4 ms·

I agree with your approach and that is what I have implemented so far as well. As much as I would love to have the 40-60 hours a week I work back to myself, it

I agree with your approach and that is what I have implemented so far as well. As much as I would love to have the 40-60 hours a week I work back to myself, it is just much too difficult for me to live off of only 20k or less per year. I am not interested in living like that anymore, I'm too familiar with it.

froindt 9y ago
20k/year is tough to measure up to. From the Reddit community around financial independence, "build the life you want then save for it". [1] You might look at your expenses and decide "_____ really doesn't provide me much happiness. Maybe I should reduce or eliminate it". If most people would look at their spending and eliminate the 5% that brings them the least happiness, they would be in substantially better positions financially in the long run. Many people spend 100% of their paychecks and have little to nothing to show for it. [1] https://www.reddit.com/r/financialindependence/comments/58j8pc/build_the_life_you_want_then_save_for_it/ https://www.reddit.com/r/financialindependence/comments/58j8...
auxym 9y ago
GP's example of 5 years is a very short timeframe, however. A big part of achieving financial independence is compound interest returns on investments in low-fee index funds. Try a quick spreadsheet for yourself. You can assume 5-6 % real returns. Play around with savings rates, GP suggested over 80%, which is more agressive than I've ever heard. Try 60%, which would leave you with 60k disposable, and you'll see things go up very fast in the 10-15 year range. In fact, MMM shows that it actually all reduces to a really simple calculation, and with that 60 % savings rate, you're 12.5 years away from retirement (if you start at 0 net worth). http://www.mrmoneymustache.com/2012/01/13/the-shockingly-simple-math-behind-early-retirement/ http://www.mrmoneymustache.com/2012/01/13/the-shockingly-sim...

froindt 9y ago

20k/year is tough to measure up to. From the Reddit community around financial independence, "build the life you want then save for it". [1] You might look at your expenses and decide "_____ really doesn't provide me much happiness. Maybe I should reduce or eliminate it". If most people would look at their spending and eliminate the 5% that brings them the least happiness, they would be in substantially better positions financially in the long run. Many people spend 100% of their paychecks and have little to nothing to show for it. [1] https://www.reddit.com/r/financialindependence/comments/58j8pc/build_the_life_you_want_then_save_for_it/ https://www.reddit.com/r/financialindependence/comments/58j8...

auxym 9y ago

GP's example of 5 years is a very short timeframe, however. A big part of achieving financial independence is compound interest returns on investments in low-fee index funds. Try a quick spreadsheet for yourself. You can assume 5-6 % real returns. Play around with savings rates, GP suggested over 80%, which is more agressive than I've ever heard. Try 60%, which would leave you with 60k disposable, and you'll see things go up very fast in the 10-15 year range. In fact, MMM shows that it actually all reduces to a really simple calculation, and with that 60 % savings rate, you're 12.5 years away from retirement (if you start at 0 net worth). http://www.mrmoneymustache.com/2012/01/13/the-shockingly-simple-math-behind-early-retirement/ http://www.mrmoneymustache.com/2012/01/13/the-shockingly-sim...