Author Topic: Can I get an AMEN? How close are you and how did you do it.  (Read 3109 times)

Allie

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Can I get an AMEN? How close are you and how did you do it.
« on: November 26, 2014, 04:53:30 PM »
I see plenty of case studies and questions posted from people who are new to living below their means.  They get a dose of simple math and a few face punches.  I have gotten a couple myself.  Anyone one want to share their testimonial regarding this whole simplifying, saving, and stashing thing?

I know this has been done before, but I read a post questioning MMMs stash building.  This topic should be revisited often for everyone out there who is struggling to get started or questioning whether this whole mustachian thing really works.

How close are you to FI?  How much have you saved (either net worth or a multiplier of your expenses)?  How did you do it?  How long did it take you? 

What's your story of success?

skyrefuge

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Re: Can I get an AMEN? How close are you and how did you do it.
« Reply #1 on: November 26, 2014, 05:29:23 PM »
My career path mirrored MMM's pretty closely: started as a well-compensated tech engineer in 1998 (one year after MMM) with a net worth of ~15k. I was single the entire time, and never lived with roommates, so that means it took me 14 years to hit the $800k mark that he hit in 10 (also being shifted in time by that year meant I didn't hit the tech boom or subsequent housing boom quite as optimally as he did). Since I'm an idiot and still working, the stash has grown another 50% in 2.5 years since then. Here is a slightly more detailed and inspirational version of my story: http://forum.mrmoneymustache.com/share-your-badassity/well-damn-i%27m-a-millionaire/

I'm like someone who wrote in the thread that inspired you to post this one: I've essentially living an MMM life for a decade before "MMM" even existed, so the idea of doubting his story never even crept into my mind. Like if someone tried explaining to me that the trick they used to get to my house in 20 minutes was "walking". Uh, yeah, it's a mile away, so my subconscious Occam's Razor fires up and tells me I should probably just believe you rather than thinking that you actually took a hovercraft and are making up your "walking" story just to put one over on me and make BIG INTERNET BUXXX.

deborah

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Re: Can I get an AMEN? How close are you and how did you do it.
« Reply #2 on: November 26, 2014, 11:40:56 PM »
I retired a few years ago. I could have done it years earlier, but it took a while to believe that I could.

I was always frugal - my family has always thought of me as a saver. Initially, I just saved, then I bought a house that was a dump, with a small mortgage (this is Australia, so small is not necessarily small) but 18% interest. I paid off the mortgage in 5 years. We gradually improved the place. By the time I sold it, it was a very nice house.

I had always had problems with my job because I was sick all winter every winter. I was retrenched from one job, and part of the retrenchment package was some financial advice - started a stash. When I got another job sickness was still a major problem. I became a contractor and less than six months later (if I had had six months of employment history there would have been compensation, but there was none) I had an accident that left me with whiplash for three years, and unable to do a lot of things. I lost a lot of money over that time - I think I added up at least $100k - but it all came out of the stash, so it really wasn't a problem.

I moved interstate and stopped being sick in winter and the whiplash stopped. I bought my new house with cash (which astonished the real estate agent). The mess my financial affairs had got into was straightened out, and my financial adviser said I had enough to retire on. Didn't believe her. Five years and three financial advisers later, I retired. All of them had told me I had enough to retire on. And I actually did.

All in all, I was at least 10 years older when I retired than I could have been, because of the accident and the amount it took from the stash, and not believing I had enough. I still retired early although I didn't get the wages that some people here earn. But then, I never spent what some people here spend.

If I had not been a woman, I probably would have started a stash earlier. The messages I received when I was young were that women don't buy houses, don't invest, and don't manage money. It took some time to get over those messages.