International Fire - Your Experiences

[Rockblack]

Hi all,

I have been a passive member/reader in this Forum for quite a while. I really enjoy spending my time here because most of the posts/conversations are very positive and members do their best to give constructive feedback.

After I had read the first 30-40 posts, I was really astonished and had to wonder:
How do all those guys manage to save so much money?

I live in Germany and have a (comparably) high paying job for my age (33). At the same time I keep my expenses very low to optimize my savings rate.
Currently, I have saved an amount of approx. 450 k EUR (495 kUSD), including a small appartment. (all in taxable accounts - I have no other option here :-/)

My income is well in the six figures and my expenses do not exceed 2kEUR per month. Hence I am able to put 80-100 kEUR (88-110 kUSD) to the side every year.

However, if I compare my facts&figures with some peers here on the forum I cannot but wonder how those folks were able to save so much more (600kUSD-1.4 mUSD is the range I have seen).
Kudos to all who achieved those savings!

One reason - that is obvious to me - is the general difference in tax and social systems. In Germany, half of my income goes to the state - in return I dont have to pay anything for healthcare and most other public services (e.g. university).

However, I very much envy you guys in the US for the support the governmant provides to people that save and invest for their future. Such things as 401K's simply dont exist here in good old Europe.

My plan for next year is to discuss with my current employer how I can get transfered to a US based job. I think I could improve my savings substantially if I would work in the US - given the much better options how to put your money to work.
Besides that I really like the fundamental logic that the state offers people possibilites and tools how to take care of their financial well being on their own - instead of doing this via "state pensions" on their behalf (and much more inefficiently tbh).

It would be great to hear your opinion on this!
Also, I would really appreciate if other international forum members could share their experiences.

Cheers,
Tobi

 

[Dd852]

Different systems , different pluses and minuses. Having worked in US, ASIA and Uk, I think in general US gross salaries for the same jobs do tend to be higher but net after all taxes and deductions for , among other things, health insurance premiums and out of pocket , end up being remarkably similar in first world countries- lower in developing. So it is hard to be sure exactly where you’ll be better off - so much depends on your individual spending habits and desires! All I’d say is carefully study web calculators that show net after tax paychecks for whatever location you go to AND look at comparative shopping prices so you have a better idea what your individual cost of living will be like in whatever place you go to.

 

[Mdlerth]

Willkommen

You're only 33 years old, have already amassed 450k euros, and are adding another 80-100k each year? You are doing fabulously well! Keep up the great work!

Have you determined your goals for retirement? It is vital to have targets for how much you expect to spend, how old you will be when you start, where you want to live, etc. My Tae Kwon Do instructor repeatedly reminded us "Goal-setting is the master skill of life."

You are much further along than I was at your age, but everybody's goals will be unique. Make sure you know what yours are so that you can tell when you have achieved them.

Good luck!

 

[davebarnes]

AND look at comparative shopping prices so you have a better idea what your individual cost of living will be like in whatever place you go to.

I think Numbeo.com is a decent site for this.

 

[Rockblack]

You're only 33 years old, have already amassed 450k euros, and are adding another 80-100k each year? You are doing fabulously well! Keep up the great work!

Have you determined your goals for retirement? It is vital to have targets for how much you expect to spend, how old you will be when you start, where you want to live, etc. My Tae Kwon Do instructor repeatedly reminded us "Goal-setting is the master skill of life."

You are much further along than I was at your age, but everybody's goals will be unique. Make sure you know what yours are so that you can tell when you have achieved them.

Good luck!

Thank you for the kind words!

I set my goal at 1mEUR at the age of 40.
If can keep up my yearly contributions as planned, that should be achievable. After reaching my goal, I do not intend to retire - but maybe to work less hours and change careers. It is basically all about having choices.

As seen with others here in the Forum, I tend to increase my savings goal as I get closer. But that is not a bad thing, I guess.
This kind of habit is shared by others here on the forums ... so I feel in good company ;-)

 

[Rockblack]

Different systems , different pluses and minuses. Having worked in US, ASIA and Uk, I think in general US gross salaries for the same jobs do tend to be higher but net after all taxes and deductions for , among other things, health insurance premiums and out of pocket , end up being remarkably similar in first world countries- lower in developing. So it is hard to be sure exactly where you’ll be better off - so much depends on your individual spending habits and desires! All I’d say is carefully study web calculators that show net after tax paychecks for whatever location you go to AND look at comparative shopping prices so you have a better idea what your individual cost of living will be like in whatever place you go to.

Well said. It could very well be that the net amount of money remaining at the end of the month is the same or (depending on where you live) in worst case less.
However - I think the benefit of being able to save in tax free accounts (in most cases with employer matchings) should also be factored in.

I totally agree to your statement - in case of a relocation/expat opportunity you have to set up a detailed calculation considering all factors.