F.I.R.E. Thread

[GettingReady]

Both of us are retiring next year. No RE here as my dh will be 65 and I'll be 59. That's okay though. We still made it. I'm goal oriented so that's what worked for me. That and a budget. Being math impaired, I penciled out the rule of 72 to keep track of where we were and where we would be at different years based on different saving scenarios.

We've been married almost 25 years and started out -40k due to hubs debt. Paid that off in 4 yrs and were plus 60k. We chose never to have debt including a mortgage or car payment

Recently had a financial plan done by Vanguard. Even if we were to increase our living expenses 30k a year we have over a 99% chance of success of our money not running out by age 100.

You mean I can shop somewhere besides Sav A Lot or DG? And we can replace one of our 14 or 16 year old cars? It's still hard to fathom that it's okay if my dh gets something not on the list and it won't ruin our lives. However, we have enjoyed life along the way and have never gone without anything we needed. We had some trips years ago to Germany and Israel. I've gone on the mission's trips to Haiti and China. Hasn't been many trips in the past 1o years and those were the states.

FYI, we did it on one income for 10 of those years averaging 50k a year. It can be done!!

 

[Barefootwoman]

Children add a lot of expense, I don't think there are too many ways around that...I have only one child and there were only so many ways we could economize on her expenses because...well, she was our child and we wanted the best we could do for her - so that meant for us, a private school education (public schools in our area were full of problems) and that also meant, buying a better, bigger home in a safer neighborhood. and so on and so on. The best way we could save $ was through using a Dependent Care SA to pay her after school and summer camp expenses on a pre-tax basis. Also, being a non materialistic sort of family, we spent little on plastic thingies that bore children quickly and get discarded. We were fortunate that her higher education expenses were basically all taken care of through her father's military benefits...and yet at the end of the day, yes, she has been expensive, but oh my God, she is priceless.

 

[GettingReady]

Yep, kids are expensive but worth it! Invariably people will make excuses. One family said they would never be able to retire because of child support. Yes, child support is expensive but you can still retire. It's all about choices and what's important to you. We didn't have child support but we've "given" a lot over the years and the past four years our giving has been around 1k a month. Now could we eat out every night, buy new cars and clothes and toys and still be able to give? Absolutely not! It was a choice. Having said that, I am really looking forward to 'our turn' next year with our EU vacation ad I'll try not to feel too guilty since a lot will be paid with points and miles.

 

[smittytabb]

Yep, kids are expensive but worth it! Invariably people will make excuses. One family said they would never be able to retire because of child support. Yes, child support is expensive but you can still retire. It's all about choices and what's important to you. We didn't have child support but we've "given" a lot over the years and the past four years our giving has been around 1k a month. Now could we eat out every night, buy new cars and clothes and toys and still be able to give? Absolutely not! It was a choice. Having said that, I am really looking forward to 'our turn' next year with our EU vacation ad I'll try not to feel too guilty since a lot will be paid with points and miles.

A lot of people struggle with guilt when they retire and begin to travel. Try if you can to get rid of that. I think it keeps a lot of people from doing it. I have had people tell me my travel is selfish. I laugh. I raised four children, all college educated, none of them with student loan debt. I worked hard in the work force and at home. My husband is still working with no desire to retire. I have no grandchildren. This is my time and I am just happy for my health and will do as much as I can while I can. I don't take any of it for granted, but I have no guilt whatsoever.

 

[GettingReady]

A lot of people struggle with guilt when they retire and begin to travel. Try if you can to get rid of that. I think it keeps a lot of people from doing it. I have had people tell me my travel is selfish. I laugh. I raised four children, all college educated, none of them with student loan debt. I worked hard in the work force and at home. My husband is still working with no desire to retire. I have no grandchildren. This is my time and I am just happy for my health and will do as much as I can while I can. I don't take any of it for granted, but I have no guilt whatsoever.

I'm working on getting rid of it--guilt, that is. Lol. I think after years of giving with family, foster childten, and patients, it feels somewhat selfish to enjoy something for myself. That's one of the reasons learning the game is so important to me. It makes it easier for me to enjoy things that I wouldn't otherwise due to the cost. Kinda hard to explain.

