Re:The influencers getting rich by teaching you how to get rich
by n8henrie on Tuesday April 04, 2023 @08:30PM
(#35447685)
Best response here.
Of critical importance -- percent of your income that you spend is the most relevant variable.
Over simplified, but if you can survive on 5% of your income, it won't take you long to be able to sustain that standard of living indefinitely (assuming you're able to save / invest the majority of the remainder).
I know a few who have pulled this off, and they all follow the same plan:
- Right out of high school start a 3/4 year, low-debt, in-demand college/university program. Finish on time, don't change major halfway.
- Standard white collar desk job
- find a partner, live with them but don't have kids. NOTE: critical that the partner share the same mindset so that you can encourage each other rather than create conflict.
- no(or cheap) car(based on job salary, commute cost, housing price)
- no eating out
- buy cheap house or find rent-controlled housing
- learn DIY renovation skills
- take care of your health/physical condition
- no overseas vacations
- buy ETFs
Low spend is highly levered because it both increases your saving rate and also decreases your burn rate post-retirement. Very doable to retire pre-40 even in the current clusterf** of an economy.
Absolutely not for everyone though! It reminds me of people who can run ultra-marathons: it takes incredible patience and determination as you watch everyone around you jump off the cliff like a herd of bison, or get swallowed by one of the many once-in-a-lifetime economic busts that have impacted this generation. I imagine it will be pretty surreal to be retiring when most people your age will still be $N00,000 in debt.
I'm not at all one of these people, but I really enjoy knowing them(I know 3-4 couples going down this path at varying stages). They've taught me a lot, and I'm really rooting for them to succeed.