How I Achieved FIRE at 37 With Two Young Kids
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- Опубліковано 15 вер 2024
- At this roundtable, we welcome Matthew, who reached financial independence at the age of 37-while raising two young children, aged 5 and 2. He works a regular job and earns a modest salary, yet he’s fully paid off his home while supporting his family on a single income, with his wife as a homemaker. So, how did he manage to achieve financial independence at just 37?
We interview Matthew to uncover the strategies, habits, and mindset that led him to this impressive milestone, and explore what others can learn from his journey. All this and more in our latest episode!
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wah lau, nearly 50 mins video. No discussion on actual FIRE issues. No breakdown on active income, passive income, expenses, investments, yield, or capital gains. Just pointless talk shop. Put on 1.5x speed still kenna bored to tears.
nice discussion, but the FIRE part is a bit misleading I feel as the guy is still working a regular job and not actually financially independent or retiring early, just that he's supporting his wife and kids on a single income basis.
That’s true
But I guess he can afford to quit his job?
I agree. He has done a really good job to be able to pay off his mortgage + own a car before age 37 (while having 2 kids + single income!). But he can’t really afford to quit now without a side income. He will need to tap into the portfolio for his kids who are still really young.
1.4mil invested can generate $70k a year at 5% return. S&P500 averages 10% returns. Easily covers his annual expenses. He can afford to quit anytime he wants.
Half fire, he works to support wife fire
Discussion too general and no direction. Don't even know the value of stocks he own in cash deposits and in the 10 stocks and how he generate passive income. Indeed waste time chatting about life..
Agree with you. If it's true FIRE, he will be Retired but he's not.
Sibeh waste time. Did nothing but save alot, after that zham STI during covid, realised it's a mistake, then buy individual companies and global. Never say buy what global also, then Victor say VWRA but can only infer. Basically can save your way to retirement that's the TBDW.
FIRE is bullshit la. He cant afford to be jobless
Good sharing, refreshing. Especially the upbringing of kids and family. Life isn’t just about making money, therefore this podcast felt very wholesome for me. Thanks as always!
I have many questions about this interview but one of them is how can he spend $4K a month in Singapore for a family of 4 & yet claim to have nice vacations in nice hotels ? Surely these costs will come up to much more than the 40k to 50k he claims he spends ( which by the way includes $8k per annum of Insurance ) … mmmmm … but good input on his general life philosophy and not bowing to societal pressure
Whether FIRE or not, its subjective. There are now even lean FIRE etc which to me just marketing gimmicks. IMO, this is great sharing and some important life lessons. Live within your means, realistic aligned goals with your spouse, taking up responsibilities of your retirement. Well done Matthew and TFP 👏
Thank you! Glad you enjoyed Matthew's sharing!
good discussion. I wouldn't say this is FIRE per se, but rather, very sensible way to live life. They have life goals in mind, and that drives their financial decisions, housing choice etc. It's way better than others who just chase money as a goal itself.
Nice! Wondering if the liquid assets of 1.4m+ is for the whole household or individual by Matthew? But I think more valuable than money is Matthew and his wife philosophy on family values and kids upbringing!
Thanks! It's for the whole household
Not enough lah. Need $5M like AK and everyday play computer games then it's FIRE.@TheFifthPersonChannel
1.4m i lncludes cpf? It isnt really liquid
@@LongtermalwayswinsI thought 1.4m is only cash + equities? Closer to 2m if include cpf.
@@Longtermalwayswins 1.4m doesn’t include cpf
Thanks for this refreshing video. Road to FIRE is very much about the values behind one’s perspectives towards our finances too.
Thanks for watching!
Congratulations Matthew! Well done!! 👍👏 ... imho, FIRE means different things to different folks at different ages - FIRE for one in his/her 30s could be different from one in his 40s or 50s. perhaps it could have been helpful to include Matthew's definition of FIRE at the start of the video to set the context. Regardless, having more than $2m at age 37 is no mean feat with a single income!! Kudos to Matthew!! 💪
Seeing a lot of salty comments on here, saying Matthew's not really FIRE, because he's still working, and that there was no transparency in terms of actual numbers.