 

[Barefootwoman]

One of the first steps usually recommended for retirement planning is to come up with budget of how much you'll think you'll need to live on retirement.

I started developing my estimates a few years ago and the two biggest line items were healthcare and travel expenses.

This was before the ACA became more of a reality and before I got into this game/hobby/whateveryoucallit.

Looks like I'll be back to revising estimates in 2016. If I only I had a crystal ball.

 

[GettingReady]

One of the first steps usually recommended for retirement planning is to come up with budget of how much you'll think you'll need to live on retirement.

I started developing my estimates a few years ago and the two biggest line items were healthcare and travel expenses.

This was before the ACA became more of a reality and before I got into this game/hobby/whateveryoucallit.

Looks like I'll be back to revising estimates in 2016. If I only I had a crystal ball.

Te following is a very simplistic formula but I liked it for that reason.

Nest egg = (non-discretionary budget * 2) - (annual pension/Social Security) * 25

The person that came up with it figured it would give them ability to cut down on expenses as needed. It also builds in padding for things like vacations, new cars remodeling and other nonessential items. Course the 25 is based on the 4% rule. However I prefer variable withdrawal.

 

[Gregovich1]

Good stuff in this thread. I'm 37 and getting more serious about early retirement. I'm planning on real estate being part of the strategy. Any other Bigger Pockets people out there?

 

[redbirdsj]

Good stuff in this thread. I'm 37 and getting more serious about early retirement. I'm planning on real estate being part of the strategy. Any other Bigger Pockets people out there!

Real estate is definitely a big part of my strategy. I'm currently going all in on real estate with after-tax investments. Not for everyone since it's much more active than an index fund.

 

[sriki]

Good stuff in this thread. I'm 37 and getting more serious about early retirement. I'm planning on real estate being part of the strategy. Any other Bigger Pockets people out there?

Bigger pockets seemed to advanced for a newbie like me

 

[CWAL]

I'm probably on the far extreme of things, but I have been planning and am roughly on track for FI by the time I hit 30. Sound crazy? Not in my experience. Got started by reading the mustache man like many others, and things just clicked. I don't spend money on frivolous things, but still live quite comfortably. I've even taken multi week international vacations in four of the last five years (thanks Chase/AMEX/Citi/travel job!)

I really want the freedom to take unpaid vacations and be more involved in raising my future kids. I have zero interest in being an employee any longer than I have to.

Like many, I'm aiming for FI, and if the RE happens, great. More than likely, it will just end up being REB (Retirement from External Boss).

 

[volker]

I followed various FI blogs a few years ago. I noticed one thing: all these bloggers don't have kids or got their kids after saving aggressively for 7 years or more where the compounding slowly start to roll. Reading through the history I also noticed that a lot of them had a lucky good timing where they invest heavily during the times of low market when the S&P 500 was around 700-900. Same with their house purchase. I am wondering how the FI blogger generation will look that start their journey now or did in the last 1-2 years.

I myself am living bellow my means as much as possible. I was good on track and saved as much as possible and maxed out all retirement options. When I got a kid I started to get a totally different view on all these "success" stories where people claim to have made it in 7-10years. After college and before I got a kid my post-tax savings where mainly going into a savings account for down payment & emergency fund. After I got a kid that money goes now into daycare & 529. Now I am at the point where I see how "tight" (due of maxed out retirement savings) it will be as soon as I get a second kid. I either need a raise or have to cut back on retirement savings (raise it will be). Thanks to the down payment saving at least my housing cost won't raise extremely (outside of taxes) which is a plus in an expensive metro area. The kid factor pushed my entire retirement hopes back for around 10years (or more).

 

[Matt]

I followed various FI blogs a few years ago. I noticed one thing: all these bloggers don't have kids or got their kids after saving aggressively for 7 years or more where the compounding slowly start to roll. Reading through the history I also noticed that a lot of them had a lucky good timing where they invest heavily during the times of low market when the S&P 500 was around 700-900. Same with their house purchase. I am wondering how the FI blogger generation will look that start their journey now or did in the last 1-2 years.

