The Money Mustache Community
Around the Internet => Mustachianism Around the Web => Topic started by: 4alpacas on November 12, 2013, 01:28:43 PM
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Ilene really turned things around after her divorce!
http://money.cnn.com/gallery/retirement/2013/11/11/401k-millionaires/4.html
Ilene Davis walked away from a divorce at the age of 37 with roughly $100,000 in financial assets. Less than 30 years later, she has built up more than $2 million in retirement savings while earning an average annual salary of less than $100,000.
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"The trick is that you condition yourself: I'm only getting paid (X dollars) a month, and you have to live with this," he said.
Simply put, I can't imagine thinking "I have to live on less than this x dollars." I buy what I need, a few luxuries, make sure things that I buy are worthwhile, etc. and I always spend less than a 1/3 of what I make.
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"The trick is that you condition yourself: I'm only getting paid (X dollars) a month, and you have to live with this," he said.
Simply put, I can't imagine thinking "I have to live on less than this x dollars." I buy what I need, a few luxuries, make sure things that I buy are worthwhile, etc. and I always spend less than a 1/3 of what I make.
My portfolio can provide X dollars per month, where X is around $3000 or $3500. I typically spend much less, probably closer to $1.5-2k/month unless some large lumpy expense comes up. So getting used to having max potential spending of 50-100% your typical spending isn't necessarily too hard to live with, and allows for needs, wants, and some pure luxuries. I like to say I can have anything I want, but not everything I want. (As long as "anything" doesn't cost more than $35-40k/yr).
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hm... nice story but i don't think making 80k a year is "less than average"...
still hoping to have my retirement in 13 years... at age 40 :S