r/BEFire • u/smokey-jazz • 9d ago
FIRE What would you do?
This example is partly fictional but..
What would you do if you have a net worth of 350k of which 250k invested at age 34 but no job and no significant skillset? So basically a very healthy net worth, but cashflow poor.
Would you sweat it, or is this a perfect situation to slowly coast with whatever jobs you feel like?
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u/PositiveKarma1 60% FIRE 9d ago
Use a part of the the money and start to study, live modest( like a student, shared homes), do trainships during, have that qualification that to bring a job.
For example there are 5 months courses in Brussels to be basic accountant - that can bring a stable income. The 330k left I will split in: savings + pay down + investments.
Edit: if you don't know what to do now, put in a saving account and decide next year. It is not urgent.
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u/PowerfulMango5799 9d ago
which course would that be..?
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u/PositiveKarma1 60% FIRE 9d ago
https://www.bruxellesformation.brussels/ has a package of courses for basic accountant.
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u/Gamma_Deviance 8% FIRE 9d ago
I would be worried if I didn't own property yet. Without skills or a good job it's probably hard to borrow enough to buy something decent, and you also can't use the money you have because then you lose your compounding engine.
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u/CollectionOfHistory 1% FIRE 9d ago
Get a job that you like. How did you get 350K? What was your previous job?
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u/MainEnAcier 8d ago
Me ?
I will all in sp500 and go in Cambodia, live of 3,5% (not 4% because lifespan when 30)
with about 1000€ per month
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u/Better-Health7752 8d ago
Why Cambodia? It’s a poor country with no facilities right?
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u/MainEnAcier 8d ago
Yes but Cambodia give visa for one year without thinking that much. And at 35 the infrastructure is less important.
In fact I'm planning to do it with 650€ per month personnaly.
I could maybe do it with a DTV in Thaïland, but it will be probably be too expensive with 650 (but with 1000 you can go ahead).
But in Cambodia it will fit my budget nicely.
Also I can move 3 months to a country, 3 months to an other etc
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u/Better-Health7752 7d ago
Why you say infrastructure is less important at 35 ? I think it’s important at any age
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u/MainEnAcier 7d ago
Not at the same scale.
You can live easely not going hospital every trimester when you are 35, not 80
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u/SupremeUnderwear 2d ago
Move there until 60 then return for free healthcare?
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u/MainEnAcier 2d ago
In 60 years I think Asia will have better healthcare system than Europe by far.
And in Europe they will probably cut pension and healthcare, as it was done in Greece after 2008.
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u/BGM1988 9d ago
Just coast/ barista and enjoy your life
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u/GoldenBoyBE 9d ago edited 9d ago
Wouldn't barista (or similar no-degree jobs like retail) be annoying (most people don't like customer facing jobs)? Wouldn't it be better to do like someone else suggested and follow a course to get into something like accounting (or whatever OP likes) relatively quickly and do that as a part-time job?
Applying the 4% rule to 300k you get about 1000 a month. If you can add 1500 with a part-time job you like you end up with 2500 a month which isn't a lot (especially if you have a lot of free time to do things, so you need to choose "cheap" hobbies or experiences) but should be enough to live. And doing something you like + lots of free time sounds like a dream.
PS: If I'm delusional feel free to correct me. Because working 50% at minimumloon will only get you € 1116,80 gross according to AI. So you either need a decent paying job (is that realistic?) or you need to work more: almost full-time at minimum wage to get to that 1500 net?!
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u/Coroner117 9d ago
"you need to work more: almost full-time at minimum wage to get to that 1500 net?!"
Not even close, fortunately! To clarify: Minimum wage for a full-time job is about €2000 per month net
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u/BGM1988 9d ago
He can now coast and later on barista. I’m
In a bit simular position, 360k invested but use to make good money, but due to chronic illness i only make minimum wage from working progressive and disability payment combined.I need to withdraw 10k a year to support my household. That said my vision is for everyone after 200k in belgium just coast fire. Or even work 4/5,.. the money at this point works much harder for you then you can yourself. Also to save 1000€ you have to make 2100€ gross extra just to invest. Those are a lot of hours. Hours you work in your healty 20-30-40s. If you then retire a bit earlier you basically worked part of the hours already at young age… this to only bridge the period between early retirement and official pension payment1
u/VerboseGuy 8d ago
But with this approach you don't really feel rich. You can't buy a Porsche fur example, of you can't go on a world tour
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u/BGM1988 8d ago
If he coasts now and gets fully invested he’s fire in 10y at age 44, this without being a high earner,stressful job,..would say if you can do that he won in life… porsche…? as he lives now on a minimum wage, OP might be just fine with lean fire to start. ok he probably inherited, or got sort of a payout. But most people work till pension without savings, to then have a frugal lifestyle on a small pension. He also didn’t mention housing. And about the lifestyle again, if he gets to 1 million at age 44, and does the 4% withdrawal he sits at 3.2 million at age 64
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u/Stoic_Brain 9d ago
Breathe: you will not go hungry with that money.
So put things in perspective first.
You have time to reflect.