I myself am living bellow my means as much as possible. I was good on track and saved as much as possible and maxed out all retirement options. When I got a kid I started to get a totally different view on all these "success" stories where people claim to have made it in 7-10years. After college and before I got a kid my post-tax savings where mainly going into a savings account for down payment & emergency fund. After I got a kid that money goes now into daycare & 529. Now I am at the point where I see how "tight" (due of maxed out retirement savings) it will be as soon as I get a second kid. I either need a raise or have to cut back on retirement savings (raise it will be). Thanks to the down payment saving at least my housing cost won't raise extremely (outside of taxes) which is a plus in an expensive metro area. The kid factor pushed my entire retirement hopes back for around 10years (or more).

Well, having kids in general goes against the pure concept of FIRE. MMM at the extreme (a good example of extreme FIRE views) would consider a child or a pet a cost that slows down the goal of FIRE.

So while I think that extreme slightly nuts, it perhaps isn't a good idea to be funding a 529 if you are still trying to increase your own net worth to a point where compounding kicks in. I see 529 plans for the very well off.. hopefully as a couple you are saving 5-6 figures per year (and are debt free) before you have enough cash for that..

 

[Free-quent Flyer]

@volker Can you share your logic for contributing to a 529 plan? Locking up money that can only be used penalty-free for higher education expenses seems like a strange choice for someone interested in pursuing FIRE.

If you're able to achieve FIRE then your long-term capital gains rates will already be extremely low/zero, so taxable savings will give you the option value of spending on higher education if necessary or to finance your own expenses if your kids decide to pay for higher education with grants/loans.

As @Matt says, 529 plans are great for those who pay 15+% even on long-term capital gains. If you're paying 0% on long-term capital gains, 529 plans are just penalized savings vehicles.

 

[MickiSue]

LOL, Volker. Where do you go to get a kid? I "had" one. Then two, three, four.

FI came very very slowly for me, after I fired their dad.

No RE, either. But we're working on that for Husband.

 

[volker]

My assumption will be that I probably work till the time the kids get into college. In a few years daycare cost will drop, when they get into school it should drop some more and salary should go up above inflation so there is more money to save down the road til the kids are in college.

My logic regarding 529/FI is as following:
- If I save now into a regulare account for early retirement and retire when the kids will get into college I have to pay taxes of my capital gain I use for college
- If I save now into 529 and pay college in 18years I don't have to pay these taxes on the capital gain I use for college.

My plan is also to save more in the early days into the 529 so the capital gain is higher as if I would save it far down the road. Another aspect is that I plan to "only" save around $40k-60k for two kids. One will probably study the other one might take another educational track. So I don't want to save too much here to minimize the risk of penalty. I also plan to send them to Europe where university education as well as other job educational programs as well as the cost of living is much lower. In my case that means raising the kid bi-language what we already do with the first kid (for a Master degree there are enough English-speaking programs, but for Bachelor degree the story is a different one).

 

[PurpleSquirrel]

Yeah, kids can be a speed-breaker for F.I.R.E but I'd rather die early living a life with kids than live a long life with no kids. I understand, not everybody agrees with me. At the end of the day, many of the things I cherish do not involve money.
Another aspect I considered is, moving to another country after retirement. That way, our US dollars go a long way in supporting a post-retirement life. Thailand, India, one of the Caribbean islands, Costa Rica. We can get US social security and the low cost of living in a foreign country.

 

[volker]

Yeah, kids can be a speed-breaker for F.I.R.E but I'd rather die early living a life with kids than live a long life with no kids. I understand, not everybody agrees with me. At the end of the day, many of the things I cherish do not involve money.
Another aspect I considered is, moving to another country after retirement. That way, our US dollars go a long way in supporting a post-retirement life. Thailand, India, one of the Caribbean islands, Costa Rica. We can get US social security and the low cost of living in a foreign country.

