Thursday, August 7, 2014

Early Retirement, I want it!

I have to figure out how bad I want it, how much I am willing to live like no one else so that later I can live like no one else!

The Shockingly Simple Math Behind Early Retirement, from Mr. Money Mustache
Starting from assumption of zero assets, starting today (+31)

Savings Rate - Years 'til Retirement
5% - 66 years (age 97)
   6% my current plus 6% matching (matching doesn't count, it's bonus)
10% - 51 years (age 82)
15% - 43 years (age 74) Goal for 2015
20% - 37 years (age 68) Goal for 2016
25% - 32 years (age 63) Goal for 2017
30% - 28 years (age 59)
35% - 25 years (age 56)
40% - 22 years (age 53)
45% - 19 years (age 50)
50% - 17 years (age 48 - based on 5% pay raise every year and keeping current spending, I could afford to do 50% savings at age 43)

Now, I'm not starting at 0, but I might as well look at it that way if  really want to kick things up a notch!

Spending Less is more important than earning more.

Oh man how I wish I knew this so many years ago when I was making good money and living exactly at my means. I don't have that many things I can reduce spending on, namely:

  1. Cell phone (planning to switch to Republic Wireless next month) 
  2. Food (set a budget of $400, typically have been spending closer to $600-700/mo)
  3. Shopping (I don't always do a lot of shopping, some months more than others - looking at more DIY and also just a minimalism approach. I don't need more stuff!)

Basic rules of growing wealth I heard on a madfientist podtcast today:
  1. Avoid Debt
  2. Live on less than you earn
  3. Invest the surplus

It's that simple. 

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