Sixteen years ago,when I started tracking finances, things did not look good. CC, car, & student debt, no assets beyond my old used car, and a new job with average income.
I committed to saving 25% of my gross income and investing it. I did the math and it looked stupid obvious, return from investments would exceed my savings rate in 10-15 years. Why didn't everyone do this?
I followed the plan. With every raise I increased consumption by 75%, 25% gross was saved.
It took 3 years to reach a net worth of zero. It took 5 more years to reach a net worth of $100k. The next $100k came faster. The next even faster. Then another, another, another, ....
I'm not doing anything risky. Paid off debt, making mortgage payments, refinancing when it makes sense, investing in 401k, HSA, IRA, some after tax funds in stocks.
This feels like cheating. Returns from investments have exceeded my savings for several years now. I had a year where net worth increased by more than my gross income. WTF. Early retirement has never crossed my radar but the math says otherwise.
Trust the process and just do it.
Submitted February 26, 2021 at 07:56PM by Client_Hello https://ift.tt/3q0uTV9
