Apparently I can't crosspost, so copy-pasting from my local (South Africa) finance subreddit.
Posting on a throwaway so as not to have this information on my main.
As I’ve hit a milestone of R4m NW (roughly $220k at current exchange rates of USD1:ZAR18) recently, I think now is a good time to post about my FIRE journey, inspired by u/TomBuilder_. I’ll put the juicy stuff at the start.
Age: 35
Profession: FP&A/Management Accountant/Finance Business Partner
Gross Salary: Soon to be a little over R1m annual.
Gross Rental Income: R13k per month. Net is probably roughly R9-10k factoring in maintenance and utilities.
Working years: A little over 11
Household: Single
Current NW: ~R4m
RE Number: I’m not sure but likely somewhere around R12-13m in today’s money
TFSA (S&P500): R439k
General Investment (Satrix MSCI World Index): R338k
Retirement funds (Split between some random Alexander Forbes fund and Sygnia): R2.311m
Investment in shares: R270k (this has turned out poorly as the investment was R600k cost but I maintain was a good decision at the time). Likely I will hold onto this and hope it regains its value.
Home Equity (likely understated by R200k at least based on market value, I’ve just measured at it at cost + fees + renovations): R658k (R2.3m value, R1.652m loan)
Loan to a friend (lol): R30k
Credit Card: R-68k (this seems high but I’ve had some abnormal expenses and use it for all my spend and pay it off within interest-free period)
Monthly Expenses: Honestly not sure (but they’re pretty low outside of the household expenditure which is eating away at me and I’m planning to sell and go back to a minimalist, tenantless life - Bond + Utilities is around R24k per month), but I contribute R9k to retirement funds outside of my work contribution and do my TFSA on 1 March each year. The rest has been going into my bond and will continue to do so.
Important lessons:
Staying at home until I was 29 helped me enormously to save, especially in the earlier years when my salary was small.
Investing in low fee, broad funds early on is 100% the way to go. Deposit and forget.
A house is not an investment. It’s a lifestyle/psychological expense.
There's a balance between enjoying your money in your youth and FIRE-ing. You don't need to live like a pauper for 15 years, but you should also not be living to hand to mouth on a lavish lifestyle.
The above has all been built solely from my earnings and a tiny amount from other sources, but I have had help in more subtle ways from family. I started investing around mid-late twenties and made the poor decision of using a financial advisor and going with Momentum which set me back more than I care to calculate. Around 30 or so I took things into my own hands and now have full oversight over my investments.
I grew up quite solidly middle class with parents who were both financially conscious/traumatised, so I learned to not spend from them, but not how to invest smartly.
Timeline for earnings (only started tracking NW a few years ago so no idea on my progression over time until then. I also stupidly deleted some accounts from 22seven which erases the entire history):
2013: I failed my way through university due to a number of probably still unknown reasons, but eventually dragged myself out with a three-year accounting degree after six years. As a result, I began work at the age of 22 going on 23 earning R10k per month.
2016: I had changed jobs twice in the 3 years preceding for small-ish increases, and then got a lucky break in 2016 where I interviewed for a position and the manager liked and hired me, despite having to compete with CAs. My income went up to over R40k pm at this job also due to some luck (there was a R7k allowance that got approved for my job grade a few months after I joined) and I got experience in a financial field that serves as the base for the rest of my career.
2018: Due to the manager turning out to be an awful boss, I left after less than two years for a lateral move to a temporary position. There I managed to get a small bump and permanent position to R660k annual towards the end of 2018 which has grown by an average of 6% each year to R940k this year. I am leaving my position for a new job soon for a 15% increase and will likely move twice more before settling down and coasting to retirement or moving to a part-time job if such a thing exists in my profession.
I don’t have a specific age goal or amount for retirement as they’re too far away for me to care but I estimate somewhere around 50 for full FIRE, younger if I Barista/Coast.
