At what age do you plan to be financially free?

[Richard Feynman]

I was just going over our goals on paper and thought I'd share them here so others can see our numbers and make more sense of our particular goal(s)

In other words, right now I'm spending 80% of my cash on investments.

Interesting. I'm soon to buy my first IP, but currently I'm spending 68.6%* on PPOR. Here's some insight into well-honed frugality. My annual breakdown (net income %s).

Mortgage: $25,224 (49.1%)
Extra Repayments: $10,000 (19.5%)
Living Costs: $15,288 (29.7%)
Investment: $866 (1.7%)

About to purchase my first IP, in which case the $10,000 extra repayment money will instead go to investment (holding costs).

I can easily maintain the same living costs (I'm thriving, frugally) so as income increases, 100% of the surplus will go to investments.

*Bonuses/extra income not counted, but 100% of that goes towards investments savings.

 

[dajackal]

does anyone here read MMM/ERE/BNL blogs?

just started reading them recently and they've really changed my perspective. reduce spending to exit the ratrace faster. such a novel concept, but in all honesty i never thought of it!

 

[Shaneelastic]

does anyone here read MMM/ERE/BNL blogs?

just started reading them recently and they've really changed my perspective. reduce spending to exit the ratrace faster. such a novel concept, but in all honesty i never thought of it!

I find
- increase income
- invest in education in yourself to support above
- invest
- live a decent lifestyle within your income bracket

The above I do and I know I don't have to watch every penny numbers 1,2,3 are looking after the eventual income and retirement.

 

[redwing]

does anyone here read MMM/ERE/BNL blogs?

just started reading them recently and they've really changed my perspective. reduce spending to exit the ratrace faster. such a novel concept, but in all honesty i never thought of it!

My old man can't understand why people line up in the morning at coffee vans and pay for a coffee...why can't they make one before they leave home say's he

 

[kathryn d]

My old man can't understand why people line up in the morning at coffee vans and pay for a coffee...why can't they make one before they leave home say's he

Well, I can understand that..especially when we are referring to crappachino type coffees in Australia.

Now, since we are back in Canada, Tim Horton's coffee gets our business several times a week

 

[nhg]

Well, I can understand that..especially when we are referring to crappachino type coffees in Australia.

Now, since we are back in Canada, Tim Horton's coffee gets our business several times a week

Oh hells no...

Lol, you really have to know where to go in Aus. Must say, quality in Sydney has been skyrocketing recently, almost on par to the Melbourne scene.

 

[dajackal]

I find
- increase income
- invest in education in yourself to support above
- invest
- live a decent lifestyle within your income bracket

The above I do and I know I don't have to watch every penny numbers 1,2,3 are looking after the eventual income and retirement.

pair that with cutting back on frivolous spending and you're laughing!
check out this blog post about the magic of savings rate and early retirement
http://www.mrmoneymustache.com/2012/01/13/the-shockingly-simple-math-behind-early-retirement/

 

[cimbom]

Thanks for posting that. Apparently, on our current savings rate (40%), we should be able to retire in 20 years

 

[BLTN]

I would like to be financially free by 40 (14 years).

I probably wouldn't retire, but I would like to be at the point where I never need to worry about money every again.

 

[HappyCashflow8]

freedom

Financially Free at 43
11 years...

strategy : Constant focus, consistant action, never ending possiblities.

 

[Shaneelastic]

pair that with cutting back on frivolous spending and you're laughing!
check out this blog post about the magic of savings rate and early retirement
http://www.mrmoneymustache.com/2012/01/13/the-shockingly-simple-math-behind-early-retirement/

So keatings SGC and Swannies increase up to 12% should do it for all Australians?

 

[investor2009]

I haven't read the article in it's entirety, but it states that if I save 100% of my income I could retire in 0 years. Wow! so simple..

The bank would be after my within a month and my money would be gone within 6 months if I did that. A pretty misleading read really. But I could be missing something

 

[HiEquity]

I haven't read the article in it's entirety, but it states that if I save 100% of my income I could retire in 0 years. Wow! so simple..

The bank would be after my within a month and my money would be gone within 6 months if I did that. A pretty misleading read really. But I could be missing something

You are missing something. You need to think about it a bit more.

If you can save 100% of your active income, then by definition your passive income is paying for all your living expenses. Ergo, you can retire if you wish - you are financially free.

 

[Richard Feynman]

does anyone here read MMM/ERE/BNL blogs?

just started reading them recently and they've really changed my perspective. reduce spending to exit the ratrace faster. such a novel concept, but in all honesty i never thought of it!

I stumbled across MMM a few months ago. That guy's definitely a lost cousin of mine or something - it's scary how alike we think about money, and life. I have picked up a few tips though.