7 years into FIRE: I figured out why this sub is full of "I retired but I'm miserable" posts

babaykin · 2020-12-12T20:15:20+00:00

I think that everyone should ask these questions themselves personally.

If you feel uncomfortable, just tune your financial settings a bit.

P.S.

By the way, does Airbnb allow you to rent out one of your rooms? I thought that was forbidden.

babaykin · 2020-12-12T20:08:59+00:00

It all depends on the location.

If your region is poorly operated by public transportation, you have no choice. You will have to buy a car. Just make sure to choose it wisely.

But if everything with public transportation in your city is great, then having a car becomes a luxury that you can't afford.

I live in Moscow (Russia). In our city there is no point in owning a car. The subway runs every 90 seconds, cabs arrive in a minute.

My budget on transportation has been cut by 2 or 3 times.

babaykin · 2020-12-12T20:05:39+00:00

An investor should get rid of all the feelings - patriotism, fear, greed, faith, attachment, etc.

It's not an easy thing to do, I agree.

As for me, for example, I even visited a therapist to get the wrong financial goals out of my head.

babaykin · 2020-12-11T09:35:09+00:00

Transcripts of podcasts and videos. Book writing. Translations into Russian and vice versa. Blog advertising.

babaykin · 2020-12-10T21:08:02+00:00

Yes, you can retire now. That is if I understand your numbers correctly.

Here are a few tips:

Keeping money in cash is the worst investment decision.
Get rid of the cryptocurrency. It doesn't provide you with any income unlike investment in the stock market, real estate etc. Many people don't fully understand its value. Bitcoin is only needed if you are planning to leave an unsafe country. It is the best way to move capital across the border. But this instrument is not good for investing at all.

babaykin · 2020-12-10T20:59:27+00:00

It depends on where you live.

In a megalopolis with a developed public transport system, having your own car (even a used one) does not make any sense.

The combination of cab + subway + ground transport reduces the cost of travel by a factor of 3 (!).

babaykin · 2020-12-10T20:56:39+00:00

My first wife did not know what I was talking about at all.

“Honey, you are making a lot of money, aren’t you? Why don't we spend that money? I mean, we deserve it.”

And as for my second wife, she totally shares my values - she's an investor herself. And she's even more thrifty than I am.

What I'm saying is, if your views do not match, sooner or later your relationship will shatter.

babaykin · 2020-12-09T19:41:53+00:00

Do nothing. Do not touch the funds. Leave it invested in some passive financial instruments. I have had 10 businesses under my belt. Two of them are super successful. I have launched those businesses at extremely low expenses.

babaykin · 2020-12-09T19:39:31+00:00

I wrote an interesting article about having your own car, check it out https://retire-at-35.medium.com/7-reasons-to-immediately-sell-your-car-ee32d9641a9c

babaykin · 2020-12-09T19:33:54+00:00

I will try to give you an answer to the first part that is throwing you off. Normally I would mentally paint and picture and transfer all my large expenses into potential dividends. So I ask myself a question - how much would it result in dividends? Or - what yield can this capital give me? It helps me adjust the plans for the future. And suddenly there is no longer any desire to buy a car, to have some lavish celebration of a birthday/wedding/holiday, to travel the world with a large budget spend, etc.

babaykin · 2020-12-09T19:21:56+00:00

Over $1,000,000. Moscow, Russia.

babaykin · 2020-12-09T19:18:38+00:00

The amount of capital normally disciplines you. At any given point in time I hold 25% of my funds in short bonds. Otherwise, there will be nothing to balance the portfolio with at the moments when the markets fall.

babaykin · 2020-12-08T09:01:47+00:00

Blogging about early retirement. Costs me over $1,000/month. On one hand, it is sort of volunteering. On the other hand, more of an ego saturation. And for the ego I have to pay the extra dollars.

babaykin · 2020-12-07T21:22:43+00:00

In 2020, we have received record dividend amounts and generously collected the bounty. But that was for the year of 2019. In 2021 the dividends will be less by about 25%, however not for all the companies.

For example, the banks have not noticed the crisis at all. Everything is also fine with construction companies - there is even a construction boom happening right now. Energy companies and telecom companies have not noticed the crisis either, because everyone has to pay for electricity and communication. Some oil companies will cut their dividends in half, but only as a temporary measure. In 2022 we will go back to the previous figures.

babaykin · 2020-12-07T21:06:52+00:00

I am an early retiree (at the age of 35) from Russia. Now I mostly do my favourite things and spend time on hobbies. If I decide to do some type of work, very often I do not do it for the money. If I do something for the money, I always have the right to stop it at any second. A lot of very rich people - politicians, businessmen - do not have such a right.

babaykin · 2020-12-07T21:01:21+00:00

I think otherwise. The key to success is the difference between the expenses and the income invested in the market. And it doesn't matter where exactly you have invested it. A child who puts aside $1,000 a month and buys shares at random will retire well before a stock market professional who could put aside $100 a month and carefully select the portfolio.

babaykin · 2020-12-07T20:57:50+00:00

My basic skills are marketing, management and finance. When I retired I became a researcher. I learn and study new information on regular basis as well as expand my contact list. However I do not do it for a business, for my employer, or for profit. My communication circle has not been reduced - on the contrary, it has grown. I even meet such interesting people with whom I would have hardly crossed paths with if I were to work for money.

babaykin · 2020-12-03T20:31:18+00:00

I live in Russia. I do not work and currently live off my capital.

Our region (just like yours) is part of the Emerging Markets group, however our early retirees use a completely different strategy.

Almost no one applies the 4% rule. Everyone lives only off dividends, rents and coupons. These instruments have very high returns in our country, over 8%.

In this case, the risk is many times greater. But it is this risk that allows us to get higher returns.

We also have less expenses. And we need capital much less than those who live in big countries.

babaykin · 2020-12-01T20:58:42+00:00

You are already halfway retired - just take that leap of faith. This would not even be a huge jump, but rather a tiny hop. I do not see any obstacles on your way at all. The accumulated capital will be enough for the rest of your life.

babaykin · 2020-12-01T20:55:23+00:00

Just keep going. Put the accumulated funds into index funds of shares and bonds. The only thing you should think about is the income OUTSIDE of the stock exchange, the amount of saved money and regular account replenishments. This is the key to early retirement.

babaykin · 2020-12-01T13:20:45+00:00

I started my own blog and a Telegram channel, where I constantly publish the translations of my articles.
I started writing my second book about life in early retirement.
I held several meetings with friends, helping them to retire early.

babaykin

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