What started you on the road to FI ?

[martyp]

I never really thought about FI during my working life or if I did then I told myself it would be after I paid my mortgage. One financial rule my DW and I shared is that we would never take money out of the house unless we put it back into the house. We also never borrowed money for anything but car purchases. It just all worked out for the best. Lucky me . . .

 

[deserat]

After deciding to leave the AF after 4 years to go to graduate school, I wanted to be able to pay for my first year's tuition at Johns Hopkin's cash (if I got accepted there). Tuition back then (just tuition - no books, room or board) was $24 K per year. My then husband and I were able to save that much, pay off our cars and fund retirements accounts in one year - I loved reading the Tightwad Gazette books then. I slid for awhile after going to graduate school, but then read the Terhorst book, Your Money or Your life, and several others. By LBYM, investing and really looking at whether you value the amount of money you spend on something (the principle in Your Money or Your Life), I have managed to be in a position in my 40's where I can do pretty much what I want, when I want to. The discussions with my now husband (thrifty guy who grew up early in communist Poland and made his own toys, had a garden, etc, to live) are about what we want to do and not so much if we can do it. The if we can do it is usually based on scheduling and not lack of monetary resources.

It's been close to 20 years now, but I've managed to have some wonderful experiences maximizing what I value and now can dictate my time as well.

 

[martyb]

I guess back in the late 70's when I made the semi-conscious choice to first enlist in the military, and then in the early 80's to stick with both a federal civilian career with a COLA'd defined benefit pension at age 55, plus a simultaneous military career in the Air Force reserves, that promised another COLA'd retirement commencing at age 60. I don't think I was any kind of genius, as much as I simply had an aversion to working all my entire life. I knew I did want to be able to retire at a relatively early age, although 55's not exactly a spring chicken. It is, however MUCH earlier than my parents retired. My dad never did fully retire. He owned a barber shop and maintained his business until the day he fell in the living room, went to the hospital, and never came home again, at age 78. My mom, who is still alive, and very healthy at age 82, worked into her 70's. I have always known I wanted to be free of work long before I got too old to get around the way I want to. I want to be able to really, really enjoy life for as long as possible, and that meant I had to check out as early as I reasonably could from the world of employment. As far as getting my brain around saving, that bulb really lit in a big way after I found this site.

 

[ohyes]

Years ago, when I was 26, a Travelers salesman talked me into starting a 403b. Think i started with $50/month. Over the years I added $10/month here and there.

Last fall my DH came home one day from work and announced that it was his last year of teaching. End of discussion. I was shocked. He was a born-to-be-teacher.

The more I thought about it, the more fun it sounded. So, I started figuring on paper every chance I got....had to fight myself not to do that during church. Always came up with pretty close to the same bottom line #'s. We can do this.
He is loving it. While I wish we had saved more/planned more, we can make it work. If somebody told me tomorrow that i have to work one.more.year.....even if it meant another $100,000 in our account.....don't see any possible way I could do that.

 

[Chelhxi]

I was always frugal and I started thinking about retirement about the same time I got my first real job at 21 years. FI became a real possibility when I married an equally frugal person in 2008. We should be done working around 50-55 years old, if we want to be.

 

[Meadbh]

As far as I am concerned, there's more to life than work and I don't want to be too old or too jaded by corporate life to enjoy the simple life that ER offers. I just know that I had to get the finances, satisfy some self-achievement in my career, work with DH on this and I did make good on my decision to ER when the time was ripe.

This was an influence on me too. My dad retired at 62 with a good pension shortly after I entered the workforce. He had the inclination and the wherewithal to get out early. I have worked very hard in my career and have achieved much more than I originally thought I would, but I don't want to be a slave to it for money's sake.

Great thread, BTW. Wonderful stories, such diverse experience!

 

[Mill]

My motivation stemmed from the love of money.

Having trouble finding what one would term a "good job" a few years out of college wasnt much of a deterrant because I was being paid to stay up all night doing some easy customer service in a resort, with my down time spent watching late night infomercials in the lounge. (Worked out great because before I was doing exactly that at home, only not getting paid!)Naturally LBYM was essential to mere survival. But I got good at it. I loved paydays because thats when my bank account looked the best. I really didnt like spending down my checking account during the week, even on necessities. And I loved being able to keep some of my paycheck, thinking how much I will have when my next paycheck is cashed! Great memories thinking, every Friday, this is the richest I have ever been in my life! It was only a 4 digit bank account, but it meant so much to me.

Then I made a lot of mistakes with penny stocks, get rich quick schemes, and loan sharking.

Started a new, higher paying job, with a 401(k) match, bought an I-Bond, and realized for the first time in my life, I have no idea (off the top of my head) how much money I have. So I started tracking all of my assets on a spreadsheet, and discovered what net worth means.

6 years later

I discovered these boards, adopted Bogleheadism, and developed a real despise for selling my time for money. Ive decided that I value my time not spent at work more than the thought of working just to become rich. I dont want to be rich anymore. I just want to be retired.

So now I have to keep playing the savings game for awhile. Efficiency says that in order to maximize my free time, I have to work now, and let the nw grow, until eventual FIRE. Then I can be lazy, and do whatever I want, all the time! I cant wait.

