BeatTheBush Financial Independence Level

What is my financial independence level as outlined in my previous video? Level 1-10? If you have been watching my previous videos, you might have a good ball park guess since you know a few things I am aware of showing. One being quitting my job and saying I do not really need it being a dead giveaway. Well, in this video, I will specifically address which level I am in. Is this the wisest thing to post on the internet? I’m not sure.

How’s it going everybody this is beat the bush as you know i dish out a lot of financial information on this channel and so you might be very interested in what kind of financial standing i’m in a while ago i made a video on the ten levels of financial independence and so you might be wondering am i really actually retired already from what you know from my previous

Videos you know that i quit my job and i’m basically not really doing much i just hang around at home and i do youtube videos so from this you might think i’m fully retired but really i am not because i do not have enough assets to completely not work at all and just let the 4% rule work and then just take from that and that would completely satisfy my burn rate

In fact if i round up all my investments i absolutely cannot support myself just doing nothing at all otherwise i might be at a point where i have to really decide hey maybe i’m not even gonna record any videos maybe i don’t need any youtube income at all the fact is i do need this youtube income that’s why at the end of the videos you think that i might be retired

I don’t need the money or something but i do need the income from youtube in order to sustain myself in order to pay for the bills and such now before i go on let me just note that this video is actually recorded in 4k now this is native 4k resolution i did not just up sample this so if you go into settings at the very bottom if you have a capable monitor that’s

4k you can go and set it to 4k quality and then you would see all of this stuffed animals in very high resolution now in the past i largely avoided talking about my financial setting mainly for privacy reasons because i don’t want it out there that you know i have so so and so and i’m at a certain financial independence level or whatnot but today i’m going to tell

You which level i think i am at and you know with a little bit of reasoning on top so with that let me just go over what the ten levels are and then i’ll clear things up a bit here are the ten financial independence level level one bankruptcy where if you are bankrupt you’re essentially have negative net worth therefore you’re at level one now i’ve never been in

Bankruptcy before so i started at level two dependents now most people start at level two because their parents are paying things for them and this is at a level of dependence because you depend on someone else to buy you food for your place to stay and such level three break-even this is when you’re living on your own and you have a job and stuff and then you


Can take home enough income to pay for your places stay play for your insurance play for everything basically without going into debt so you make just enough or more to pay for all your bills double for no credit card debt personal loans are car loans now when i first graduated i did have to buy a car so i was in debt for roughly six months or so and i paid it

Off really really fast i never had credit card debt personal loans i never took that out so level four is relatively easy to pass as soon as you never get into credit card debt or you pay off your car loans really quick but this is a thing that a lot of people fail to get out of because most people are stuck in credit card loans level five no student loans now i

Pass this level quite some time ago because i just thought you know i don’t like the student loan thing hanging over my head you know it’s kind of like a dark cloud even though there’s a really low apr rate on it i pay you know very little interest but when i look at it over like a ten year span i’m like wow you know when you add it up it becomes thousands and

Thousands of dollars so that really bothered me and i eventually paid it off really quickly even though you know it had a good interest rate i just wanted to pay it off anyway and just kind of get it off my back level six no mortgage now this does not mean that you absolutely have zero mortgage at all it just means that you have enough cash to be able to pay off

Your mortgage so sometimes it might be good to keep your mortgage for certain tax reasons and also you know in my case i kind of want to keep my mortgage around so that i can take advantage of that plastic referral that i talked about in the last video so level six am i there yep yes i am i can pay off my mortgage immediately right now level seven wealth building

Now you don’t necessarily have to pay off your mortgage before you start building wealth but you got to know that when you build wealth it goes in the same pool anyway because as soon as you cross the mark where you can pay off your mortgage then you can go okay i’m positive above the amount of the mortgage then i would consider that building your wealth level 8

Financial independence bare-bones this means that whatever investment amount you have you can withdraw that four percent and that four percent will be enough to pay for your living expenses in a bare-bones sense this means that you have to cut out all kinds of luxuries you know you can’t go on trips and stuff just you can just vegetate kind of basically this is

What i call bare-bones so you can have food you can have your place of stay and stuff but everything is very very basic and you basically do not want to jump into financial independence bare-bones too much because you want to earn you know quite a bit enough so that you can be comfortable so a lot of people they might become financially independent bare-bones it’s