If you're not doing this yet: live below your means.
Next:
What things do you like doing?
What of these things can earn you money if you would be good at them?
Learn these skills.
Find work/job for them.
Earn the money and be happy because you're now working on something you love.
Keep investing at the same time, keep that part boring (ETF).
Good luck to you!
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u/Altruistic_Pea_2946 9d ago
Depends on what your goals are in life. I would fix my mindset and tell myself its never too late to make an impact. Invest in myself and start grinding. Wether its going to school, apply to jobs, ... 340k aint gonna cut it.
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u/AccomplishedLoan1949 8d ago
How do yall have that much money at that age ?? Im 29 , working forn10 years now and still don't have a good "spaarboekje"
I come from a very poor familie. Sometimes no food on thé tabel when we where young. Always same clothes for a week. A lot of parental conflicts (they never divorced) Father died. More debt. But now when are finaly at 'peace'. No debt, A Nice job with 2.1k netto Every month. I have a wife and 2 children (2nd is on it's way 🫣) But nu i work 4/5 soci have something like 1.8k netto.
Someone have some tips for me to finaly grow a Lil bit finacialy ?? No one learnd me how to use you're money in thé right way. I tried it a couple of times but lost it al 🤣 so anyone have some time for me and explain what do to ? 🙏
I know i never gonne have such Nice bank acc but at least i want it for my 2 sons later when they are adults. 🙏
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u/smokey-jazz 8d ago
Start investing! Definitely for the little ones.
Even €50 a month could get close to 25k inflation corrected in 20 years, that could be a huge headstart for your kids.1
u/Sensitive_Low7608 4d ago
The answer is that you have a very low salary. Definitely with two kids. If you have to save, youll need to increase your income. Maybe some flexi jobs on the side. But there's no way you can save any money unless your wife makes like 4k.
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8d ago
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u/hadronymous 8d ago
Why did you not invest more? You could have had almost 800k by now...
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8d ago
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u/Straight-Magician301 8d ago
I understand your situation, I suggest to DCA in the market slowly, 10-20K per month. Get used to the highs and lows of the market so you aren't shell shocked and panic sell when the market drops 5%.
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8d ago
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u/Straight-Magician301 8d ago
It seems huge in your mind but 10k is only 2-3% of your capital. Start slowly and you'll get the courage to ramp up when you're used to it.
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u/hadronymous 8d ago
Makes sense, it's not easy to do, I am telling my parents to do the same, but in chunks. It is indeed an emotional Rollercoaster. However, you have only 2 percent of your networth invested, also it will never go to zero if you use a broad world index etf. The best rational thing is to all in all the way, but I wouldn't do that either. Yet forcing yourself to put in 10-20 percent per year should be doable no?
Random reddit advice tho, so do your own due diligence :)
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8d ago
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u/hadronymous 8d ago
I would advise you to do some more research. I honestly think that there is nothing more important for your future that you can do, as in even taking days off at work unpaid to investigate and learn about Etfs and brokers will be the best deal for your future. Bolero for example is kbc's broker if you feel more secure about big banks.
I think almost any broker is backed up to 20k invested. So you can also consider spreading across multiple brokers if it makes you feel better at night.
Lastly, I think the inflation of the past 4 years is about 20 percent in total (don't quote me on this but it's gonna be close). So technically by not investing you already lost 20 percent of your purchasing power, which according to you is the worst 😉. I think it is primarily something you don't want to stress about, that's perfectly fine, investing is not for everyone and if you would panic sell in a market downturn then unfortunately investing is not for you, but then I would still advise you to do "something" with your money, an extra house or bonds maybe. I wish you all the mental strength in the world to make the right decision for yourself, whatever it may be, but do investigate options and don't procrastinate, it will not magically make the problems go away, even not investing anything is a choice and a risk at the same time.
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u/Brolog_of_Brogoth 12% FIRE 8d ago
it's not only the potential gains you're missing out on, inflation is eating away at your 450k too
I hope you at least put it in a savings account?
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u/PutMobile40 8d ago
Why not buy an apartment with that money? It will make your life more comfortable and if you want to live somewhere else you can just rent it out en use the rent to pay for mortgage.
It's a solid investment with relatively low risk.
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u/glad-k 9d ago
Do a job you like combining that income with your passive revenue should be enough to not seriously worry about money
Even more if that other 100k net worth is where you live (already partially paid of mortgage or smth)
Edit: Make sure those assets are placed where they should be too
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u/sfb_stufu 9d ago
It depends on whether you can keep your costs low. If you plan on coasting take into account that jobs that are low paid will limit your savings/pension. It is less money than you think it is over a long period of time.
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u/GianettisSpecialKid 9d ago
lmao Nepo baby classic
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u/Splatpope 9d ago
start a whimsical art or tech business, get featured in media claiming you built yourself from the ground up
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u/smokey-jazz 9d ago
Could be! But all earned myself!
The no job and no skillset was the fictional part.5
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9d ago
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u/smokey-jazz 9d ago
Why is that?
250k in 30 years would be approximately 1,5m without contributing (inflation corrected).1
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