 

[MooreBonds]

Naturally am ultra LBYM (actually, more of an economist always seeking to minimize/maximize most aspects of my life, fiscal or otherwise), in spite of an environment growing up where my parents were blessed with more than enough but also followed a LBYM lifestyle.

The first dawning of ER came when I stumbled upon this forum in my late 20s - before then, I just 'assumed' that I'd have to work until my 60s like seemingly everyone else. Before, I had spreadsheets forecasting what I'd need at which years for various cost categories, but being 40+ years down the road, they were only giant SWAGs. However, this forum helped me realize that millions of those who fail to plan are able to make it on so much less....and most of those who do plan adequately are able to enjoy retirement on much less as well, and that my estimates may have been substantially pessimistic (although I often prepare for the worst in most scenarios).

I didn't truly yearn for ER until during the darkest period of my life, working for a family construction company on a mega contract for a new sports facility. For many months, not a day passed where I didn't have to talk myself out of walking out the office door at the jobsite and never return. However, the profitability estimates were running far beyond what we ever dreamed for, and the only thing that kept me walking through the door in the morning was the realization that a decent bonus would put me ohhh so much farther along the road to ER, where I could do whatever I wanted.

The portfolio's behavior over the past 3 years has stalled that a bit, but a well timed career change has greatly improved my mental health, and I'm perfectly fine with working for several more years at a much less stressful (yet enjoyable) career to pad the portfolio and let it simmer - and hopefully find the future Mrs. Bonds and Junior Subordinate Bonds to also add to the portfolio .

 

[chris2008]

DH any me have always been LBYMers and I had worked in a bank before studying law.
But then I picked up the book "Your money, your life" during a trip to the US and suddenly all the different pieces fell into place.
My dad had to retire unvoluntarily at 58 and, though financially ok, suffered from it till his last day. I swore to myself that I will never be so emotionally dependent on any job and would save enough to welcome such scenario if it ever happened to me.

 

[obgyn65]

I was going to say the same. Learning from other people's perspectives and experiences is the main reason why I keep coming back to this website.

Great thread, BTW. Wonderful stories, such diverse experience!

 

[Ronstar]

1. Learned LBYM from my parents and grandparents
2. Cut grass, worked at a bait shop and library through high school
3. Started working 55+ hour weeks at 18, eventually becoming part owner
4. Maxing 401k every year
5. Built our 1st house,sold for profit that I used to build 2nd house, and then paid off mtge

 

[52andout]

Our story is a little different.

DH fell into a really good paying job and luckily he from the start saved in a 401K. I didn't see the need but humored him. We had lots of toys, sail and motor boat, five motorcycles, four cars, and two teenagers when two dear friends of ours died of Cancer a few months apart. We started to really question what we were doing and made a complete turn around in our spending and saving.
Divested ourselves of most of our stuff, started cultivating relationships and experiences and paid off all our debt. I was working as well and we put every penny towards debt paydown and savings. Helped the kids get through University as much as we could and they graduated, got good jobs, married nice hardworking spouses. Lucky for us we had a nice base in the 401 the years the stock market was wildly going up.
DH had a chance to get out with medical at 55 and he jumped at the chance. I had already cut down to part time. He had been having some medical problems and we wanted to enjoy life. Which we do. The biggest pleasure for us is we are able to help so many other people. One DIL is raising money for a charity Triathalon and I have lots of time to help her. I have custom made all the drapes and quilts for the grandkids and with a phone call I can be in the car on the way to help out when they need me. We are able to help our one surviving parent whenever she needs us. We help our neighbors and friends in time of need. We get lots of thank you dinners and help when we need it. And I spend lots of time helping the library fundraising.

So we are incredibly lucky to be here, and very appreciative of our circumstances. Along the way, the one DIL who came from a family that spends every last penny and borrows more has told us we are her role models. She has learned to be debt free, save in a 401 and have an emergency fund. She has influenced her mom who never thought she could retire at 65 even, now she is thinking she might make it before 65. Life is good when money is not a stressor. We have far less than many people but a wonderful life filled with wonderful people.

 

[ratto]

I was motivated by Zhuangzi's saying: "Happiness is the absence of the striving for happiness.". The sooner I reach that stage, the better.

 

[donheff]

Along the way, the one DIL who came from a family that spends every last penny and borrows more has told us we are her role models.

+1 Our DiL says the same thing and we have heard it from a lot of our kids' friends. They see DW and me enjoying life while their parents and other acquaintances our age complain about the impossibility of retirement. That leads a few to re-think their assumptions.

 

[GetNclose]

First my dad died 3 weeks after I graduated from high school. Last thing I wanted was to work like a dog and then die without having time to enjoy the fruits of my labor.

2nd in my first year after graduating from college one of my close friends told me about a meeting with a financial planner that his father in law (a banker) set up for him. He told me the financial planner showed him how investing a few $k's per year starting now would make allow him to retire as a millionare. I had never heard anthing like that before and suddenly I realized there was an area of financial management knowledge that was out there and valuable. I set off to read everything I could on the topic. 26 years later of LBYM and voila....