Hello, wake up.
1. The entire point of FIRE is optionality. It's to give you options, whether you wish to continue working, pursue a lower salary but in an industry you are passionate for, or just quit and spend time with loved ones. Stop harping on the technicality of "retirement".
2. Matthew has shared his journey, and clearly articulated his personal journey to reaching where they're currently at. What benefit would it give you guys if he were to share his financials down to the cent. Would that make any of you FIRE? I don't think so.
The important point i would take away here, is that he had the opportunity and foresight to start planning for the eventual outcome very early on, even before marriage, which is a very crucial element to his specific situation. As we all know, time is the greatest multiplier of wealth.
Well done to understand life and family is priceless. FIRE is not as meaningful as what most people strive to achieve. Even with all the money in life, we may want to do some work to reach our purpose of life.
Thank you for the epidode ❤
Thank you! Glad you liked it! ❤️
Congrats and this is impressive! We are also planning to transition into single income soon (Coast FIRE) and hearing your journey gave a lot of assurance! Thanks for sharing them!
Thank you! We wish you all the best with Coast FIRE soon!
I think most commenter here got it wrong on FIRE. He do not have to worry about been jobless, since he has asset to back him up. To me, this is freedom. I agree with him on insurance, I would say very important which alot of people simply ignore.
I agrees about both husband and wife is align on saving is really important, i think that's the only best take away.
But today's expense context are totally different compart to last time, so future generation need to start saving from very young.
Nice. My comment : money spent is yours, money saved may not be yours 😂
very discipline. good job. kudos to you!
Nice discussion. But he’s not retired. Still working. Can the family sustain if he stopped working?
From the comments, you can tell many do not know what FIRE really means. It does not mean sitting at home doing nothing. That’s an outdated concept.
Thanks! Maybe we should cover the different types of FIRE soon! 😊
@@TheFifthPersonChannelyes!
Nice interview! 👍
Please don’t be discouraged by those negative comments
thanks guys, so down to earth, full of wisdom and sound advice.
from age 33-37, his portfolio double. interesting to see how he did it, especially his wife stopped working in the last two years?
From Matthew: From the table i see that between 33-37, theres around 400k of savings, and 350k gains (200k realised + 150k unrealised), hence the doubling. My wife went from full time to part time in apr 2020 after maternity leave, so we can see the lowered hsehold income between 2020 and 2023. She then left her job in 2023, and we can see the further lowered income in 2023-2024
My household income currently not alot. Around 140k per annum. 2 kids. But am fortunate that my wife is a childcaee principal and kids have subsidised presch due to staff discount. It was either free previously and now its about 60+ per month. We saved more than 75 percent of salaries and i invest and put savings on high yield accounts etc. Same just staying in a humble 5 room hdb and have accumulated a decent amount of savings.I still dont consider myself FIRE.
I love FIRE, i'm striving for it but there are a couple of things that jump out to me. First of all though, kudos for not "bowing to the property upgrade pressure". The biggest issue i have with this FIRE though is the single income approach. Not only does it reduce the cashflow and remove a safety net but it also requires a larger insurance outlay to ensure the "single income" is sustained should something happen. I also don't understand the need for a car in such an arrangement.
It may be just me but there is something disingenuous in the sharing by the guest. To be able to pay off a 500k house and afford a car on the stated salary even on a high savings rate is very very challenging unless there are huge profits from speculative investments or money flow from external sources (renting of rooms etc) which were not shared here
From Matthew: Paying off the $500k house - cpf contributions are so powerful! 23% every month for a dual income couple for 12-13 years. Adds up to alot of money. Also got an extra grant from the gov because we were students/fresh grad when we applied for the bto
I paid off sg property at ~28/29, achieve frs at 33, paid off myr property at 34 this year. And currently 34 and I paid off all alone. Am I FIRE yet? 😅
I am having midlife crisis if I have achieve enough from the start after achieving frs, so went ahead to buy myr property. But still having midlife crisis about life.
