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This is somewhat misleading, because the primary thing that allows these accelerated numbers is an extremely low spending rate. IE you can retire in 2 years if
by ry0ohki 14y ago
This is somewhat misleading, because the primary thing that allows these accelerated numbers is an extremely low spending rate. IE you can retire in 2 years if you save 95% because somehow you are able to live on only 5% of your take home pay (in his 50k example, this would mean you could live on $166 per month).
I completely agree with his philosophy of living below your means, but just realize that whatever level you are living at when making these kind of savings is the same level you'll need to live at in retirement given these terms.
- darkarmani 14y agoHe assumes your current expenses are at steady state. It's a pretty obvious assumption. If you pay off your home, your expenses in debt servicing will be lower when you retire.