0 to Hero in 10 years

[REatc]

What is your life/financial advice to change someone’s life considerably in 10 years.

My goal is to be FI and have the option to RE in 10 years. Is it as simple as save 50% and it’ll happen on its own? My savings rate isn’t 50% now, it’s more like 33%.

[Morning Glory]

The math works the same whether you make 50k and spend 25k, or you make 500k/spend 250k. The life advice will likely be a little different though.

[reeshau]

https://www.mrmoneymustache.com/2012/01/13/the-shockingly-simple-math-behind-early-retirement/

But if you're saving 33% now, you are not a zero.

[Chris Pascale]

Job at 14, $25 a month into a Roth.

[RWD]

What is your life/financial advice to change someone’s life considerably in 10 years.

My goal is to be FI and have the option to RE in 10 years. Is it as simple as save 50% and it’ll happen on its own? My savings rate isn’t 50% now, it’s more like 33%.

If you're starting from zero you'll need to save closer to 70% of your income (where income is defined as retirement contributions + post-tax paycheck) if you want to be FI in 10 years. The math is easy. Organizing your life around accomplishing it over an extended time frame is not. And there are things you won't have full control over, like job loss or unexpected expenses. And also some things you have more control over, like lifestyle inflation.

But even saving 33% is pretty good (definitely better than the average American). After 10 years of 33% savings I would expect you to have about 30% of your target number. Expect at least 20 years total until you hit FI at that rate.

[2Birds1Stone]

Having done it (75% savings rate over 10 years).....

1) don't let your life revolve around meeting some arbitrary savings rate
2) you will not be any happier 10 years from now than you are today
3) invest in your relationships, health and hobbies/activities outside of work
4) if you're not pursuing certain activities now, using work as an excuse, you probably won't pursue them when money becomes a solved problem
5) figure out a way to enjoy the journey and maximize life satisfaction now, not 10 years from now. You may not be around 10 years from now.
6) what you think you want your life to look like 10 years from now, is not going to be what you want it to look 10 years from now

[Freedomin5]

We started in 2015, and we are basically FI now (8 years later). What worked for us:

1. Keep looking for ways to optimize your expenses. Househack. Find the free option whenever possible. There are often ways to keep the same quality of life but without spending as much money.
2. Do not succumb to lifestyle inflation as your income increases. Continue to live like a poor college student. Instead of keeping the same 70-80% savings rate, just keep your expenses the same (I.e. low) even as your income increases. Save all of the extra income.
3. Find ways to increase your income. Develop a side hustle. Switch jobs every 2-3 years for higher pay.
4. Develop an IPS and keep putting money in the market according to your IPS, no matter how the markets are doing. Don’t time the market. Just DCA your money in each month.

The lower you can get your expenses, and the more quickly you can increase your income, the faster you will reach FI.