South African Mr Money Mustache?? early retirement guru

[cerebus]

Only infinite if future performance of your investments is an indicator of future performance. Who says we won't go through a 30 year recession which didn't occur in the past?

Nobody is saying that. There is some amount of risk that is involved in the decision to retire early. However, regardless of the risk, it certainly can never hurt to build up an outsized portfolio of investment and savings, and if the worst happens, you have leeway to make other plans. Most people don't have that at all. But if a disaster strikes, like hyperinflation, we're all in the same boat.

I'm becoming more and more certain that I will have to work until I die unless I figure out how to make crap loads of money before then.
There is no ways I can reach a savings rate of 50% let alone 75% with a family to look after.

I think one really has to live in a first world country like the US, or earn exceptionally well, to reach such a high savings rate. The MMM family of 3, to give an indication, live off an annual budget of $25000 (without a bond). In America it's actually possible to do it on a quite middle class salary, even with a family, and a lot of the guys on the FIRE track get by on $50k a year which is very average.

 

[cerebus]

Yeah I plan to. Thanks cerebrus. Any other resources you suggest?

Well, firstly read through the entire MMM blog. I did that. Then if you have more appetite, read the ERE site which is much more analytical and extreme (hence the name). That'll get you started.

 

[ronz91]

The MMM family of 3, to give an indication, live off an annual budget of $25000 (without a bond).

Yeah converting that to rands doesn't make for pretty reading.

But if a disaster strikes, like hyperinflation, we're all in the same boat.

Wouldn't offshore investments be the counter measure there?

 

[ronz91]

I think one really has to live in a first world country like the US, or earn exceptionally well, to reach such a high savings rate.

So you really think theres no hope for the average South African?

 

[cerebus]

Yeah converting that to rands doesn't make for pretty reading.

Well, if I had to make a budget for my wife and myself, with no bond, I think we could be quite comfortable on R150k a year. And that's not a bad life either.

Wouldn't offshore investments be the counter measure there?

I can't really answer that, there are a number of ways to hedge it but ultimately everywhere you hold cash can be vulnerable to some kind of fluctuation. SA's currency is quite devalued right now and people are having to find ways to counter it.

 

[cerebus]

So you really think theres no hope for the average South African?

Well it just depends on your situation. I shouldn't say it's not possible. There are people on this forum I know of who are quite serious about early retirement.

 

[Paul_S]

So you really think theres no hope for the average South African?

I think there's hope ... for the top 5% of earners.

Getting people to save enough is the first challenge but I'm starting to think that the current clowns in power are an even bigger threat to one's retirement plans than just a lack of financial resources.
Every time I walk into a shop I see price increases that way outstrip CPI or salary increases.
Heck, a big bottle of Gaviscon cost R70 in P&P a year ago and this year it's R130.
How the &*(#@) can this carry on?!

 

[ronz91]

Well, if I had to make a budget for my wife and myself, with no bond, I think we could be quite comfortable on R150k a year. And that's not a bad life either.

Agreed, I think much less is even possible depending on where in SA you are.

SA's currency is quite devalued right now and people are having to find ways to counter it.

This might be a dumb q, but how would they do that?

 

[cerebus]

This might be a dumb q, but how would they do that?

Well in my case, I'm starting to earn more of my salary in other currencies. Hopefully that will be all of my salary before too long. It wasn't even that hard to make happen, just had to get serious about it.

 

[ronz91]

Well in my case, I'm starting to earn more of my salary in other currencies. Hopefully that will be all of my salary before too long. It wasn't even that hard to make happen, just had to get serious about it.

Okay I was thinking that same thing, did you just request that from your employer? *hopes wistfully*

 

[cerebus]

Okay I was thinking that same thing, did you just request that from your employer? *hopes wistfully*

Lol. No, I started applying for work overseas. I was quite aggressive about it for a while and eventually a situation seems to be working out quite nicely with a US based company. It does help that I am actually American, but on the other hand the company is so highly distributed already that they're open to and able to accommodate remote workers.

 

[cerebus]

I think there's hope ... for the top 5% of earners.

Getting people to save enough is the first challenge but I'm starting to think that the current clowns in power are an even bigger threat to one's retirement plans than just a lack of financial resources.
Every time I walk into a shop I see price increases that way outstrip CPI or salary increases.
Heck, a big bottle of Gaviscon cost R70 in P&P a year ago and this year it's R130.
How the &*(#@) can this carry on?!

Yeah, look to be honest, there is plenty of room to cut back in the life of the average South African middle class earner. I mean, plenty. South Africans are horrendously indebted and status obsessed. I have a brother in law now who is going through some real hardships and needs to cut down, and they just told us in all seriousness that they cannot find a rental property under R25k in this area. I'd rather talk about the things you can cut down than the impossibility of saving. What about DSTV, commuting, eating out, cellphone contracts, new clothes, holidays, car loans, private schools, domestic workers?

 

[ronz91]

Yeah, look to be honest, there is plenty of room to cut back in the life of the average South African middle class earner. I mean, plenty. South Africans are horrendously indebted and status obsessed. I have a brother in law now who is going through some real hardships and needs to cut down, and they just told us in all seriousness that they cannot find a rental property under R25k in this area. I'd rather talk about the things you can cut down than the impossibility of saving. What about DSTV, commuting, eating out, cellphone contracts, new clothes, holidays, car loans, private schools, domestic workers?

R25k :wtf:

I just use the MMM way for those things

 

[akescpt]

R25k :wtf:

I just use the MMM way for those things

whats the MMM way you speak of?

 

[ronz91]

whats the MMM way you speak of?

http://www.mrmoneymustache.com

enter the matrix...

 

[JayM]

Well in my case, I'm starting to earn more of my salary in other currencies. Hopefully that will be all of my salary before too long. It wasn't even that hard to make happen, just had to get serious about it.

You paying tax on that?

 

[cerebus]

You paying tax on that?

....................

 

[JayM]

....................

Thanks for the PM...that's a really neat way of keeping SARS away from it!

 

[ronz91]

Thanks for the PM...that's a really neat way of keeping SARS away from it!

smooth

 

[cerebus]

smooth

Yea esp since I didn't send him a PM.