I maybe the youngest member here. Lol.

[gregzx]

Hi there.

Let me introduce myself. I am Greg, and I am only 24 next November. However, I have a wife and a daughter (2 yo now). I earn maybe 50-70k/year now, from my online work.

I joined this forum, because I know that many (if not all) of the members here have a good way to earn money from business. I want to learn that, and make my own moves offline (not only online job). I hope I have a right reason to join this forum. Last, thank you, and nice to know you all.

 

[scrinch]

Welcome, gregzx. I think most forum members here have not learned to earn a lot of money. Rather, they have found the secret to achieving financial independence is to spend less than they earn. Regardless of how much you earn, if you spend more than that amount you will end up broke. Similarly, regardless of how little you earn, if you spend less than that you will end up saving some of it for retirement. (Oops, did I spill the secret?) Another learning is to start saving young when you have the power of compounding on your side.

Best of luck....

 

[Davis65]

Gregzx, this is absolutely the right time to start planning. I'm retiring in eight weeks at age 50. People of my generation are asking me for financial advice - I can't help them. People your age - I can help them. I started planning at 26, and it has worked out even better than planned.

Live below your means, save as much as you can, and invest well.

 

[Greencheese]

There's a few of us who are younger, myself being 26. Gotta start early to retire early right?

 

[spncity]

Well, if the youngsters join now, eventually there will be a section of the forum where FIRE turns into FIVER for those who VERY Early Retire!

Go for it!

 

[NW-Bound]

Youngest one here? Nah, there was a 13-year-old girl from Missoula, Montana, though she signed in with a screenname of unclemick.

Oh wait, that was more than 10 years ago. She is now perhaps 25, but still posts with a "heh heh heh" signature.

 

[wolf]

Simple advice.

Separate the needs from the wants. Examples.

1. Basic Toyta camary or fancy SUV.

2. Internet/Phone plans. Best Plan, or good plan.

3. Do repairs/maintenance yourself, rather than call plumber/electrician.

Take advantage of all 401K and IRA and Roth IRA plans.

Talk to people who "have" made it. Avoid those who are just talkers.

Enjoy life, do not go extremely frugal or over spend.

Be extremely careful when talking to Financial Advisors. Very, very, very,
difficult to find a successful one.

For average wage earner, Rental real estate, (in good location) great
investment. Provides income and appreciation when you are retired.

However, you must be able to manage and maintain (early years) the
property. Later years, the rental income allows you to hire out the work.

 

[Katiek]

Welcome, I think Scrinch is right in his description. No magic formula here to earn lots more, but some help in being sensitive about the many factors that can impact your financial well being.

 

[cyber888]

If you are earning $70K, your net after tax is probably around $50K. Spend 50% of it ($25K), and save 50% of it (the other $25K). Save $25K and in 20 years (even without growth) will be $500,000. With stock growth, you may hit $800,000 - $1,000,000, and you can retire before 50 yrs old. That's it - that's the secret. Only spend 50% of your income.

 

[gregzx]

Thanks all for all those great advice. I like to read the contents of this forums, because most all of them discuss everything that I need to know now.

I do always dream to have early retirement (not more than 45 if possible), and it will be better if I still have passive income after I am retired. And I find so many great sources here. Thanks again, folks.

 

[papadad111]

I started planning at 21 to FIRE at 45. I hit that goal.

It's one of my proudest accomplishments in my life.

Start early. Compounding power

Save half. Income AND expenses

Have a spouse that carries those same life goals..

 

[ugeauxgirl]

Gregzx, this is absolutely the right time to start planning. I'm retiring in eight weeks at age 50. People of my generation are asking me for financial advice - I can't help them. People your age - I can help them. I started planning at 26, and it has worked out even better than planned.

Live below your means, save as much as you can, and invest well.

Exactly so. I hear SO many 50 year olds say they wish someone had told them this stuff when they were in their 20's.

More people end up in financial difficulties due to their spending habits than how much money they make. I know couples who make $250K per year and can't make ends meet and couples who make what you do and are headed for early retirement. Be careful of creating expensive habits!

 

[FreeBear]

I started planning at 21 to FIRE at 45. I hit that goal.

It's one of my proudest accomplishments in my life.

Start early. Compounding power

Save half. Income AND expenses

Have a spouse that carries those same life goals..

Very wise words. I didn't get serious until my early 30's, but had a good engineering income and relatively low expenses/tastes. The biggest difference was that I fortunately married a strong saver and all-around sensible person. I FIRED at 46. It too has been one of my greatest accomplishments.

I strongly commend young folks to control expenses so that FI is possible around 50 years of age, at the latest. It gives you options, even if you never retire. Leverage...

 

[FreeBear]

Thanks all for all those great advice. I like to read the contents of this forums, because most all of them discuss everything that I need to know now.

I do always dream to have early retirement (not more than 45 if possible), and it will be better if I still have passive income after I am retired. And I find so many great sources here. Thanks again, folks.

I wish I started so early and had as many online resources when I started. Is you wife on board? It's important to be on the same page re money, not just to save but also to have the same priorities when just living your life, retired or w*rking.

FB

 

[38Chevy454]

You're definitely on the younger side of the scale, but the important part is you have realized that *now* is the time to start the process to enable early retirement. The basic formula has been stated by many: LBYM and save as much as you can as early as you can. Don't get caught up keeping up with the Jones's. Don't carry unnecessary debt. House mortgage is OK debt, but pay off soon as you can is good goal.

Not sure if I understand you question, with regard to your online work and then you infer a regular job? For the self-employed work you have some savings you can take advantage of, and for a regular job with employer you can use 401k/Roth type savings. Since you are on a 20+ year savings, you should be pretty heavy in equities to maximize long-term growth potential.