Great interview! 🙂 Out of curiosity, may I pls know:
1) did Matthew pay off his BTO loan mainly with CPF-OA or cash?
2) when did he last have a family vacation? Also, roughly how much did it cost?
Thanks! From Matthew: BTO, mostly paid with CPF OA. But we did put some small amounts of cash in along the way ($3-4k per year) when bonuses came in. In the past few years we’ve travelled less because of the baby’s logistics, but trips like shanghai or korea would be in the $6-7k range. We’ve also done super near places like batam, bintan which are in the $1-2k range
How can this be FIRE when he still has got 2 kids to take care of financially?
So many expenses of the kids hasnt happen. What is this strange "FIRE" example?
Just watch the video lol
Basically save a lot. Really scrimp and save. (50k p.a. expenditure including Car and insurance.)
Allowance I give my mum and already 24k per year!
The takeaway is probably not succumbing to lifestyle inflation and scrimp.
But Life is short. Why save until like that ?
LeanFIRE at most I reckon.
1.5m in Singapore dividend stocks will cover his family expenses. Good job.
But not inflation adjusted.
Stock will grow in value too.
thanks for the interesting take on FIRE....not sure if you are aware, there is a new concept on different types of FIRE : Lean, Barista, Fat
He has done well
Which is the most cost effective platform to do monthly DCA on VWRA?
IBKR
I feel that the biggest thing the guest have is the income
Any way to invest in World ETF using SRS ?
You can only invest in SGX-listed ETFs using SRS. There are no all-world ETFs on the SGX at the moment, but there's S27 which tracks the S&P 500.
not even close to FIRE
Fire is how much?
Did i read it wrong or did he bring home 109k per year at 27? how is that modest 😲Im 32 and i only know 2 person in my all of my friend groups who has 100k+ salary (Before cpf deduction) its pretty rare. and yes me and most of my friends are in the IT industry too😳
Not rare at all. Some people just don't like to share about their income. Also depends largely on your friend groups.
I agree too. I was wondering about that too
Household income includes both his wife and his income?
IT department in local polytechnic pay so well? Should be high position I guess…
Probably looking at the wrong IT companies. Not uncommon for people in their 20s to earn more than 10k a month even before Covid in finance and tech. People just don’t go around sharing their salaries.
Could you please the ETF codes you mention?
VWRA
very relevant and inspiring, that it is possible with 2 kids and 1 car!🥂
While i happy with wat he has done but many pple hv also achieved the same
what a dumb clickbait title. "I currently work at..."; which part of RE do you not understand?
How can I buy VWRA? For those of us who are alive and dont nd to ask Rusmin. 😂
It's an ETF listed in London Stock Exchange. You can buy it through Interactive Brokers or FSMOne.
IBKR
Different strokes for Different ppl...
The 'strain' is stretched over many yrs...not acute..
What’s a BTO?????
Sorry! In Singapore, a Built-To-Order (BTO) flat is a public housing unit developed and sold by the Housing & Development Board (HDB) where buyers apply for new flats that are built only after a certain demand is reached.
Great sharing,
Thanks for watching!
How much was the investment into STI ETF to profit 200k in 2 years?
Around $450K
@@TheFifthPersonChannellowest sti etf dropped during covid was $2.45, with $450k invested at $2.45, one meeds to sell off at $3.55 to achieve $200k. In 2022, sti etf reaches ard $3.45. So $200k should be a blow up figure. But i believe in his strategy.
@@dfxpowerball_sg4750 If taking into account dividends, the figure might be only slightly rounded up.
If this case is FIRE, a lot of us would have done so long long ago … wake up, u still have a long way to go !!! Best to stay humble & Stop bragging !!! 😂