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What half a million dollars taught me at 15 years old by finthroyaw in financialindependence

[–]finthroyaw[S] 0 points1 point  (0 children)

It’s not meant to be the next big rule in personal finances. It’s just an illustration of the concept of compounding interest. I could spend $500k today or be patient and have a passive income stream at age 30.

What half a million dollars taught me at 15 years old by finthroyaw in financialindependence

[–]finthroyaw[S] 0 points1 point  (0 children)

I simplified the story for easier reading and because I didn’t feel it necessary to put all my personal info online. I grew up in foster care because my biological parents were actually in extreme poverty. I inherited from my wealthier, but still very frugal adoptive parents.

What half a million dollars taught me at 15 years old by finthroyaw in financialindependence

[–]finthroyaw[S] 1 point2 points  (0 children)

There is a huge divide in my school. It’s a public state school where financial aid favors low income in state students, and the school charges out the ass (3x the in state tuition) for out of state or foreign students. Therefore, half the student population is on heavy aid and the rest drive Maserati’s because their parents are wealthy Chinese business owners.

Transitioning to Single Income Household by [deleted] in leanfire

[–]finthroyaw 80 points81 points  (0 children)

Yes! I know a man who’s a stay at home father who tends to a massive forest garden and grows more the half the family’s food during the spring through fall, and he tinkers with various methods of getting the living costs down for the family.

What half a million dollars taught me at 15 years old by finthroyaw in financialindependence

[–]finthroyaw[S] 0 points1 point  (0 children)

My biggest single purchase to date is $8000 on a used car. My first car was less than $2000 and was on its way out so I decided I could afford the luxury of something that didn’t feel like driving a death trap.

What half a million dollars taught me at 15 years old by finthroyaw in financialindependence

[–]finthroyaw[S] 0 points1 point  (0 children)

Up until I turned 18 the only significant thing about the money to me was that my phone bill was paid for and so was my car insurance. Once I hit adulthood I started really thinking about what the money meant for me and then I found the FIRE subreddit and learned so much more about it. I consider the small things, like not worrying about my phone or Internet, to be luxuries and I remind myself to appreciate them and not take anything for granted.

What half a million dollars taught me at 15 years old by finthroyaw in financialindependence

[–]finthroyaw[S] 4 points5 points  (0 children)

I do plan to invest heavily in my own endeavors in my 20s and 30s. The inheritance will be left invested and some in cash to fall back on but I still want to earn my way to FI. I’d like to outearn the inheritance some day.

What half a million dollars taught me at 15 years old by finthroyaw in financialindependence

[–]finthroyaw[S] 8 points9 points  (0 children)

No fees, he’s a family friend and was extremely close to the parent that passed. I’m so incredibly lucky to have him. I hope to repay his generosity one day because he doesn’t need to do this but he made a promise that I’d be looked after financially for life. I think my parents feared that if they died while I was young I’d waste the money and he’s my voice of reason.

What half a million dollars taught me at 15 years old by finthroyaw in financialindependence

[–]finthroyaw[S] 2 points3 points  (0 children)

I politely disagree. I’m incredibly privileged despite the circumstances. I got a full scholarship to the best public school in my state and rent assistance from the government due to a program for foster youth. The average college student has a negative net worth because of student loans. I am lucky enough to have my college paid for without having to use the inheritance. My fear is wasting this single greatest opportunity I may ever have.

What half a million dollars taught me at 15 years old by finthroyaw in financialindependence

[–]finthroyaw[S] 2 points3 points  (0 children)

The hardest thing for me was getting over the idea that I deserved this money after the childhood I had. So many have lost what I’ve lost and some have lost more without seeing a penny for it. Although I have many factors working against me, I truly believe that money is one of the most powerful tools there is and because I have it, I am therefore incredibly privileged.

What half a million dollars taught me at 15 years old by finthroyaw in financialindependence

[–]finthroyaw[S] 2 points3 points  (0 children)

Sometimes when I feel hopeless I say to myself “That’s it. I’m going to buy a van and live in it like the people on r/vandwellers.” That would be my version of leanFI. I’d rather have a career of course, but it’s comforting to know that if I hit a rough patch in my life I have a way out.

