solimaya.blogg.se - Simple math to early retirement

#SIMPLE MATH TO EARLY RETIREMENT HOW TO#
#SIMPLE MATH TO EARLY RETIREMENT PLUS#

Not everyone will retire in their 30s or 40s, but most people could probably shave a few years off their working career by being less wasteful and more money-conscious. MMM can be a bit extreme at times, but his overall message can still be useful. In the worst case he can dip into his ~$1M net worth, but this could result in reduced spending power unless he finds some way to build it back up. He has a high-deductible health plan currently, which covers any big health expenses.Unless I find an income-generating hobby, I will be using less than 4% for myself. MMM advocates for lowering expenses during a slump and potentially supplementing with side income, which is why it works for him. I played with cFIREsim to get this number.

I think it's okay to hope for it, just as long as you realize it might not happen. This means that a 5% return is neither unrealistic nor guaranteed. Looking at 30 year periods, the average return is 590.73%, or about 6.1% yearly (1.061 30 = 590%).

a 5% real return on investment isn't crazy.

You have very valid points, but here are some more things to consider. Even cutting back a little bit on expenses can greatly accelerate your retirement. If it seems a little too extreme for you don't feel like you can't learn anything here. He's also in a relatively low cost of living town, so don't expect to have the same standard of living on the same amount in a place like NYC or San Francisco. His budget is pretty realistic for his situation and he seems to always be working little side jobs so I expect he'll be fine in 40 years. I don't keep up with what he's doing lately but he and his wife have a pretty frugal mindset where they're just not wasting a lot of money on anything other than travel (if you consider travel wasteful spending). If you read more of his work you can see how he lives and where his money is going.

#SIMPLE MATH TO EARLY RETIREMENT PLUS#

In 40 years when he has health problems and cost of living has skyrocketed what will he be doing then? Plus isn't he supporting both him, his wife, and a child? I saw a post where he listed his annual expenses.

$simple math to early retirement$

If you can't make more, you just need to work longer. Here, please treat others with respect, stay on-topic, and avoid self-promotion.Īlways do your own research before acting on any information or advice that you read on Reddit.Įither way works.

#SIMPLE MATH TO EARLY RETIREMENT HOW TO#

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