Money Mustache, Wade Pfau, etc., have been archived here. "Build the life you want, then save for it."Īrchive of previous Daily Discussion threads.Īrchive of previous "Help Me FIRE!" threads.ĪMAs with William Bengen, Mr. Please read the FAQ and Rules above, then feel free to share your journey or ask for advice! Early retirement is simple a high enough savings rate could get you FI in a little over 10 years. When participating on this subreddit, please be mindful of the ways in which you are lucky. ![]() This episode was written, recorded, and edited by Lisa McNamara. Taking the slow road, or the traditional road to retirementīecoming financially independent requires hard work and a healthy attitude towards money, but also a degree of privilege. Suggested reading: The Shockingly Simple Math Behind Early Retirement, by Mr. Gaining wealth for the purpose of excessive consumption As many of you know, Mister Money Mustache (MMM) wrote a blog post entitled The Shockingly Simple Math Behind Early Retirement that if nothing else gives. Investing to make your money work for you, and learning to manage/optimize those investments for the unique nature of FI/RE trying to factor in large pay increases on a 20 year planning horizon just results in a less conservative estimate. any amount you do better than that, is gravy. that is the only base assumption of MMM's math. Striving to save a large percentage (usually more than 50%) of your income to accelerate achieving FI if you are one of the lucky few, your income raises will at minimum keep pace with inflation. Working to increase your income and income streams with projects, side-gigs, and additional effort Your wants and needs aren't written in stone, and less spending is powerful at any income level. I’m taking a different approach and looking just at equations. Simplifying and redesigning your lifestyle to reduce spending. To better understand how inflation impacts savers, read this post. ![]() ![]() Assumption 1: Your investments earn 5 above inflation. The purpose of this subreddit is to discuss FI/RE strategies, techniques, and lifestyles whether you are retired or not.ĭiscovering and achieving life goals: “What would I do with my life if I didn't have to work for money?" Assumptions of the shockingly simple math to early retirement Let’s quickly review a few of the assumptions that Mr. This subreddit deals primarily with Financial Independence, but additionally with some "RE" concepts.Īt its core, FI/RE is about maximizing your savings rate (through less spending and/or earning higher income) to achieve FI and have the freedom to RE as soon as you wish. This is a place for people who are or who want to become Financially Independent ( FI), which means not having to work for money.īefore proceeding further, please read the Rules & FAQ! Rulesįinancial Independence is closely related to the concept of Early Retirement/Retiring Early ( RE) - quitting your job/career and pursuing other activities with your time.
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