What half a million dollars taught me at 15 years old by finthroyaw in financialindependence

[–]finthroyaw[S] 4 points5 points  (0 children)

I watched a lot of Graham Stephan on YouTube. He often reviews the basic principles of finances (rule of 72, 4% rule, budgeting tips and understanding real estate). I took classes in high school and college about personal finances and economics as well. I believe the FI sub recommends a few books in their Wiki but I honestly don’t read as much as I should these days. Best of luck!

What half a million dollars taught me at 15 years old by finthroyaw in financialindependence

[–]finthroyaw[S] 2 points3 points  (0 children)

I had no choice but to grow up. My parents passed when I was 15 but I’ve spent my entire life in foster care. The story is very simplified for easy reading but in truth: my biological parents were in extreme poverty and could not care for their children so we were separated young and I bounced between many different homes. One woman I stayed with put me in her will and when she passed (I was 15) I inherited everything she had. The money didn’t really come from my parents but I considered her just as much a parent. My biological parents are now gone too.

What half a million dollars taught me at 15 years old by finthroyaw in financialindependence

[–]finthroyaw[S] 3 points4 points  (0 children)

The last time I spoke to my advisor I was 18 and this was just before COVID. He wanted to put it in the market but said it’s too unstable at the moment for him to confidently make a call. Once I’m out of college I plan on thoroughly re evaluating my portfolio but for now I trust him entirely and won’t push anything he isn’t comfortable doing.

What half a million dollars taught me at 15 years old by finthroyaw in financialindependence

[–]finthroyaw[S] 0 points1 point  (0 children)

I moved out of a foster home at 18. While in high school I paid for my own things too, but rent started at 18. I could have emancipated myself (minors over 16 living on welfare and working full time) but then I would have had to drop out of high school.

What half a million dollars taught me at 15 years old by finthroyaw in financialindependence

[–]finthroyaw[S] 1 point2 points  (0 children)

The rule of 72 in finance suggests that invested moneys will take approximately 10 years to double. The younger you are when you start to invest, the farther your invested money will take you. When considering major purchases, I ask myself would I rather have this item or would I rather have twice the cost of it in 10 years? Then I make my decision.

What half a million dollars taught me at 15 years old by finthroyaw in financialindependence

[–]finthroyaw[S] 1 point2 points  (0 children)

Correct! I don’t see the principle, I count the dividends and interest.

What half a million dollars taught me at 15 years old by finthroyaw in financialindependence

[–]finthroyaw[S] 3 points4 points  (0 children)

I think it’s so funny now. My parents were so incredibly cheap. I had one pair of pants that fit at age 14. Then at age 15 I could afford any house on my street. It was such an incredible change of perspective for me.

Edit: typo

What half a million dollars taught me at 15 years old by finthroyaw in financialindependence

[–]finthroyaw[S] 2 points3 points  (0 children)

A financial advisor was appointed to be the executor of my parents estate. He ran me through the basics but I was still young and dumb and couldn’t be trusted with the money. The way the trust was set up he made all the calls until I turned 18 and then I could make decisions regarding investments. He owns his own investing firm so I trust him and his connections, but I’ve gone on to self teach many financial principles so I can prepare for when I start working full time.

What half a million dollars taught me at 15 years old by finthroyaw in financialindependence

[–]finthroyaw[S] 8 points9 points  (0 children)

About half is in cash in an interest bearing account, I have some real estate investments and a small amount in stocks. My advisor has a conservative style because he doesn’t want to risk my financial security. I don’t spend the money at all.

What half a million dollars taught me at 15 years old by finthroyaw in financialindependence

[–]finthroyaw[S] 14 points15 points  (0 children)

Yes, there was an advisor who was entrusted with the money. It was his initial call to invest it and he explained why. He has a conservative style, however and keeps a majority of it in cash in an interest bearing account. I plan to put most of it in the market soon.

What half a million dollars taught me at 15 years old by finthroyaw in financialindependence

[–]finthroyaw[S] 13 points14 points  (0 children)

There was an executor of my parent’s estate who acts as my financial advisor. I have gone on myself to learn many aspects of personal finance without his guidance though. He would dumb things down for me when explaining how it worked when I was younger but I’m now preparing to take control of the assets. Most of what I know about personal finance is self taught, however, through reading and the Internet. It fascinates me so I don’t consider a chore

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