 

[Midpack]

I was motivated by Zhuangzi's saying: "Happiness is the absence of the striving for happiness."

+1. I'm working on it too, but it doesn't seem to be encouraged in mainstream Western culture...

 

[tightasadrum]

I've pondered this subject myself. Here's what I've come up with.

Both mom and dad grew up on farms during the depression. Money was a serious thing for them. Must have beat it into my head.

My dad worked me very hard growing up. Therefore working became second nature for me. To not be working seems weird even to this day.

When I was about eight I misplaced my piano lesson money browsing the music outside the store where I took lessons. This led to the worst whipping
I ever got... For losing $5.00! But it sure taught me the value money.

After seeing how quickly a 401K fund could grow in a few years, I increased contributions threefold. When a good raise came along, I just rolled it into additional contributions. I'm still watching grow, most of the time.

I married a women who was smart and almost as careful with money as me. (I view this one as critically important to FI.)

Started buying rental properties during the sixth year of marriage. Dad always said to never depend on always having a good job. It could end without warning, and it did. I've seen this happen so many times to so many people. But when it happens after 55, it can really be tough.

All of this resulted in a define benefit pension, rental income, investments and SS eventually when I elect to start it.

Read many books on investing. (I saw myself in The Millionaire Next Door.) We lived below our income, and ignored the lifestyle of friends and neighbors. Didn't take enough family vacations though . Didn't really set particular goals. One day it just seemed to all work out after over thirty years of trying.

I certainly didn't do everything right, but I did enough. I'm still married to a great lady, and have one brilliant DD who has my frugal ways. It's worked out well so far.

 

[NYEXPAT]

In 1962 (I was 9) my father took me to my first drive in movie (Dr. No), I was already enthralled with the collectors edition (Gilt edged Bonds) my father had and had decided that was the lifestyle for me! In 1964, I fell in love with the DB4 from (Goldfinger) and it was 20 years later before I had my own. Beautiful young women and fast cars, was always what motivated me to succeed! Nowadays, I have a beautiful young (family), could care less about money and do not own a car!

 

[citrine]

I have the two extremes in my family...my father lives below his means and mother loves to spend money. I grew up promising myself that I would always make enough to take care of myself and would never depend on a man to do so. I started investing at age 20 and really started getting into the LBYM by the age of 25.
Currently, my mother is annoyed that I took half of my wedding money to buy and renovate a house rather than spend it on a lavish wedding. I plan on using the other half to sock away in funds and go to the Justice of the Peace!

 

[travelover]

Things were tough for me growing up. I was born at an early age. I wasn't good looking. At birth, the doc looked at me and slapped my mother. We had no toys. Only the boys in the family had anything to play with. The dog got nervous every year at Thanksgiving.

 

[REWahoo]

You think you had it tough growing up...

The Jerk (1979) Trailer - YouTube

 

[pb4uski]

I was motivated by Zhuangzi's saying: "Happiness is the absence of the striving for happiness.". The sooner I reach that stage, the better.

That sort of reminds me of a saying I used to like - "Patience is the art of concealing your impatience"

 

[Bluwtrguy]

Back in the late 1980's, a mentor gave me a copy of a book titled "The Wealthy Barber". The book was a great story of a modest income-earning barber who used and explained the concepts of LBYM, pay yourself first, invest in low-fee index funds, dollar-cost averaging, asset allocation, compounding, etc. Although I had heard of these concepts previously, it all clicked when I read the book. I have been a consistently simple hands-off investor for the past 20 plus years.

 

[Dog]

Grew up in a family where my parents constantly argued about money. So I've always been concerned with "security" (works for me and against me). Started a FT job right out of high school and practice LBYM without knowing it. Thankfully it was a good company with benefits (hell - what did I know at 18?). Later, I had a supervisor that explained the "new" 401k to me when I was 24. I started paying attention to the annual benefit statements sent to me about the same time - and it clicked. Earned my BS while working (tuition reimbursement from work) and moved up into better paying positions. Read lots of books - leveraged an early retirement in 2003 (with extra perks) and then went right to work for another company. Was blessed that I married a solid man that has the same goals. We both plan to pull the trigger in May 2016 (we will be 58).

 

[SpencerM]

I was born thrifty, and married similar.

Very helpful, I agree!

First, I never desired to spend my life only seeking financial goals - just didn't interest me.

Second, I decided early never to depend on anyone else for my support. Especially not the government (SS, or the like). My folks taught me that by living in America I was given a unique opportunity not to need that, if I worked hard, saved and made good financial decisions.

Third, calculating early on that automating everything concerning savings, mortgage payment calculated to pay off by a certain date, etc. and not thinking much about the deductions, was the best way to go.

Lastly, when I hit my 40's and actually started thinking that someday I could be retired, I learned much from seeing needless excesses of my neighbors.

I think that much trouble in the near future will be from those who did none of the above and are now looking for a government bailout of something that is each of our own responsibility. 'Lets tax everyone else (the rich) more now so the government can give me money since I didn't look after myself..' Sound familiar?

SM