See title.
Basically, going ultra frugal on everyhing in order to literally save most everything you earn. Going extreme. after a 4-5 years, if you have a 100K+ income, you can save on the order of hundreds of thousands
Here is my example:
Current State:
- 75K income AFTER taxes/etc/insurance (115 before)
- Own house with one renter, 220K total debts. 4 bedroom 3 bath. 1418 a month mortagage +PMI + taxes/etc
Proposed "Accelerated savings" state:
- Rent out remaining two bedrooms in house to cover entire mortgage + insurance + taxes payment.
- basic basic cell phone plan (20bucks a month)
- basic internet, cost aborbed by renters
- carpool to work everyday. bike where I can. go basic in car insurance
- Food budget of 100 dollars a month (can be done).
- no new clothes, or buy used at goodwill/etc
- get a second job (consulting) in my field with an additional 20 hours a week, @50 dollars an hour (resonable) for an extra 30K of take home a years, bringing my total take home after taxes/etc to around 100K.
Do this for 4-5 years, and save/invest 500,000. Do it sooner than later to reap the yearly compounding returns over 30+ years.
thats basically compacting a life's worth of savings into a short period of time that is relatively not impactful (4-5 years), and then reaping the fruits of your sacrifice after.
September 27, 2017 at 04:57PM
