Numbers You Need To Know For Financial Independence Retire Early – FIRE Movement

Paul Whisler

23 Comments

  1. Thanks for a very clear explanation of the different measures of net worth. My thoughts:
    [1] I totally endorse your emphasis on liquid assets versus illiquid assets.

    [2] A strict measurement of net worth for practical purposes (e.g., early retirement) is to focus on savings, on financial assets, and on traded/tradeable investments, . . . excluding your home, private businesses, depreciating items (e.g., vehicles, boats, yachts, and aircraft), art, collectibles, et cetera.

    [3] Many personal items have notional values but are not reliably valued or easily traded.

    [4] Real estate, depending on where you are in the world, can take several weeks, months, or even years to sell for any reasonable price. It is extremely risky in the short term, subject to taxes, fees, expenses, and maintenance, and too many variables that the owner does not control. That is why it factors into the theoretical definition of net worth but not the practical definition (investable assets and easily realisable assets).

  2. I’m really enjoying your videos! You are no-nonsense, and you tell it like it is. I’m a big closet FIRE guy, and appreciate your emphasis on the FIRE movement, which speaks to me. Thanks for what you’re doing. I enjoy your content, and wish that I had your wisdom when I was your age!

  3. Wait, you mean everyone doesn't track their Net Worth? That just doesn't make sense to me. Also, what's this nonsense about only only changing/checking numbers once a month!? This is an almost daily thing for me. I want to know the day I hit my number. 😁

  4. Leave my Chipotle alone!!! πŸ˜‚ Along the lines of couples, it's also important to be on the same page for your FIRE goals. Much easier to hit goals when the team is playing the same game.

  5. I've definitely thought about my retirement numbers. I would love to get my net worth up into the low millions before I retire though. Investing is going to be the big key for sure and I just got started on my Roth IRA not too long ago and hope to max it out next year and every year following. Started a bit late this year though. :/

  6. I can withdraw about $1800 a year! Am I FI yet?!?!πŸ˜…πŸ˜…πŸ˜…πŸ˜…πŸ”₯πŸ”₯πŸ”₯πŸ”₯🀣

  7. πŸ˜˜πŸ˜˜πŸ˜˜πŸ˜˜πŸ˜˜πŸ˜˜πŸ˜˜πŸ˜˜πŸ‘πŸ‘πŸ‘πŸ‘πŸ‘πŸ‘πŸ‘πŸ‘

  8. Spread the knowledge Jared! I hope your channel blows up

  9. Don't have kids and you can retire after one year on minimum wage!

  10. This is like watching a "how to be a hippie" video from a guy who works in Corporate America! Omg too funny (edited for Jarrad, lol)

  11. I love Spreadsheet porn! Back in the beginning of our FI journey I created a giant spreadsheet (number projections, budgets, worst and best case scenarios and fallback plans). It helped to inspire me when it seemed like an insurmountable task. Now that we are in the home stretch of our Lean FIRE journey it is a great guide to share with friends and family to explain how we achieved FI on middle class incomes.

  12. The big thing is having mailbox money (passive income). If you have multiple income streams you can be free from financial worry. Then if one stream dries up, you can still live well.

  13. Invest In Partial Shares With M1 Finance For Free (where I invest my money) https://www.debtfreeblueprint.com/M1Finance

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  14. Jarrad, I look at my finances and net worth daily is feels good to know where you are and what next move you should make in your short and long term plans. I'm bringe watching your video. I need to catch up. Im finishing my MBA (Data analytics is my concentration), I'm in my second to last week. I also paid for school out of pocket so I owe nothing out of pocket. Im under the Public Service Loan Forgiveness Program with my MPH. I went to Emory and paid a lot of money but the job I have is because of MBA. Right now it appears that a degree in business is more important.

  15. I’m 17 planning on becoming an interventional radiologist after 15 years of college and will start off at $430,000 (at the age of 33) but want to retire early, saving 75% of my earnings. Any tips or topics I should research? And also how much should I have saved to officially retire if I save 75% of $430,000? Live in Michigan. Thanks! I would love to be educated on these subjects of FIRE and I love the medial field, but I already live frugal/minimalist as a teenager and I want to enjoy my money retired.

  16. Hi J! There are definitely many ways to make it work. πŸ”₯πŸ”₯
    I’m FI at 40. πŸ”₯πŸ»πŸ™ƒ

  17. This was a great video. Are we still able to get the net worth calculating spread sheet you mentioned at the start of the video?

  18. My strategies for an Early Retirement

    1. Replace active income with passive income sources (Real Estate Rentals For Cash Flow)
    2. Reduce personal operating cost (Housing costs are typically the largest)
    3. Automate income streams (Property management, online businesses)
    4. Leave the 9 to 5 =) (Success)

  19. I did a net worth calculation online. Said my net worth is -95k 😭😭😭

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