2 ms·

That it's entirely possible to save enough in order to retire early.

charlesdm 8y ago
I can agree with that, though in part it obviously depends on how high your income is, and how you invest and compound the money you have made. If you're making $25k a year it will be a lot harder and take much much longer to retire than for someone making $150k a year.
- cerberusss 8y ago
  Yeah, I agree. Psychologically, I found it's easiest to simply not use raises in income.
  - charlesdm 8y ago
    Well, I think you need to find a balance. Don't blow through everything, but also enjoy life because you only live once. I know guys who save up to the last penny to try and achieve financial freedom. It's infinitely easier (and more efficient) to try to make more money than it is to, for example, not buy the occasional starbucks coffee.
    - presidente20 8y ago
      That's right. The approach that works for me is optimising top-down. Save on the big expenses (accommodation, car, groceries) which requires planning and System II thinking. Try and save on the smaller stuff but as you're fighting your impulses (under social pressure, marketing influence etc) its much harder, so go with the flow.
      - charlesdm 8y ago
        Yup, exactly my line of thinking! As an example: I had the opportunity to take over a very nice corporate car of a friend at a ridiculously low price (for a variety of reasons). Basically I managed to purchase at half the actual value of the car -- it was a few years old but looked almost new and had super low miles. It was in perfect condition. I could've bought and sold it on the spot for close to double the price I paid. But I'll drive it for a few years and likely be able to sell it for close to the same price I originally paid for it. Others go buy a new car, take a massive depreciation hit, and in the end spend tens of thousands more. The expensive tickets are worth focusing on. Then go drink all the coffee you want.
    - tonyedgecombe 8y ago
      It depends, if you are in a minimum wage job then absolutely try and raise your income and improving skills is the obvious way to do it. On the other hand if you are already progressing through a career I suspect it's easier to trim spending than work further up the ladder. The Starbucks thing is a red herring, most people overspend on cars, housing and food.
      - charlesdm 8y ago
        One can literally not overspend on food. Good food (i.e. fresh fruit, vegetables, good meat and fish, etc) are 100% worth the investment in my view. But to each their own priorities in life.
        tonyedgecombe 8y ago
        You can definitely have a healthy diet on a budget.

I can agree with that, though in part it obviously depends on how high your income is, and how you invest and compound the money you have made. If you're making $25k a year it will be a lot harder and take much much longer to retire than for someone making $150k a year.

cerberusss 8y ago
Yeah, I agree. Psychologically, I found it's easiest to simply not use raises in income.
- charlesdm 8y ago
  Well, I think you need to find a balance. Don't blow through everything, but also enjoy life because you only live once. I know guys who save up to the last penny to try and achieve financial freedom. It's infinitely easier (and more efficient) to try to make more money than it is to, for example, not buy the occasional starbucks coffee.
  - presidente20 8y ago
    That's right. The approach that works for me is optimising top-down. Save on the big expenses (accommodation, car, groceries) which requires planning and System II thinking. Try and save on the smaller stuff but as you're fighting your impulses (under social pressure, marketing influence etc) its much harder, so go with the flow.
    - charlesdm 8y ago
      Yup, exactly my line of thinking! As an example: I had the opportunity to take over a very nice corporate car of a friend at a ridiculously low price (for a variety of reasons). Basically I managed to purchase at half the actual value of the car -- it was a few years old but looked almost new and had super low miles. It was in perfect condition. I could've bought and sold it on the spot for close to double the price I paid. But I'll drive it for a few years and likely be able to sell it for close to the same price I originally paid for it. Others go buy a new car, take a massive depreciation hit, and in the end spend tens of thousands more. The expensive tickets are worth focusing on. Then go drink all the coffee you want.
  - tonyedgecombe 8y ago
    It depends, if you are in a minimum wage job then absolutely try and raise your income and improving skills is the obvious way to do it. On the other hand if you are already progressing through a career I suspect it's easier to trim spending than work further up the ladder. The Starbucks thing is a red herring, most people overspend on cars, housing and food.
    - charlesdm 8y ago
      One can literally not overspend on food. Good food (i.e. fresh fruit, vegetables, good meat and fish, etc) are 100% worth the investment in my view. But to each their own priorities in life.
      - tonyedgecombe 8y ago
        You can definitely have a healthy diet on a budget.