Europe is much cheaper as the US, too. But you want to skip Switzerland and some big cities like Vienna, Munich, London. Some big cities have some nicer cheaper areas, though. Alternatively you can also move to the middle of nowhere here in the US, too.

 

[MickiSue]

My avatar is from a small town on the Adriatic coast in Italy. Having been there a couple times now, we've decided it's TOO small. But there's another, about 1/2 hour closer to Daughter, that's a bit bigger, more vibrant.

We could probably rent, for about 6 months a year, a two bedroom, walking distance to an incredibly beautiful beach, for about 600 euros a month in season. Or, just rent it year round for about 500. And then spend a month or so in one of the gorgeous but less expensive parts of MX, when it's cold and rainy on the Adriatic.

 

[smittytabb]

My assumption will be that I probably work till the time the kids get into college. In a few years daycare cost will drop, when they get into school it should drop some more and salary should go up above inflation so there is more money to save down the road til the kids are in college.

My logic regarding 529/FI is as following:
- If I save now into a regulare account for early retirement and retire when the kids will get into college I have to pay taxes of my capital gain I use for college
- If I save now into 529 and pay college in 18years I don't have to pay these taxes on the capital gain I use for college.

My plan is also to save more in the early days into the 529 so the capital gain is higher as if I would save it far down the road. Another aspect is that I plan to "only" save around $40k-60k for two kids. One will probably study the other one might take another educational track. So I don't want to save too much here to minimize the risk of penalty. I also plan to send them to Europe where university education as well as other job educational programs as well as the cost of living is much lower. In my case that means raising the kid bi-language what we already do with the first kid (for a Master degree there are enough English-speaking programs, but for Bachelor degree the story is a different one).

Expenses rise as children get older, not the other way around. In terms of going to university in Europe, unless they are EU citizens, they will be paying international student tuition, which is perhaps lower, but not as easy to do as you might think. If it were, everyone would be making that choice. Raising children to be bilingual is great, but assuming that will facilitate entry into a university in Europe may not be the best reason to do so. And yes, I have raised children to adulthood and one of my children actually does have a degree from a European university.

 

[volker]

Expenses rise as children get older, not the other way around. In terms of going to university in Europe, unless they are EU citizens, they will be paying international student tuition, which is perhaps lower, but not as easy to do as you might think. If it were, everyone would be making that choice. Raising children to be bilingual is great, but assuming that will facilitate entry into a university in Europe may not be the best reason to do so. And yes, I have raised children to adulthood and one of my children actually does have a degree from a European university.

If I look at the daycare expense it should even out over time. The first year is the highest, the rest gets probably partially eaten up by additional expense, for school I hope for a small drop. I hope I will be able to keep the travel expenses (airfare) low On the other side, I don't see how a teens living cost adds up to $1.5k/month expenses as daycare alone does.

Regarding universities in Europe, the fees highly depend on the country. I wouldn't study in the UK because the fees are usually high. In Austria and Italy you pay like 1.5k EUR/yr, studying in Norway is basically free. There are some more states in between for like 500-1k EUR/yr. If I remember correct Irland can also be a cheap spot. And of course, you don't raise kids bi-lingual for their future education options, but it can be a big benefit. With dual citizenship there is even a greater chance that at least one will study abroad.

And as always, they can also decide to study in the US, but you don't want to put too much into your 529 and then they don't spend much because they have low university fees & living costs.

 

[smittytabb]

If I look at the daycare expense it should even out over time. The first year is the highest, the rest gets probably partially eaten up by additional expense, for school I hope for a small drop. I hope I will be able to keep the travel expenses (airfare) low On the other side, I don't see how a teens living cost adds up to $1.5k/month expenses as daycare alone does.

Regarding universities in Europe, the fees highly depend on the country. I wouldn't study in the UK because the fees are usually high. In Austria and Italy you pay like 1.5k EUR/yr, studying in Norway is basically free. There are some more states in between for like 500-1k EUR/yr. If I remember correct Irland can also be a cheap spot. And of course, you don't raise kids bi-lingual for their future education options, but it can be a big benefit. With dual citizenship there is even a greater chance that at least one will study abroad.

