dreams of 8%. He feels 2% annual return is seriously insufficient but I doubt it.

Key Differences between me and some my peers:

  • I really really want to work till old age. Many of them wish to retire in 40’s.
  • Burn rate – my determination and discipline on burn rate control.
  • My wife and I have Singapore citizenship

See also eg@personal financial independence within%%family

YW mentioned early retirement. I guess with their combined savings, they probably can do it. Assuming their burn rate is USD 5k/month, their passive income and savings can probably last 30-50 years.

I estimate my family burn rate now at SGD 5k to 6k a month. I have around SGD1.5k passive income now. If my entire family stop working, we would move to a rental apartment in Singapore (US rents are much higher) and lease out our current apartment, with a net rental income about SGD 1k. Hopefully my Philippines property could contribute SGD 1k passive income. If we also maintain our burn rate at SGD 3k as planned, we would be able to survive in Singapore without touching our savings. (After age 67, CPF-LIFE should contribute SGD 800~1600 for each spouse.)

SGD 3k/M is a reasonable estimate. See CPF-Life/covid19 $handout reflect`(jobless)burn rate

“Survive” comfortably, I hope. I have reason to hope so, since I follow a primitive system to track my expenses for years, so I know where we spend. I’m fairly good at it.

My family’s major medical expenses are largely covered by integrated shield plans in Singapore. We are debt free.

In reality, situation is better — my wife and I both can work till old age. As I told everyone I want to work till 65+ in technology, and till 75+ in some other domain. That plan has never changed. I think my wife also prefers to work and earn her own living.

Other cities? Once we stop working, we could move to cheaper locations in Malaysia, as described in multiple blog posts.

I used to fancy other domains outside banking IT. Now I have mellowed up. I keep my options open, but I accept banking IT jobs for the rest of my career. At VP salary, the workload is non-trivial but manageable. If I grow old and can’t cope, then I will settle for a lower salary in banking IT.

Even with our relatively low combined income, I’m positive about our capacity for relatively early retirement, because of

  1. burn rate — my confidence to control our burn rate, based on insight into our past burn rate
  2. our confidence to keep earning two salaries and growing our retirement nest egg, up to whatever time I want to retire
  3. college — my decision to leave college education funding to “other people”
  4. medishield+polyclinics — for Singapore citizens
  5. properties — in relatively good locations and inflation-proof