Marco Banks wrote:These are my people. This is why I love this forum.
Do you all realize how completely counter-cultural this kind of thinking is? Weirdos. All of you -- weirdos. And I count it an honor to be a counter-cultural weirdo too.
These are the attributes that will make you all wealthy.
David Huang wrote:I certainly agree with all you both wrote Travis and Marco! Most of my life I've really focused on reducing my cost of living. Of the two approaches to increasing your savings rate it is the most powerful one as I noted in the blog post. I'm also completely with you Marco on shifting to other forms of capital that bypass the whole tax system such as the living capital of edible plants. I touched briefly on that in the post too, trying to explore how the gap might related to these other forms of capital.
What I'm thinking I wasn't clear enough about in my synopsis post here is that I'm thinking there can be a benefit to shifting the mindset from focusing on either reducing spending or increasing earning to instead focus directly on increasing ones savings rate. In terms of achieving financial independence/early retirement it's all about the savings rate, not how little you spend or how much you earn. Focusing on the saving rate is harder to do I think because it's a bit more abstract, needing to be calculated from the data sets of how much you spend and earn over a period of time. I guess I was wondering if there are others here who have tried shifting their mindset to directly focus on the percentage of their income they save rather than just looking at one side or the other of the equation?
I don't hugely keep track of spending but my husband realized he was spending a lot of money on energy drinks. He decided that every time he wanted and energy drink he would put the same money into a stock account. He ended up with enough money there to pay for a certification he wanted to get.
David Huang wrote:. If you were able to maintain that awesome 90% savings rate and invested the extra money then in under 3 years you could be financially independent, able to retire and live the same lifestyle off the interest from the investments.