I have to say that "safe" or "goal" numbers keep moving.
That is definitely true for us as well.
I have to say that "safe" or "goal" numbers keep moving.
You are doing well for your age. My feeling of safety came more from being debt and mortgage free. Very empowering to not be owing to any creditors.
That was when we felt more secure as well. I have to say that "safe" or "goal" numbers keep moving.
I have no desire to just get myself to where I will not starve, that has never been a LBYM/FIRE goal of mine, and as such I never designed my lifestyle around that goal.In hindsight, I guess I didn't ask the question in a way everyone understood. For those that "got it", congrats on your reading comprehension skills.
this number was a number in which you are "over the hump", and you know that even if life turns sideways on you, you'll have a little something, you will not starve. You might live in a tent hunting and fishing till the day you die, but you will always have a nice tent, a nice pole, and ammunition. You have your basic needs met for life, not your "lifestyle choices".
+1I never had a "things will be safe" asset number in our planning, so I somewhat ignored the OP's premise and stated our total liquid assets necessary to live the way we want forever. That seems pretty safe to me.
I also know one could live quite well with great medical care, safety and quality of life somewhere in small town Czech Republic with 1 million total NW and SS waiting when you get to 62.
"....It's a brilliant insight, because money doesn't make you happy.http://www.morethanmoney.org/articles.php?article=What-Happy-People-Know_436
...But to me, being safe has always been about being able to FIRE in the way that I want.
I don't think it's that people misunderstood, I think more of us focused on FIRE just didn't have that interim goal on our minds.
FWIW - I like what I learned from some on this site: ?x annual spending. That ? varies by the author, much like WR. For me, I like 35x spending rate in investable assets (not NW).
Yes, when you feel that your time is running out, that "safe number" no longer has to include budget for a new car every 3 years, nor a European annual vacation. Of course, some people make plan for a long life, and are willing to work longer to accommodate all their needs. There's no universal solution. YMMV.
As I mentioned, as people get older and accumulate more and advance their lifestyle, they are accustomed to more luxuries that are now taken for granted. Yes, the hedonic threadmill is real. And people often forget what the basic necessities are. It is a lot less than what they are consuming now.
I have often half-jokingly talked about living in an RV, boondocking in the state of New Mexico and living like many RV bloggers I have read. It does sound like fun living, and healthy too, no matter what one's net worth is. Surely, you can do that with $500K, and that's a lot more than what some of these people have. I have yet to try that for a few months, to really experience it (sans DW as she would not join me ). And the comfort is way better than what a tent provides.
I think the stash for basic survival probably goes down to near zero for countries with a more generous welfare policy. They probably cringe at the thought of saving up $500K just for basic survival.
Sure, it's roomier than my motorhome, but where's the running water? Where's the toilet?
This topic has been top of mind for me lately. I have been focused on financial independence every since I can remember, I'm 38. I actually work in the financial services industry as it is my passion. I talk with people all day about their finances. I've never talked about my personal financial situation with anyone other than my spouse so this post is somewhat therapeutic.
Logically, I feel like I have hit my safe number, but my assets are in liquid and non liquid assets. The total is about $5-6M, $2M of which is in marketable securities. I own a paid off commercial property yielding about $60k per year on a NNN lease (tenant pays all expenses other than major repairs.). Tenant is my business so the rent is probably above market. I would have to sell all or part of a business stake worth $1.5-$2M after-tax. I owe a little less than $400k on my house which I would love to payoff, but at 3.25% I struggle to do it. I don't consider the equity in my house an asset, gotta live somewhere.
I could easily replicate comfortable living expenses from my investments. I consider myself frugal, but CREEP is alive and real so I am probably not as frugal as I once was. The main issue is the opportunity cost of early retirement, giving up healthy income potential for no more earned income. I can save a lot of money each year. I think they may call this greed.
I have two kids with one on the way. Two colleges are paid up, but I would still need to fund the 3rd.
Logically knowing you hit your "safe" number and pulling the trigger are two very different things.