Author Topic: Winning the lottery  (Read 2972 times)

Milizard

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Winning the lottery
« on: January 14, 2016, 08:01:01 AM »
I'm probably going to be bashed here for being complainey pants, but the post about the lawyer who managed to retire after working for 5 years making $160k+ seemed akin to the story of a lottery winner.  Yes, she was smart and worked hard, but there are a lot of people who are smart and work hard that never make even half of that salary. 

So, she seems like a really cool person and I am happy for her, but this story wasn't motivational to me at all.   Kind of the opposite, actually.  It was this kind of thing that turned me off to MMM in the first place, being someone making a normal salary amount.  Is mustachianism really intended for people in at least the top 10% earning-wise?  People around the median salary seem more like an after-thought here.

Iron Mike Sharpe

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Re: Winning the lottery
« Reply #1 on: January 14, 2016, 02:31:08 PM »
Holy cow, you missed the point entirely by focusing in on the numbers.  Of course, most people will not be able to do it in that amount of time.  But you can still apply the principles to your own life.  Maybe it will take you 12, 15, 20 years.  But it still beats working until you are 65, 70, or older.

I swear anytime there is something on the internet, there is a chorus of frogs chiming in with "yeabutt". 

Focus on how to make things work, instead of how to make things fail and you will be more successful and happier in life.

dandarc

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Re: Winning the lottery
« Reply #2 on: January 14, 2016, 02:40:27 PM »
The point.










Milizard's head.


Mod Note: Forum Rule #1
« Last Edit: January 15, 2016, 04:34:10 PM by arebelspy »
Link to my journal, so I can find it quickly - http://forum.mrmoneymustache.com/journals/dandarc's-journal/

lostamonkey

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Re: Winning the lottery
« Reply #3 on: January 14, 2016, 03:02:46 PM »
There are a few reasons why I don't think she is that lucky.
-She was in school for ungraduate and law school which has a large opportunity cost
-She graduated school with $100K worth of debt.
-She worked in big law which means 80 hour week. So although she only worked for 5 years, she worked the equivalent number of hours as someone working 10 years with standard hours.
-She is single with no dependants which means a lot of tax at her level of income.

Despite these reasons she is absolutely lucky, but she is not lottery winner lucky.

dandarc

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Re: Winning the lottery
« Reply #4 on: January 14, 2016, 03:06:01 PM »
There are a few reasons why I don't think she is that lucky.
-She was in school for ungraduate and law school which has a large opportunity cost
-She graduated school with $100K worth of debt.
-She worked in big law which means 80 hour week. So although she only worked for 5 years, she worked the equivalent number of hours as someone working 10 years with standard hours.
-She is single with no dependants which means a lot of tax at her level of income.

Despite these reasons she is absolutely lucky, but she is not lottery winner lucky.
Not to mention, the point I take from the article is that lots of people who were just as 'lucky' and have the big income will work those 80 hour weeks for far longer, and still have relatively little to show for it.  The #1 input into the retire-early equation is not how much you earn - it is how well you control your spending.
Link to my journal, so I can find it quickly - http://forum.mrmoneymustache.com/journals/dandarc's-journal/

tooqk4u22

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Re: Winning the lottery
« Reply #5 on: January 15, 2016, 12:10:11 PM »
MMM acknowledged in the article or comments that it was a lot of income and it took even him twice as long. 

The article also doesn't get into how much she saved in that five years, but my guess is about $400-500K based on:

- the very fact that it took a year to pay off the student loan at $95k
- starting base pay of $160k (assume there were increases and bonuses along way so maybe $200k+ on average over five years, and could be much higher) and cleared about $125 after all taxes and benefits. 
- she said (article or her own blog) that her expenses were really low (including rent with utilities of $750/month, packed meals, rode bike or bus to work, dinners paid for by work, etc and probably had no time for fun)....my guess is her expenses were probably $1500-$2000/month total.

$125k clear - $24k living expenses x 5 years - $95k student loans = $404k. 

Anyway, she worked hard, didn't spend her money and then walked away wiht an amoun that a lot of people on this forum would feel is not enough....ballsy maybe, self aware definitely.

rockstache

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Re: Winning the lottery
« Reply #6 on: January 15, 2016, 01:08:47 PM »
That story didn't really 'speak to me' per se, but I didn't feel demotivated by it either. She did put in a incredible amount of effort to get where she wanted to go. My attitude when reading was more 'Good for her.' It's not my life or my choices, but no one here has an exactly parallel life to me but that doesn't mean I can't glean from their stories, advice and opinions. Some more than others obv.

arebelspy

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Re: Winning the lottery
« Reply #7 on: January 15, 2016, 04:35:38 PM »
I'm probably going to be bashed here for being complainey pants, but the post about the lawyer who managed to retire after working for 5 years making $160k+ seemed akin to the story of a lottery winner.  Yes, she was smart and worked hard, but there are a lot of people who are smart and work hard that never make even half of that salary. 

So, she seems like a really cool person and I am happy for her, but this story wasn't motivational to me at all.   Kind of the opposite, actually.  It was this kind of thing that turned me off to MMM in the first place, being someone making a normal salary amount.  Is mustachianism really intended for people in at least the top 10% earning-wise?  People around the median salary seem more like an after-thought here.

Someone said this same thing in the comments, and MMM linked to this post:
http://www.mrmoneymustache.com/2011/09/17/the-race-to-retirement-revisited/

Read it and rejoice, because you don't have to be the 160k lawyer to ER.

:)

This article was targeted at, IMO, those people who ARE making that much, but complaining they can't get ahead because of giant student loans.  This person paying off 95k of student loans in a single year will be inspiration for them.

People at every income level can complain it can't work for them.  It can help to show them a real example that yes, it can.
« Last Edit: January 15, 2016, 04:37:18 PM by arebelspy »
We are two former teachers who accumulated a bunch of real estate, retired at 29, and now travel the world full time with a kid.
If you want to know more about me, or how we did that, or see lots of pictures, this Business Insider profile tells our story pretty well.
We (occasionally) blog at AdventuringAlong.com.
You can also read my forum "Journal."

Milizard

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Re: Winning the lottery
« Reply #8 on: January 15, 2016, 04:40:42 PM »
That story didn't really 'speak to me' per se, but I didn't feel demotivated by it either. She did put in a incredible amount of effort to get where she wanted to go. My attitude when reading was more 'Good for her.' It's not my life or my choices, but no one here has an exactly parallel life to me but that doesn't mean I can't glean from their stories, advice and opinions. Some more than others obv.

She seems awesome, and I don't begrudge her at all.


There's this, (sorry, I can't think of the wording i really want to use here), this belief that permates probably throughout most of society that early retirement is only possible for very high earners that get up there very early in their careers, and also people with extra special and generous benefits that most people don't get anymore, such as pensions.  This story, as impressive as it is, reinforces that bias.