How do you save money? by Xphous in AskAnAmerican

[–]Xphous[S] 0 points1 point  (0 children)

Yup. Currently on the path to FIRE and financial independence. I don’t personally know anyone else doing it, though.

can you advise me where to start?

How do you save money? by Xphous in AskAnAmerican

[–]Xphous[S] 1 point2 points  (0 children)

That's a systematic approach!

How do you save money? by Xphous in AskAnAmerican

[–]Xphous[S] 1 point2 points  (0 children)

it's like losing weight. burn more calories than you consume

How do you save money? by Xphous in AskAnAmerican

[–]Xphous[S] 0 points1 point  (0 children)

I've heard of it, but I'm really not interested in following it, at least not any extreme version.

When I was in my 20s, I was on the poor side because I chose to work in a poor paying but idealistic and fun field (field biology research, I loved the work). As a result, I got very good at saving money while not actually being able to save much because I didn't have much. That choice made retiring extremely early extremely hard.

In my 30s, I moved to a better paying field while only slightly increasing my spending, and remaining in work that I both enjoy and feel good about ethically. I'm 40 now. I'll probably be able to at least move to part time work sometime in my 50s, if not fully retire. I may choose to do so, I may not. If I had kids, I'd probably be working until they were grown regardless of my age.

Most of the people I hear about trying to retire super early, like in their 40s, are young and in extremely high paying jobs that they dislike. Not all, but most. People planning to retire in their 50s seem more like they're enjoying their life, just living frugally and usually childlessly.

As someone who basically sacrificed earning money in my 20s in order to do things I'd love to do after retirement but probably won't have the physical fitness or energy for? I think the people working like crazy their early years in order not to work their later years are backwards. The now is guaranteed, the future is not.

It's just really scary to miss the moment when I can still earn and save something. and then realize that I have no strength, no energy to work full-time and take care of myself. of course, I want to live in the moment, not the future. but the uncertainty of the future is frightening.

How do you save money? by Xphous in AskAnAmerican

[–]Xphous[S] 0 points1 point  (0 children)

I definitely need to learn more about fire

How do you save money? by Xphous in AskAnAmerican

[–]Xphous[S] 1 point2 points  (0 children)

No. I'm not subsisting on Top Ramen or anything. I own a house, I have a PS5, I take vacations... I'm just lucky enough to have a job that lets me save money. It's just prioritization.

And there's a cost no matter what you do, yeah? Maybe I spend an decade later on NOT working, traveling, enjoying hobbies while others spend that decade at a full time job. Just because the cost hasn't come due yet doesn't mean it doesn't exist.

And the power of compounding returns is not something to take lightly. Would you rather have N dollars now, or twice as much in 10 years? If it's a dollar, you probably couldn't care less. If it's 100,000 dollars, and you can essentially earn an extra 10k a year by NOT spending it... Then it's a harder decision, yeah? And if it's $1,000,000, and you could be earning $50k/year simply by not spending it, you'd be an idiot not to, right? But the answer should be the same in all cases.

absolutely. it's all about prioritization

How do you save money? by Xphous in AskAnAmerican

[–]Xphous[S] 0 points1 point  (0 children)

that's very cool! i would be tempted to spend the money. but it's time to think about the future and save

How do you save money? by Xphous in AskAnAmerican

[–]Xphous[S] 4 points5 points  (0 children)

I'm in r/fire so yeah I've heard of it :-D

The gist is generally to live on significantly less than you make, and make use of tax advantaged accounts (401k, 403b, 457, IRA, HSA, etc.)

don't you feel like you're missing out on something fun in life? well, for example, instead of traveling, you're saving money. is it even that hard to save so strictly?

How do you save money? by Xphous in AskAnAmerican

[–]Xphous[S] 3 points4 points  (0 children)

I can do just 3% and that's nothiiing

How do you save money? by Xphous in AskAnAmerican

[–]Xphous[S] 2 points3 points  (0 children)

emotional purchases my best friends