And as always, they can also decide to study in the US, but you don't want to put too much into your 529 and then they don't spend much because they have low university fees & living costs.

But there are expenses besides school. Have you considered the expenses teens have that toddlers do not? Consider car insurance if they drive, clothing, larger amounts of food, activities and sports. If you really think a teenager costs less than a toddler, you are in for some surprises. I have raised four children, so feel free to believe what you want. You also have to adjust for inflation. You just became a parent, but trust me, there is some wisdom in listening to people who have been there before.

 

[volker]

But there are expenses besides school. Have you considered the expenses teens have that toddlers do not? Consider car insurance if they drive, clothing, larger amounts of food, activities and sports. If you really think a teenager costs less than a toddler, you are in for some surprises. I have raised four children, so feel free to believe what you want. You also have to adjust for inflation. You just became a parent, but trust me, there is some wisdom in listening to people who have been there before.

I never said I don't believe you. I just have struggle believing that each teen costs more as an 0-2yr old kid. Random made up numbers for a teen: food: $400, cloths: $200, activities & sport & school stuff: $300, car & insurance: $200, pocket money: $200, travel: $200 = even out my current daycare cost (which is actually more as 1.5k at the moment). So I save the money I have to spend now on diapers & co. I always leave inflation out since I anticipate that everything gets higher.

 

[MickiSue]

Volker, what can I say? I raised four kids, too. And smitty's right: they cost more than babies and toddlers.

You are neglecting to add, for example, the cost of their cell phones, data plans, extraordinarily high car insurance costs, and other, more intangible costs like the likelihood that you need a bigger home with extra bathrooms when they start taking 1/2 hour showers twice a day.

Oh, there's that extra cost of electricity and water, as well.

 

[craig d]

Millennial here. I only found out about what FIRE really meant about a year ago from a coworker who talked about a site with articles about that kind of stuff (MMM). I read some and got motivated, then perused the forums and quickly got discouraged from what everyone else was doing, their net worth, etc. Although discouraged, I thought back to my uncle telling me I should be maxing out my 401k contributions at work every year. I previously thought there was no way I could put away the $17k plus each year, but fast forward to today and I've been maxing it out for almost a year now, have 3 kids, and a wife no longer working.

I've always felt like I've had a good head on my shoulders; no student loan debt (paid my way during school), no CC debt, not a lavish lifestyle. But reading all that stuff motivated to do more; albeit not as extreme as many. I feel like there has to be a balance with living now and retirement. I don't want to put every penny away while eating Ramen, not going to the movies with the kids, or washing clothes once a month. I realize I probably will not be able to retire at 45. But anything could happen tomorrow. By playing this game we play it enables me to travel places I wouldn't have been able to otherwise and to do it cheaply. Besides, traveling is something I always thought I'd do in retirement, just the more I think of it I may be too decrepit to be able to then. Mite as well do some traveling now and hope I can down the line too.

 

[Derptrader]

Wow, I'd never thought I'd stumble across a forum that would also promote the FIRE concept, which I have been trying to achieve since I got employed out of university in 2011. After working 70 hour weeks during my first year at work, I decided that my day-job wasn't going to cut it.

Before that in 2010 I was looking really hard into affiliate marketing/online marketing/websites/SEO etc. That didn't work for me at that time.

Then came the journey of learning how to invest/trade. First in forex, then into futures. I never got into stocks as the market hours in USA never matched with with New Zealand. I managed to make a decent chunk of money in both 2014 and 2015 (25% of my day job income) after the initial losing phase since 2011. Luckily I knew that I was going to suck at the start (2011-2013) so I never put too much actual capital in it.
Last year has been rough, but that's how the business is and that's what I signed up for. I love trading and when you do something you love every day, it's not work at all, which is another way to define FIRE. I still have the job from 2011 and managed to transfer here to the USA in early 2015 so I can take advantage of the opening trading hours in the morning before I go to work (on PST). Balancing this out with a day job when you have a safety cushion to fall back on is vital.

