Author Topic: Is $100k a year a lot? Is it Fat FIRE? Used to think so but starting to wonder!  (Read 110108 times)

EngineerOurFI

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Personally, the greatest cost associated with geo-arbitrage is the disruption to your social network.  And I say this as someone who’s lived in three different countries and moved frequently throughout my life.

There’s a value to having friends and family and even former employees/ers nearby, but it’s very hard to quantify.

Yep.  I am too old and too much of an introvert to start over from scratch again.

I never really valued this kind of extended network that comes from staying in one place for awhile.  But now that I've actually BEEN in one place for awhile, it's worth a lot more to me (in unquantifiable ways) than I ever would've expected.  And +1 to being way too introverted to start that network over again.

ixtap

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I think it's a very good point. It's also something for young people to keep in mind as they choose what jobs to take and what cities to move to. I've heard the strategy of working and saving in a HCOL area and then moving to a LCOL to achieve FIRE. But it is very possible (and very human) that one may end up putting down roots without realizing or intending it to the point where moving becomes much less appealing.
Hence why I'm still in expensive yucky coastal SoCal. Came for the job after getting out of the Coast Guard and stayed for the friends and family relationships and activities that are here. Downsizing and living a less spendy life helps a lot but only so much you can do if you are starting out here. Doable for many but tough if you have a family. That said - moving day is this weekend to a rental place for the summer. Not sure where we (BF and I) will end up but it will likely be much lower cost if we decide to buy. Selling my house made me fat FIRE (by my lower spending standards) as selling the BF's house did for him. Neither will spend anywhere near $100k together or separately.

Where is yucky coastal SoCal? Glad I live in pleasant coastal SoCal!
LOL! You know that part that has 20 billion people crammed into a tiny sliver of beach during the Santa Ana Winds when it's 100 degrees on the coast and smoggy from the equal 20 billion people on the 405 trying to get there from inland or away from the wildfires. Or at the few jammed packed dry brown treeless hiking trails crammed between vast sprawling vastly expensive housing tracts and strip malls and freeways. That would be the place ;-). Of course I've been here 20 years (with a short term move to Big Bear) so I may be a bit biased.

Oh, yeah, we rarely cross Camp Pendleton. It's crazy up there.

joe189man

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Someone posted this link in the investor's sub forum and i thought it relevant to the conversation

https://dqydj.com/income-percentile-calculator/

$100,000 is 80th percentile, so very likely fat fire and yes even "Ferraris FIRE" (can i trademark that term?), a used one is ~$120k that at 5% interest for 60 months is $2,265 per month, assume insurance is $200 a month and fuel/maintenance is $135 a month for a total of ~$31,000 a year. Assuming $10k in taxes, $100k-$10k-$31k = ~$59k a year to live which puts you in the 55th percentile. so one could by a Ferrari (a new to you one every 5 years) and still live a middle class lifestyle

AlanStache

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Someone posted this link in the investor's sub forum and i thought it relevant to the conversation

https://dqydj.com/income-percentile-calculator/

$100,000 is 80th percentile, so very likely fat fire and yes even "Ferraris FIRE" (can i trademark that term?), a used one is ~$120k that at 5% interest for 60 months is $2,265 per month, assume insurance is $200 a month and fuel/maintenance is $135 a month for a total of ~$31,000 a year. Assuming $10k in taxes, $100k-$10k-$31k = ~$59k a year to live which puts you in the 55th percentile. so one could by a Ferrari (a new to you one every 5 years) and still live a middle class lifestyle

But Ferraris are really expensive where I live so its not that fat of a fire!


joe189man

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Someone posted this link in the investor's sub forum and i thought it relevant to the conversation

https://dqydj.com/income-percentile-calculator/

$100,000 is 80th percentile, so very likely fat fire and yes even "Ferraris FIRE" (can i trademark that term?), a used one is ~$120k that at 5% interest for 60 months is $2,265 per month, assume insurance is $200 a month and fuel/maintenance is $135 a month for a total of ~$31,000 a year. Assuming $10k in taxes, $100k-$10k-$31k = ~$59k a year to live which puts you in the 55th percentile. so one could by a Ferrari (a new to you one every 5 years) and still live a middle class lifestyle

But Ferraris are really expensive where I live so its not that fat of a fire!

there are 134 Ferraris for sale at or less than $120k in the country (USA)

Metalcat

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Someone posted this link in the investor's sub forum and i thought it relevant to the conversation

https://dqydj.com/income-percentile-calculator/

$100,000 is 80th percentile, so very likely fat fire and yes even "Ferraris FIRE" (can i trademark that term?), a used one is ~$120k that at 5% interest for 60 months is $2,265 per month, assume insurance is $200 a month and fuel/maintenance is $135 a month for a total of ~$31,000 a year. Assuming $10k in taxes, $100k-$10k-$31k = ~$59k a year to live which puts you in the 55th percentile. so one could by a Ferrari (a new to you one every 5 years) and still live a middle class lifestyle

But Ferraris are really expensive where I live so its not that fat of a fire!

Hahahahaha