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You'll want to do some research on FIRE - "Financial Independence Retire Early." There are plenty of resources (someone linked to the main FIRE subreddit but th
by lhl 6y ago
You'll want to do some research on FIRE - "Financial Independence Retire Early." There are plenty of resources (someone linked to the main FIRE subreddit but there are others like r/leanfire. Personally I'd also recommend getting started maybe reading _Your Money or Your Life_ (the og FIRE book) and maybe the bogleheads.org wiki to get some more color. Also, the r/financialindependence sub has a basic wiki/faq.
I'd also recommend looking up the "Trinity Study" which gives the guidance of a 3-4% "safe withdrawal rate" - eg, if you should be able to retire if you can keep your cost of living under $40K - there's a lot of bikeshedding about the exact number and various strategies you can use to minimize risk during downturns. Personally, I'd make sure your fixed living expenses are <3% of your net investible so you have some flexibility.
A while back I wrote a short guide for a friend that lays out my personal financial perspective in a bit more detail: https://www.notion.so/lhl/Basic-Financial-Literacy-Guide-38686f17308e48ecb2a5dc2521acfcf2 https://www.notion.so/lhl/Basic-Financial-Literacy-Guide-386...
Before making any rash decisions, I'd make sure you get your finances sorted (cash buffer, asset allocation sorted, comfort with market volatility, etc), but also think about what you want to do after quitting your current job. One thing that seems to happen a lot is that people quit their job but really haven't thought about what they want to do afterwards. Taking some time off/a sabbatical isn't a bad way to try to figure that out.
If you're in tech and you don't like your current job btw, just find a new one (or better yet, learn to de-stress at your current job - stress is as much a state of mind as extrinsic factors). Good luck!
- voisin 6y agoMy favourite thing today: learning the term “bikeshedding”. My god this is so applicable to everyday life and yet I’ve never heard it. Thank you!