I started reading a whole lot of books and attending some courses and getting some valuable subscriptions on how to trade. Overall, it didn't set me back. I learned heaps, hit a few duds along the way. Nearly all my waking hours (apart from spending time with the wife, job, exercise) are devoted to making this work for me. The initial investment in this is heavy and I pretty much kissed my social life goodbye. Now having 4-5 years under my belt, I've learned to take it a bit more easier on this journey, smelling the roses and travelling as well. I'm still not there yet, but I know I am closer everyday.

I tried stocks as well via Robinhood and promptly lost half my account in 2015 (luckily with not too much money). But what I learned is that when the market goes down, it doesn't hurt you enough to bail/provide you with a sense of urgency like leveraged futures and forex. As a result I always obey my stop losses with every trade. Unlike the world of MS and points, there are too many sharks swimming out there and watching CNBC really doesn't help. I also do not recommend stocks for different reasons

I understand that stock trading is not promoted in here, but wanted to provide an informed response on how FIRE can be achieve via trading. Ultimately I have a higher risk appetite than the general population, have a passion for it. It's definitely not for everyone.

Definitely many views here and all are very interesting in terms of FIRE. Ultimately it is about trade offs and what you can live with/without. Either increase income or decrease expenses. My advice is that for your FIRE activity (business/venture/job) should be something that you really enjoy and that your time doesn't feel like it's a waste. Just like how I also enjoy the points and miles game. If you find something that is lucrative and have the same enthusiasm for it just like MS (most of us) go for it!

I do apologize for the long post. Happy to be part of the community!

 

[Barefootwoman]

I started reading a whole lot of books and attending some courses and getting some valuable subscriptions on how to trade

I'd appreciate any specific links and references you have. I'm pretty much FI, but planning to RE in the near future when I can devote more time to learning about different strategies. It's always a challenge balancing time vs. money, while also evaluating potential risk.

There are actually several websites devoted to FIRE, for example, the Retire Early Home Page - also if you google the term there are several forums, a couple quite valuable IMO.

I have one child, she's an adult now and I vouch for the fact that expenses did not decrease as she got older. I'll add however that we were unconventional parents - we made her a partner in the financial success of our household, rather than a drain on it. Lest others gasp at the notion, all that meant was that she was expected to contribute to housework and pay for certain things she wanted that we considered above and beyond. Now, at 26, she's shrewd and very competent - and fun, too.

 

[Barefootwoman]

oh I do have a suggestion to add, third hand: Harry Browne, author of the Permanent Portfolio.

I've never read the book, but others I know, who are reasonably competent, claim that Harry has a method for beating the market. I have no idea, haven't looked into too deeply.....probably because people shun the notion, lol.

 

[Derptrader]

@Barefootwoman, here's a book with the mindset that you should approach the market with:

Reminiscences of a stock operator - Edwin Lefèvre. This is basically a book about Jesse Livermore. Some good trading wisdoms in here on whether the market can be beat etc.

My go to macro market news/analysis is the Strategic Intelligence Report by Mercenary Trader - http://www.mercenarytrader.com/sir/
Another great resource from a long horizon trader is the Factor newsletter by Peter Brandt. This is based on chart analysis. He has a book which is Diary of a Professional Commodity Trader: Lessons from 21 weeks of real trading. He has a pretty good track record and his style is longer term swing trading.

It really depends on what style of investing/trading that you would like before I point you to any additional resources.

In terms of the mindset for the FIRE - Here's a video series I bought on creative live which was suggested by Tim Ferriss. I found it really informative and helpful once you have a method (Six Months to six figures - Peter Voogd) - https://www.creativelive.com/courses/six-months-to-six-figures-peter-voogd?via=class-list-collection If this is a bit steep, he has a book on Amazon with the same title.

 

[Matt]

If you are looking for an education getting into Day Trading, I'd suggest the CFA certification, it takes 2yrs if you press hard, but you'll gain a good understanding of how things work.