Feel free to ask any questions. submitted by /u/SeriallySeeking42
[link] [comments]
Posting on a throwaway so as not to have this information on my main.
As I’ve hit a milestone of R4m NW (roughly $220k at current exchange rates of USD1:ZAR18) recently, I think now is a good time to post about my FIRE journey, inspired by u/TomBuilder_. I’ll put the juicy stuff at the start.
Age: 35
Profession: FP&A/Management Accountant/Finance Business Partner
Gross Salary: Soon to be a little over R1m annual.
Gross Rental Income: R13k per month. Net is probably roughly R9-10k factoring in maintenance and utilities.
Working years: A little over 11
Household: Single
Current NW: ~R4m
RE Number: I’m not sure but likely somewhere around R12-13m in today’s money
TFSA (S&P500): R439k
General Investment (Satrix MSCI World Index): R338k
Retirement funds (Split between some random Alexander Forbes fund and Sygnia): R2.311m
Investment in shares: R270k (this has turned out poorly as the investment was R600k cost but I maintain was a good decision at the time). Likely I will hold onto this and hope it regains its value.
Home Equity (likely understated by R200k at least based on market value, I’ve just measured at it at cost + fees + renovations): R658k (R2.3m value, R1.652m loan)
Loan to a friend (lol): R30k
Credit Card: R-68k (this seems high but I’ve had some abnormal expenses and use it for all my spend and pay it off within interest-free period)
Monthly Expenses: Honestly not sure (but they’re pretty low outside of the household expenditure which is eating away at me and I’m planning to sell and go back to a minimalist, tenantless life - Bond + Utilities is around R24k per month), but I contribute R9k to retirement funds outside of my work contribution and do my TFSA on 1 March each year. The rest has been going into my bond and will continue to do so.
Important lessons:
Staying at home until I was 29 helped me enormously to save, especially in the earlier years when my salary was small.
Investing in low fee, broad funds early on is 100% the way to go. Deposit and forget.
A house is not an investment. It’s a lifestyle/psychological expense.
There's a balance between enjoying your money in your youth and FIRE-ing. You don't need to live like a pauper for 15 years, but you should also not be living to hand to mouth on a lavish lifestyle.
The above has all been built solely from my earnings and a tiny amount from other sources, but I have had help in more subtle ways from family. I started investing around mid-late twenties and made the poor decision of using a financial advisor and going with Momentum which set me back more than I care to calculate. Around 30 or so I took things into my own hands and now have full oversight over my investments.
I grew up quite solidly middle class with parents who were both financially conscious/traumatised, so I learned to not spend from them, but not how to invest smartly.
Timeline for earnings (only started tracking NW a few years ago so no idea on my progression over time until then. I also stupidly deleted some accounts from 22seven which erases the entire history):
2013: I failed my way through university due to a number of probably still unknown reasons, but eventually dragged myself out with a three-year accounting degree after six years. As a result, I began work at the age of 22 going on 23 earning R10k per month.
2016: I had changed jobs twice in the 3 years preceding for small-ish increases, and then got a lucky break in 2016 where I interviewed for a position and the manager liked and hired me, despite having to compete with CAs. My income went up to over R40k pm at this job also due to some luck (there was a R7k allowance that got approved for my job grade a few months after I joined) and I got experience in a financial field that serves as the base for the rest of my career.
2018: Due to the manager turning out to be an awful boss, I left after less than two years for a lateral move to a temporary position. There I managed to get a small bump and permanent position to R660k annual towards the end of 2018 which has grown by an average of 6% each year to R940k this year. I am leaving my position for a new job soon for a 15% increase and will likely move twice more before settling down and coasting to retirement or moving to a part-time job if such a thing exists in my profession.
I don’t have a specific age goal or amount for retirement as they’re too far away for me to care but I estimate somewhere around 50 for full FIRE, younger if I Barista/Coast.
Feel free to ask any questions. submitted by /u/SeriallySeeking42
[link] [comments]