Agreed. MMM's complete inability to admit that he got his start down this path because he timed the real estate market quite perfectly, which one cannot just replicate, is what turns me off to him. Regardless, interesting thread here!
Yeah, I used to read that blog, but I quit because MMM and his readers don't seem like particularly nice people. Too much profanity, too much "my way or the highway", too much general meanness on that site. They don't seem to be people I'd like in real life.
As for MMM's success, I agree with you. To use a cliche, he was born on 3rd base and thinks he hit a home run. He's able-bodied and smart in a way that leads to high-paying jobs -- and that was luck; however, you can't discount that he's made the most of his natural-born opportunities. I suspect that if one or more of his "perks" had been removed, he'd still have retired early -- but he wouldn't have done it by 30 (by 30? is that right?), and his story wouldn't be nearly so impressive if he'd retired at 50 or so.
How did you first hear of FIRE? Were you pursuing it before you heard of it (and just didn't realize it) OR did you read about it and say "I want to do that" and decide to make some changes?
I was born into a poor rural family, where we never had "enough". As a teenager, I realized that life didn't have to be that way, so I started reading everything I could about frugality, pensions, couponing, investing, real estate, etc. -- all things financial. I didn't have any money, but I wanted to learn so that I could manage my money better than my parents had. At that point my goal was to manage my money in such a way that I could have some nice things in my life -- I had a "scrimp to splurge" mentality. That is, I wanted to scrimp where I could (groceries, for example) so I could afford the things I wanted more: a house, vacations, and -- above all -- a security. I developed a solid dislike of debt and an understanding of why it was important to start saving early.
Very important detail: I married a man who thought the same way I did. While we always agreed upon saving aggressively, we never really considered a retirement date. I guess I assumed 65 was for everyone.
We were probably in our 30s when it occurred to us that our efforts were reaping success beyond our expectations. We already had our children's college money saved, our house was on its way to paid-off, and our retirement accounts were (for our age) looking good. We had never heard the term FIRE, but it hit us: We don't need to do this 'til we're 65.
I'm going to say something really negative -- but also very true. We're about your age, and I know
more than a few people who've been laid off /have been unable to find jobs with a similar salary. It's tough to lose your job in your 50s.
The take-away for every who's still young: Make your plans, but don't assume you CAN work until your target date. None of us really know how many more years we CAN work, which makes it even more important to save while you're young.
I'm following along. Due to age, college costs, high cost of living area etc. not doing FIRE, but definitely trying to save more while still realizing that life is short and we need to enjoy some things before we are too old to enjoy them. It's definitely a balance around here.
Yes, we're not as frugal as some people are. We put our children through college, and we've paid for lots of experiences while they were young -- and we don't regret it. "Balance" is a word I like very much in terms of finances.
However, I disagree with the "do it before you're too old to enjoy it" idea. I'm just past 50 and am still as physically able as I ever was. My mom is in her 70s and can still hike all day. I'm not concerned about being unable to do things any time soon.
We were told 4 million should be our target, too. I'm 39 now. DH is 40. That number was to move to and retire on Hawaii tho - and I just don't know if that is realistic or not. We are also considering Palm Springs and that would bring the number down to around 3 million I'd guess, give or take.
Our goals are much lower than yours, but we live in a low-cost of living area, and I'll have a pension. The real take-away here: Everyone should do his or her own calculations and figure his or her own goals. We can't say, "Oh, this should be everyone's goal."
My saying to people is "You can have practically ANYTHING you want. You can't have EVERYTHING you want". Unfortunately many of the people I encounter actually have NOTHING that they want because they waste all their money buying things somebody else has that isn't even important to them
Yes, this just what I meant upthread when I said that younger-me saw money management as a "scrimp to save" thing.
The further down the path to FIRE I get, the less likely I am to comply with something I don't want to do. Busy-Work, needless meetings, paperwork for nothing...no thanks. Don't like it...hmmm fire me (they won't). Of course I wouldn't actually refuse to do something that is necessary and has value in my job.
Yup, you're not alone.
Still, I won't be easy to replace when I retire (quite soon, actually).
What would you say is more important: focusing on mortgage or maximizing ROTH IRAs?
I wouldn't sacrifice either goal for the other. Balance. Spread your assets out: Pay down your mortgage, but also max out your 401Ks (after verifying that your company's fees won't eat up your earnings), and invest in a variety of ways. As for ROTH IRAs, I don't know enough about them to speak intelligently, but I do know that my personal IRA is my worst-producing investment.
Speaking only for myself and my husband, we're close to retirement (so our prime investing days /our days when compound interest was our friend are behind us. We have put together these assets:
- A paid-for house in a prime area; we plan to downsize, but our current house should pay for a new, smaller, cheaper-to-keep house that's better-suited for aging-in-place.
- Personal savings in a variety of investment locations.
- Rental income.
- My pension, which includes health care.
- Social Security, though that's more than a decade away for us.
- We have several plans for reducing our living costs; for example, we will become a one-car family.
Looking back, I'm very glad that didn't put all our eggs in one basket. We have experienced some luck in our careers and finances, but -- like everyone -- we've had a few set-backs here and there. As we approach (early!) retirement, I am glad that IF one of the above assets were to totally fail, we might need to tighten our belts, but we wouldn't be lost.
Credit Card churning can be EXTREMELY lucrative!
I was curious how early everyone is intending to retire? Isit a retires in your 40’s? 50’s? When you turn 60?
