Referring back to MMM's first post, we just moved up from #3 to #2! (I renamed it "Literacy" because I figure, once you get to the top 3 positions you're not quite so idiotic):
- Retired, and my money situation is perfect
- Still working, saving max in 401k, no loans on cars or credit cards, paying regular mortgage payments
- Same as above but add one or more car loans
- Same as above but not quite able to max out 401k plans due to life’s little expenses
- Same as above but have a few credit cards that I’m making payments on
- Can’t always make all my payments, got some bad marks on my credit score.. I’d be screwed if I lose my job now
- Everything has collapsed – losing my house and possessions, can’t find work, debt is more than I can pay off in a lifetime, why is the world so cruel to me!?
As a nerd, this was like leveling up to me. For the past two years we saved up enough for a 25% down payment, locked in an amazing $300k home ($225k mortgage) at 3.25%. Now I am able to max out the 401k and it will feel like a luxury to save pre-tax money, compared to the last few years of having to save for the down payment after-tax. Best of all, thanks to some MMM income-increasing career moves, my salary after the $16.5k deferral will be the same one I had two years (and a few raises) ago. Still going to work to save on top of that and either throw it at the mortgage or invest it - undecided as of yet.
Been reading for two years now and I can say this was achieved through basic MMM principles: biking to work, cooking at home, keeping a budget and choosing the challenging/more satisfying path for my leisure time. All have worked wonders. Wanted to share with this community because most peers wouldn't appreciate it :-).
