My investments have now officially valued over 3%. This is huge, for me; I really feel like Iām getting closer and closer to my goal. Iām still only around 0.4% of the way there, but every step towards that goal feels amazing.
I havenāt looking at my current life situation as a sacrifice, but as Iāve reflected on it I have come to see it that way. Objectively, I could rent an apartment, instead of a room; thereās actually one available right now pretty close by with access to a pool and a garden. I could easily, easily afford that. But instead Iām only paying a third of the cost for a room. I could be eating much better and more comfortably; sushi on my own dime, pizza, some Burger King. Instead, I eat at the canteen and tunamayo sandwiches for dinner.
Sure, Iāve made some purchases. I have actually eaten at Burger King a few times, McDās too. But in total Iāve strayed from the ideal maybeā¦ ā¬150 worth? ā¬120 of which are new shoes and a new backpack, which I intend to use to death.
Iām saving about 63% of my income every month. Thatās a lot, especially considering I donāt really make that much at all. Iām sacrificing a lot. I just happen to be someone that can live pretty well off not much, I have a lot of support and encouragement from my family, and I have a clear goal in mind. Iām striving towards that, so I can handle this. I do wonder though, how nice it would be to live in an apartment by myself, go workout at the gym or swim in the pool. But thatās not the way Iām gonna reach my goals, so itās not the way Iām gonna live.
This goal I talk aboutā¦ I havenāt really defined it very clearly, have I?
I want to be a millionaire. Not because being a millionaire is cool or whatever, but because Iāve calculated that thatās how much I need to retire safely at any age. Meaning that, no matter how old I am, as soon as I hit those 7 figures, Iām gone. The actual number is slightly slower than 1 million, actually, but itās easier to talk about it this way. Also, Iām actually more than 0.4% of the way there, but once again I cut things broadly so I can be safe. I prefer to be wrong because I have too much than because I have too little.
This million though, what can I do with it. Thatās the big question, the way I see it. Iād probably want to buy a house, but the problem is that I canāt predict how much a home will cost when I read it, I canāt even predict when Iāll reach it! At my current pace, thatāll be when Iām 50. Iām fine with that, more than fine. If I can retire earlier than my parents, Iām happy; I feel like thatās what itās all about, really. But I will almost certainly hit it earlier. I donāt want to earn this much forever. I want to advance my career and earn more money. I actually did some funny math, some time ago. It was very rough, but not particularly optimistic: if I can increase my monthly investments by 50% of my current investments every 5 years, I can shave 5 years off my retirement. This means that I can retire by 45. Thatās really not crazy, especially if I emigrate, which is likely.
Regardless, I feel like thinking about all that isnāt too helpful nor satisfying. Instead, I want to focus on what Iām actually gonna do with the money.
Well, first of all, Iām not gonna spend much of it at all! The whole point of having that much money is to keep it invested so it can keep growing. Still, thereās a few things I want to buy.
When I first spoke to my grandma about thisāshe didnāt even believe that I meant to do this by the way, she didnāt understand that I might want to retire as early as possibleāshe immediately thought I wanted to buy a house. At the time, I laughed at the idea. Maybe I didnāt literally laugh in her face, but I did reject it. After a long time thinking, I just thought that it wasnāt worth it. Why would I spend so much money buying a house, when I could just rent an apartment instead? The difference isnāt much, and an apartment allows me much more flexibility with much less effort. Iāve thought this over, since then, and Iāve come to the conclusion a house would be nice.
Maybe Iām being silly, I canāt quite tell. Hereās the pros, as I see them:
- No landlord worries
- Rent wonāt increase
- Itās an investment
- I can feel settled in
- Itās a symbol of what Iāve achieved
Basically, itās less worrisome overall, though more expensive. That last point thoughā¦ Am I stupid? A symbol? What do I care about a symbol?! But really, I want it. Something I can point to and say āsee, it worked!ā A place I can really call home. Specifically, I wanted to go back home, to the islands. Houses are cheaper there too. Itād be amazing. I love the people, I love the environment, the clean air and the sea. The big problems donāt even apply as much now as they did growing up. Thereās lots of fast delivery stuff like Amazon, the internet is good now. Sure, thereās no fast food places, but who cares?! Thereās good food! I love fish, I mean, come on. Itād be awesome. The only real issue would be travel. Travelling in and out of the island is tough, and itāll likely always be tough, but also just going from place to place is hard. You pretty much need a car there. Thereās electric cars and bicycles, thatās a possibility, but itās still tough, overall, to go and just live like that there. Itās never too hot or too cold, but when it rains it rains. I think itās doable, I think Iād like it, but who knows.
Thereās also the cons, of course:
- More expensive in the short term
- Less flexibility with moving around
Thatās it, pretty much, but that first point is a good one. I canāt afford to spend a lot upfront, thatās the negative part of my plan. Itās hard to make huge purchases because I need the money to be invested. Even if itās cheaper in the long run, Iād rather have the money now so it can grow than not have it.
Iāll keep thinking about it, I do have a long way to go still.
Something else Iāve been thinking about is emigration. Iāll almost certainly emigrate at some point, yes, but thatās for work. For settling down, I always imagined myself in one of three places: somewhere in the city, back home, or Vermont, USA. Why Vermont? No idea. I just think of the state as a big forest, really, and I love the idea of living in the middle of nowhere in a mansion. The more I learn about the USA though, the less I want to live there, so Iām probably cutting that one out. The problem with the city option is that itās expensive. Buying a small apartment is gonna run me about as much as a large home back home, though it will have a lot of convenient benefits. Back home though, thatās heaven. I grew up in heaven, looking back, marvellous place. Thereās a fourth, secret option though. Get citizenship or a Visa somewhere else with a much lower cost of living and just move there. Living in Thailand or something. Or somewhere else, really, thereās lots of destinations that I could aim for. Nepal.
Iām strongly considering that, more and more. That way, I could retire even earlier, maybe at 40. I donāt know.
Still, itās interesting to think about.
And with that, Iām done.
Thank you for the comment!
Yeah, I know things wonāt always go my wayā¦ I do have quite a bit saved up as an emergency fund. Itās worth some 8 months of expenses. I intend to have it keep up with the expenses if I end up upsizing along the way. I have my family to fall back on if things ever get really bad too, though Iād rather not, of course. Canāt predict the future though. Hopefully everything turns out alrightā¦ Iām working hard.
I do own a bike, which is how I get around. No debt at all either. I donāt intend to buy a car or anything, though in the future who knows if Iāll need oneā¦ Iām terrified of debt, so if I do get one Iāll make sure it buy it outright.
:D