£80,000

hcb42

I am lost

Someone with £30K student debt who doesnt want to work, and pay off their debt, despite £80K equity

I smell a troll.

SeduLOUs

davelester414 wrote: »

The student loan is doing my head in to be honest. A real hindrance.

You're not needing to pay anything towards it, and if you don't earn over a certain threshold you'll never have to pay it back? And that's a hindrance?

With wise money related decisions like I'll be surprised if that £80k lasts you a year.

Ozzuk

I'd say it will help you live a more relaxed life for a few years but in the grand scheme of things its not much money. Its very difficult to get any kind of decent interest, you certainly won't get much over 3-4% a year, more likely 1% so your 'pot' will diminish over time. It also depends how much you want to live your life (and how), ie, do you think you should be paying parents towards your living costs, do you like to go out drinking? Its pretty easy to spend 300-400 a month just on socialising (though you dont need to). Food, vehicles, clothes, all these things will eat away at your pot, which then in turn lowers your income.

Likewise, what about the future? Pension? Investments? House? What if you meet someone? Relationships cost money.

I'd see the 80k as a good starting position for your age, maybe enjoy the relaxed life for a year or so then look to grow up and be an adult. Or live an 'alternative' life in a commune or something. I think once you have to fend for yourself and you realise the value of money, 80k and no major income will appear very differently. Unless of course you make it as a super star DJ, that would be cool. I saw Brandon Block playing in some guys house recently on an episode of Come Dine With Me, which suggests there isn't much money in it!

brasso

At 28, 80K can *almost* guarantee you financial security -- but not at the moment. If you took a normal job, were able to keep the 80K safe and drip-feed it into investments over a period of say 5 years or so, reinvesting the income, then by the time you're about 50 you could probably retire and be able to live off your investment income. But this presumes you would be able to lead a normal life, paying for accommodation, kids etc up until that age. I strongly suspect that you wouldn't be able to keep your hands off the money through such a period.

I can't see any legal, realistic way of using 80K to live on for more than a very few years. And if you bought a small apartment in Berlin, you would still have to live and pay your way. As for DJ-ing or teaching English from your Indonesian villa, come off it. These are perfectly decent pastimes when you're in your 20s, but after 5 years you would be sick of it. You won't always be 28 and keen to bum around. At some point you'll meet someone you want to settle down with and you'll have to get real.

Nice fantasy, but as others have said, 80K is nowhere near enough. Nowhere near.

heytoki

davelester414 wrote: »

Or buy a flat in Berlin....or buy a villa in Indonesia and teach English after doing TEFL.

You buy a flat a Berlin and then what?

You buy a villa in Indoneisa and teach English. So you will have to work.

davelester414

brasso wrote: »

At 28, 80K can *almost* guarantee you financial security -- but not at the moment. If you took a normal job, were able to keep the 80K safe and drip-feed it into investments over a period of say 5 years or so, reinvesting the income, then by the time you're about 50 you could probably retire and be able to live off your investment income. But this presumes you would be able to lead a normal life, paying for accommodation, kids etc up until that age. I strongly suspect that you wouldn't be able to keep your hands off the money through such a period.

I can't see any legal, realistic way of using 80K to live on for more than a very few years. And if you bought a small apartment in Berlin, you would still have to live and pay your way. As for DJ-ing or teaching English from your Indonesian villa, come off it. These are perfectly decent pastimes when you're in your 20s, but after 5 years you would be sick of it. You won't always be 28 and keen to bum around. At some point you'll meet someone you want to settle down with and you'll have to get real.

Nice fantasy, but as others have said, 80K is nowhere near enough. Nowhere near.

I'm living by the coast enjoying my summer, as real as it gets.

davelester414

heytoki wrote: »

You buy a flat a Berlin and then what?

You buy a villa in Indoneisa and teach English. So you will have to work.

Work in Berlin as a dj and get involved with the circuit, or convert villa into a homestay and teach English, can live like a king out there on 500 quid a month.

TCA

davelester414 wrote: »

Work in Berlin as a dj and get involved with the circuit, or convert villa into a homestay and teach English, can live like a king out there on 500 quid a month.

I'd go with the DJ option. Teaching English in South-East Asia is a real slog for what you get paid by schools, which in Thailand is about £500/£600 a month if you're lucky. It's a full-on job that many expats end up doing because there are no other options. Not much free time. From memory I think Taiwan used to be one of the best paid locations for teachers with the TEFL qualification.

ruinen

You can obviously make you money go further if you move to a cheaper country in the word. You can easily find a nice hotel room in Northern Thailand for £200/month. Then let's say another £200/month for food and some socialising. Total cost £400/month. Likewise costs across Indonesia prices might be similar. £50k (£80k-£30k), will last you a fair while assuming the economics of those Asian countries stay the same, and the GBP stays strong against the foriegn currency.

But then how are you getting your right to remain in these countries? You'll need to check the visa situations. Thailand you typically can get between 1 month to 3 month visas, which you can reset by leaving and returning the country. But unlikely you'll get away with that indefintely. You can get educational visas for longer stays, but thats at extra cost and still doesn't give you indefinite stay.

Might be better to stay within the EU and find cheaper countries than the UK (e.g. Hungary), but going to nearly impossible to extend net assets of £50k out for a lifetime without sorting additional income.

Explore the cheap parts of the word for a few years, enjoy yourself, and during that time work out what you are going to do to make some more income.

ruinen

TCA wrote: »

I'd go with the DJ option. Teaching English in South-East Asia is a real slog for what you get paid by schools, which in Thailand is about £500/£600 a month if you're lucky. It's a full-on job that many expats end up doing because there are no other options. Not much free time. From memory I think Taiwan used to be one of the best paid locations for teachers with the TEFL qualification.

South Korea is also meant to be fairly good pay for English teachers. But as others have pointed out this is a job. So it makes you question about living off £80k pointless. The question would just be:

Q. How do I live?
A. Get a job.

If you do want a job teaching English in a foriegn country, then definitely give it a shot. I have friends that have taught for long periods around Europe and make a living and find it rewarding.

Book yourself onto a TEFL course, find a fulltime job in a school in a cheap European country, work for a while in that school, then try to find some private clients and maybe downgrade to working just part-time. See if you can live off part-time income and your £80k.

If that doesn't work out, then head back to the UK, get a sensible job, work the 40+ years till your retirement, retire, get an allotment, grow vegetables, grow old.