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Just a good marker to know because you know that okay i have enough to go bare-bones right now so it gives you a sense of satisfaction sort of and then you can go you know i can quit but then it would be a little harsh on myself but you know let me just stay with this make more money and then make my retirement in financial independence a little bit more comfortable

Now am i personally in level eight or not i describe this as kind of like a fudge level eight i’m not really in love away because i don’t have enough financial assets to be able to just live off of the dividends or the gains basically what i’m doing is i ellis trait this in the previous video where i talked about retiring early with no money at all this is where

I can make enough side income for example through youtube through some of my investments when i combine it all i can essentially live off of this and therefore not go into a negative cash flow so i am still making some money enough to sustain myself and a little bit more on top of that for additional savings level nine is financial independence with the current

Standard of living now this is what i kinda feel like i’m doing right now i’m living normally i’m going on vacation like last week i went to disney world and stuff this is my current standard of living and i’m able to do this with just youtube income and also my dividends that i get from my investment so you might think i’m making huge sums of money from youtube

Or dividends but this is not the case because my burn rate is very very low and i’ll illustrate this after i covered these levels level 10 is financial independence with excess on top of your current sign of a living so when you have excess you can actually take this extra money and do whatever you want with it if you want to stay with your current sound of a

Living good but i propose that whenever someone reaches at this level it’s time to sort of you know let off a little bit because you guys know that i kind of squeeze my budget a lot and it might be you know not the most comfortable at all time so that is a time where he can go okay i can let off a little bit you know get you know faster internet or something go get

A cellular phone that has an actual cellular network you know maybe go on international first-class flights or something like that and you can absolutely do whatever you want with this excess money you can save more into your retirement just have more buffer room so that you can be more comfortable so that you’re not you know right at the edge between excess and

Your currents of standard of living or you can donate or invest this money into a brand new business venture if you like so you guys must be wondering with this youtube by 130,000 subscribers i must be raking in the money but the truth is back when i was working i was still able to fully pay off my mortgage already so this crossover point happened earlier then when

I actually switched over to you know doing more youtube so running this youtube channel does allow me to kind of hover in level 9 or so but if my youtube income ever just sort of cuts off well you know i wouldn’t know what to do because i would still have a burn rate of a certain amount and essentially i would be not taking in you know very much income because my


Dividends won’t absolutely cover at all therefore i would be in trouble that’s why i have a patreon and i still asked you guys to support my channel because i absolutely do need this support still now i talked about my burn rate before and you might be surprised from this because it is really really low compared to other costs of living of other people living in

The bay area it’s very expensive to live here my burn rate usually hovers around 40,000 dollars every single year now this is with housing housing cost me about $20,000 so if i finally pay off my mortgage like today which you know is something that i can do then my burn rate will drop to about $20,000 now i have to add in another five thousand dollars for health

Care insurance because that’s something i need to buy separately because i’m not working for an employer anymore so it that increases my burn rate to about twenty five thousand dollars a year now what this is 25 thousand dollar burn rate includes basically everything it includes property tax includes health insurance car insurance utilities bills airplane tickets

Everything so with that i hope this clears things up because i get a lot of comments going you know why are you asking for donations and you know patreon and stuff when you’re retired and you have lots of money already no i just kind of wedged myself in this position where you know i’m able to make these videos for you guys which is something i’m very passionate

About i really like doing this so i’m in this weird position where yes i do like making these videos however i’m required to make these videos because if i just stop i probably will have smaller and smaller youtube income coming in therefore not being able to support myself so i hope this clears things up a bit and this is the first time where you know i actually

Expose which level i am at and to my detriment it’s probably really bad for my dating life because when i expose all this online and people see this you know it’s might attract the wrong type of people so don’t forget to give me a like on this video comment down below let me know if you’re interested in a t-shirt that i’m working on i’m working with this company on

A t-shirt it has a honey badger logo on it and also it says infinite vacations so let me know if you guys are interested in this t-shirt if i get zero response at all maybe i won’t go through with it but i figure this is something that i personally want and possibly other people would want to wear something like that if you’re interested in supporting this channel

And keeping me fed basically check out my audible link down in the video description below where you can get a free audio book i also have a patreon over here and don’t forget to subscribe thanks for watching

Transcribed from video
BeatTheBush Financial Independence Level By BeatTheBush

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