 

[pb4uski]

I suggest that you and Greencheese used a tool like Quicken Lifetime Planner to plot your financial future and, using its what-if function, see how changes in assumptions affect your results. You'll be able to see how your savings will grow to an amount necessary to support a long retirement. Once you have a plan formulated you can then use Quicken to monitor your progress.

While it is laudable that you are planning so far ahead... DO NOT be excessive about it... enjoy the here and now... just do so sensibly and frugally. I cringe when I think of an great-uncle who scrimped and saved for his retirement and IMO did not enjoy life the the extent that he should or could have and then retired and dropped dead from a heart attack about 9 months later.

 

[ShortInSeattle]

Hi!

It's great that you're starting so young. DH and I began saving at age 20/22 and we're financially independent as we're rolling up to age 40. Starting young is one of the best things you can do! Welcome.

SIS

 

[killingme]

Grats on planning ahead. Many have said it, and it's true, we may not have figured how to make a lot of money but to make the most of what we have made. The simplest method I have found comes from something my grandfather taught me when I was starting my career, always spend your last dollar first. Imagine you only had one dollar in your pocket, when all you have is that one dollar, you tend to think harder about what you spend it on. That doesn't preclude enjoying your efforts but tempering how you enjoy them.

 

[gregzx]

I wish I started so early and had as many online resources when I started. Is you wife on board? It's important to be on the same page re money, not just to save but also to have the same priorities when just living your life, retired or w*rking.

FB

She's helping me with some of my project/work. She also has the exact same idea with me, always! I always discuss this kind of things with her.

I started planning at 21 to FIRE at 45. I hit that goal.

It's one of my proudest accomplishments in my life.

Start early. Compounding power

Save half. Income AND expenses

Have a spouse that carries those same life goals..

YEah, I always think of that. From now, I definitely will save half of my income (which previously just 25% of them), and cut all of unnecessary expenses. Thank you.

Grats on planning ahead. Many have said it, and it's true, we may not have figured how to make a lot of money but to make the most of what we have made. The simplest method I have found comes from something my grandfather taught me when I was starting my career, always spend your last dollar first. Imagine you only had one dollar in your pocket, when all you have is that one dollar, you tend to think harder about what you spend it on. That doesn't preclude enjoying your efforts but tempering how you enjoy them.

Yes! Thank you for the advice!

 

[daylatedollarshort]

While it is laudable that you are planning so far ahead... DO NOT be excessive about it... enjoy the here and now... just do so sensibly and frugally. I cringe when I think of an great-uncle who scrimped and saved for his retirement and IMO did not enjoy life the the extent that he should or could have and then retired and dropped dead from a heart attack about 9 months later.

DH gets a retirement newsletter with a page that lists retirees and employees who passed away since the last newsletter. I noticed this last issue how many had died while still working or within a year or two of their retirement dates. The reality for at least some is that a golden years kind of retirement never happens, despite the best laid financial plans.

Having said that, many of the best things in life really are free. We've never regretted a live below our means kind of lifestyle in order to retire early.

 

[FreeBear]

Hi!

It's great that you're starting so young. DH and I began saving at age 20/22 and we're financially independent as we're rolling up to age 40. Starting young is one of the best things you can do! Welcome.

SIS

Wow, very impressive! So, any plans to FIRE??

 

[Beachgrl]

Hi gregxz! Fellow NY'er here. I'm a bit older than you (40) and applaud your efforts, especially living in this town and raising a child. Not easy living here period nevermind kids! We don't have children and that is helping us to be on our way to be FIRE.

I agree with pp about wants vs needs. I buy the cheapest clothes, no brands, never get manicures, $20 haircut, no Starbucks coffee etc. I don't need any of those things. We do enjoy eating out often and that's our luxury, but I also make tons of food in the crock pot which ultimately comes out to a few bucks a meal and lasts us quite a few meals. I enjoy looking at our bank accounts grow and dream of leaving NYC in about 5 years time.

 

[Terryjm51]

Excellent glad your here


Sent from my iPhone using Early Retirement Forum

 

[Taxman59]

DW wasn't sure that I was really making much money because we always seemed to be tight for $$. What she didn't see was max 401K, max HSA, max IRA for both of us and she saw the $1500 per month to savings! When I was showing her how I could retire last year, she saw the 401K and IRA contributions and asked why we couldn't spend about $10k more per year on vacations. I explained that that would have meant $10k per year less in the retirement funds and a $10k HIGHER annual spending rate. for a 35-40 retirement, that $10k additional spending would mean an additional $300K-$400k of savings, but annually saving $10k less! Keep the spending under control and the savings will take care of themselves over time.

 

[Options]

Exactly so. I hear SO many 50 year olds say they wish someone had told them this stuff when they were in their 20's.

More people end up in financial difficulties due to their spending habits than how much money they make. I know couples who make $250K per year and can't make ends meet and couples who make what you do and are headed for early retirement. Be careful of creating expensive habits!

+1

Bad habits are easy to start but hard to live with; good habits are hard to start but easy to live with. Brilliant that you're starting at such an early age. Your older self will thank you for each and every constructive action you take towards your future today.

Delayed gratification has been linked to success in every area of life. I was just discussing this with a friend yesterday the concept of older people (in their 40's/50's/60's) who are what I referred to as "washed up". I was talking about how they had spent their lifetime of potential/possibility by living in the now when they were younger, thereby reducing their quality of life as they got older. What they had actually done was "spend" their future in their younger years. You, OTOH, have a bright future ahead of you.