It’s got to ruffle your feathers, doesn’t it? Those people who say that saving money isn’t how you get rich; how to retire early. “No one ever got rich by saving money”, they say. How dare they. After all, saving money is what we personal finance and early retirement bloggers write so much about. We … Continue reading What’s your money’s purpose? No one ever got rich by saving money
When you’re working full-time and bringing in $100,000 a year, a $100-spot probably doesn’t seem like all that much. Heck, it doesn’t even represent 1% of your income. You can easily drop $100 on a nice dinner these days. Or a new pair of kicks. Us “professionals” spend $100 like it’s going out of style. … Continue reading How to make $100 worth a whole hell of a lot
I received an email a couple weeks ago from a reader who expressed disbelief that my “retirement account” (read: investments) grew by a whopping $120k this year – and the year isn’t even over, yet. I love this email. It gives me the opportunity to point out how powerful a high savings rate can be … Continue reading Email from a reader: Your retirement account grew by $120,000 in 2015? Bull!
One of the most spirited debates within the early retirement community revolves around the influence that a high level of savings (as well as income) has on a person’s ability to retire early. I have argued in the past that although a high income can help, an aggressive savings schedule is a far better measure to determine a person’s fitness for early retirement.
My rationale was simple: it is a person’s lifestyle that ultimately determines how long he or she can survive without a full time job post-retirement. Meaning, a more frugal lifestyle will generally enable earlier retirement than a less frugal lifestyle, regardless of income.
But yet, I would be remiss if I did not address the obvious monkey in the room. Continue reading “How much does income affect your post-retirement lifestyle stability?”
There once was a dude from the southeast who thought that life could be broken down into a few simple constructs: get a job, buy stuff, retire and die. Yep, that dude was me. Early retirement? Not in the cards. 401k retirement plan? Sure, but only the minimum. Retirement was the furthest thing from my mind. After all, I had stuff to pay for! Continue reading “My retirement Renaissance: A journey from insane spending to retirement saving”
The key to retiring early is managing your lifestyle while you are young. This includes resisting the temptation to spend money on things that you don’t truly need (did someone say big screen TV?) and investing every penny that you can into your future self. Every dollar you spend now is money that cannot be … Continue reading Live like you’re poor, feel like you’re rich