Do you hate your job? Are you considering Lean FIRE?
How’s it going everybody this is beat the bush today i’m gonna talk about lean fire many people hate their job and this is not just my opinion job satisfaction is at an all-time low in a recent survey of 1.7 million people 80 percent of these 1.7 million reported that their job did not set them up to do their best people are just saying take this job and shove
It people are choosing to fire right now financially independent retire early instead of a regular fire they are choosing to do lean fire where it’s the bare minimum that you need to retire early today i want to go over some things you might want to consider before you pull the plug this video is brought to you by weeble and what better way to retire early is
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Check out my referral link down in the video description below you’ve done the calculations for retiring early four percent rule trinity study do the three percent rule and then vary your withdrawal rate depending on the market conditions if the market goes down well you would draw a little less if the market is doing really well okay you can stay at four percent
Maybe you can even withdraw a little bit more there’s two different ways to set this up you can either have your own home paid for in full or you do not if you’re lucky enough to have your own home your expenses are likely going to be a lot lower let’s just say it’s twenty thousand dollars a year if you don’t own your own home let’s say you have a million dollars
Of investable assets four percent rule means you can withdraw forty thousand dollars a year let’s say 20k of this you allocate for rent and then the other 20k is for daily expenses 20k in rent is reasonable for moderately priced housing areas the risk here is that rent may increase dramatically over the next 10 years 20 years with the home paid off you only need
About 20k a year to live reasonably comfortably there is yet another kind of danger here which is inflation regular inflation for let’s say cars or food is probably over five ten percent just this year alone cpi has long been known as not a very good metric of measuring real inflation that is what the consumer actually feels when you go out different people spend
On different things maybe you would buy gas maybe some people would buy more meat but in the end cpi is most likely not the same exact basket of items that you would spend at the store some people are really frugal people they’re not going to buy stuff at list price maybe you’re going to use a bunch of coupons so your grocery price might actually be lower than
What cpi anticipates now with or without a paid off home it’s either 500 000 or 1 million dollars in investable assets this is gonna translate to giving you about 20k or 40k worth of spending every single year most likely you’re gonna invest this in vo which is a low cost index fund charging only point zero three percent fee every single year now this fee it’s not
Like you’re gonna have to pay them you’re gonna have to write a check or anything you feel the effects of this by having the index not track the actual index perfectly but rather it’s point zero three percent lower in my experience twenty thousand dollars a year is basically bare minimum for a single person i spend that much myself about 1500 every single month this
Comes out to be about 18 000 a year and you add in random electronics purchases or maybe vacations that’s another 2 000 right there budget of 20k a year may not include very infrequent high cost expenses such as home repairs maybe you want to add in a new roof maybe you want to change your windows change the carpet there are possible medical expenses possible huge
Costs with buying a car if you’re going lean fire and some random thing like that happened you might just withdraw a little bit too much from your brokerage account and you might start to worry do i have enough maybe you have to go back to work but by then your employment status might be not as good maybe you’ve been out of a job for a year or two and it’s really
Really difficult to get back in the same career that you were in and then you might just have to go work for whatever will hire you earn enough money to get back into lean fire to make that retirement number again in the engineering field when i interview people the first thing you look at a resume is to see if it was a continuous employment and if it is not if
They say they went on travel well there’s this kind of stigma where everybody goes why did you just go travel if you got laid off then maybe you’re not such a good performer and the longer that you are out of the workforce the harder it is to get back into the same career one year is probably the maximum you can probably talk your way out of it it’s going to be a
Little difficult but you could possibly say you just took a year off to go travel europe or whatever sometimes employers might actually think this is a good thing when you lean fire and you quit your job you’re essentially saying you’re never gonna work an hour of your life ever again this means you’re never gonna make any more money it also means you’re gonna
Rely on whatever you already earned and you’re gonna live off of that for the rest of your life 20 000 a year roughly inflation adjusted so you can kind of expect that your standard of living is gonna stay roughly the same if you are comfortable with your current quality of life then okay you know this might be something that is possible but there are other things
That you may not have considered maybe you’re gonna meet someone and possibly have kids and when you have kids it costs extra money you’re not gonna be able to have kids on twenty thousand dollars a year and if you lean far and then you meet someone well maybe you have to rejoin the workforce also consider that if your quality of life is going to stay the same it’s
Never going to improve humans in general like to see things improve like there’s something to work towards and then you see your life getting better and better this is always nice and something always nice to work towards here’s a road map which i think can get you to fire quicker and then progress onto regular fire and then fat fire first you have a normal career
But you are a very frugal person so you save a lot of money you’re able to lean fire at first and then you quit your job you do something that you love while you’re lean firing and hopefully you do it in such a way that makes you money this might take a little bit of leap of faith because you got to do what you love what you’re good at what the world actually needs
And also something that will make you money and then with all this you might be able to progress to regular fire and then after you regular fire you may be able to raise your standard of living a little bit more and then keep on making more money with doing what you love and all that other stuff and then you progress to fat fire some of you might think that i am so
Frugal i’m gonna remain this way for the rest of my life but that is not the main purpose here i’m not being frugal for the sake of being frugal i’m being frugal so i can get to lean fire faster and then once i have a little bit more i can loosen up a little bit like right now can i say being in lean fire is a meager existence i actually don’t think settling for
Lean fire is anything wrong at all many people do this and they they can live happily for the rest of their life their standard of living though is going to stay roughly the same many people don’t care about raising their standard of living they’re happy where they are right now my personal opinion and preference is that if you have something to look forward to
It just kind of makes things more interesting rather than knowing okay the rest of your life it’s all planned out already you have enough money coming in it’s like you reached a universal basic income except this ubi it’s self-generated you made it for yourself let’s say you were born with ubi but there are plenty of people in the world that won’t settle they’re
Going to be like a shark and do what sharks do you know bite stuff and be scary lean fire is more like a stepping stone to get out of the rat race while you are working hard nine to five there’s no time to do anything else after work you are very exhausted mentally and physically so that you can’t pursue anything else it’s almost like the entire society is trying
To numb you and get you tired so that you can’t pursue anything else to further yourself but once you free up your time with lean fire you can pursue anything that you want something that you love doing something that you’re good at doing or maybe you can become good at doing something that the world needs and something that you can get paid in or if you don’t
Get paid in right now you can try to push it towards that way where you eventually get paid in it one last thing i want to mention is that if you hate your job it’s most likely taking a toll on you physically you may not notice this because it’s there all the time every single day you feel a little weird right this has an effect on your health it’s like work stress
And over a long period of time it can affect your overall health and lifespan and if you quickly have this kind of stress it will eventually leak into other kind of things maybe ulcers or other kinds of weird health problems i’ve had a lot of co-workers that have these health issues and it’s only after they get these health issues that they go oh my gosh i gotta
You know take a break or something before they kill themselves thanks for watching this video i hope you guys enjoyed it give me a like and subscribe for more thanks for watching you
Transcribed from video
I Hate My Job: LeanFIRE NOW! By BeatTheBush
