Our son was born shortly afterwards, and he’s about to have his eleventh birthday party. So remember my freaky magician story up in the first paragraph? There was not really any magic – my wife and I just saved about 66% of our pay without really noticing it, and in under ten years we woke up and realized we didn’t have to work for a living any more. If you can save 75%, your working career is only 7 years. If you already have some assets now, you’re even closer than that. The ONLY way.Īnd the effects are surprising: if you can save 50% of your take-home pay starting at age 20, you’ll be wealthy enough to retire by age 37. What happens when you can save more of your income? As it turns out, spending much less money than you bring in is the way to get rich. Sound like a fantasy? Not t o readers of this blog. Money Mustache’s advice? Almost all of that is nonsense: Your current middle-class life is an Exploding Volcano of Wastefulness, and by learning to see the truth in this statement, you will easily be able to cut your expenses in half – leaving you saving half of your income. And pray that nothing goes wrong in the 40 years of career work that it will take to get yourself enough savings to enjoy a brief retirement. The standard line is that life is hard and expensive, so you should keep your nose to the grindstone, clip coupons, save hard for your kids’ college educations, then tuck any tiny slice of your salary that remains into a 401(k) plan. If you get through every link, you’ll be well-equipped to fix most of your life – just like that.įor almost nine years, I’ve been preaching a different brand of financial advice from what you see in the newspapers and magazines. You can right-click any of those links and open them in a new tab for later. We’ll start with a rant, which links to a bunch of other stuff. Money Mustache writes some useful stuff and many people are building happy, wealthy lives for themselves using his advice”, they are saying, “but I am a busy person. Most people arrive with the same question: I’m writing this post to use as kind of a permanent “Hello!”, since at any given moment in time, about half of the readers of this blog are pretty new, and casting around wondering where to start on a giant site like this with over 500 published articles. It was only after quitting the rat race that we looked around and realized why we had become financially independent while most people, even with higher incomes, end up stuck needing to work until age 65 or later. We did this on two normal salaries with no lottery winnings or Silicon Valley buyout windfalls, by living what we thought was a wonderful and fulfilling existence. I’m the freaky financial magician who retired along with a lovely wife at age 30 in order to start a family, as well as start living a great life.
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