I am fascinated and obsessed (and sometimes a little creeped out) by extremely frugal people...and this guy is one of the most extreme I have come across yet.
He became financially independent at age 30, how??? Let's look:
"I simply saved more than three quarters of my income for five years. The math works out. If you save, 83% and spend 17%, you have need 25*0.17/0.83 ~ 5 years of savings, where 25 is the inverse of 4%, which is a safe withdrawal rate for at least 30 years. Add 8% interest from your assets, and you “only” need to save around 75%(*). However, 80-85% is better as it will give you more of a buffer and create more investment income than you spend. Because of that I’m on my way to become a USD millionaire at age 46 or 48 or so. Having a big head start helps a lot and I recommend quickly saving at least $100,000 in your twenties, even if you plan to work until you’re 65. The compound interest from that will make you much wealthier than if you don’t hit six-figures until you mid thirties or worse, forties."
Wow. Is it really possible to save 75-85% of your income in this day and age??? I am going to do what I can to find out, starting with joining Freecyle and by cutting my food bill way, way down. This is going to be torture tho; I love junk food... :( It's definitely one of my biggest expenditures... curse you, Wendy's!
Goal for this month's grocery budget: $75 ($50 for the bigger starting-off bulk staples like rice, and saving $25 for fresh produce throughout the month).
Think I can do it? ;) Well BF is thinking of going vegan for a week for a college project anyway... let's see if it cuts the bill down as well as the eco footprint!
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