Finances – The awakening

Just shy of 3 years ago I ran into a new crowd.

Well, at least I let electrons from my monitor, displaying this crowds websites, strike my retina, but you get the idea.  I found a new way of thinking, that had never occurred to me before.  I always knew:  ‘I ought to put something away for retirement, possibly like 10%’.  I also knew:  ‘Credit card debt was not a good idea.’  However, most people I knew didn’t seem to actually practice either one.  One day I read about someone that had set aside ~65% of their income, and retired after working about 10 years!  Son-of-a-bitch!  Sorry, but that deserves some kind of expletive.  Son-of-a-bitch!

You can see the chart for yourself that compares your ‘Savings Rate’ to your ‘Working Years Until Retirement’.  It’s hard to look at that and keep buying stupid stuff, while saving 10% and having to work for 51 years.  51 years!  (Check the chart, ‘Math don’t lie!’)  So from the time I am 20 to 70 I give away half my time (reference ‘Back in the Saddle again from 2-17-17), and now that I am 70 I can sit back and enjoy it?!?!  What if I don’t make it that long?  What if I do, but my health isn’t that great, severely limiting what I can do?

Lot’s of people scoff at Mr. Money Mustache, they don’t think it’s true, or they think the money will run out, etc.  You can read how he did it here.  After that I recommend you just start reading the site at the start and then judge for yourself.

Obviously, he found a loophole, and he found the frictionless, no gravity, no air, one moment in time to pull a stunt like early retirement off!  But wait, hold on!  I found out that he isn’t the only one that did this!!!  There is one other person!  Just kidding.  I know this may be hard to believe, but the truth is, there are many, many more!  They come out of the woodwork when you start to look for them.  People well before him, and well after him.

So that was 3 years ago that I bumped into this crowd.

The first 25 years – Net worth (Tamale Style) of -$62,000, yes that is negative, in all the ways that something can be negative.

The next 2.5 years – Net worth (Tamale Style) of *$55,000, and yes, that is positive.

*Note:  Some of that is investment gain, the markets have been positive.  But not much is from investments, remember from the last post (link), I only started with $28,000 in investments!.  While I do make a good income, the majority of this is simply changing some decisions.  But we do leave the cave often to play games with sticks, rummage local dumpsters, and we now add salsa to our beans and rice every Friday!  Judas, I hope you don’t believe that.  Because that’s the best part:  My life really hasn’t changed!  Well, other than I am less of a bonehead ….. We have simply made a lot of small wiser choices.  We’ll get into more of this later, stop distracting me.

Do the math.  Don’t forget to carry the 1!  Okay, I’ll save you the trouble:  That is an increase of $117,000, in less than 3 years!  It took me 25 years to get roughly that same amount, and most of that was from just making minimum house payments.  And during these last 2.5 years, I had a non-income generating wife (by choice) and 5 kids!  (Does anybody know how to stop these kids from showing up?  🙂 )

So, if you were scoffing at Mr. Money Mustache, maybe you should give that way of thinking a 2nd look!  More details to come on what I did!

One Thought to “Finances – The awakening”

  1. RocDoc

    Excellent job on increasing the net worth in such a short time. Way to go! I hope you enjoy the rest of the journey.

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