$mr money moustache shockingly simple math$

#Mr money moustache shockingly simple math full

It means working on the things that are most important to you. Spend it with your family? Volunteer? Travel? Make the world a better place? How about lower your stress level, improve your health, and get the sleep you’ve needed so desperately? Financial Independence doesn’t mean not working. What would you do with all that extra time? If you’re serious and can optimize your life further and achieve a savings rate of 67% or more, you can whittle your entire working career down to LESS THAN 10 YEARS. Plugging in a 50% savings rate into the calculator brings your entire working career down to just over 16 years! Now that sounds a little more doable right? Well I have a surprise for you. But if you want real freedom, you need to think differently.

If you want average results, do the average. That’s a great start, but five decades is still a lot of your life spent at work. Plugging in the numbers brings your working career down to 51 years, or more than a decade sooner! You’re better than average and are saving double that at 10%. Let’s say you’ve been given some good advice. Plug a 5% savings rate into the calculator rate and you would need to work a whopping 65 YEARS to retirement! Most Americans are only saving a little over 5% of their paychecks. Notice the exponential curve on the left? The more you save initially, the more of an impact you’re making on your future. It doesn’t matter how much you make or how much you spend each year, it’s your savings rate that matters. On the left is the number of years you need to work to get to retirement. This is the story of how increasing your savings rate can shave years or decades off of your working career. Seeing it in the form of a graph tells a powerful story. In between those two extremes are some interesting observations that you will want to pay close attention to, because increasing or decreasing your savings rate can give you a drastically different future.

If you’re spending 0% of your income and can maintain this into retirement, you can retire RIGHT NOW.If you’re spending 100% of your income, you will NEVER be able to retire.No matter how complicated you think your finances are, it all boils down to your savings rate. Your savings rate, as a percentage of your take-home pay He made a bold but simple observation that no matter how much or how little money you made, as it turns out, the amount of time it takes to get to Financial Independence depends only on one thing: Money Mustache called The Shockingly Simple Math Behind Early Retirement. Our journey started several years ago when some good friends forwarded us an article by a guy named Mr. The Secret to Financial Independence and Early Retirement The road isn’t easy, but a lot of people have done it, many more are on the path right now, and you can do it too. That’s the power of Financial Independence. Wouldn’t it be a blessing to be “time rich” to be able to take care of a family member or friend if they needed you? Maybe you’d like to volunteer your time to make the world a better place? Or work on creative projects that don’t generate income but give you fulfillment. Maybe you’d like to travel more and learn about the world. It doesn’t mean you NEED to retire early, but gives you the freedom to pursue your dreams and passions. It’s being intentional with your actions and designing your life in a way that leads you to Financial Independence. This isn’t a get rich quick scheme, but it WILL make you rich over time. We want you to have the best tools and information available to make your life better. We’re sharing this with YOU, our friends, because we want you to be successful. The FIRE movement started out as a small community of financial bloggers composed mostly of engineers, architects and programmers, but has grown over the years to capture the attention of average people who simply want to live a more meaningful life on their own terms. Interested? Check out one of the best books on retiring early. Did you know there are people that have hit Financial Independence and are retiring right now in their 30’s? It helps us a ton!įinancial Independence is the point at which you have enough investments generating income to support your expenses for the rest of your life.

#Mr money moustache shockingly simple math full

It’s called FIRE, or Financial Independence Retire Early.Ĭheck out the full video and be sure to subscribe to our YouTube channel. There are simple changes that you can make to cut years or decades off your working career and live a life of freedom. Yes, it’s totally possible and you’ll learn the strategy to make it happen. We’re going to show you the shockingly simple math that can take you from a net worth of zero to RETIRED in less than 10 years. What if you had the freedom to do what you wanted every day for the rest of your life? To escape the rat race and design the life of your dreams.