At a basic level, you need to know a trade has two components: Buyer and Seller. Every transaction you take will fill one of those roles.

If you're knowledge is below CFA level then you're potentially betting against a more skilled trader, which means you could be walking into major mistakes. Once you have that ability to parse data, you need to buy data subscriptions, which can be very expensive.

After knowledge, you need to consider how your ability to execute compares. For perspective, the Trade Order Management component alone of what I operate retails at $65,000 per year. This piece is just the one that recommends/sorts trades which I can select for action. It feeds directly into Institutional brokerage. Think of me (or someone much smarter than me) as being on the other side of the Buyer/Seller trade with the technology that is at this level (or higher) when you decide to bid or ask.

 

[Ethan]

Matt, where are good places to obtain the CFA certification?

 

[MileHighYuppie]

Matt, where are good places to obtain the CFA certification?

...its a test, 3 to be exact, hard ones.

 

[Matt]

Matt, where are good places to obtain the CFA certification?

The CFA Institute

https://www.cfainstitute.org/pages/index.aspx

 

[Matt]

...its a test, 3 to be exact, hard ones.

Yep. I'm enrolled in this and another advanced certificate this year. I'll be sitting Level 1 CFA and Level 1 and 2 NTPI Fellowship. In terms of workload, I see the CFA Level 1 involving 5x the hours of the other two courses combined.

 

[Mancolt]

Matt's story sounds similar to mine. I hope I continue to follow on the same path.

I went to college on a full academic scholarship (lucked out there!) so I was fortunate enough to graduate with zero debt. College was pretty easy for me as well, especially after switching majors. I was fortunate to land a job right out of school. It wasn't a crazy amount of money, but I certainly wasn't destitute. After 7 years in the workforce, my salary has increased by more than 110%, and I have a strong reputation in my organization. I think my long-term career here is very promising, if I decide to stay. I also held down 1-2 part time jobs during college to make some money. But I never really saved, and my parents will be the first to admit that they never really supplied me and my siblings with that foundation or mindset.

Despite having a much higher than average salary, I never the less find myself in debt. Right out of school, I had the mindset that I was working hard, advancing my career, and not only would I be able to pay off the bills for everything I wanted (down the road, when my salary inevitably increased, or so I thought) but I also deserved those things precisely because I was working hard and doing well. I'm far from buried in my debt, fortunately, and through the help of budget software that I discovered within the last year, I will be debt-free from personal loans and credit cards by October of this year. I'll still have a motorcycle loan (not for long, I think that will be paid off a few months later) and my car lease, but I'm not as adamant about cutting expenses as some others that I read about (Mr Money Moustache, for example). I don't mind having those or a Mortgage, although my goal is certainly to pay them off more quickly than most people do.

I've always had an interest in maximizing my return, and squeezing as much out of a system or set of rules that were set up to exploit me. So once I finally had a plan in place to eliminate my credit card and loan debt, I changed my mindset about credit cards from something that seemed to be controlling me, to something that I can not only control, but can leverage to my own benefit. That led me to the concept of churning, and then naturally to MS, and now I'm reading more about reselling. Reselling seems like a great way to supplement my income (primarily to increase my contributions to my 403b and Roth IRA), and to earn a lot of points in the process.

I should note that I wasn't completely lost while incurring this debt. I continued to contribute to my 403b since graduating from college (admittedly, only 10% of my pay) and have made sure that I'm paying 0% interest on the majority of my debt (esp the Credit Cards).

Only recently have I learned of the concept of early retirement. My parents are both working now, and my dad especially will be working well into his retirement years because he has to. I always thought that was standard, and something that I just had to live with. The more I've read online, the more intrigued I am about the concept of early retirement. I'm only 30 now, but it seems that if things go well and I have a good plan in place, it's not inconceivable that I could be retired by 50. I think I read in someone else's post that they don't want to sacrifice their lifestyle in order to retire early, and I'm in the same boat. I can make more intelligent decisions, and I can slow or halt the increase in my consumption/spending, but I don't want to have to take a step back in order to retire early(er than most).